July 24, 1962

Political Implications In Changes

Recent changes in the make-up of the Advisory He was n^ed chairman of the group, but by a split Budget Commission suggest political implications vote.

which could be of importance equal to the financial * x- ^ xt.

recommendations this influential body makes to the nhnirmnn in s resignation from the post

coming General Assembly. ^ of chairman m order to devote his full time to his

ex XU -X 1- . job as assistant to the governor on economy m

So far as the Commission itself is concerned, government. Gov. Sanford has recommended for ihe there is no doubt that the new arrangement will chairmanship the man who led the opposition to make for smoother sailing for Gov. Sanford s budget Coltranes election. This same man, Rep. Tom Wood-proposals, at least so far as the Advisory Budget ard of Wilson, recently bowed out of the race fov Commission is concerned. How the commission the House Speakership by conceding that Rep Clif-changes will be viewed by the legislature-^together ton Blue of Moore County had enough votes to

with recommendabons from the commission~is assure his election to that imporUnt post, another matter. t' t'

When Gov. Sanford recommended his economic recommending Woodard for the job as chair

watchdog David S. Coltrane as chairman* of the Advisory Budget Commission there was an immediate split w'ithin the commission over his election.

Concerned Over !Eiahth District

Credit Where

By WILLIAM A. SHIRES EIGHT There is conthiu-Ing concern, if not anxiety, on the part of srane Democratic party (tfficials about shaping up plana for the Eighth Congressional district campaign.

This arises because of the critical nature of the forthcoming Kitchln-Jonas struggle.

These two incumbents. Democrat Paul Kitchin of Wadesboro and Reiniblican Charles R. Jcxias of LincolnUm, meet in November in the re-aligned Eighth. Kitchin won a close, yet impressive victory in the May primary from Charlotte attorney John P. Kennedy.

S(Hne Democrats in the district and elsewhere around the state have been edgy in the past few weeks anxious for definite word on campaign plans and reassurances that any scars left by the primary campaign and other political background have healed.

REUEP There w as some relief expressed then when Gov. Terry Sanford said yes to a reporters question as to whether he had been in communication with Kitchin about campaign plans.

The governor had said a few dajs earlier that he was wHl-Ine to assist in any way he could, but would await an invitation from Kitchin. Kitchin. in Washington, said he was glad to accept Sanfords help and would call on the governor.

Kitchin further said he felt that speakers of national party stature, possibly including President Kennedy or former President Truman, would be of tremendous help not (mly in the n;ighth District but in several other districts where Democrats are bracing for strong Republican opposition.

DISCUSS - Sanford told newsmen that a speaker of national prominence was one of the things discussed with the Kitchin people. He said he has been in contact with Kitchins law partner and campaign manager, H. P. (Pati Taylor in Wadesboro.

Specifically what is done by the Governor and the state party machinery in the Eighth District, Sanford said, depends on how the campaign shapes up.

It is expected to take more definite shape in August.

SQUEEZE Aprofit-squeeze factor especially affecting smaller banks was cited by a small-town banker as a prime reason for growth of big banking in North Carolina.

The speaker before the State Banking Commission was John A. Porlines. president of the Bank of Granite at Granite Palls.

The profit-squeeze factor, he said, has stepped up the trend toward mergers and concentration of our banking resources into tbe hands of a few gigantic banks.

I do not want to see North Carolina end up with four dr five large banks, but this is the trend, he said,

Porlines spoke for the opposition at a packed hearing on

applicatl(xi by Wachovia Buik and Trust Co. for a branch bank at Hickory. The opponents called the Hickory applica-ti(xi a test case, and considerable significance was attached to the case itself and tp the Banking Commissions action in denjdng the Wachovia applica-<m.

QUESTION - Wachovias attorneys raised the question as to whether the State Banking Commissiwi has the authority to deny tbe application if it determined certain facts and that Wachovia met certain requirements based on two standards prescribed "very clearly by the legislature.

These were: (1) that there Is probable volume of business and '2) the reasonable public demand Is sufficient to assure and maintain the solvency of all the banks involved.

It is fundamental, argued Wachovia attoriiey W. P. San-dridge, that the legislature cannot turn over to the North Carolina Banking Commission or any other administrative body its duty of legislating.

John P. Jordan, attorney for the opponents, contended that the Banking Commission does have discretionary powers, that otherwise the commission would be impotent.

STUDY Out of the Hickory case came a move to study and possibly recommend new banking legislation. Wachovia officials agreed that such a study might be needed, but from a legal standpoint felt that the rules and practice governing establishing of new branch banks should not be changed in the particular case.

Wachovia president John F. Watlington Jr. said;

I am aware of some feeling that the law governing new branches should be changed. But he said, to change the rules under which w*e are operating now does not seem to me to be fair to Wachovia or to the other applicants who may come before this Conunission. NOTEBOOK Governor Terry Sanford has dismissed any idea that he might let a report on reorganizing the State Board of Higher Education die on the shelf. I certainly will have some recommendation about the board of higher education, Sanford said.

What this recommendation will be remains to be seen. Sanford said he will talk to a number of people, including legislators. and make additional Investigation after the report is put in final form.

The governor also may release in a few days a report on additional surplus in the state coffers that budgeted but not spent because of economies and other reasons. This may be in the neighborhood of 10 million dollars and would be additional to the 27.3 million dollar surplus already reported resulting from Income exceeding estimated revenues when the 1962-63 budget was drawn up.

man of the Advisory Budget Commission, Gov. Sanford has smoothed over any ruffled feathers that may have existed after Coltrane was initially elected chairman of the group. Whether the political sparring which took place between Rep. Woodard and Rep. Blue for the top post in the House will carry over into the legislative session remains to be seen. If it does, it may well influence the manner in which recommendations of the Advisory Budget Commissionheaded by Woodardare handled in the House where Blue will preside.

Although the move obviously has political implications, the resignation of Coltrane and the recommendation of Woodard as chairman still gives the state a strong body to formulate financial recommendations to the legislature. In spite of the shift, it obviously is not a body which will be dominated by Gov. Sanford, but will make its own independent evaluation of the states fiscal needs for the coming biennium.

The governor may have smoothed the .path politically for his budget recommendations within the commission, but he has by no means stacked the commission in his favor.

The people of the state should not lose sight Rv A T VTN TAVT OP of the fact that the man who presumably will be . elected chairman with the governors blessings is T TT 7 1

the man who led the opposition to Coltranes elec- \/\/ tion as chairman on the grounds that Coltrane was V V too close to the governor and his program.

Saw a welcome sight last night. It was the friendly mos-quite fogging machine at work on the citys streets.

As readers know the old machine was wrecked some time ago and no fogging has been carried on since that time.

Congressional rejection of important key issues Ki^^^nno^^ed^that^a^te! in the Presidents domestic program offer a tempta- placement would arrive this tion to leaders in both major political parties to put would begin work

party interests before national interests in the re- ptStion iait Tght!"' maining days oefore Congress adjourns about Labor Does the fogging do any good Day. In controlling insects? Local

" , . . , . citizens debate this every sum-

Inere appears to be growing anxiety within mer. However, most will agree the Democratic leadership over the lack of a major that mosquitoes have been exportion of the Presidents legislative program being troublesome this year ing within the city limits.

j 1 r- rriu 1 j XI with the machine out of opera-

adopted by Congress. There is already the sugges- tion.

tion that a major effort will be made to have some Maybe its psychological, but controversial measure enacted by the Democratic- somehow it seems there are

controlled Congress in order to signify that the h7LeguUrtoS Democratic President has support o the Democrats out.

in Congress. -

... ,, . , X, , . dust how close Greenvilles

In the other side of the party fence, there is

obviously the temptation of the Republicans to seek J * j. O

to defeat other important administration'proposals \^\ ^01* IjC itOrS loClVinCr

during the remainder of the session in order to J; ^

strengthen GOP political hopes for the November elections.

lo

Congressional Action Poses A Temptation

economy is tied to tobacco is brought to mind occasionally at this time of year when Greenville firemen answer a call to a burning tobacco bam.

This wouldnt be so unusual in this tobacco section if it werent for the fact that because of Fire Underwriters regulations, Greenville cant answer calls outside the city limits.

Yesterday the city firemen were caUed to a tobacco bam blaze they could fight. It was a bam on Line Ave. and inside the city Umits.

Its not unusual, by the way, to find fields of tobacco grow-

Over in Tarboro The Dally Southerner has begun a new printing process known as offset. Instead of printing from metal plates as in conventional newspaper printing, offset utili-tizes a photographic process.

The Daily Southerner now

Particularly in an election year such as this, party leaders are keenly conscious of how voters will react to what has gone on in Washington. On occasion the partisan viewpoint of members of Con- PubUc instruction i.s under

gresswith an eye to the November elections ciuS^^ in the^ eviis'^^of

Teaching Communism

(Greensboro Daily News) North Carolinas Department

overshadows objective consideration of legislative Communism or in American-

matters purely on the basis of merit. ism.

r..-;-.- XI. j X XI-. . The department. reports

During the remaining days of this session of Gene Roberts. Jr.. in the Ral-

Congress, leadership of both major political parties eigh News and Observer, "is should not allow political considerations for Novem- receiving a steady stream of ber to be the major factor in determining what

measures will be approved and what measures will system films and textbooks for be rejected in Congress. Much work remains to be cold war instruction., done before Congress adjourns in September. Decisions should be made on individual measures on the basis of how the measures will effect the welfare of the nation and its citizens as a whole

The departments reaction Is cautious, and in our view rightly so. Were finding, one public instruction official told Roberts, that most authorities fa-

'-inally Going

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io ine

?eoDle

not on the basis of the effect it may have at the vor correlating additional infor-

mation on Communism with the

polls m xNovember. regular course. This, too.

seems right.

Since neutrality on subject matter Is both impossible and undesirable in teachers, the real objection to special courses about Communism or Americanism is not that they seek to indoctrinate but that their indoctrination would be invariably superficial, hence dangerous. There is no understanding of either Communism or the American system apart from hard work in history, sociology, political theory and economics.

The success Of the Russian revolution, for iastance, becomes clear only against the backdrop of the 19th century Russian history, when the slight and disorganized middle class failed to develop parliamentary institutions in a coun*^ry ruled absolutely by a tsar and his retainers and filled

By JAMES MARLOW

WASHINGTON (AP - President Kennedy is about to do what he could have done before but didnt, although, if he had. he might have less need for doing it now. He's going to the people for support.

In these past 18 mouths. Congress stuck with him on defense and the usual problems outside the country, Uke foreign aid and trade.

But it acted like kids loose In a department store at night with bricks and scissors when It came to some of his major domestic programs, like medical care for the elderly and aid to education.

Kennedy could have appealed diiectly to public opinion to pressure Congress on these programs. He did little direct appealing. And now its too late for this year.

Quietly, without much evidence of distress, he let Congress refrigerate aid to education. He made only one broadcast for medical care and that was off the cuff although he had time for a thorough, prepared talk.

While Presidents Roosevelt and Truman went over tlie heads of Congress to the people. Kennedy used the tactics Jefferson. Jackson and McKinley had to use in the days before radio and television.

He and his aides put pressure on Congress, Because whatever was done was done behind the scenes, Jpst how much fighting he did will always be open to que.stion.

He certainly did not fight openly with Congress.

He seems to have ^operated

under the spell of President Elsenhowers lets get along with everybody policy.

Kennedy has a Democratic-run Congress where the Republicans and a bundle of his own Democrats are far from cooperative. at least on his domestic program. And the leaders, Democrats and Republicans alike, are not in the same league with Rayburn and Johnson.

In the congressional election campaigns after Congress winds up. Kennedy is expected to pitch for his programs like medical care. And although his Democrats enomipusly putpunjbej Republicans, he will ask for even more Democrats In order to get his programs through next year.

If he had pitched for his individual programs publicly during the past 18 months he would have been in the enviable political position of being able to focus attention on one at a time without distractions.

He will not have the luxury of that in the election campaigns since, even w'hen he tadks about his unfulfilled programs, voters attention will be distracted and diffused by other issues.

In addition, in a nonpfesiden-tlal year like this, the minority party in Congress Republicans. in this case usually picks up seats.

If the pattern is broken and Democrats pick up seats It will still do Kennedy not much good if they turn out to be conservative Democrats.

Its the conservative Democrats by teaming up with Republicans against Kennedy programs who have given the President the miseries this year.

with land-bound, ignorant and politically indifferent peasants. Two attempts at parliamentary revolutions failedon in 1905, the second just before the Russian war effort collapsed in 1917. And it is difficult to make sense of the beginnings of Communist power in Russia without taking account of the peculiar, epical, political genius of Lenin, who would have found his outlet whether he was a Bolshevik or an American robber baron. Without Lenin, the Russian Marxists might have failed as the democrats did, since most of them took revolutionary texts and pamphlets seriously and expected political events to oblige their predictions, as they did not.

Americanism courses, on the other side, offer a very foreshortened and misleading perspective on American political values, which owe so much to historic developments that came when France, Britain, Spain and the Indians still struggled for control of the New World. No Americanism will be firmly grounded without a grasp of its debt to English Whigs, Cromwell, Edward Coke and John Locke, among others.

If there is a fear at present that the American heritage has been uprooted, it may be because history is superficially and poorly taught and hence poorly understood. The time to begin special courses Is when the basic courses are sound. To put aside basic courses in history for superficial courses about the cold war would merely worsen an already bad situation.

carries the slogan under its masterhead: The Plrst Offset Daily Newspaper in North Carolina.

The most ncrtlceable improvement in The Daily Southerner is the use of local photographs. The. paper is now able to include the local pictures without the engraving equipment needed in the conventional printing process.

The Tarboro paper is also using color for the first time.

Strength ,-OT Today

By EARL L. DOUGLASS SOLVE OR SINK

One half of all the worlds wealth is in the United States. Fifteen per cent of the citizens of the United States owm eighty-five per cent of this wealth. This means that a little group of people living in the United States and constituting one per cent of the population of the world own more than 40 per cent of the wealth o the entire world.

India Is one of the richest nations in the world, yet millions of people living in India never know, from the cradle to the grave, what it means to have hunger appeased.- Russia has acreage and resources which surpass all nations, yet famines are common in Russia and poverty widespread. Communism makes everybody equal by making and keeping everybody poor.

We of Canada and the United States believe that we have such a disproportion of the worlds goods because we have free systems of government, lay great emphasis on education, try to give everyone his chance, and, as children of pioneers, work with a resourcefulness and diligence which is part of our legacy.

But the reasons are comparatively unimportant. What really matters is what is going to happen as the result of this grotesque distribution of the worlds benefits.

No wonder Socialism and Communism got started. They are false and unsound systems, but they are the protests of the havenots against the haves.

We had better solve this problem or it may submerge us.

Quote

Isnt it about time to replace the lace panties on lamb chops with leotards or something? Sanford (Fla) Herald.

Youth .earns Anew

By GEORGE E. *SOKOLSKT Copyright, 1962, King Features Syndlcate,Inc.

The Kennedy Administration la consciously young. The President has avoided the impetuosity of oldsters and has gather^ ed about him younger men who are naturijly self-conscious of their youth and are therefore excessively deliberate. They miss timing.

Franklin D. Roosevelts political brilliance lay In timing. He often did the obviously wrong thing at the right time. His political gifts were enormous because he studied the master, Al Smith.

Older men live by experience stored up in their minds. Younger men are Marco Polos discovering everylhlng anew. This does not mean that younger men may not achieve as much as <dder men. irf the arts, for instance, Inspiration is as important as experience. Mozart, the stripling, produced more lasting music than anyone and died before he matured.

In politics, however, timing is related to experience. May 28, for Instance, should have beien tackled no later than June 1. Advice to a President comes from many sources, most of them either representing self-interest which is wholesome or doctrinaire theories which may be harmful. Self-interest must, of course, be screened, assessed, discounted and finally related to other factors.

In the field of economics, objective advice is utterly impossible. The objective person, in this field, can only be an empty-headed technician who says that here are a bunch of figures, do with them what you can. Figures do not lie, but they require interpretation at every stage. A banker may regard a swift flow of money as an indication of prosperity; an economist may regard the same figures as a dangerous inflation out of which can only come a sharp recession or possibly a depression.

A manufacturer of capital goods like steel or machine tools may regard a building boom as violently beneficial; the manufacturer of consumer goods may worry about the concentration of credit in fields other than his own.

Department stores do not respond so rapidly because they sell household wares that are not readily postponable, but specialty shops and concessions in the department stores respond more swiftly to delays in purchasing postponable items. May and June should be good for furniture and other household goods because marriages tend to occur in June and July and therefore new homes are set up. It Is, however, not until after Labor Day that it is possible to gauge the prospective Christmas season.

The businessmen involved in this economic gambit, manufacturers, wholesalers, jobbers, retailers, department stores, small businessmen, represent a very large part of the business world. A man like Bernard Glmbel, for instance, has more economic know-how than any banker I have ever encountered., His sensitivity must be sure and timing perfect.

The President is now moving more rapidly into the economic field. Every step he has taken during the past fortnight, no matter how small, has been beneficial. Had he taken such steps in larger stride and more sharply immediately after May 28, he would have been a national hero instead of a subject of jokes which are hardly amusing.

The Medicare Bill must be judged from this standpoint. Tacking it on to the Social Security System pre-supposed that Social Security is popular. Workers regard it as a payroll tax. They prefer benefits outside of Social Security and union contracts prove this to be so. Many occasional and marginal workers decline jobs when they are asked for their Social Security numbers. Also many marginal workers do not pay Income taxes; they therefore fear that the Social Security number is an entrapment, leading to income tax troubles.

If the object of Medicare was to help those over 65. it should not have been tied to the Social Security System. If Its object was to expand the Social (Continued on Page 6)

Salariec.

'Employee Ranks 5weL

By ELMER ROESSNER

The terms wage earner and salaried employee actually mean the same thing. But common usage makes the wage earner the man who manufactures or handles products or who works in plant maintenance.

The salaried employee (who once liked to be called white collar worker to differentiate himself from his blue-shirted compatriot) is just about everybody else in the outfit, Including salesmen, clerks, accountants, engineers, stenographers and even the company president.

When the industrial revolution dawned, almost everybody was a wage earner. Che iDoss took care of just about all the salaried employee duties. One bookkeeper or two usually sufficed for even fairly large companies. There was hardly any product engineering. Industrial li^aders had little use for lawyers since there were few laws on the books that affected

them. There was practically no advertising and nobdy had ever heard of a sales marketing specialist, computer programmer or publicity agent. PROPORTION SHIFTS

But right from the beginning the salaried employees began increasing their share of the total employment. Recently, in the last decade or so, the ratio has been shifting at an even faster rate because of automation, administrative requirements in our increasingly complex 'economy, more service -type industries and many other factors.

In the last ten years, alone, according to a ijatlonal Industrial Conference Board study, the ratio has changed from one salaried employee for every two wage earners. Wage earnings have increased from almost $46 billion to about $56.5 billion In that period. But salaries have jumped frqm $17 billion to more than $31 billion.

This shift, which will undoubtedly continue, has many

impllcatimis for the businessman. The education requirements he sets for his work force are changing both in amount and direction. His office space needs will probably grow faster proportionately than the need for manufacturing space. But, at the same time, his Investment in tools per wage earner may well rise faster than his investment in office equipment for salaried employees.

LABOR RELATIONS

Since wage earners are usually more union oriented than the salaried employee, the businessman may gain some strength in his labor relations. Tts is modified, however, by organized labors recognition of the change and its greater efforts to unionize salaried employees.

Also, tbe salaried employee earns more than the wage earner on the average. As his relative numbers increase, the bus-

ramificatlons of the shift In the ratio of salaried employees to wage earners. But they indicate a trend management is going to have to take into account more and more In its long-range personnel planning.

10 PERCENT OF FOOD BUDGET SPENT FOR PRODUCE

Fresh fruits and vegetables account for almost 10 per cent of the overall family food budget. Chain Store Age Magazine estimates.

Purchases of fresh fruits and vegetables in food store chains for the first half of this year totaled $1,293,000,000. or 9.5 percent of the American housewifes food spending. Potatoes arc the biggest item in the produce line, accounting for approximately 10 per cent of

sales. Bananas are next with ap-Inessmans personnel costs are T)roximately 8 per cent; apples going to go higher, all other 7 per cent; oranges and toma-

things being equal.

These are only a few of the

toes almost 7 per cent each and lettuce 6 per cent.