\

l^emhmt 17, 1962

Marching Back To The Three Rs

hsrS'H^k'z'H?!f

WUf'i# A 8.

Sinct California has the larfirest public school p oye back to the three

ASrrtem in the nation, the course it follows could k public schools. Along with this trend, there have considerable influence on the general nattera fort^ately, greater emphasis on the re-

of education across the country. It is a fact how students as well as teachers to make

ever, that many smaller school systems in the nal m- outside the class-

ton already have turned greater emphasis to basic been evident in our local schools and

courses of study. <^ber schools throughout North Carolina.

Russias Sputnik I of several years ago caused * What California does in its public school sys-

great clamor over the question of whether publi-' may have greater influence on education na-

jchool students were getting sufficient instruction Carolina. But

to basic courses of math and science. Since that ^^at Western state gives more emphasis to the

time educators have taken a more careful look at j-f harder work by teachers and more

the overall program of public education to determine ^*gent study by students, it will not be setting

a new pattern. It will be following a pattern airead}^ set in the schools of North Carolina and other states. It will be following a pattern for providing young

Rival Serenaders

Await End Of 2-Price System

By WILLIAM A. SHIRKS

^ COttOO

wtil indostay ia awaiting the reccKumendatlops pnanlaed by RresMe^ Kennedy for remov-^ ^ Inequtty and 'unique bur-n of a two-prloe system of U 8. cotton.

.TOs tWD^Mlce system, under wuien foreign mills esc buy . B. cotton chesper thun can do-mmo mills, is blamed primar-& competition*'

sw U. 8. industry faces from ioreifn^Dade cottons.

was put Into effect In 1966,

there is no one clear-cut, simple answer to the cotton textile problem, although its leaders would prefer a free worid market for cotton.

What may happen Instead Is a new sut^dy program something the industry calls "subsidy Ml subsidy on subsidy'a payment to be made to equalise the price of cotton to U. S. tex-te mills. There are many who doubt the wisdom of this, but who may be willing to accept it.

SYSTEMThe two-price system came about under an export

people with a basic edutational background to help them meet the challenges and responsibilities the will face in the world of their adult years.

New Knowledge In That Flight To Venus

In the short span of a few minutespossibly ' a few secondsMariner II may have provided scientists with more information on one of the great mysteries of the universe than astronomers havj been able to compile in centuries of study.

It will take weeks and perhaps months for scientists to interpret the volume of information sent back to earth by Mariner II when it swept past Venus on its way into orbit around the sun. Once

Study

Years

I ^ Hb6^mmh

Stfawam '.S'O" way into orbit around the sun. Once

sokolsky

The Meaning Of Words

then the "flood" <rf for-coming into toe Uhtted States has Jumped nwn ^ equivalent of 181,-W bales in 1955 to 672,000 bales this year.

U. S. Tariff CommlsslMi w year rejected an Industry g to put Import duties mi these foreign goods to protect toe domestic market.

Mtay now believe that a large segment of the U. S. cot-

cotton and toe world price, presently eight and one-half cents a pound Mr $42.50 per 500 pound lle. It was designed to make U. S. cottMi cMnpetiUve mi the world market because in 1955 U. S. cotton exports had fallen to their lowest p(rfnt in a century.

, wnv^wcvci, uxuau llcW

doors into knowledge of the universe will be opened to the scientists.

The ambitious program mapped for Mariner ax has been spotted with troubles in the weeTcs that the space vehicle has been on its flight of almost Copyright, 1962, King Features 35 million miles to Venus. At the crucial time of Syndicate, inc.

der unless an effective program 18 Miacted by Oongress in 1963. And these industry spokesmen W it is going to take something drastic.

^raOPOSE The American Textile Manufacturers Institute has put the two-ilce system for cotton at the top of its list of critical Industry problems.

ATMI also has proposed a solution. contained in a broad and weei^iV five point imogram that is bound to be controversial and Utterly opposed bcause it pits the imesent cotton price support-export subsidy iHX)gram against a fairly open market, relaxed acreage oontn^ and tax^ vantages for U. 8. cotton pro-cessOTs.

What ATMI proposes is this:

1. As early as possilde. a return to the ooe-prlce system for Americaa cotton wbetber sold at home or ahroad.

2. Tte exrtiision of any fonn cf processhflT tax on manufee-tored cotton products.

3. MovNnent of cotton through Borznal trade clannels rather than govmmMnt hands.

4. A fair procedure in respect

net income position of the cotton farmin.

5. An increase in cotton acre-fte **rea]istieally geared to the tocreaae In demand for . S. cotton that will result from a aound kog-nnge program."

A3EWhat this pian mauntff to. in effect, is an on

^ cotton pfice support program vhicfa dates back to 1939. B is jeded that the cotton pro-

PPa>-e"ty The principal buslne f the

becaiSe tte me^eSr^^ sponded as planned. Supreme Court <rf the UniSS

ISf ISS-luU Marine'rir "fo^atipn transmitted by the

was. In effect, a subsidv on .?nb- yl^'riner II is now what scientists exDect or hone toe end of the I8to Cen-

sidy.

RESULTThe result of the

ing.

Recently, there has been fierce excitement over a part of the First Amendment, particularly over the words "estab-ILhment of religion. Decisions on this subject have been numerous since 1947. The Supreme

tau textile toduatrrma^gi^ to'Tffe'r^SibS^su Manner H now what scientists expect orTope end'^heTs

^W-Th^ruTTih the very mechanics of the YndL" S!g^ incfuntSfd'^^- las'Mt^^

tw^S sySSn si^s ATlvn of equipment aboard the space vehicle ii vation. to the second half of toe f decency. In this

is this: A u achievement. New knowledg? Century. One reason that Sf rdk^^^

" gained which will help the nation's S Siy^eS ww

space program and pave new avenues for further St ite written established church in

probes into the secrets of the universe. -

fnun win not be eUn^toated, but toere is some hope that it can be relazed to a system which the texttfe industry says "we can lire with.*

There is one school of thought m the textile industry that such problems arising from ooe-crop eoMxxnies are no longer ferm problema but really mnA welfere problemir

The todostry Is realistic enough, however, to know th4 major changes in basic farm programs will not oome about ovwnlght. nor next year. Thus,

foreign textiles into the United States and lower cost and prices.

Substantial losses of domestic cotton markets to paper, plastics, synthetic fibers, jute and other materials.

A shrinking market m- the production of . S. cotton farms.

ATBH says this pegging American cotton at artificially high mice levels under a price sunxift "umbrellg" has not only resulted In recurring surpluses oi American cottMi but also in increased production of foreign-grown cotton. The U. S. share of total WM-ld cottMi mtxhicdn since 1952 has drom>ed frmn 42 percent to 30 per cent.

BVMelgn-grown cottnn. too, is kept out of the U. S. by strict quotas enacted in 1939. Thus . S. manufacturers ol cotton textiles must buy domestic cotton at premium prices. At the same time, fMeign cotton goods made from lower priced cottMi and with cheaper labM* comes into the . S. in competition with the U. S. cotton indiK:t.

PROMjEMSThere are many side proUems, and some trftter-ness. Some textile men claim that U. S. cotton doesnt spin as wen as it used to because poorer quality cotton is produced and ginned under the price suppMt system. Many bales are trashy and libers is frartured when the ginners heat and dry Mit the raw cotton to get a better grade.

These critics claim that fiber-graphs and other scientific methods of measurement are available to the U. S. Department (tf agricultures cott^ graders, but arent used. Instead, cotton is graded by the same methods in use for decades.

"American cottMi isnt thought of too highly abroad anymore, one textile (rffidal said.

^ Revenue Service Under Pressure

The Daily Reflector

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By. RALPH ROBEY

Never has the Internal Revenue Service been subjerted to as vigoTMis criticism from a ruling as it has bem mi the new proposals on expense accounts. Hundreds, and perhaps thousands, of letters have been written to the service objecting to its Interpretation of the law. and so many taxpayers asked to be heard in person that instead of only one day being devtAed to this purpose, toe time was doubled. Still, every Mie was under luessure to get his analysis presmted in toe time aOotted. And tills was in the face of an <H;)ening statement by Mortimer C. Caplin. Commissioner of Bitmal Revenue, that certain of the suggested rules would be reconsidered and eased.

No one questlMis that there has been abuse of expense accounts. But no Mie knows bow widespread the alnise 'bas been or what it amounts to in dcd-lars. And certainly It was the Intent of the CMigress in the tax act passed a few months ago that an attempt should be made to bring the abuse under CMitroI. B is, however,, the almost unanimous view ot careful and skilled students, both lawyers and laymen, that the Internal Revenue Service has gMie well beyond even the intent of the Congress.

In general terms, two main questions are Involved: first, the determination oi what is a legitimate business expense frMn the viewpoint of taxes; second, the issue of what type of records must be maintained in order for the Internal Revenue Service to allow the de-ductiMi.

On the first question the main controversy has to do with whether business management or representatives of the wrvlce are the better judge of what is a legitimate expense account item. Obviously this Is a ticklish subject. If management is given the right simply to use its discretlMi in allowing deduc-tiMis the field Is vride-open for abuse. But, CMivcrsely, if an Internal Revenue Agent has unlimited power to disallow an

item, it means that in many Instances perfectly legitimate expenses will not be deductible.

Management believes, aftd properly so, that It Is more capable in tiie determination of legitimate business expenses than the Internal Revenue agent can possibly be, but even so it does not ask for, or ex-wide - <)en discretion. What it objects to In the proposed regulation Is that It is put so definitely on the defensive tiiat it will have to regard almost every expenditure as suspect In the eyes of the Internal Revenue Service.

The type of records which must be maintained under the prtgXNsed new regulations Is an equally serious matter. A volume of detail Is reqired that is basically impossible. Most wcD - managed CMnpanies now demand Itemized accounts from their employees and officers, and on the basis of these reports they determine whether toe expenditure was fair and legitimate, or excessive and wasteful. If the decision is that the item was excessive and wasteful, it is customary for it to be disallowed or at least It is required that It be reduced to what is proper. To meet these standards it is normal for employees and officers to keep an Itemized account of expenditures.

The proposed regulaMis go far beyond this. They require exact times; individual listing of each item with receipts for anything over $10; names; relation of the guest to the busi- . ness purpose being served; how long the dlscusslMi lasted; type of entertainment if any; other guests present; and so on. This is snooping beyond reason, and it would place a burden upon business and its employees that is without warrant.

As noted earlier, Mr. Ciq)lin has stated that certain of the rules will be modified. It is to be h(H>ed that the changes are really significant, not because any honorable persMi approves of abuse (rf expense accounts, but merely as a matter of reasMiable (H>eration of our tax laws.

been made flexible by Supreme Court decisions. Otherwise, It would have burst through Its seams many times as it grew.

There have been times when the Supreme Court was regarded by so-called Liberals as a vicious institution which existed to restrain progress; at other times, the Conservatives regarded the Supreme Court as the very work of the Devil, designed to alter our form of government without regard to the Constitution or the rights of Congress under the ConstitutiMi. It depends upMi whose goose is cooked. These days, the Liberals find the Court very comiort-

the 18th Century meant one supported by toe State such as the Anglican Church Is In England. But what does It mean now?

It is difficult to understand what business some of this Is of the Supreme Court. Schools are the most local of our instl-tutiMis. Down to the village level, there are school committees and school bMu^. Nevertheless, In the case of EversMi v. Board of Education, the Court held that state payment for bus rides for children who go to parochial schools is not a violatiMi of the Constitution.

It was a correct decision if

Mie had to be made. The case should have been thrown out of court because no American child should be deprived of benefit given to any other American child.

The next big case, McCollum v. Board of Education in 1948, intelligence and case, a woman have an atheistic child felt that it placed him in an umbrageous position when other .children went on released time and he sat alone. Therefore, she wanted released time on school premises abolished. The Supreme Court agreed with her, giving the ImpresslMi that the Supreme Court preferred atheism. This Impression was, of course, incorrect. 'The Court was merely trying to Interpret the word, establishment, and only proved that it was defective in its definition.

In Zorach v. Clauson In 1952, the Court corrected an erroneous impression by deciding that released time was permissible off school premises, requiring an adjustment of school schedules.

i renas

By ROtER BABSON '

BABSON PARK, Mass. Before attempting to assess prospects for 1963, it would be well for readers to look back on 1962 to "get the lay of the land, so to speak. The trends of the past year could provide valuable clues as to what nmy happen In 1963 which will be discussed in full in my 1963 Forecast.

A YEAR OF CRISES

1962 had more than its share of dramatic events. Noteworthy among these were the forceful role played by the government In various aspects of business. Early in the year, Labor-Man-agement bargaining in the steel industry was given definite guidance by the government. This helped to bring about an early and peaceful contract settlement. Only time will tell what the impact will b on the basic rights and responsibilities of Labor Management in formulating mutually satisfactory woiklng agreements. Shortly thereafter, attempts of certain leading steel companies to raise prices were dealt a severe setback at the hands of the government. This jolted CMifidenco and helped to trigger the stock market slump, another cris-

The international scene took the limelight later ta the year. The Cuban furor was followed shortly by the Invasion of India by Red China. President Kennedys forthright stand on Cuba restored American prestige In the eyes of the world. However, the Sino-Indian border clash Underscored the magnitude of world unrest.

A SPADEFUL OF RECORDS Notwithstanding the above mentioned crises, the American economy put together an excellent year. New reconis were set In many sectors. Total dollar value of goods and services produced (the Gross National Product) set a new record of $555 billion, according to my estimate. This trend is persistently up from the $519 billion average in 1961. *1116 Federal Reserve Index of Industrial Production, which measures physical volume of output, is estimated to have averaged 119 (also a new record), versus 110 in 1961.

Other record-shattering performances included peaks in new construction expenditures, business capital outlays, retail trade, and personal Income. Employment was also of record size; but, due to the increase in workers, toe rate of employment relative to the growth In the labor force was disappointing. This situation points up a fundamental weak spot in our economy. If not remedied by

Other Editors Saying.. Upping Postal Rates

(Washington Daily News)

On January 7, 1963, postal rates in this country go up. Instead of costing four cents to mail a letter on January 7 it will cost five cents. Instead of a postal card costing three cents, on January 7 it will cost four cents.

It is going to cost more to mail newspapers, circulars, catalogues, books, and airmail. In fact, about all materials sent through mail, with one exception is the congressiMial record mailed out of Washington, D. C. After January 7 instead of there being a cost of Mie cent per record, the cost is discontinued.

Peale have a tendency to go along with matters they understand, and to oppose matters they do not understand. Through the years the Postal department of our government has operated at a loss. And in recent years there has been a CMistant tendency to raise rates without giving the American people much better service. It is not the fault of the postal employes. It seems they are forced to operate under a "horse and buggy system in a nuclear age.

It seems apparent that congress is determined to charge what the traffic will bear In this matter of postal rates. One day, if rates continue to climb, we face the prospect of diminishing returns,

* Every day the business houses of this area and we suppose of every other area In the United States receive a lai^e quantity of so-called "junk mail. This "junk maU makes up the

bulk of the mail both from the standpoint of bulk and weight. Why does not the government seek to cut down on the volume of "junk mail, thereby eliminating a big headache for both the receivers and the postal department?

When the congress of the United States takes it upon itself to raise rates on the "poor mans letter or postal cards to four cents, then it has, it would appear, tended to eliminate a lot of postal cards.

We well remember not too many years ago when a letter cost two cents to mail, and a postal card cost only wie cent. Within the space of the remembrance of this editor, letter rates have gone up two and a half times and postal cards four times. What about ecMiomy In government, particularly in the Postoffice department? Why has there been no effort to realize better service and better economy?

We are sure the AmdWcan people will "go along with the January 7 raise. In reality they have no choice. They are at the mercy of the government. Newspapers long ago felt the pinch of ever increasing postal costs. Now the pinch is ever more rough.

About all we can look forward to in the years ahead Is the date on which our government will again raise postal rates. And we can hope that one day our government will take it upon Itself to increase service and adopt a few economy measures. We can hope, and that seems about all we can do.

in Torcaso v. Watkins in W

the future.

A GOOD YEAR FOR CONSUMERS The total spent each year by federal, state, and local government is an awesome figure. Nevertheless, this Is only about one-third of the total spent by consumers. Hence, our ecMiomy is still keyed to how consumers fare. In 1962, consumers had. Indeed, much to be pleased about. Their earnings rose to unprecedented highs, and employment was ample In most areas. They spent rather freely, but still they added significantly to their savings. These factors were primarily responsible for maintaining a high level of public confidence.

PRICES AND PROFITS Price structures were generally under pressure throughout 1962. The Bureau of Labors Wholesale Price Index was fairly steady, but with a slight downward tilt. Prices for Industrial and primary commodities, however, slipped more, due to abundant supplies and cautious demand. Price shadings, b o t h . announced and under the counter, were commonplace. Re- / tail prices were also subject to "discounts.

Starting the year with a slight sag, business profits turned upward moderately the remainder of 1962. Though price structures were on the soft side, businessmen shored up their profits through cost-cutting measures and by maintaining brisk production rates.

STOCK MARKET Many investors are still suffering from the slash In stock market values last spring. While tt slump was breathtaklngly sharp, subsequent rallies gradually restored a measure of confidence. Nonetheless, many Investors undoubtedly learned a good lesson from the shakeout.

the Court held that the state may not require an oath affirming belief in God as a condition to holding State office. So the phrase, "So help me God, was knocked out. In fact. In many courts, an oath is taken on the Bible. This decision is definitely antagMiIstic to three centuries of tradition and history on this continent and is absurd reasoning, because if an oath is not taken to God, to whom or what Is it takMi?

In the case of Engel v. Vitale, the Court held that a state-established prayer even though it is non-sectarianviolates the First Amendment. This declsiMi created consternation throughout the country and gave rise to a wide-spread agitatiMi against the Supreme CMirt.

Now, arises the questiMi of Christmas and Hanukah celebrations. Christinas celebrations have taken place In American schools as long as toere have been schools. In some places, Where toe majority of the children are Jews, there have been Hanukah celebratiMis. Christmas has become, next to the Fourth of July, the leading na-tlMM holiday of this country; Hanukah is more a nationalistic than a religious holiday among the Jews and represents the exploits of Judah Maccabeus and his brothers against Rome and the Roman pollution of the Temple. Both are Joyous holidays.

Why children should be deprived of joy only a bigot can understand. ^

theUNITEDwav

T lA a lAoo uAi- ucr ui rcasouaoie Mcrauon oi -r . . _

limited power to disallow an our tax laws. A i i * TT^ *T"n

Strength For Today ^^icipations For Busin6ssm6n

. -X By ELMER ROESSNER constructlnn i Ha, a___a_

By EARL L. DOUGLASS OUR SPIRITUAL OPPORTUNITY "And the spirit of the Lord shall rest upon him, the spirit of wisdMn andi understanding, the spirit of counsel and might, the spirit of knowledge and of the fear of the Lord. . ." (Is-alab 11:12).

Isaiah uttered these words as he looked Into toe future and discerned the coming of a world Saviour. This Bdbig would be of quick understanding, alert to perceive the difference between reaUty and unreality. He would look into places which to us are secret places. He would smite the earth with the rod of bis mouth "and with the breath of his Ups would he slay the wicked. "And righteousness shaU be the girdle of his loins and faithfulness the girdle of his reins. What Isaiah saw with the gift

of prophecy came to pass we believe in the Ufe of Jesus Christ. He Was not just a man who grew into greatness and taught great truths. He was definitely a Being sent by Almighty God, the Incarnation of toe divine iinirpoee who, because God was in him and toe spirit of the Lord upon him, was able and is still able to perform those gigantic wortcs in our natures and in the Ufe of the world which are so desperately needed.

The plea of the Bible is that we beUevc in Gods Gift and use it. Unlimited si^tual power is available to us if we wiU only use it. Many of the miraculous and overwhelming circumstances related in the Bible could occur In our present Ufe If we allowed them to do so. Every day is for everyone of us as plritual opportuni^.

By ELMER ROESSNER

Here are more business anticipations, based on analyses of developing trends;

Steel demand to rise: Inventories have been worked down to the level existing before the last strike threat, putting most users in position to Increase orders. Meanwhile, auto sales continue their rise, further strengthening steel demand. As steel orders rise, so wlU employment, sales and the general economy.

^ Retail record: With seven

more shopping days before Christmas, prospects are bright that a new monthly high in re-taU sales wUI be estabUshed tills December.

Housing decline: Construction of new homes is dropping more than usual this winter. In many areas, builders are troubled by unsold houses, causing them and others to slow down construction. However, Industrial

construction is expected to rise, stimulated by faster amortization and toe promised tax cut. RISE IN INSTALMENT SALES

Consumer credit to rise: A new high in consumer credit outstanding wUl be reached by toe end of the year. The continued high rate of auto sales, mostly on the Instalment plan, plus the record Christmas instalment and charge purchases, will push the total above ^7 bUlion. It was $46 bilUon at the end of October.

More oil Imports demanded: Theres double pressure on the White House to relax import controls on fuel. The Independent' Fuel Oil Maiketers of 46rica chaise that recently controls have increased consumer costs by $500,(X)0 a day. The State Department Is concerned, too, because the import controls are hurting the economy of Venezuela. Communists

are taking advantage of this to undermine the power of the pro-U. S. Betancourt Administration there.

BONDS FOR SELF-EMPLOYED New kind of U. S. bond: The Treasury will issue a new series of bonds designed for sale to self-employed persons who want to set up pension funds for themselves under legislation effective January 1. Banks and Insurance companies are disturbed about the bond since It will cut into a field they want for themselves. lAy banks and Insurance companies are setting up plans whereby self-em-ployed persons can finance their retirement under permissible tax-saving regulations.

Industrial production leveling: Despite toe Impact of high auto sales and the rise In steel output, over-all industrial production will rise very little in the next three months. In fact.

toere may be a slight decline. However, a pick-up by midyear seems probable.

OLD PROMOTER CITES SIGN OF THE TIMES

The Old Promoter dropped in again today and said he had a tt^icant fact for me. "An old friend of mine had two sons, he related. "He brought up one to be a doctor and the other to be a minister, figuring one could save his life and the other could save his soul.

"Now both the doctor and the minister have two sons. Each one Is bringing up one boy to be an Internal Revenue agent and the other to be a tax lawyer. Each one hopes one son can save on his taxes and toe otlwr can keep him out of jail.

I agreed that this demon-strates the shifting concept of value tn our civilization.