\\

Tuesday, Novemb^ 28, 1967

Failure^ In Practical Application

Obviously the federal program designed to

needs revamp-

tor whlcl

age of its youngsters from those families in order to receive aid under the program.

County, by way of example, 68

per cent of the sfiicle^ families with less than $2,000 annual income. Under

ing if it is to do the jo

Recent criticism of the program by Dr. Charles Car*

roll. North Carolina superintendent of public in- ^ , , . , , , +v.a

Btruction, shoulAot fall on deaf ears in Washing- the federal requirements^ atjeast^6^^^^^

ton or in Raleigh.

Dr. Carroll pointed out in a recent interview

that 40 per cent of the states impoverished children are not eligible to participate in the programs under their existing requirements. In wealthy counties where school needs usually are best met, a very low per centage of youngsters in a school must be from impoverished families in order for the school to participate in the program. In poorer counties where a higher percentage of youngsters are from

students in any school must be from impoverished families before the school can participate in the federal aid program. In Cumberland County, by contrast, only 18 per cent of the students are from impoverished families and a school may receive aid under the federal program if as many as 18 per cent of its enrollees are from families with less than $2,000 annual income.

On a state-wide basis the result is that in areas where the federal aid is most urgently needed more

poor families, the school must have a higher percent- youngsters are being deprived of it because schools

cannot meet the percentage requirements. In weal-thier counties, where average incomes are higher

N. C. Financial

I

3ase Broadenea

By WILLIAM A. SHIRES Reflector Raleigh Bureau RALEIGH - During the past few decades, especially since the depression-economic recovery days of the 1930s, many changes have been taking place in North Carolina and its way of life Some changes, such as road-building, school construction, city growth, industrial development and the like, are evident to anyone.

But there are other things ranging from money in the banks to laws on the books in the background of stri k i n g growth and change which, to a large extent, have propelled and enabled progress and an escalating economy. Some views on this point are expressed by State Treasurer Edwin Gill.

A

WrXlAM

SHIRES

Says Gill, North Carolina today has the financial strenth to underwrite almost any industrial project.

Cite Figures

Gills remarks tracing some basic underlying factors of economic and industrial change and growth were contained in a report to the recent governors conference on economic development.

Twenty years ago, he said, the total assets of the sUtes domestic insurance companies were less than $400 milhon and today are almost $2 billion. Total assets of state and national banks in North Carolina in 1946 was about $2 billion and today near $6 billion.

GlU, also chairman of the State Banking Commission, points out that while North Carolina is largely a state of small cities and towns, its branch banking laws first enacted In 1904 have enabled growth of financial institutions.

In a number of North Carolina cities with a population of 25,000 or less, he says, there are institutions whose combined lending limit to one bor

rower could well exceed $15 million.

Base Is Broadened North Carolina, Gill says, has broadened the base of its economy by public law, projects and special programs \o allow for greater financial stability and strength, inducement and initiative.

There are 232 privately financed development agencies in the state which Gill described as a powerful grass roots movement in support of the economic development of the state.

He cited the state - sponsored but privately financed Business Development Corp. which in 12 years has approved 274 loans totaling $43 million. This capital, he said, has had a tremendous impact on our state.

It has created over 25,000 new jobs with current payrolls of over $200 million. It is estiriiated that over 16,000 farmers will sell a total volume of farm products of $60 million to one or more of the enterprises for which such loans have been approved. Story Never Told Gill feels the whole story of economic development in North Carolina has never been completely told. He referred to an example or two.

One was the founding of Ecusta Paper Co. at Brevard which began turning out fine cigarette papers prior to the outbreak of World War II and which allowed the U. S. tobacco industry to go on uninterrupted when the supply of cigarette paper from foreign sources was cut off.

Another he mentioned was the establishing of the Research Triangle, now earning more than $4 million a year in gross receipts by virtue of its research contracts.

Changes in the overall industrial and economic development base are continuing. Gill mentioned industrial aid bond financing which, while controversial, was authorized by the 1967 General Assembly purely as defensive measure against sharp competition.

and school funds are more plentiful, the federal aid funds are more readily available because of the lower requirements with respect to the percentage of enrollees from impoverished families.

On paper and in theoir, the percentage requirements set up for participation in this federal aid to education program may appear reasonable. In practical application, however, the experience of . North Carolina shows the requirements to be unrealistic. They prevent the funds from being used in a manner which would reach the greatest number of impoverished children in areas where educational needs are the most pressing.

Y uletide

Tree

Has Monotony

By JAMES MARLOW

WASHINGTON (AP) - Besides the packages of trouble Stacked under the tree, the tree itself is trimmed with monotony. So this will not be President Johnsons happiest Christmas.

For a while, after it became clear American forces in Vietnam were going to have to stay quite a while, there was a bustle and fervor about the criticism dumped on Johnson.

It came from all directions, including Congress, in the form of denunciation of American involvement or a variety of proposed solutions, although only Johnson, not the critics, would have the task of applying the solutions.

Neither Johnson nor those around him have been any match, in the multitude nf their answers, for the vaster multitude of criticisms.

Vice President Hubert H. Humphrey, probably more than anyone in the administration, has talked the most in defense of the administration and the war. But now he sounds like a broken record. So do the critics.

Its the same thing over and over on both sides.

Just before Thanksgiving, Gen. William C. Westmoreland, U.S. commander in Vietnam, visited Johnson here and went around spreading optimism. But it wont help Johnsons Christmas much.

He was predicting the beginning of a U. S. withdrawal from Vietnam in two years.

But by then the 1968 presidential election will be long over and its the election John-has to begin worrying

son

about now, in addition to the war.

Its easy to say Johnson has it made anyway, that the Dem-

By james KILPATRICK

ing Johnson run again.

;nding

By ROWLAND EVANS an( ROBERT NOVAK

WASHINGTON - For the umpteenth time, a maj ^ r change in the all - imporiant pacification program in South

ic in tha Wi'irk.S.

I

Vi eatherbird -Everybody About Me, But Nobody Doei Anytbing for Me

can -r' -T-

hardly deny renomination to a LJ IT T \

president. But it has happened X VV X N

l o Leaisiate

before.

At the moment public opinion polls show public confidence in him at an all-time low. Worse than that, from his viewpoint, its hard to see how he can increase that confidence unless the war takes an unexpectedly good turn.

Sunday in the New York Sunday Times there was a two-page ad, both pages packed with the names of men and women, paid for by an organization calling itself Dessenting Democrats working to deny Johnson renomination in 1968.

As of now he doesnt know how much opposition he is going to have within the party. So far only Sen. Eugene McCarthy of Minnesota has indicated he may run for the nomination.

McCarthy may not be a major stumbling block for Johnson. Although he is called an intellectualhe is a former teacher McCarthy does not (Continued on Page 5)

Just before it recessed for Thanksgiving, the United States Senate put on a spectacular demonstration of how not to legislate wisely. With only the most cursory debate, in the midst of such confusion that speakers barely could be heard, the Senate voted 43-37 to approve Russell Longs proposal for a price - fixing formulary committee.

The propo.saI came in t h e form of an amendment to the pending Social Security Act. As such, it now goes into House - Senate conference. Once can only hope that the conferees will take along slow look at the Long amendment, and then toss it on the junkheap.

If the Senators scheme actually would accomplish what he supposes it would accomplish, not a word of opposi

tion would be heard. Longs purpose is to reduce the governments drug costs without adversely affecting the millions of patients who benefit from Federally aided programs. It is a laudable purpose. Long says his plan would save $1(X) million a year. If this were true, it would be a significant saving.

If Longs proposal had been carefully Studied in committee, if it had been presented to the Senate with an opportunity for full analysis and sober debate, one could accept the Senates judgment even if the judgment seemed to be wrong. ]

But none of these things was true of the Long amendment.

Back in August, the Senator introduced the first of his formulary committee bills as S. 2299. It was a breath-tak-

industrial of water, skilled labor and a favorable climate for industry which includes improvement and upgrading of public services, educational opportunities and a conducive tax structure.

This Date--40 Years

Public Foruipii

He cited things other than Qpr dustrial finaircing supply ti X

Today Ago Today

For

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f

By EARL L. DOUGLAS UNWISE PROCEDURE

Soil For Sale.

This is a dismal announcement. Somebody wants to sell the soil off his land, but by so doing he is making his land practically worthless. For the sake of ready money he is destroying the land from which there is some hope at least of his getting a return.

People sometimes do this very thing in other aspects of life.

For the sake of an end immediately to be gained they give up something that has permanent value. They give in to passion and pay for it over long years. They give in to the desire for money and perhaps bring themselves to prosecution. 'Diey get revenge on someone, but they hurt themselves more thp the person they aimed to injure. .

Land is good only if it is covered with good rich soil. When that soil is removed, there is practically no growing power to the hard clay beneath. The person who sells his soil sells is future. When he makes perhaps a few hundred dollars by sale of soil, he is through.

Strange, is it not, hov avid we are for quick resuits. We want the things that we want right away. That we destroy much moie precious things in our impetuous desires never seems to occur to us. We plune ahead.

There is a leisureli n s s about life if we will only stop to observe it. Most good things in life take a long time to work out. Crops do not come fast, and they need soil.

By FOY H. DUNCAN Nov. 28, 1927 To Recommend Reduction Of Income Taxes Washington, Nov. 28 By a strickly party vote the House Ways and Means committee agreed today to recommend that the proposed redilic-tion of the tax on corporations incomes be made effective on tax payments due next month. . . .

Price Situation Stronger Today On Local Market

After observing the Thanksgiving holidays, the Greenville tobacco mlarket reopened this morning with light sales. It was estimated that there was about 400,000 pounds of tobacco on the various warehouse floors. . . .

To The Editor:

Thad Eure, not only, continues to brag about being t h e oldest rat in the Democratic Barn, but now he states the Republicans are only bluwiiig tiny bubbles in the air.

Let me suggest that Thad take a good, long look at the results of two polls recently conducted by Television Station WNCT, Channel 9, Greenville, N. C. These polls covered a viewing area from the Capitol to the Coast and thousands of viewers called in their vote from all over Eastern North Carolina.

The first poll asked the viewers If you were voting tonight would you vote for Lyndon Johnson for President? early 88 percent stated they would not vote for Lyndon Johnson. The next poll is the one that will really shake Thad up. This one asked the viewers If Congressman James Gardner were a can

didate for Governor tonight would you vote for him? Out of the thousands that called in, the result was 78.7 percent yes, they would vote for James Gardner and only 21.3 percent stated they would not.

Remember Thad, this is the same Eastern North Carolina that has always given you the majority needed to elect your Democratic slate officially. Without this big majority from the East you can not win and you know it!

Thad stated during the First District Congressional Campaign last year, that there was something wrong, when John East, a Republican, got 40 percent of the vote. He was never more right in his life. There has been somet h i n g wrong in Eastern North Carolina for a long time. One of the worst things wrong, is that Thad and a lot of others have been in the Barn too long.

Bill Carroll Greenville, N. C.

ing bill. Long was proposing that a committee be created, within the Department of Health, Education and Welfare, that would have absolute powers to say what drugs cold be prescribed for use in government programs. The bill would have had a drastic impact upon the practice of medicine throughout the United States.

It swiftly became apparent that Long did not have the votes to get S. 2299 out of the Finance Committee. Welfare Secretary Gardner oppos e d the bill. So did Dr. James Goddard, head of the Food and Drug Administration. Spokesmen for the drug industry, when they finally were able to make themselves heard, testified convincingly to the unwisdom of creating the stifling new bureaucracy that Long had in mind. The Senator subsided.

He waited until Monday, November 20, when the Social Security Act was before the Senate. Then he introduced his 21-page amendment. On the following day, before its immensely complicated provisions could be analyzed, he called up the amendment for a vote. Thirty minutes on each side. The chamber was jammed with so many staff assistants and hangers on that the sergeant at arms twice had to be ordered to clear the floor. Bob Griffin, who was presiding, banged repeatedly for order.

About all that Long said of the amendment was that it relates to drugs. He said it would save $100 million a year, by requiring under State plans for medicaid, that payments be made, wherever possible, on a basis of generic drugs rather than brand-name drugs. Putting on his country-boy act, Long pretended not even to be able to pronounce the generic names. Opponents of the amendment Curtis, (Continued On Page 5)

Vietnam is now in the works, but it may turn out to be in the most realistic approach yet taken to end Communist control in the village.5.

True, U. S. experts in the other war have reiooled their program more times in the past eight years than anybody in the Johnson ad.mhvs--tration cares to recall. Each change is hailed, then Jails or falls far short. What make.^ it^ so vital is that, even if the military war goes splendidly, a solution of the Vietnam question depends upon pacification.

This latest change may be different. It goes to the heart of what has been wrong with the effort to establish a system of political control r.nd security for hamlets n n d t r long term Communist control. At present, a hamlet declared pacified by over-optimis-I tic officials all too often turns out not to be pacified at all. When the Black Pajama pacification team leaves, the pacified hamlet returns to Communist control.

Under the new plan, discussed at great length in the White House during Ambassador Ellsworth Bunker's visit here, pacification teams will be permanently assigned to * hamlet, instead of moving in for two or three months and then moving on.

This requires a major change in recruitment of thi Black Pajama teams, greatly expanding their numbers by tapping the manpower pool of Vietnamese inducted for paramilitary service. Up to now. recruitment has been limited to volunteers, who spend s* veral months at pacification training centers. Only about 600 of the 59-man Revolutionary Development teams havt been trained and sent to tht field so far ~ pitifully small when compared with the 6,000 to 7,000 hamlets under some degree of Communist control.

Now, however, the padfict-tion teams will be manned by members of ttie Popular and Regional Forces, military irregulars mobilized as a boma guard for village and hamlet defense and taken from thi Vietnamese draft. Up to now, these irregulars have been the underprivileged stepchild o', the regular South Vietnamese army. Now they will be given new status by being drawn into the pacification effort.

What makes this switch possible is the fact that General Nguyen Thang, the arniyf strongest force for pacification and one of the best of the Saigon generals, is now the Vice chief of the arniys joint general staff. Tliis gives him powerful leverage to force the army to provide more resources to tnc irregulars. Moreover, the bulk of the planned increase of 65,000 in the size of the South Vietnamese military structure for next year will be in the irregular forces, most of whom will now be assigned directly to pacification.

Thus, in prospect over the next 12 months is a vast expansion of pacification teams.

One feature of the plan assigning the new teams to their own homes is a read-ical departure from the old system Whether the new works only time can tell. The irregulars have been neglected so long that their morale is low, which contributes to their high desertion rate. Moreover, up to now they have been the special target of Communist infiltration.

Mr. and Mrs. Walter Jones have returned from Roxboro, where they spent Thanksgiving with Mr. Jones parents. They were accompanied home by Mrs. Arch Jones and son*

Tom Andrews of Bethel was here today.

Little Jamie Merritt has returned from Roxboro, where she spent the Thanksgivi n g holidays.

Henry Clay Edwards has returned to Wake Forest to resume his studies, after spending the holidays with his parents, Mr. and Mrs. H. C. Edwards.

Devaluation May Spur Tourism

Do your Christmas shopping early!

With the Yule - Tide season less than a month off, business men in all sections of the country are beginning to urge the public to shop before the holiday rush begins. . . .

(From ABOUT TOWN)

By ELMER ROESSNER

The devaluation of the pound may trigger a tourist bootn abroad, a boom so big that it will make the American gold drain even more critical.

Travel in sterling areas has already become about 14 per cent cheaper. The activity of travel agents last week in writing, phoning and cabling to resorts and other travel facilities in sterling block afeas was second only to that of Americans phoning and visiting their brokers. The question in both cases was the same: How will this affect us?

Of course, transportation on American ships and planes will still have to be paid for in U. S. dollars. However, American lines carrying passengers to sterling-area ports will quickly ask permission to cut their fares tq meet com

petition.

Where Dollar Goes Further

In addition to Britain, these countries have, at his writing, devalued: Denmark, Ireland, Israel, Nepal, Spain, Hong Kong, Malta, Bermuda and other British possessions Au.s-tralia and Canada have announced that they will not devalue, and New Zealand has not yet announced.

The immediate effects of bargain travel, however will be limited. Britain is at its clammiest right now, and theres not much skiing or other winter sports. And tour-, ist accomodations to and in the West Indies and Mediterranean areas are pretty much sold out.

There are some hotel and rooming - house accomodations still available, and airline seats are reasonably plentiful, but most of the better hotels and almost all of tlie

cruise ships are booked solid. Outflow Of Gold The present gold I supply held by the U. S. is $12.9 billion which is $400 million less than a year ago. It was $22 billion in 1940.

1

ROESSNER

Travel is one of the biggest drains. Money spent in the United States for transportation is no drain, but the dollars spent abroad eventually are turned into central banks which can and do get gold in exhange. 1

American travel spending abroad has always been greater than foreigners spending in the U. S., and the difference pipes away that much gold.

If the cheaper prices abroad, in terms of U. S. dollars, put boom on top of boom in the travel business, the outflow will be that much greater. Furthermore, the devaluation of sterling - area currencies makes travel in the U. S. 14 per cent more expensive for pwple in those areas. Many will cancel plans to visit us, and those who do will have less money to spend.

This will increase the difference between the out^ow and inflow, and thereby swell the gold (irain.

Dont be surprised if the administration renews its proposal for a tax on people going abroad, to discourage foreign travel and so skim off some of the spending overseasj