Thursday, March 14, 1963

A Contrast In Tax-Cutting Plans

There is an interesting and important contrast in the effect proposals to reduce income taxes at the federal level and at the state level in North Carolina will have on the fiscal position of the respective governments.

Goals of the proposals are similar in at least one respect: to relieve a portion of the financial burden that rests upon individual taxpayers for support of

their governments. .

Effects on the financial position of the individual governments differ widely. In the case of proposals under consideration by North Carolinas General Assembly, reduction in income taxes must be made without throwing the states operating

first fiscal year. Indeed, even proponente of the tax reductions at the federal level say it will take several years for the lower tax rate to stimulate the economy sufficiently to put the budget back into balance.

Dont Worry

F/g- he MTHE COKGRE0 GW

If North Carolina reduces its income tax revenues by $7 million or $12 million as now advocated in two principal proposals, the legislature will at the same time have to compensate somehow for the lost revenue to assure at least a balanced budget at the end of the next biennium. No such requirement is incumbent upon the federal government. Congress may make appropriations as high as it likes and reduce taxes as much as it likes and let a^dVficirosi^^ By law and by tradi- the difference between federal revenues and federal

Reduction of the tax burden at both the federal and the state levels of government is sorely needed. But certainly North Carolinas requirement that tax reductions cannot result in state government operating deficits appears more sound than those of advocates at the federal level asserted that if taxes are reduced the resulting deficits will take care of themselves in some future years.

adopt a budget which will not leave the state in a deficit position at the end of the budgets operating period.

The federal government, by contrast, has ended its fiscal years with deficit many more times than with favorable balances in the last decade. If the proposed income tax reductions are approved at the federal levelwithout compensating reductions m federal spendingthe operating deficit will be substantially above its present level by the end of the

S'WEAT OFF EXCELS Bl LLIOH<>

-CW4 BE PUT BACK IN THE $ENT6 PATRV WTCHEN-

-

Tar Heels Not Ready .BgUcS ArgumGnt p^j. change In Views

On Ending i ax

By WILLIAM A. SHIRES RALEIGH Legislative notebook:

Sen. Irwin Belk of Charlotte claims almost solid public support for his bill to repeal state intangibles taxes on bank deposits and money on hand."

But powerful forces are opposing the Belk bill which would cut off a tax that channels some two million dollars a year to local governing units. Belk fully expected formidable opposition. which came immediately from the Association of County Commissioners and other groups. But the Mecklenburg senator says his mail from the average man - on - the - street shows nearly 100 per cent, overwhelming public support.

It is in fact a tax on thrift, and a tax which penalizes the small saver, Belk says. In effect, he said, it is double taxation against the working man which few other states impose.

And North Carolina doesnt have to, and shouldnt, he says.

BELK Belk says he h a s given serious thought to a bill to repeal the entire intangible tax schedule, from which the state derived $12,409.733 last year. He said, however, he Is convinced that now is not the proper time for full repeal.

The tax on bank deposits.and money on hand is the most in-igultous part of the intangibles tax, Belk said. Corporation bank deposit taxes are credited against franchise taxes, and wealthy persons keep their money Invested or substantial sums on deposit out of the state and beyrad reach of the North Carolina intangibles tax. he said.

ARGUE Thus, Belk argues, the tax falls mostly upon the Individual saver and small businessman. Accounts In building and loan associations are exempt. Thus, one who must have his money readily available in banks is discriminated against. It is the small saver and not the banks who would benefit most from repeal, Belk says. Also, he argues, the entire state would profit.

For one thing, he says, the bank deposits tax reduce the amount of money on deposit and avE^able for use in North .Carolina.

It tends to keep Industry out . . It discourages retired people from establishing their homes here. This tax costs far more in revenue than it produces, he said.

LICENSES The WUdllfe Resources Commissions executive ' director Clyde P. Patton says loss of revenue from exempting elder citizens from hunting and fishing licenses would have program - crippling effects.

The bill introduced by Rep. Arthur W. Williamson of Columbus would cost the state approximately $80,000 a year in hunting and trapping licenses, ^,000 a year in fishing licenses and about $27,000 In federal fish and wildlife restoration aid money.

Patton says that commitments against the Wildlife Commissions $600,000 surplus at the end of 1961-62 will leave only about $325,000 to $350,000 at the end of the current fiscal year.

This amount is below the safe minimum needed to meet expenditures during the lean months 61 June, July and August each year when income from license sales is almost nonexistent, Patton said.

In a memorandum to Wildlife Commission members Patton also calls the Williamson bill discriminatory.

OCCUPATIONS There is not as much variety in professions and occupations of the 170 members of the 1963 General Assembly as in some past

year. ~ -------

For example, there are only 16 different occupations and professions among the 50 members of the State Senate. In 1961. there were 20. There are 43 different professions and occupations represented in the House this time, whereas in 1%1 there were more than 50.

In the Senate there are 28 lawyers, six farmers, four merchants, two bankrs. two automobile dealers, two insurance men and three manufacturers. There is one surgeon, one theater owner, one savings and loan official, one minister, one power and light company official, one realtor, one dairyman and one bottling company official. There is one fertilizer manufacturer who was not listed with the other manufacturers.

HOUSE Things are more varied In the House. For example. there are four homemakers among the women representatives. The other woman lawmaker is a doctor.

There is one editor and two publishers. There are five real estate men, two salesmen, three teachers, two school superlnten-dnts and one school supervisor. Thei-e is one theater owner, one public accountant, one office manager and one hotel operator.

There is one cotton ginnery eight auto dealers, 24 farmers, 32 lawyers, three tobacconists, one barbecue and newsstand operator. nine merchants, two pharmacists. one college instructor, four oil and gasoline dealers, one meat processor, one manufacturer. four contractors, seven insurance men, (Hie exterminator, one undertaker and one sheriff.

Legislative action in Raleigh these past two days makes it clear that Tar__Heel citizens are not ready for daylight saving time nor are they ready to abolish capital punishment m their state.

Legislative action rejecting daylight saving time and preserving capital punishment came as a surprise to no one. Similar measures have been subject to similar fatein earlier sessions of the General Assembly. There has been nothing since the 1961 session to indicate the people of North Carolinanor of th*eir elected representativeshad changed their thinking on these two subjects.

Aside from farmers and theatre owners, few citizens of the state have taken part in the debate over daylight saving time. For the most part the citizenry of North Carolina has been indifferent to proposals that the state push its clocks forward an hour during the spring and summer months. The combination of stiff opposition from farm and theatre groups and apathy on the part of most other citizens made it evident that the legislature would not endorse the proposed change in the states official time.

As for abolishing capital punishment, the number in favor of the proposal appears to have grown during recent years. Even so, the vast majority of Tar Heels continue to hold the view that capital punishment should not be abolished in the state. This view persists in spite of the fact that the death penalty is imposed less frequently in the courts of the state year after year.

For this General Assembly session, at least, the matters of daylight saving time and abolition of capital punishment appear to have been resolved. But it is a good bet that similar bills will be awaiting legislative consideration again two years from now.

By PATRICIA MOORE

Birds Miss Yearly Visit

The month of March, for the past few years, has brought a special significance for us. Its gotten so that about the end of February we start scanning the nearby trees and searching the sky.

For some reason unknown to us, this year is going to be different. The birds Just dont seem to be coming.

In the past, flocks of cedar wax wings have invaded our next door neighbors pyracan-tha shrub and completely cleared it of its red berries.

About the first of March each year the big event occurs. It takes the birds just 30 minutes to devour every berry on the shrub and on the ground. It is amazing.

Last year it happened at breakfast time. All of a sudden the birds appeared and were busily cleaning the bush. A passing pedestrian on the sidewalk would send them flying to high trees for cover and when the danger had passed, back they went to the pyracantha shrub. It took exactly 30 min

utes.

The year before the birds came at lunch time, again. very conveniently for us to serve.

This year the berries are beginning to tuiTi brown and black with age. They are slowly dropping off and withering. The once beautiful shrub is just sitting, its beauty deteriorating to nothing.

We hadn't thought about it before, but the birds did a sort of service mentally and physically: physically by clearing the bush and mentally by sparing us the reflections caused by seeing the (Hice colorful bush gradually lose Its berries to rot.

The robins and sparrows which come daily apparently dont like the flavor of the py-racanthas berries.

Our only c(Hiclusion Is that this cold, damp winter affected the habits of the cedar wax wings and somehow we got cheated out of their yearly visit.

March has never been a predictable time of the year, any-

Churchill: The iarly Failures

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By JAMES MARLOW WASHINGTON (AP)Winston Churchill barely made it.

For years he was tormented by the thought be had to make a name for himself early because he expected to die young, like his father.

He didnt die young and by the time he was 65 he was a political failure. H he had. died then, in 1939. he would have been at best only a footnote in history.

He wastlespised, distrusted and even hated by many In British politics, including many members of his own Conservative party. He had practically no following.

He was recognized as a tremendous and delightful orator. But all through the 1930s, while he urged Britain to arm against Hitler, there were doubts about his Judgment.

His judgment had not always been good. He was impulsive, sometimes eratic, and he always had an urge to run the show.

The war came, just as he had warned. He was brought into the Cabinet in 1939. On May 10. 1949, the day Hitler attacked the West, he was made prime minister.

In the next five yearsthe time it took to win the war his leadership, and the inspiration he gave both his own people and Britains allies, made him one of the greatest figures in history.

He Is 88 now, and fragile. Congress, anxious to pay him tribute in his lifetime, is about to make him an honorai-y American citizen, something it has done forano other man. The House approved this Tuesday, the Senate will soon.

There were many reasons for Churchills failure until he was 65. He switched from right to left and back to right; he fought with his own party; and he got mixed up in mistakes and disaster.

He belcmged more in the I9th the 20th century when he first entered Parliament in 1901, the year Queen Victoria died after a reign of 64 years. He was a true Victorian.

He was a reactionary, an isolationist. a pacifist, an imperialist (he remained an imperialist into his old age), a boob in economics, without a clear philosophy except for getting ahead. .>

He lacked understanding of both workers and the poor. He fought against enlarging the army, although the Kaisers Germany was arming. His vision was so poor he couldnt picture any more large land battles.

He fought with his Conserva

tive partys leadership and got no advancement or recognition.

In three years he switched over to the Liberals. His critics said he was an opportunist.

But he became to a hurry a flaming Liberal and to the next few years helped put through a raft of social legislation unprecedented in British history.

He urged a soak-the-rich tax, particularly against the rich landowning dukes, although he had nine dukes in his own family background. Like President Franklin D. Roosevelt later, he was called a traitor to his class.

Yet, for all practical purposes, by 1911 his Liberal days were over. That year Germany became an obvious menace and Prime Minister David Lloyd George brought Churchill into his Cabinet as first lord of the Admiralty.

But soon after war began in 1914 Churchill plunged into a disaster that was to be thrown at him until the second World Wai' washed out the memory. He spearheaded the Allied attack on the Dardanelles. It failed and cost the British and French over 300.000 casualties.

Strategically, the idea was sound. But it was badly carried out, not only by Churchill but by others. Later a British royal commission put some, but not all, of the blame on him. He was out of the Cabinet after that.

Later he held other high posts. But his days of social crusading were over. He used troops to some great British strikes and this earned him the hatred of labor. He had switched back to the Conservatives by then but many in his own party distrusted him. So did the Liberals. The Laboritcs feelings were worse.

Nevertheless, all through the 1930s, he was the one who saw clearest the danger from Germany just as he saw better than Roosevelt the danger from communism.

Why was he picked as prime minister in 1940 when he had been repudiated so long?

This is a reasonable answ'er: Until then he had been out of tune with popular thinking which had become pacifist. When the danger of Hitler became unmistakableby "war P(H}ular thinking and Churchills thinking became one: total restetance to the Nazis.

No sooner was the war over than the voters threw him out and replaced him with a Labor government. Again why? Churchill, absorbed to the war, bad given no thought to peacetime needs. The Laborites did. They had a program. Chur-(Continued on page 5)

TO_THE EDITOR: in reply to your editoria! of Mai-ch 6, and the letter submitted March 11, Both have a point, however, this does not solve the problem. Talking about it does not solve it, but bringing It out to the open is a good way to get started.

We should look around and see what is being done in other places, WUson, N. C., for example. They have the finest Recreaticxi-al program to the State. They have programs for grade school children. High School children, College Students, and Adults, all under the supervision of folks who have made recreation their lifes work.

They -have a recretion committee made up of citizens who are toterested in seeing their town progress, they have a full time staff of employees whose job it is to see that there is something for everyone. They have classes to Arts and Crafts, all sports, skating, dancing, bridge, weaving, sewing, chess, and anything else anyone wishes to learn. Since bowling has become the Nations number one family participation sport, they even have classes to bowling.

One of the first things an industry seeking to relocate to the South looks for, is a town that has recreational facilities and programs that will meet the needs (rf their families, and the famlUes of their employees.

Other cities are aware of this, its time Greenville wbke up. John McCarthy Greenville, N.C.

TO THE EDITOR.

Indeed it is a pleasure to be a second to Rev. K. T. Hall, when it is a case of giving

honor due one of Greenvilles humanitarians, the late Mrs. Pattie Elizabeth Kearney.

Its also wonderful to hear a voice cry out with no selfish interest, pleading to the citizens of Greenville, to help make Pattie, our Pattie. a shrine; and yet, what a small token of appreciation to give one who gave her all to Greenville and Pitt County.

She was neither a Dr. J. A. Battle nor Professor C. M. Elopes, both of w'hom is remembered by a city street and school: but stood tall and walked and talked daily with them. She was a social worker, a Christian and a humble old teacher who felt it natural and a need to carry her pencils and paper toto many homes of adults. . .the county Jail, with permission of the jailer, Mr. Leggett, teaching them how to read and write.

She operated to her own backyard a playground that served the pleasure of many children during the summer months, and of course each day the children were served their usual punch and cookies.

I hereby move, also, that the Carver Library be renamed the Pattie Elizabeth Kearney Library.

Hats off to Mrs. Edna B Graves who helped to bring Mrs. Kearneys effort to focus. Hats off to Rev. K. T. Hall. Lets say Hats off again, to the Library Board and city fathers. And Take not from me what Is mine, and give her idea and dream her name. It belongs to her.

Robt. L. Shivers Grandscm of the late Pattie E.

Kearney Washington, D. C.

way. A year ago It was snowing. Next week it might be snowing. And the Ides of March are just a day away.

Strength For Today

By EARL L. DOUGLASS CUSTOM OR PRINCIPLE

Is unconventicmality a good trait?

That depends up<M3 a lot of qualifying circumstances. The thief, the murderer, and the ccmflrmed criminal are unconventional. In fact, they depart from societys accepted patterns of behavior to such an extent that the law lays a teavy hand upon them and puts them under duress.

On the other hand, the prophets of Israel were unconventional. Saints are unconventlcmal. People whose goodness towers like a mountain peak above the conduct of mankind to general are unconventitmal people. They depart from an established pattern.

The secret of the whole thing is that there are certain rules to the game of living and to these rules we must conform. They constitute moralityright as distinguished from wrong. These are something more than mere customs adopted by people through the ages and made respectable by use. They arc moral principles. Honesty, kindness, generosity, purity of mind and act these are n(^ mere customs,'these are moral principles.

The world, often establishes patterns of behavior based (m selfishness, greed, sensuality, love of power. The people who rebel against these patterns are unconventional. God blesses them and shows every evidence of His pleasure to them.

Dont feel that just because you are unconventional you are free of prejudice and superior in judgment and morality to your fellows. The Important question is, Where did you start from? This makes the difference between goodness and evil.

Opinions

n Brief

Governor Sanford worked a man-killing 14-hour day on his recent l3>sch(^l speaking and visiting tsar in Wayne County. At Ihe end of the grueling day he was as relaxed and as fresh as a daisy. How the man does It, we dont understand.Goldsboro News-Argus.

?oison

Of The

Spirit

By JOHN CHAMBERLAIN

Copyright, 1963. King Features Syndicate, Inc.

You cwnc into a town, as I did toto Norfolk. Va., last week, and you find it concerned not with problems of world import but with an immediately localized (jase of rape and murder. This is evil in the form that strikes home at everybody. .

V The particular rape and murder that had Norfolk in an uproar was an extraordinarily repellent crime. A 14-year-old girl had pinned a noti?e to a laundromat that she wanted babysitting jobs. This gave a 23-year-old sailor with a wife and 16-month-old son a gruesome idea. He called the 14-year-(dds h(ne, said he needed a babysitter for the nightand then, after driving her off into a marsh, proceeded to assault and kill her.

This is the sort of crime that Is making our society a ghastly one to live In. Not only is it hideous In ItseU, but It strikes directly at all ease to social re-latkms. It poisons the mUk of human khwtoess at its source, tonte everybody distrustful of everyone else, and ctmdemns people to staying home and gazing at the wall.

The institution of the babysitter was. In Its origins, a happy response to a great need. People cant get servante any more, and young couples often work in towns that are far distant frcHii their parents and other relatives. If they are to have an; social mobility they must have access to babysitters to default of grandma or a Uve-to cook. The babysitters, teen-age girls for the most pari, take jobs because they offer pleasant ways of making a little money. Usually the prlvege of raiding the refrigerator and watching television goes along with the work. The whole business comes under the heading of fun as well as being a gratefully received service.

Now, the man who would take advantage of the innocent tostl-tution of babysitting to carry out a rape and murder la preying (HI the best impulses of human beings. UniCMiunately, the c(Hitemporary world seems to be breeding more and more of this type of utterly depraved mcxister.

While I was driving out of -Norfolk I noticed that many sailors were trying to thumb rides. They werent being picked up. Though my own car wa* stuffed and I wouldnt have been able to take along an extra passenger anirway, I reflected nonetheless that I wouldnt have ptoked up a etnmger v^4L J had had four empty seats. Its been a long time now since I have accommodated a hitchhik-er.

Why? Because of the repellent cases I have heard about of hitchhikers who have robbed and even murdered their benefactors. A couple of years ago there were stories of particular stretches of road to Utah and New Mexico where the robbing and raping and killing of generous car drivers and their families was an almost weekly occurrence.

As I drove out of Norfolk thinking about the inhumanity of anybody who would repay kindness and generosity with a-revolting assault, I thought back to my own young day's as a hitchhiker. That was in 1920 and 1921, when the automobile aga was just E^tog into its stride.

I was working in Oallfomia to an orange packing house, and whenever I had any time free I used to hitchhike from Claremont, near Los Angeles, down to Palm Springs cm the desert. You could always count <hi getting a ride. Later I hitchhiked all over California, through the San Joaquin Valley and up into the great national parks of Se-(juoia and Yosemltc. People were not afraid of hitchhikers then, for tos(tfar as there was a criminal element in hobodom it was stl riding the rods of the freight trains. The automobile nmds have (mly recently been spoiled for Innocent hitchhikers by a vicious elemwit that recognizes no obligation to any-(me who is kind enough to ao-(xmunodaU a stranger by giving him a lift.

For a safecracker one might have aympaiy. The safecracker does not betray generosity. If he plans a bank robbery, he must pit his skill against Intricate locks, strcmg steel doors, and electrified burglar alarm systems. With the safecracker It is strength against strength, with no quarter given or asked. I could wish him an easy (Continued on page ft)

Nobody Dares Cut Debt Interest

By ELMER ROESSNER

Our President, John F, Kennedy, has a bothersome problem that may keep him awake nights. It ccmcems the budget.

He has proposed spending $122 billion, with total receipts from the pubUc about $112 billion. If these figures seem larger than the ones you have seen. It is simply that you havent read the fine print.

This deficit (they dont call them shortages in government) may be greater. Congress rarely makes significant cuts in the budget and usually adds appropriations. Furthermore, the scions have shown no reluctance to add on appropriations later on.

In the end, the difference between Income and outgo may be atound $15 billion.

WHY NOT BORROW CHEAP?

To make ends meet, the government will have to borrow $15 billion. It cant Just print that

much more money. In other countries, other days, that was what was done: Printing presses rolled out enough money to meet spending.

But in the U.S.A.. we cant do that, according to law. We borrow numey and. to effect, get the same results.

During Franklin D. Roosevelts presidecy, when It was necessary to increase spending enormously for relief and war, the government borrowed vast sums. Then, to keep interest payments on these huge loans down, the government rigged the market and forced rates down. The Federal Reserve discount rate, the governing factor to all business loans, was pushed down to 1 per cent to 1937. R was kept down around that figure all during the war and was not allowed to go up to as little as 2 per cent until 1955.

AFFECTED WAR COSTS

The war was expensive indeed, but it could have cost twice as much if FDR had not kept interest rates low.

Now the Federal Reserve discount rate la 3 per cent, and the effective rate for borrowing to the mai^et la 5 or more percent. Even the individuals can get more than 4 per cent on long-term deposits to savings banks, and savings and loan associations.

Facing the prospects of a great new deficit, iht President might be eager to force down interest rates, reducing the cost of borrowing.

According to President Kennedys own statement to Congress. Americans pay 6 cents ot of every tx dollar for interest on the natkmal debt. If the totei^ est rate oould be halved, it would provide more than $8 billion more revmue, or that much less to deficit spending. THE KICKBACK

Why, then, does the President hesitate to ixish down interest rates? It could be done by exerting oh-io-little pressure on the Federal Regerve'Governors.

The answer Is. easy. If the U. B. A. reduced interest rates, there would be a fliitot of gdld from the country.

Our gdld drain is serious. It has been stanched to part by the fact that European investors still have confidence in us. If they didnt, they would withdraw gold until we embargoed the stuff to avert nacmal bankruptcy.

There *is the dilemma.

If President Kennedy forces interest rates down to make the deiielt easier to bear. Investors will pull money out of the U. 8Jt. to Invest to Europe. But If he lete Interest rates rise, while it pleaaee foreign investors It wUl make the lnc<ne tax burden harder on Americans.

If