August S, 1962

Savings Reflect Economy Effort

And Another Thing, Joe-

Savings in state operations during the past year reflect a greater effort by state officials to effect sound economies in government operations.

All of the $17 million saved in operation during the past year is not money that can be salted away by the state for future use. At least $4 million of the amount was In deferred expenditures for items which were not available during the year and will be purchased this year. The remaining $13 mii-i lien, however, represents approximately $5 million more in revision funds than has been averaged by the state in^ recent years.

In a nutshell the net effect is that it cost less to operate the state government during the past fiscal year, A combination of circumstances made this possible, but certainly a major factor was cost consciousness on the part of officials and agencies of

the state. ___________

The savings of relatively small amounts here and there in the end amounted to a considerable sum. At the same time, these savings in operations did not lower the level of sendee the state government offered its people. They were effected by better management and more efficient operations.

It has been the popular opinion that the larger the activities of a government grow, the less atten-

!dew Emphasis On Development

By WILLIAM A. SHIRES

FRESH The word has gone out in the Sanford administration for renewed emphasis m cccmomlc development.

This drive is to take a fresh approach, involving all segments of state government.

Ck)vemor Sanford himself set the stage for it by stepping out as chairman of the State Board of CoDservatica and Development. This does nc^ involve any watering-down of C&D respon-slbly for eccmomic development but rather an increased re^KMisibility in this direction for all state departments and agencies the Agriculture Department. the Highway Department. Boaipd of Water Resources and others.

The theory is that all state agaides. offices and departments. every state official and employe, can and should have a role and play a part In it.

George M. Stephens, tne governors special assistant on eco-n(mc development, calls it a new dimension in the field of marshalling the states resources and know-how in a drive to make more jobs avail-aWp and to increase payrolls.

LOCAL One avenue of the approach will be increased emphasis on local and regional development groups, their initiative and ideas in developing programs with state assistance.

Wt want them to tell us what they want done, and we'll follow up on it. Stephens said.

Officials expect that this will five a new face to the image (rf ecmomic development which, tradlUcmally, has been pictured almost entirely as the obtaining of Industry.

Industry, by Itself, is seldom the answer to a communitys econcmiic problems. Local groups are the ones best qualified to ccmduct studies of what a particular community has to offer in the way of boosting eccBiomy whether it involves a textile plant, tobacco factory, a garment- industry, a better system of transporiatitm, hotels and motels, developing scenic attractlOTs, recreation areas, fishing, farming or w^hat.

One locality for example made a study and found that it had little potential for industrx', and that a type of industry it might get would pollute its rivers and streams and destroy its scenic beauty.

Instead, it found a tremendous demand for Its shrubbery, plants and Christmas trees in the Northern and Eastern markets. Developing this brought Immediate economic gains.

SANFORD Governor Sanford has underscored the new drive for economic development

in recent addresses and statements.

Ht detailed, in a speech in Crossnore, a local study which was made over a four year period and pointed out that for Avery Coun^ the most practical opportunity for substantial economic improvement involved three factors: tourist and resort facilities, agricultural enterprises such as apples, blueberries, nurseries for ornamental stock and Christmas trees, beans, potatoes, cabbage, and small Industries and service facilities.

Sanford emphasized that such development plans based on realistic potentials are necessary for a locality to take advantage of the federal area redevelopment acts loans and grants designed to overcome the problem of lack of sufficient local, long-term capital.

SKILLS Marshalling human resources is being stressed as equally Important as developing natural resources. This involves education, educational opportunities and such things as apprentice programs.

A recent Sanford statement: In this age of revolutionary technological change, with its earth-circling satellites, interplanetary rockets, orbiting telestars, and enormous nuclear forces, the development of a more highly skilled labor force of broadly trained craftsmen Is vital to the growth, security and Industrial needs of our rtate and nation.

As we move at an accelerating pace into the space age and its ever-widening scientific challenges, the need for more versatile, highly-skilled craftsmen grows more urgent.

This was on the occasion of noting various state and federal programs to encotrage management and labor to establish more and better planned apprenticeship programs.

AREA Area development planning groups are not new. North Carolinas oldest, the Associated Communities of Western North Carolina, was organized 15 years ago west of and including Asheville.

This particular group promoted tourism, r^ulting in the tourist boom in the j^ountains. It also has Worked for road improvements. One official said the group recognized that highways are the key to opening up this area between the Tennessee Valley and the Piedmont to recreational and industrial development.

There are a number of other .such groups, embracing from three to 18 counties, banding together with similar regional characteristics to promote their area development.

tion is given to details which might save money. In the case of the past years operation of the state, however, the situation was reversed. Mor money was spent to operate the government, but obviously greater attention was giv to economies which might provide greater milage from tax dollars spent.

We trust state officials will continue to give careful attention to possible economies in government operations in order that even greater efficiency may be realized in'the years ahead. The more efficient the government operation, the greater good taxpayers may expect from their tax dollars.

Should Tie Spending Cut To Any Tax Cut

With adjournment of the current session of Congress only a few weeks away, there are still those in the legislative body demanding tax cuts before the Representatives and Senators head for home. "

Most of these members of Congress, apparently, have taken the position that a tax reduction is necessary immediately and the matter of adjusting federal spending to reduced revenues is a secondary item of consideration.

Perhaps this is the kind of talk we should expect in an election year, but in our opinion it is a shortsighted viewpoint for both the nation and for the members of Congress seeking re-election.

To be sure most voters like the prospect of a tax reduction. On the other hand, there are not many of them who relish the idea of greater deficit spending than is already going on in the federal government. Even fewer voters take pleasure in the prospect of a continually increasing national debt that saps billions from the national economy every year for interest alone.

Those who talk about tax reductions, and tax reductions alone discuss only one phase of the complicated problem. The other side of the coin of necessity entails what to do about federal spending in the face of reduced revenue. To be realistic, the two matters must be considered as one, for they are indeed one problem.

Those members of Congress who are deman 1 ing that a -tax cut be made within the next few weeks should likewise come forth with some proposals concerning balancing the federal budget in the face of reducing taxes. For that matter they might help their case if they could come forth with suggestions of how to hold the deficit spending rate even at its present level with the tax reduction they propose.

The federal tax^ schedules need careful revamping, but it is an cmdertaking which will take much time and study. It is not a matter that should be hastily changed for campaign purposes.

By HENRY HOWARD

'i^ousina Welcome Home

SIRENS whined loudly to punctuate Tuesdays rousing welcome-home for Greenvilles international champion rescue team. There was much ado as the nine-man team dismounted from the two shiny new convertibles as they were braked to a smooth stop in the Fifth Street Fire Station.

'There were hand-shakings, neck-huggings, back-slappings and other congratulations for the champs. And the background for it all was brilliantly colored with some 300 proudly beaming faces and the happy rhythms of a combo.

It became obvious that no matter what was said or done would be understated or inadequate. Grand as the wel

come-home celebration was, it could not truly express deepest feelings for the proficient band of public servants now crowned the ultimate champion.

But another truth became equally obvious as Fire Chief George Gardner addressed the welcome-home group. The crowned champions were home from Montreal; they had won top honors. But they had been more than adequately supported; they had been projected onto their international throne from a solid foundation back home.

While their mates excelled north of the border, other members of the Rescue Squad consistently flexed their duti

ful muscles at home. They proved their championship prowess again during the early morning of the day the trophy-bearing team would return.

A rural Pitt County farmer, standing by a mangled sports car seven miles south of Greenville, said in a tone of wonderment:

Ten minutes after I picked up the telephone, that Greenville Rescue Squad was driving up.

Other Editors Saying...

American Hooe Nest Egg To Begin with

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By JA.MES MARLOW

WASHINGTON (AP) - Spy in the sky but not on the ground.

That sums up the Russian attitude, as of now; toward the latest American effort to reach agreement with the Soviets on a treaty banning nuclear tests.

It dampens hope, buUt up over the past few weeks, that through a refinement in the American technique of detecting underground tests the two sides after 17 years of trying might agree on a test ban.

On Monday the Russians once more belittled the proposal the United States had in mind.

In the old days the nations kept tabs on one anothers big weapon development by man-spying.

Now, through sensitive instruments, the nations can spy on one another by what happens in the sky: A nuclear blast above ground can be detected thousands of miles away.

The United States was less sure its instruments were keen enough to tell the difference, in any underground disturbance, between an earthquake and a secret Russian test.

Over the years the United States has argued the only way to prevent cheating if there is a test ban treaty is to have inspectors inside the territory of the nuclear nations.

The Russians, calling this a spy system, have almost consistently said no. Which boils down to this: If youre going to spy it will have to be in the sky. not Inside Russia,

Recently this country has developed its detection instruments to a point where it is believed the United States feels fewer inspectors would be needed in Russia, and fewer here.

Therefore, this country was ready to make new proposals and sent U. S. Ambassador Arthur H. Dean, back with them to the 17-natlon disarmament conference at (Teneva.

Nevertheless, President Ken

nedy made plain at his news conference last week that this country would still insist upon the principle of some inspection.

Dean, back in Geneva, discussed the latest American offer Sunday and Monday with Soviet Delegate Valerian Zorin.

And Monday Zorin brushed it off. He said that Dean returned to Geneva with appeared to be based on the .same old American proposals which Russia had turned down before.

Dean said he wanted to talk to Zorin some more before presenting the proposals to the full conference. All this made prospects for a test ban look as dim as always, although the need for it grows more urgent:

The United States, not to be outdone in developing new nuclear techniques, felt it had to resume testing after the Russians resumed la.st fall. T h l,s country is still testing.

Now the Russians have begun a new test series. This may cause the United States, not to be outdone, to feel it has to

Public

rorum

To The Editor:

Judge Not That Ye Be Not Judged.

A recent issue of Life Magazine pictures the authors version of Oral Roberts evangelistic efioi*t5, I cannot conceive of a more damnable article than this where every ounce of effort humanly possible is used to destroy the Faith and Hope of millions of people throughout the world. I fear the author is .sending his soul straight to Hell.

Mark H. Smith Rt. 1, Box 294 Greenville, N. C.

* (Henderson Dispatch) Governor Sanford has announced that the State Revenue Department came through the fiscal year that ended June 30 with a saving of some $17 million on budget items for the past year. This represented trimmings from appropriations by the 1961 General Assembly. It is a most commendable achievement and one for which department heads deserve the thanks of taxpayers generally.

But this is not all. The tax levy imposed by the last Legislature has yielded some millions in excess of anticipation, and the total surplus in prospect by the time the lawmakers return to Raleigh next February to appropriate for the 1963-65 biennium is expected to be around $40 million. This is said to be the largest amount of excess revenue over requirements in any one year for the State. "

Back during the war years, when it was impossible to carry out certain improvements that had been planned, and particularly In the'building of highways, because of scarcities, a greater surplus than this was accumulated and was available when the war ended.

The surplus lasted no longer -thian the first postwar Legislature convened, Avail|ble funds were prorated for urfeent needs and were so applied. ,

Yield in revenue over and above expectations from taxes imposed could not be ascertained accurately in adv^mce. The purpose, as is always the goal of the lawmakers in preparing budgets, was and is to make certain that the spending schedules will be balanced by Income. Now. this and more has happened. Had the Legislature known W'hen it was In ses

sion what Is reality now, the food tax might have been omitted with no essential service by the State lost.

With this huge nest egg In the kitty, surely there will be no tax increase for the next biennium. It could conceivably be possible to repeal the food tax. We say it might be possible. Any one who assumes that it wTU be done is merely engaging in wishful thinking. When was a tax once imposed removed? After the food tax has been In effect for two years, the public will have become accustomed and hardened to it. and the administration and the legislators will take that into account.

If anything like as much money is approved for various State institutions as is being asked in advance already, even the surplus and the existing tax structure will not be adequate to meet the requests. The Ad-vis()ry Budget Commission, now on its rounds of Institutions, usually makes some curtailments In requests. The Legislature in turn has the option of cutting still further or even increasing these recummenda-tions. It may be reasonably assumed, however, that the administration will go all out to comply with the askings.

The existing budget is an all-time record for the State, and the one to be voted next winter or spring will in all likelihood put that in the shade.

Fact is, though, that the States finances are in good condition. All reasonable needs can be met from present levies, together with the surplus. Taxpayers should make it clear to their representatives that they expect this to be done, with even some concessions if and where possible.

BRUCE STRICKLAND, the jovial county commissioner hailing from Bell Arthur and Pitt Countys third district, appears to be a front-runner for any most colorful honors.

He was in usual form Monday during the official boards regular session. Early in the meeting after Sheriff Duke Andrews and County Auditor Reg Gray had joined Chairman Alton Gardner in a cigar-smoking derby, Strickland, squinting through the blue haze, his eyes beginning to water, pleaded for relief.

The glass-paneled door to the Commissioners Room was opened narrowly and the blue cloud, fanned by the windojv-mounted air conditioner, slowly drifted into the hall.

LATER, with cigars out and door reclosed, the air conditioner regained its control and soothed the board members with a frigid freshness.

At one point, sandwiched between voting on routine motions. Strickland also regained his color. Rather suddenly, he leaned far back in his padded swivel choir and exclaimed:

Boys, its so cool this morning. Im almost tempted to go on back home and kill hogs.

BUT it took only seconds for the commissioners feeling of exhilaration to evaporate when the board members recessed and strolled into the sultry-hot weather for lunch.

After another session with the air conditioner and the same revitalizing effect had again brought hog-killmg vision to Strickland, the commissioners trimmed their afternoon session short in favor of dedication ceremonies for the local Social Security District office building.

Again there was the drooping effect of the trip intd the heat and Strickland mused with a degree of finality:

Hogsll just have to wait tm frost,

3onk Aorees, No Recession Near

Strength For Today

By EARL L. DOUGLASS OPPORTU.MTY ROUND ABOUT US

A great insurance company In New York once Invited its agents throughout the countiy to attend a business conference in New York, While in attendance, one of the agents from a midwestem city sold a life Insurance policy to the barber, the elevator man, and one of the waiters in the restaurant. All these men had i)ecn employed for years by^ the^ insurance company In its great building, but no one had thought it w'orth-whlle to solicit these men for business.

Many yeans ago Ru.ssell Con-well made millions of dollars going about the country delivering his lecture. Acres of Diamonds, The theme of this discourse vas that we do not

need to seek our fortune at the ends of the earth; it is buried in our own back yard, if we only have wit enough to find it.

Two coiintry doctors decided to give their best to the rural section In which circumstances had placed them, and for decades everybody in the world knew about the Mayos. We hear a great deal about the executives of large business organizations in this country, but most people do not realize that the really substantial fortunes are made by thousands of businessmen operating In small communities where they have seen In their village the possibility of making something or performing some .service which the general public is eager to buy.

Opportunity lies all about us. If it is not close at hand, it Is probably nowhere.

By ELMER ROESSNER The weight of the evidence available does not support' the view that a recession Is at hand, states the First National City Bank of New York in its August economic letter.

(Eight (lays ago your reporter wrote here; There will be no bust in August. . .The economy will continue fairly level with July. . .August Is going to be a reasonably good month.)

First National City also said; There seems little likelihood that business is suddenly going to fall out of bed. We have had no excess of business spending, for Inventory or plant and equipment, which need correction.

There is no apparent reason'to expect additional shocks, like the steel-prlce controversy or the stock market l^reak, to replace an atmosphere of caution with one of downright gloom IVraiey and credit re-rf-iln in abundant supply. tOni'OUATE PROFITS RISE The latter also reported that

corporate statements issued to August 2 indicate that profits in' the April-May-June tjartr were slightly better than in the firs, quarter, although the degree of improvement over 1961 results was narrowed.

Its analysis of 934 corporation reports Indicated net Income in the second quarter was 13 per cent higher than in the second 1961 quarter and 1 per cent better than 'in the first 1962 quarter.

Income during the first half of 1962 was 21 per cent higl^ er than in the first half of 1961. (Corporate profits up 21 percent and some Industrialists and un-Ipn leaders are'clamoring for a tax cut to save the nation from recession, disaster or something.)

STEEL BATTERED, BUT CAN TAKE IT

The banks analyses by Industries show that 47 Iron and steel corporations fared not so well. These Include the steel comp9,nlc5 that President Ken

nedy bulldozed out of a price rise^Their profits In the second quarter of this year were 24 per cent less than in the second 1961 quarter, and 32 per cent less than the first quarter of this year. But, before you burst out in tears, note 4hat the earnings in the first half of this year were 32 per cent higher than in the first half of 1961.

There were very few other minus signs. Nine tobacco companies made 1 per cent less sales in the first half than a year ago; 35 service.and amusement corporations did 5 per cent less.

The biggest half-year rise was by 44 railroad corporations, up 107 per cent over the first 1961 half. Next were 25 textile and apparel companies, up 61 per cent. Then came 33 railroad companies, up 71 per cent. Then came 71 electrical equipment and electronics corporations, up 33 pe* cent.

Will Rogers said during the depression of the early Thirties that this was the only country

ime,

iiort

Waste

By GEORGE E. SOKOLSKy Copyright, 1962, King Features Syndicate, Inc,

It takes too much time, too much effort and tcK> much money to become President of the United States. It is an undertaking to be made only by millionaires or .the favorites of labor unions which have large treasuries. The corporations who could, in Mark Hannas day, influence a nomination are today

paralyzed by law; generous pri- _

vate givers are becoming stingy because of the Income tax.

A Presidential candidate has to run many times: first, in the primaries; second, at the convention; third, at an election; fourth, indirectly during the Intermediate Congressional and gubernatorial election when his future may be determined; fifth, during the re-election primary; sixth, during the re-election convention; seventh, during the re-election campaign. If he makes . two terms, a veritable fortune has been spent.

I should like to tote up the costs of this very complicated operation but such figures are not accurately or completely available. Maybe, when President Kennedy has had his two terms and has retired, he will write a book on the subject.

In 1957, Professor William G. Carleton of the University of Florida, commenting wi this subject in the Political Science Quarterly, wrote:

The days of the favorite sons, the dark .horse, the stalking horse, the smoke-filled conference room, the Senatorial and Congressional cabal, and the decisive trading of votes by local bigwigs are numbered, if Indeed they are not already finished. Insiders and mem^ bers of the political club are being cut down to size and forced to accept the leadership of those who have made successful national pre-convention campaigns and of those wh() have become national names and mass celebrities.

That was not so at either 'convention in 1960. Among the Democrats. the contert was between John F. Kennedy and Lyndon Johnson. Both had campaigned in the primaries, but the convention was as It had been since conventions started: there were deals and bargains and arrangements. Even television changed niching because there were no television sets In the private hotel rooms and the lobbies. The Kennedy steam -roller, managed by Robert Kennedy and Abraham Ribicoff, was a well-oiled, brilliantly managed operation.

The Republican Convention was even simpler. President Eisenhower chose Richard Nixon and the delegates were there to applaud. Nelson Rockefeller, who wanted the job, was left out in the cold.

Kennedys campaign recognized a fundamental principle: the Solid South could be depended upon for perhaps one more Democratic vote; the task was to subtract votes from the Republican North.

This was accomplished by recognizing that the North had become urbanized and that women voted. Kennedy made his pitch that way. Nixon would have been elected had he not listened to advisers who told him to be gentle and polite and had he not tried to save Elsenhowers face.

I note that Professor Carleton said:

Mass pressures were responsible for the nomination of Wendell WiUkle. The average Republican delegate did not want WiUkie. The average Republican politician, guided by the old rules of the game, had every reason to be suspicious of him.

The old rules demanded a pro-fes.sional, a proved vote-getter.

Wendell Willkie was chosen by groups attached to the National Association of Manufacturers. I was part of that apparatus for a short time and saw it in its Infancy. The campaign for Willkie was set up long before the convention. Willkie had been a Democrat: a member of Tammany Hall and of the New York Democratic County Committee. Earlier, he had been a Socialist. However, he delivered a speech at the Town Hall in New York in favor of private enterprise which attracted a great deal of attention. He was then President of Commonwealth and Southern. E. T. Weir of National Steel and Thomas Lament of J.P. Morgan and Company decided that whatever might be

(Continued on page six)

ever to ride over the hill to the poorhouse In an automobile. If we are entering a recession now, we are the only country able to ride in a Carey limousine to a poorhouse under Hilton management.

ANOTHER BANKS VIEW OF ECONOMIC CONDITIONS Valley National of Phoenix, Ariz., had a different comment on the stock market: "One speculator, when asked his view of the situation, observed. Im neither a bull nor a bear at present, just chicken.

SET A TEEN TO CATCH A TEEN Believing that teens are responsible for 40 per cent of shoplifting, a New York department store cha|n has hired a squad of college students for after school and on Saturdays, when movst goods are lifted. The youn detectives arent supposed to make pinches; they carry small radios to keep in touch with Protection Central.

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