Monday, July 23, 1962 *

Equal To Industry-Hunting Chores

The broad scope of the Pitt County Develop* easy one. That is to imply, there is more than one -ment Commissions course to include a closer look fcu*m of the tobacco habit. To the farmers who at agricultural diversification possibilities presents manage Pitts 26,000-acre crop, tobacco is a sure a project whose current dimensions and potential Wi to bring a return year aftor year. Other, more economic impact loom little shy of tremendous, j>erishable crops may not be viewed by farmers in

Commission Chairman Leonard Bloxams asser- same light, lion at last weeks Commission meeting that the among the problems facing an ef-

tax-supported industry-hunters are verv interest- effecti\ely diversify the county s farming

ed in developing and dh^ersifying Pitt\ agricuL ''Ifis the development of an arrangement tural economy ser\-es here as a brief sunimarv of farmere will be absolutely convinced and

the Commissions attitude. , ' assured of profitable enterprise in producing other

A program which would help Pitt growers t i establish a well-balanced agricultural program, taking advantage of the wide variety of cash crops d*-clared suitable to Pitts climate and growing season, would ease the fears of those who profe.ss diseonr fort in the'substantial but sole support of the farm iconomy by tobacco. Such a program, if successful, would add helpful props and stabilizers to the agricultural economy of the county and of the general area.

But the task of establishing truck-crop farming in Pitt on a paying basis is not to be viewed as ar

3rief Review O::

Wachovias Bic.

Never Better Than Half-Safe

By WILLIAM A. SHIRES DENY A combination of old and new characterl2ed tbe hearing in Raleigh by the State Banking Commission (m the ap-plicatiiHi of Wachovia Bank and Trust Co. to go into Hickory.

The dedsiffl) to deny Wachovias applicatim, and action interpreted widely as an action drawing a line to protect local, tKonetown banks, was something new.

So was the Intoisity of the atruggle. In contrast to the ab-smce of opposition a few months ago when another banking giant. First Citizens Bank and Trust Co., was aw>roved for Hickory.

Denial of Wachovias application after the 2^ hour presen-tati(xi8 came cm tbe motion of a man whose mind already was made up, who was not swayed by tbe arguments, and whose formal statement was written four days prior to the hearing.

This was Charles B. Johnson, former state treasurer and former chairman of the Banking Commission for 17 years, and tbe man who made the motion a few mcmths ago to approve the First Citizens application at Hickory.

TEST Johnson said he had read the record, had heard the arguments in the Wachovia mat-_ter and said he did not feel it w5lS a fight between big banks.

He reciognized the value of both large banks and small banks, and defined the issue as finding the place for both, to afford swne pnHection to small, home-owned banks.

Banking services can reach a saturation point in a given place, he said.

As I see it, this is a test case. As I see it we are going set a precedent here today. Speakere cm both sides had recognized the trend toward bigger, ever-growing banking In-stitutlcms in evidence in North Carolina for a number of years.

Wachovia president John F. Watlingtcm Jr., In his presen-taticm, said that in order to be fair, we are perfectly willing to agree that if this application oi ours is approved we will not make any addificm applications of this type until after the legislature has met next year and has had an opportunity to act or not act upon this important subject.

STUDY There was agreement In general on the need for study and possibly new legislation to equip the State Banking Commission with more discretion in protecting the public Interest. 'Dils study was approved at the conclusion of the hearhig. following a formal request filed by spokesmen for 35 or 40 smaller, indep^dent banks.

Gov. Terry Sanford, the next day, called this a very \^1se decision.

The governor too e.xpressed feeling that there is a pdace for both big and little" banking and that the situations may vary according to locale and ccmditions.

fjOCALE - The locale in this se, the city of Hickory and the Hickory area, was referred to as the ripe plum7 and the battleground chosen by two giant bank insfituticms.

There was general agreement that no one could gauge the effect of one or even two new banking institutions upon established banks in Hickory, but there were definite fears about the effect of two entering the. area simultaneously. The timing of Wachovias application appeared a chief point at issue.

OppOTients of the Wachovia application drew the line at two new big banks.

Walker the First awba County, said his bank w^ould be caught in the middle between two giants. We must fight or be crushed. Wachovia first attempted to merge with First Naticoial, then decided on asking for approval of a branch in Hickory. Geit-ner said Watlington asked his reaction and what he would do.

I told him we would fight. Geitner said. That, gentlemen, is why we are here today.

COMPARABLE When Wachovia presented its economic studies, charts and comparisons of situations in other cities and pointed out the bui^eoning growth of Hickory and Catawba County, its projected gains in Industry, population and wealth, the opponents pointed to other factors.

Catawbas industry mostly is small, locally owned and managed and grew locally.

Hickory, the opponents said, is a comparatively young city and its growth is centered on the small companies which started from scratch and worked up. The local banks, they said helped and encouraged this.

John A. Forlines Jr., president of the Bank of Granite at Granite Palls, said this: Regardless of how Wachovia attempts to compare Catawba County to other counties, concerning size and number of banks, there is absolutely no comparable situation to this one.

K Wachovia were approved, he said, it would mean the first, third and sixth largest banks in the state would be pitted against the locally-owned, independent banks already there and he doubted both that the smaller banks could survive, or that the chain banks could or would afford the Hickory area the personal service for the small merchant. small businessman and small Industry,

cropi' durinfir the off-tobacco season.

Pointed out repeatedly in reports from a West Coast tour, which included two Development Commissioners, was the top quality^of farm produce in WashiniTton and Oregoa* Emphasized more repeat-^edly came the obsenation that hard work, and plenty of it was among prime requisites for quality pn>duction. If the Commission seriously seeks to encourage a* program of diversification, it must realize at the outset.that the only worthy goal is a group of hard-working farmers producing quality crops for a reliable market.

In its three-year-plus history, the Development Commission has learned that bringing sound and desirable manufacturers to the county is a delicate and tedious business. The project now gaining increasingly serious consideration is at least equal in importance and magnitude to successful industry-hunting. But, if the project is to be worth the effort, streamlining of Pitts agricultural base must be viewed by the Commission as a task at least as difficult as modernizing the county with a diversified industrial family.

-THEy-D PROBABLV FIKP A HE-MAN 5MELL* LE5 OfFENilVE.

Insect Control To Beginning

Back

Again

Forty days (and nights) is a long lapse of time 7T for restoring bug control measures, especially dur- ZA

By JOHN ABNEY

Chiselina

MTTLA, Mexico The Mixtee Indians were a great bunch

ing the season a fogging machine is most urgently needed.

The hot days^and warm nights of mid-summer, coupled with the recent heavy rains which left ample breeding places for mosquitos have been SlnonlSlSd tote Ideal tor a sharp increase in our insect population, the famous old ruins on the edge Consistent use of the fogging machine never of this town, has eliminated the pesky insects, but experience of Mitia is a half-hour drive

other summers has shown it a major factor in con- S paxaca. Past

tianks f ___i a xi. x / \ the mcredible Tule tree which

Geitner, president of their population. As things stand today, has seen quite a bit of history

National Bank of Cat- ^ virtually a matter of starting the insect control itself. The statistics reported program all over again. piece of shrubbery are

Take the mosquito, for instance:

rp,, 1 j, , , , , , lieved to be the worlds oldest

Iheir species number m the hundreds, but the tree); height, 135 feet; circum-

more common variety (our kind?) has a life cycle ference, 120 feet. And its weight of from 10 to 15 days. is estimated at around a half

Presuming the block on which you live had h t fh fh-

but two mosquitoes setting up housekeeping last personally with'a tap^'LSe June y when the fogger was disabled, their deseen- or a set of scales. But you can dants today number in the many hundreds, and ail hungry.

Mrs. Mosquito may deposit 40 to 100 eggs.

Ixets say that with our recent ideal conditions

there were 75 eggs, of which sixty survived and reached the status of adults.

But there has been sufficient time for still another such cycle, and if 30 new mosquito households were established and each raised a family of 60, those two of June 9 now have a minimum of

1800 grandchildren in the process today of raising bioc'ks Xstonrihteeted so per- fectly that they are fitted to-

ReDutation

tell from looking that Is a very large tree.

There are several historical theories about the Mitla ruins. One says it was the city of the dead. Another pegs it as a religious resort where the Mixtee gods and priests got together to make laws for the tribe.

But it is a collection of some of the most unique structures to be found anywhere. Huge

their own families.

Does anyone think there were only two mosquitoes on their block to start this ghastly proceed-

Of cour.se the mosquito story is but one of many. We have a loc of insects thriving locally, and probably some are more adept at multiplication.

Damaging of the fogging machine could justify its absence for a week or two, but certainly not for a month and a half. The city should see the control program is not neglected during the season it is most urgently^ needed.

gether without cement. And the sides of the building have so many Intricate zig zags chiseled on them, you get dizzy just looking. One historian estimates there are around 200,000 pieces of whittled out stone put together.

One guide said it was several hundred years old. Another said it was several thousand. My personal guess is that the Mixtees spent a number of centuries chiseling the place to perfection before the Spaniards came along and knocked it down. The books say It was still occupied when the Kings Men came marching into the valley.

Here also are a group of ladies who swarm over you the moment you descend from the car. Selling woven belts, idols, strings of beads, masks, bells and (now get this) genuine Mixtee a.sh trays.

The elderly little lady selling the ash trays thmst one in my hand and stood back. Forty cents U.S., please.

What is it? I asked. A cuspidor?

An authentic Mixtee ashtray. Dug up from the niins here.

Dug up when. . .yesterday?

editors Saying...

Lna i o T eatnerDeaaing

Actions Of

; r

"T

.rederal Reserve

The Daily Reflector

INCORPORATED ~

Published Every Afternoon Except Sunday ' E.stablished 1882 DAVID JULIAN WHICHARD, Publisher

Entered at Post Office. Greenville, N. C., as second claa mail matter.

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By RALPH ROBEY

Twice, the Federal Reserve System has taken action which was important and generally unexpected. In one case the Reserve Board explained why it was making the change. In the other ca.se the change had to be read out of weekly published figures.

The action which was explained was a reduction of the margin requirements for trading on organized stock exchanges. The reduction was from 70 per cent to r)0. This means that whereas formerly If one bought SHK) of stock he had to put up $70, he now has to put up only $.70. The 70 per cent requirement had been In effect since July

fiXih, and for two years previous to that the margin re

quirement was 90 per cent.

Explanation for the decrease was a reduction in the volume of credit being used in the market and elimination of the fear of inflation. The immediate effect of the lower margin requirement was a vigorous rally in price.s on the New York

Stock Exchange. The correlation Ix-tWffii margin require-, ments and the level of .stock prices, however, is far from perfect. and usually it takes con-sitierable time for a change of margins to have a significant bearing upon the value of se-cnrilie.s, ft i.s far too early fheretoie. to conclude that jhi.s action by the Reserve Board wiil give us a .su.Stained rally and even if we get such an upturn- there will be no way to deU rmine the extent to which it is the lesult of the change of margin.s as against other factors. - .

The second actiop of the Re serve System is the adoption of what has been interpreted as a somew hat less liberal credit policy. The hoard'never an-nounce.s such a change and never uivr.s an inimerliatc explanation of why it has alteted It^ policy. To deteviuine wlietlier or not tlirre lias bt^rn a change ono ha.s to follow the weekly re-poris of the Federal Reserve banks.

The lending power of commercial banks is determined by their reserve position, and this can be increased or decreased by the Federal Reserve Board. For many months the volume of free reserves was maintained at about $500 million. This means that commercial banks had an enormous potential unused lending power. Then some weeks ago this free reserve was permitted to drop to around $400 million, and more recently it has approached $300 million. On the surface that appeared to be a definite tightening of credit by the Reserve Board, and w'as generally so considered. But it is now clear that this was not necessarily true, and the latest weekly report shows free reserves again above $500 million.

The Kennedy adminLstration it will be recalled, has wanted short-term Interest rates held high enough to prevent an export of gold, and long-term interest rates kept low enouch to encourage Investment by both biKslness and indlvidual.s. The Federal Reserve, to the best of it.s ability, has tried to iielD realize this extremely difficult goal. The most significant .short-term rate is that on U. S. Treasury bills. The Re.serve Board has kept this rate at about 2.75 per cent, althougli recently it had risen to around 2.9 per cent. Long-tenu rates haw- shown a slight tendency t) fall, but there is no way to tletermine just how much tbe Ke.wrve Board has had to do with ihis.

And it is imporiant to note that for seven weeks there was no gold expori from this country. In the week* ending Juh 11. however, there w'as a gold export of $137 qitlUon. This brought our total gold supply to the lowest level since Augu&t 9.

. llrii). Tlic actual figure was $1H,3 billion. That .still Is well above o(ir legal reserve require--it is to be hoped tliat thi.s rriirwed outflow Is not rontlnurd.

The international balance of (Continued on Page 5)

(Greensboro Daily News)

The nations railroads, which have announced that on August 16 they will put into effect rules earlier recommended by a presidential commission, are tardily moving to end featherbedding practices w^hich are indefensible and which, if continued, could, as the carriers and the commission say, drive the railroads into bankruptcy.

It is regrettable that a number of employees, particularly firemen on diesel locomotives, will be squeezed out of their jobs. But the public and the hard-pressed carriers cannot be asked to bear financial bur dens W'hich are incompatible with sound operations, automation and technical progress.

What is happening to the railroads, perhaps to greater degree than in some other industries but of greater significance since public utilities, ne-ces.sity and convenience are Involved, reflects a continuing and intensifying challenge to our leadership and our economy. Competition with the Common Market heavily underscores this challenge.

Readjustment to modem techniques and operating methods is essential for a sound domestic economy and the sort of protection and saving to which the consuming public is entitled. It Is even more Imperative agaln.st the backdrop of world

markets and competition. For all the human factors at stake,' w^e must come to grips with reality. Progress, by whatever name you call it. has its costs as well as its gains. We must have the latter to keep going; statesmenship, political, social and industrial, embracing both management and labor, must work out ways of handling the former and of defeloping new employment opportunities for the many workers who will be dispjaced. The future must be pregnant with opportunity. Who can say, for instance, how many jobs space programs will provide? Here we get into the study of employment needs and of redirecting skills and altering educational patterns and practices so as to fill the jobs of the future.

Action about to be taken by the railroads is long overdue. Bankruptcy could bring the entire railroad structure tumbling down and that would necessitate far more stringeifl action and possible elimination of fa" more jobs than inauguration of the new operating rules will.

In the long run the labor movement itself will be better and stronger for the elimination of any and all featherbedding which constitutes parasites on our economy, w'eakens our position at home and abroad and generates public protest and Indignation.

For I had just read the guide book which said the authentic stuff was in museums. So I am no sardine about such liberal claims.

It is one thousand years old, the lidy said calmly.

What did the Mixtee i|moke a thousand years ago when there was no tobacco? I asked. Completely sure that one would shatter her.

But it didnt. She looked at the cigars in my shirt pocket and said the kings smoked cigars.

All I can say is the TV salesmen could come to Mitla and take a course on how to apply the oil. Yes sir, I bought the ash tray. Mostly for the monstrous fib the little lady shot me. Stories like that are scarce at any price.

After you duck the lady vendors, you discover Mitla is indeed something special. I do not know enough about archaeology to make any acceptable comments on such. But anybody can recognize the real McCoy. And this place is first class, regardless of age or origin.

Indian guides hanging around will explain what means what and where the various members of royalty were buried. There are tunnels going back to the tombs.

From the height of these tunnels, I would say the Mixtees were slid in feet first or they were a race of extremely short people. For after ten minutes of tunnel stooping, I w^as walking with my knuckles dragging the ground. And this is extremely dangerous when you come out because the lady vendors are waiting to catch you bent over.

And in such a helpless position, I had to buy three dollars worth of flutes, bells and jade frogs before I could make a getaway. But no more ash trays for kings.

?olicy

Needs

Genius

By GEORGE E. SOKOLSKY Copyright, 1962, King Features Syndicate, Inc. ^ Rapidly the Western World la moving toward inevitable war. if not over India, it could be Guiana, it would be over Thailand and Laos; if not over a possible Red Algeria, It could be over Pakistan or Kashmir; it not over India, it could be over Berlin. It could be over the decision to bring to an end the frightful cost of the preparation for war.

In a word, one smells blood in the air and sees red In the skies and with whatever facilities and knowledge, one looks for a means of peace. This much has already been discovered: first, appeasement <a Soviet Russia Is useless: It only leads to nfew situations. Secondly, the new situatlims develop as ethnic groups emerge to freedom. For Instance, the Arab emergence, or the Latin-American emergence or the Negro emergence cannot be ignored In the formulatlOT of a foreign policy.

We face Immediately the Imperative to answer questions which have been postponed for ^ a century. They are pstponable no longer. We may, as I do, go back to the pre-WUsonian days of co-operative lsolati(i, but that Is now impossible. We are married to a very ugly creature called Internationalism from which we cannot free ourselves without war.

The sorry but brave demonstrators in the Red Square in Moscow, here represented by the Sane Nuclear Policy group, are whistling in the wind because unless there Is total nuclear disarament under United Nations control and Inspection, military nuclear developments will continue. Nuclear Inspection cannot take place by remote instrumentation as it must be assumed that such report-fiig will be countered by new devices of deceit.

Chester Bowles proposes a system of dealing with these complex problems under the title of maximum maneuverability. I shall quote Bowles:

The advocates of this approach believe that the dividing lines between the Communist world and our own should not be considered Immutable and unchanging.

Our policies should be geared to take every advantage of the restless ferment which has aleady created changes within the Communist world, and which is bound to create more. Such a policy requires the genius of a Talleyrand who first employed It in recent times and of a Disraeli who put the diadem of India In the Queens crown.

Whether President Kennedy or Secretary of State Dean Rusk possesses the intellectual flexibility or the mental agility to pursue such a policy, only history can tell. Talleyrand saved France with*It; Disraeli gave Great Britain a century oU prosperity with it. But Metternich could not save the Austro-H"i-garian Empire although the Congress of Vienna gave Europe nearly a century of peace and order.

Chester Bowless maximum maneuverability Is therefore not a new or untried Idea. It has ample historical precedence to justify considerations. It is the application of pragmatic sanctions to current situations and this technique has been employed by the British in their (Continued on Page 6)

Strength For Today

By EARL I.. DOUGLASS CHRISTIAN MISSIONS

In the slave market of Rome centuries ago stood a sullen group of, war captives being sold into slavery. Conspicuous amongst them all. were certain blond youths, with fair skin and some with golden hair. A holy monk paused before the unfortunate group and enquired their race and former abode. They replied that they were Angles. Not Angles but angels,..^ said the monk, for they have the faces of angels and should be co-heirs of the angels, of heaven.

For years the memory of these people remained in the monks mind. Finally when that monk became Pope Gregory the First, he decided that something should be done about these angel-fac-

ed people and he sent missionaries among them. The Angles were converted. Later, 1110*6 same people, along with lise Saxons, crossed over into England and laid the foundations of a new nation. We speak todoy of the Anglo-Saxoirs, meaning the British. The memory of a kind hearted man of God turned a race of crude tribesmen into one of the most substantial races of modem times.

Peoples sometimes object to the missionary program of the modem church. We need al-ways to remind ourselves that we are the descendents of people with whom missionaries worked centuries ago among all the tribes of Western Europe. No missions,^ no present-day faith. Missions are continually Important.

Why U.S. Aid Is

So ImDortan

By ELMER ROESSNER

It Is .sometimes difficult for us. in the piotected confines of this lovely land, to realize the broad economic and individual personal problem.s of people in foreign lands.

Some startling figures in the laie.st i.sHue of Picks World Currency Reixnt form an unusual and terrible picture when studied and understoixl clearly. These figures list the annual gross national product on a iier capita bashs for 76 countries.

Tbe United States, not sur prisingly, has the highest per capita Gross National Product with $2.817 84 (Since the avpi'-age size of the family in the State.s is 3.65 peisons. the GNP conjcs out at $10,235.12 per tarn-lly t Canada is second with a per capita GNP of $1.946 6:1; Sweden third with ro:

SwilzprJand four t ii with $1.672.72; and New Zeala.nd fifth with $1.613.00.

For 28 countries, more than

one-third the total listed, have a per capita GNP of le.s.s than $200, Fifleeii nations are reported to have les.s than $1(HI about 27 cents a day per pcr-.son.

ETHIOIMA I'OOKK.ST

The V(uy lowest on the list Is Ethiopia witli an annual per capita GN1> of $37.70. This 1s only sIlghLly more than 10-cents a day foi' every human being in ilui c(,untry! \.

How do you buy .sufficient food and clothing and adequate housing for people that produce only 10 cents a day? How do you buy medicine to cure the yaws? How do you buy textbooks to teach them to read? How do you buy a ballot box and ballot.s so they can vote?

And where does the money come from to cxpciislre

roads, hospitals, electie gene ralors? How much is left t(> buy fertilizer and agricultural equipment?

Ethiopia has relatively few people living under this sub-inarginal economy. Only about^ 22,()00,000. But Communl.H" China, with a population of 669,000,000, has a per capita GNP of $74.18, according to Pick's Reportslightly oyer 20 cents per day per person.

These figures indicate why American a.s.sistance and help fiom other bettei-off countries i.s so important. The amounts we grant to poorer countrie.s are relatively small compared with what we spend for our own Industry, housing, health facilities, transportation, agricultural services and so forth. But the money in grants and loans to backward countries looms tremeijdously large comparec with their own meager re.snurcc.s.

RED CLAIMS (jne sidelight, and alwait .the only amti.sing thing in the whole report'on GNP, Is w+iat the communist countrie.s list GNP for Eut Germany, for

example, is $3.731.50 at the Per capita GNP for East Germany, for example, is,$3,731..> official rate of exchange. This is W'ell above even the U. S. position.

At the touilst rate of exchange, however, East Germanys per capita GNP drop.s to $1,954.60. And at the black market rate (and black marketeers, whatever else their faults, know the money market better than anybody) It goes down to $482.90. This is just below Japans rate and just above South Africas.

Russia for the first time, came out with a reasonable estimate of Its own GNP. It figures out to $741.68 per capita. This Is between Israel, at $777.33, and Ireland, at $695.00.

Next time w'c worry about the stock market tumbling a few million dollars, or our taxes going up a few billion, w-e might remember most countries In this world have some real problems