Tudty, Octobr 27, 1964'

School Bonds Mean Much To N.C.

What is at take in the school bond referendum to be decided Tuesday by the voters of North Carolina?

That question is still being asked by people througb>ut the state who have missed discussion of the matter that has been going on for more than a year.

Nothing 'Sure'

About Guilforc.

''Boyl Did You Mako A Big Boo-Boo, Yoginov Bearovichr

Coffee

By WILLIAM A. SHIRES

REVERSE There are widespread pre(UcUona among Democrats, o course that the astonishing Republican sweep 0 1962 Is populous Guilford County will go into reverse this time.

Democrats close to the Guil-ford situation feel fairly confident, outwardly at least, that ^ their party's candidates will do the sweeping this time.

Republicans in Guilf o r d strongly disagree. They believe the GOP is well itrenched and they will be able to consolidate and strengthen their recent political gains.

It is clear to observers that both parties look on Guilford as a key county an important, heavy-vottag county with a well-established two party system -- and most likely sharply divided.

VOTES Hopefulness on the part of Democrats about GuUfcH-d this time not only extends to the state and local tickets, but to the national tic-' ket as well. And this would be a marked reverse. ,

Guilford has voted Republican in every presidential election since 1952.

Then it went Republican in the gubernatorial election of 1960, favoring Robert L. Gavin over Terry Sanford by 11,000 votes. In that year, too. Guil-ford elected one Republican to the legislature.

In 1962 Guiliord voted Republican down the line from etate house to courthouse. In retrospect, observers might have seen it ccnnlng but it occurred u one of the major surprises of the 1962 elections.

QUESTION Now, in almost any political conversation in the state, the question arises, what will Guilford do?"

Gov. Terry Sanford was asked the question at a recent breakfast meeting with newspaper editors.

That, Sanford said, is the riddle wrapped in the enigma.

He admitted that the political situaticHi in Guilford has baffled him. Sanford suffered some of his most severe p(^-tical setbacks of his administration to Guilfm^. Exactly why is not clear, at least not to Sanford nor to other top Democratic party stndegists in the state.

Peiliaps, they say, the only answer lies in Guilford County itself and the Democrats confidence is based on belief

WILLIAM

BHTRgj

that Guilfords Democrats, who far outnumber OOP voters in registration figures, will furnish the answer for themselves this time.

BASIS - WithOQt bothering with explanations of the past. Democratic campaigners in Guilford have been trying to relate the situation to the present.

They contend for example that the all-RepuUicaa. delegation from Guilford in the 1963 General Assembly was ineffective and, in the words of fmm-er House Speaker Joe Hunt

Jr. of Greensboro, very nearly got our county into serious trouble." Hunt, a Democrat is a top aide in the gubernatorial campaign of Dan K. Moore. He chose to assist in the Moore campaign rather than run again for the legislature this time. He Was defeated in a bid for the State Senate in the GOP sweep of 1962.

Guilfords Democratic party chairman, Claude K. Josey, goes further.

They (the Guilford Republicans in the 1963 legislature; made a mess of things in Raleigh." Josey says. They fought among themselves and didnt give us very good reprcswita-tioo."

Josey, Hunt and other Democratic spokesmen in Guilf o r d believe that the experience of 1962-63 and the record (d the Republicans has probably served to teach Guilford voters a lesscm.

GOP The Republican chairman in Guilford is Phil Lacy, one of the GOP legislators tected in the sweep (rf 1962, and Lacy says the county has done extremely well." In the legislature, he says, we had no trouble on local legislation.

He said the setbacks had to be expected because the Democrats fought us a great part of the time.

RACES No matter who wins Guilfords legislative elec-ti(His this time, the 1965 delegation will have a larged freshman flavor. None oi the candidates are incumbents. Only one. former Democratic Rep. Ed Kemp of High Point, has previous legislative experience.

Lacy is not seeking re-election. The (xUy veteran in the 1962 delegation. House minority leader William Osteen, chose to devote himself to his law iH-actlce instead of politics this time but is expected to attempt a tomeback later. Osteens father, John L. Osteen, is one of the GOP candidates for the State Senate in Guilford, opposing Kemp and L. P. McLendon Jr. of Greensboro.

Pormer GOP State Sen. Charles Strong todc himself out of the legislature to seek the Republican nomination for governor. So did Rep. Dcmald Badgley, another of the 1962 surprise winners. Rep. Hardy Carroll died.

Tims both parties have new slates for the legislative seats.

OTHER The Republican candidate for governor, Robert L. Gavin, has pinned a great deal his hopes on carrying Guilford County again, and a recent newspaper poll in Greensboro showed Gavin barely edging Moore in voter preference. But ibe same poll bowed President Johns o n leading Barry Goldwater in what would be a reversal of the pattern of the past 10 yean in presidential voting in Guflford.

Democrats feel confid e n t that Goldwater will not run as well in Guilford as did President Eisenhower or Richard N. Nixon, and that the additional GuUford votes in the Johnson column Will offset some normally Democratic defection in areas Eastern North Carolina this time.

Gavin in a demnistration of how strwigly be pins his hopes to Ouilf(d plans to wind up his 1964 state campaign in the county on election eve next Monday.

The Daily Reflector

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In a nutshell, the referendum, if approved by voters of the state, will provide for $100 million in state bonda to be used by local school administrativeunits across the state for construction of new buildings. The legislative act authorizing the bond issue stipulates that the funds received by each school unit may be used either for new school construction or for repaying local loans in connection with scnool construction that already has been done.

The bond issue will not necessitate any tax increase because present revenues are sufficient to defray the amortization of the proposed $100 million in state bonds that will be issued.

In terms of Pitt County, the bond issue will mean million in school construction, money

for the county an(f city of Greenville school administrative units. Pitt County will receive Almost $1 million from the bond issue and the Greenville school administrative unit will jreceive almost a half million dollars from the state bond issue.

The proposal was, of course, approved enthusiastically by the 1963 General Assembly and it has received the endorsement of both the Democratic and Republican candidates for governor of the state.. It offers North Carolina an opportunity to take another major step toward providing the buildings that are needed by the public school system across the state. It will provide local school units a big assist in realizing the additional school facilities that must be had to accommodate the increasing public school enrollments.

It is a proposition that is financially sound. It will help meet a pressing' need in Pitt County and in North Carolina. It is a measure that deserves the support of the citizens of this county when they go to the polls Nov. 3.

Eastern Counties See A Continuing Change

Year-by-year changes in Eastern North Carolina may be (lifficult to see by those who live here; but if one takes the time to look back over a period of a few years, it is quite evident that the face of this section is changing rapidly.

In the rural areas of Eastern North Carolina many houses stand abandoned where once families lived and tended crops. They are now gone, many into the communities of the area and some into other sections seeking a new means of making a livelihood. Agriculture has been undergoing a mechanical revolution, tobacco acreage have steadily declined and additional crops and farm products have pushed forward to make up a large part of the agricultural income. For it all, however, the agricultural economy appears to have strengthened steadily.

There are few communities in the region that have not seen their corporate limits spread in recent years. New homes stand on many acres of what was , once farms and woodland. Municipalities have found themselves pressed to provide additional services for growing populations.

Here and there in almost every county new industrial plants have sprung up, providing employment for literally thousands of people. Still, the area could use many more industrial jobs; but those which have been provided have made a great difference in the economic life of the area.

With the growth of communities, there have come new businesses to provide goods and services. The pace of the economy, in spite of the recognized need for further acceleration, is considerably faster than a decade ago.

After years of experimenting, trial and error In the new field of development. Eastern North Carolina is just now beginning to hit its stride. It is gaining a new vision of its potential, and, unless we are seriously mistaken, its people have a new determination to exert every possible effort to see that the potential is realized.

Years Changes Among Leaders

By JAMES MARLOW

WASHINGTON (AP) - The year 1965 wiU be the year of the jockeys, no matter who wina the presidoBtial election.

New leaders In Britain, the Soviet Union and the winners here will be jockeying for position on the foreign policy track.

As they try to figure <me another out It should be a busy, even a harrowing, year with perhaps ire.sh crises and un-m^ctable directions.

A new crew will be running the Kremlin. The Laborites, for a change, will be running Britain. The American president, Lyndon B. Johnson or Barry Goldwater will be comparatively new in foreign dealings.

Just about a year ago aU three governments were headed by men who, by trial and error, had learned to know and deal with one another.

Premier Khrushchev in the Soviet Union. Prime Minister

COPYBIGHT L__LOS ANGELES TUUil

C^OC5

-3**WMWV

By ALVIN TAYLOR

Cown By The Riverside

By George, we want to be the East Carolina rowing right on the river bank when squad makes its grand ap-

Other Editors Saying... The Farmers Choice

JABfBk

MARLOW

Macmillan in Britain and President Kennedy here.

Macmillan, the first to go, quit last October. Last November Kennedy was sssassi-nated. Two weeks ago Khrushchev got the heave-ho into obecurity by (he Kremlin hierarchy.

In the Soviet Union, two men took Khrukhchevs place: Leonid I. Brezhnev and Alexei N. Kosygin. They may be only temporary front men with the real best nt yet able to qlgw his key to tht lop or al>-ady hi the wlngs,^ waiting to ftep up.

These two Russians, because <g their meager dealings with the outside world until now*

are a relatively unknown quantity. They talk of continuing Khrushchevs peaceful coexistence."

Even if they planned the opposite U would hardly be time to say so yet suice the reasons for Khrushchevs disr missal have not been announced. The rest of the Communist world seems unsure pi what the new leadership means.

In Britain, Harold Wilson, whose party won the Oct. 15 elections, is the man in charge. He beads the first Labor government in 13 years. But the Laborites margin of seats in Parliament is so small he may not last long.

Wilson never has been in a position to direct Britains foreign policy before. Undoubted-.ly he will make some changes in It. Rfght after the election he said the voters had given his party a mandate for "many changes" over the whole field of government.

And here, whether the winner next Tuesday Is Johnson or Goldwater, he will really be new to the rest of the world in major foreign dealing and dickering. Ooldwat e r has had no say In foreign affairs, is not even on the Senates Foreign Relations Committee.

In Johnsons U months m office. he has had to make some foreign decisione. He had a hatful of domestic chores to worry about and concentrated first on them and then on the election campaign.

He has been aware of the foreign problems but afl three natlon.i this country, Britain. tbe Soviet Union have been pretty much rocking along on such understandings as there were between Kennedy. Macmillan, and Khrushchev.

Since Britain is gn ally it can be assumed Us relations with this country will remain on a fairly quiet plane. The real talk for the new preM-dent is to understand what the new Soviet leader-shlp means and to cope with tt.

(Hertford County HeCald)

Rural Americans those who live on the farms and in

the towns and small cities

across the nation including most particularly the tobacco, peanut and cotton fanners of the Roanoke - CJhowan and

those who depend on them as customers or clients gre faced with a great decision in the upcoming presidential

election. Fortunately, the choice is clear-cut.

It is a choice between a candidate who prefers to see rural America without farm and area development p r o-grams and an incumbent President who has exhibited by his actions that he sees the necessity for a combination of commodity and community development programs for rural prosperity.

President Johnson has his roots In rural America. He recognizes that agriculture has the ability to overproduce even the best farmers Into bankruptcy.

To counteract, the economic threat of overproduction, he has sponsored and signed laws to cut down on surpluses yet maintain fair prices for farmers. He is also strongly behind programs such as area development and rural electrification which build a stronger economic base for the entire rural economy.

Senator Goldwater. on t h e other hand, has said he doesnt know anything about farming. He thus could make the flippant comment in his book, Conscience of a Conservative," that the way to deal wdth the farm problem is the prompt and final termination of the farm subsidy program."

This attitude also allows Senator Goldwater to say in Senate floor debate, that I disagree with the implied assumption of the advocates of

(the Area Redevelopment Act) that economic reverses in certain areas of our country constitute either a critical or a permanent danger. Such conditions. . .are perfectly normal to the economic cycle of American enterprise. . .

But even more convine i n g than the stgtements made by Senator Goldwater on agricultures problems are his votes. He has voted against recent price support programs for wheat, feed grains and cotton, among others. He is on record against Federal aid to depressed areas and against area redevelopment grants and loans.

Goldwater was announced In favor of drastic cuts in the Agriculture Conservation Program and he voted for a reduction in funds for maintenance and operation of navigation and flood control p r o j-ects.

Senator Goldwater voted against the federal atomic power program and against federal construction of the Hells Canyon Dam. He vote'd against additional funds for the Rural Electrification Administration and has said REA has outlived its usefulness" in most states. He has urged the sale of TVA to private interests.

He is against rural housing, programs and urges that Social Security be made voluntary. He is also on record against the war on poverty program.

The issue, then, is whether rural citizens will vote for a man who has consistently opposed programs which are vital to the economy of piral America or whether they will support the man. President Johnson, who has demonstrated his concern for rural Americas problems and challenges.

pearance on the mighty Tar.

Weve heard about the glorious days of the river when steam boats plowed its waters, bringing wares from far off places. We have been told of the famous excursion boats which pulled out from the landing at Cotanche Street. Pitt Countians of that day, who couldnt go very far on wagons over dirt roads, were able to make water trips to such places as Norfolk.

But in our lifetime, the Tar has been only a muddy stream which meandered along within its banks. Occasionally, of course, it flooded and became a dangerous thing. Otherwise

ALVIN

TAYLOR

little attention w'as paid to the Tar. What with the advent of the sewerage system, the river had become a dumping area for municipal wastes. The commercial boats had long since disappeared, their demise hastened by railroads and later automobiles and trucks.

But in recent years those along the Tar banks have been taking a new look at its potentialities. Now the Tars future seems to be tied up in recreational possibilities. For a strong effort by the state has seen the river cleaned up through construction of sewage disposal plants along its banks. The Corps of Engineers is now in the process of de-snagging the river to make it usuable by boaters and fishermen.

Ten years ago the prospects of an East Carolina College rowing crew on the Tar would have been laughable. But recently when Dr. Leo Jenkins proposed such a thing It sounded plausable. Now with the ac-(Contlnued on page 5)

Relivee.

By JOHN CHAMBERLAIN

Copyright, 1964. King Features Syndleatt, Inc.

There were aeyen or eight of them standing oo the aldewtik outside of 8t. Bartholomew's Church 1 Park Avenue in New York CHy after the private funeral service lor Rer her t Hoover. They were the girls who. during the huey ninth decade of the Chiefs" amazingly productive Ufe, had helped him with his manuscripts. He had kept all of them going in a tandem operation, tiding, arranging and looking up references for the eight books which he was working on simultaneously.

The c(mver8ati<xi of the girls was sad, hut there was a warm undercurrent to the occasion of their meeting, as though they were old classmates who had come together after a separation to recall a particularly

JOHN CHAMBCRIJUN

happy period. Somehow, though I felt like an intruder. I found myself included in an invitation to go alcmg with five of them to the nearby Waldorf, where they wanted to reUve the experience of <me of tteir old-time* coffee breaks when they came down from the Hoover quarters high overhead in the Waldorf Tower to relax.

This particular coffee break stretched into an hour, as the girls talked of working for the Grand Old Man of the Grand Old Party. They spoke of the thirty-two books Herbert Hoover had published. But, more amazingly, they spoke of at least as many Hoover manuscripts which have not yet seen the light of print. Evidently there is enough Uterary treasure there to make a dozen pubUshers haw>y, provld e d Herbert Hoover has left directions that it be released.

One unpublished book which Is sure one day to be read by miUi(xiB > consists of Hoovers character studies and reminiscences of some of his great contemporaries. He evident 1 y had a warm relationship with Harry Truman, though this re-latiqns|p had to survive one bad patch.

When TriimSn'WSis President, he began speaking weU of Hoover, which was a surpris i n g switch after all the years in which Franklin D. Roosevelt had treated his unlucky predecessor In office as If he were an ogre. Once again Herbert Hoover found himself welciwne inside the White House. But there came a time when Harry Truman, in the midst of one of his give-em-hell tours, took off on Hoover in a vein reminiscent of the old smear days of 1932, The next time Hoover was asked to come to the White House, he wgus reluctant to accept the inv^ticHi. But when a President bids a citizen to come, the citizen usually complies out' of a sense of duty, and Hoover was ai* ways one to do his duty. Before talking with Truman, however, he insisted on putting his own cards on the table.

Mr. President." he said, before we discuss anything, I want to say that your recent reference to me was one of the lowest things that has been said in public life."

Whereupon Truman grinned, Yes, he said, wasnt it? And you know, when I came to that part of my speech. I almost couldnt bring myself to read it.

Since Hoovers sense of mor always ran to wry turns, this broke the ice between the thirty-first President the United States and the thirty-third.

Another manuscript Which Hoover left. tells an ins 1 d e story of American foreign pol-(Continued cm Page 5)

New Methods Of Obtaining Cash

By ELMER ROESSNER Because corporations are so eager for money for expansion, for Increasing investments in plants and equipment before inflation gets worse, and for meeting the rising consum e r demand in the affluent society, they will pay fatter rates for the use of others money.

And because banks are eager to take advantage of this demand and profit from higher interest rates, they In turn are using new methods of obUdning cash they can land.

These methods have been called revolutlwiary; they may have far-reaching effects on banking in America for decades to come.

HOW ITS DONE Most of these methods involve the sale of unsecured promissory notes or savings certificates. carrying interest around 4 per cent. They result from a , ruling by James J. Saxwi, Comptroller of the Currency, that national bank.s may sell un-seaired notes to raise additional loan funds.

Before this ruling, a Federal Reserve regulation prohibit e d banks from paying more than 1 per cent on borrowings of less than 90 days. But higher rates can be paid on promis

sory notes for short terms, and the notes can be renewed.

While the new device has been widely discussed in the financial press, little attention has been paid to it in other media. Yet it may be the means of bringing billions of dollars more of ready money into the market place, financing economic expansion. It may also be the means of stretching banking and industrial credit to dangerous lengths, although no one has sounded warnings yet.

The First National Bank of Boston was the first to turn to this new method of rais 1 n g fresh funds. It was quickly followed by the Pittsburgh National Bank, the Philadelph 1 a Bank, the First National Bank of Cliicago and the Fidelity Union Trust Company of Newark, N.J.

ROCKEFELI,ERA MORGAN IN ACT

The Rockefeller - controlled Chase Manhattan Bank and several other smaller banks then offered savings certificates for six and 12-month deposits, which produced the same general result.

And the Morgan Guaranty Trust Company of New York has a different tact. R offered

other banks 3% per cent Inter-est for funds above requir e d mnimums on deposits in Federal Reserve banks. The PRB banks pay 3H per cent on such funds.

The one-eighth of a point difference is small, but it mounts up on big deposits. But more significantly, it was one of the few times, if not the first, in which a private bank outbid the Federal Reserve for funds. Within a short time other banks offered better than PRB rates.

This phenomenon generated two questions:

Whence can come this extra money?

Will this force interest rates

RLMBB

ROBISNEB

up?

THE ANSWERS Some of the money Is sur-.lus accumulation of other banks. That was what Morgan

was bidding for. If a hinterland bank has more in deposits than it needs for local lendObig, it may better lend it to Morgan at 3% per cent than to t^e Federal Reserve at 3^ per oent.

But there are othe{ funds controlled by nonprofit..^nrganl-zatlons. that are waiting't<E be invested, including those held by pension funds, churches, hospitals, foundations, etc. The managers of these funds wJ11 find it better to buy bank promissory notes, if their charters permit, at 3 to 4 per cent, than to make 9(l-day deposits at 1 per cent.

The obvious pressure ef these loans is to force interest rates upward. However, there may be no inunediate effects. Ilaceus Nadler, the ctmsultinf ecopb-mlst of Manufacturera Haaov-er Trust, wrote:

Uptil BOW tbe efffcts of theM changes have been mUd . ..The Reserve authorities have not found it necessary to adopt a policy of credit restraint. . .

A moro stringent credit P(dicy may be expected in the maiths ahead; however, a return to eooditions prevailing in 1969 and the early part of 1960 is not in sight."