The news in this publi cation is releas84 for the press on receipt. THE UNIVERSITY OF NORTH CAROLINA NEWS LETTER Published Weekly by the University of North Caro lina for the University Ex tension Division. DECEMBER 14, 1927 CHAPEL HILL, N. C. THE UNIVERSITY OF NORTH CAROLINA PRESS VOL. XIV, No. 7 ft^flitorial Itoardi E. C. Branson, S. H. Hobbo. Jr.. P. W. Wager, L. K. Wilson. E. W. Knight, D. D. Carroll. H. W. Odu Entered as second-class matter November 14, 1914. at the Postoffice at Chapel Hill, N. C.. under the act of August 24. 1912. SAVINGS DEPOSITORS Last week we presented a table which ^ ranked the states according to their bank savings per capita. This week we are shiwing the number of savings depositors per 1,000 population. We have added to the number of bank sav ings depositors, postal savings deposit ors, and members of building and loan associations. . In the case of building and loan associations the membership for 1926 had to be used; in all other cases the number of depositors is that reported on or about June 30. 1926. In the United States as a whole there are 496 depositors in one or another of these savings institutions for each 1,000 people. Of course those people who have deposits in more than one institu tion are counted more than once. Since the average American family contains 4.3 persons the number of savings de positors averages 2.13 per family. This IS evidence that there is a wide diffu sion of prosperity in the United States and widespread habits of thrift. Unevenly Distributed When the states are ranked we find that the New England and Middle At lantic states have relatively more de positors than the United States as a whole. Massachusetts, the highest- ranking state, has more depositors than it has population. This is explained by the fact that a person may have de posits in two or more institutions. It is also likely that the savings institutions of Massachusetts have patrons living outside the state. The same is un doubtedly true of New York, Pennsyl vania, Maryland, and other states con taining large cities with strong savings banks. The Southern states rank low—West Virginia, Louisiana. Virginia, and Florida being the only Southern states with as much as one depositor per fam ily. Eight of tlie ten lowest-ranking states are Southern states, the other two being New Mexico and Idaho. New Mexico ranks lowest of all, with onlf 64 depositors per thousand people. This low rank is due, perhaps, to the fact that New Mexico is a young state, still in the frontier stage, with little surplus capital. The general low rank of the South can hardly be attributed solely to lack of thrift on the part of its peo ple. There are thousands of negroes and thousands of white folks who may be characterized as thriftless, but much of the poverty in the South is found among tenant farmers who are poor through no fault of their own. Poverty in N. C. North Carolina has 199 savings de positors for each 1,000 of its population. This is about one depositor per family and our families average 6.0 persons compared with 4.3 for the United States. Thirty-three states, including several Southern states, make a better showing. North Carolina boasts of its healthful climate, its varied crops and resources, its pure native stock, and its magnificent opportunities. It is represented as a land where nature has done everything possible to make living easy; and so it has. There are no congested slum sections; there are no foreign quarters; there are no hu^e cities whose multitudes obscure the in- «lividual; there is no severity of climate to bring suffering. Yet there is a vast amount of poverty and distress in the state. Perhaps there is more real want in the country than in the cities, for the reason that charity is less satis factorily organized. There are thou sands of families in North Carolina liv ing on the land, enjoying fresh air and sunshine in abundance, yet living on a bare subsistence level. In a state like North Carolina the restoration of such families ought to be easy, but it will not be accomplished unless there is an agency to approach the task scientif' ically and continue indefinitely in its supervision. Yet certain counties count it economy to employ no welfare of ficer. The nation as a whole is rich. The average family is saving money. The savings available each year for invest ment reach a huge total. There is perhaps less poverty than ever before; nevertheless there is too much. Peo ple of means are generous, but in discriminate charity never rehabilitates a family; poor relief must be replaced by social engineering. The increasing complexity of life means that there are more and more people who need direc- j tion, and that is a job for the social ; technician.—Paul W. Wager. A FARM SAVINGS BANK By following a system of selective cutting, taking only trees of good size, one good farmer of Moore county has been able to cut an average of 50,000 board feet of lumber each year for 26 years from'his farm of 360 acres. ‘W. T. Brown of Spies, in Moore county, is handling his farm woodlot as it should be handled and is using it as savings bank,” says R. W. Graeber, extension forester at State College. When be took over his father’s farm of 360 acres some 26 years ago, be de termined to follow his fatlter’s plan of cutting out the mature timber each year during the winter months. Since most of the mature trees had been cut, Mr. Brown was forced to mill the smaller, second growth, but by carefully selecting only the best trees he has cut over 60,000 board feet of lumber each year for the time be has had the farm in charge. Some sections of the woodlot have been cut over each five years.” Mr. Graeber states that Mr. Brown uses the whole tree. The laps and crippled trees are used for wood and the better stock for lumber. With 276 acres of his land now growing timber, Mr. Brown expects to make a timber harvest each year during bis lifetime and to leave more timber on the place than when he began to cut. He har vests the timber during the winter, us ing his own labor and operating his mill with a little water power on the farm. This is one excellent example of good timber farming, according to Mr. Graeber. It is a method that other landowners in North Carolina should follow because using timber as a farm crop gives employment to labor during idle seasons, enables the owner to use the whole tree and also brings in a steady income year after year. It is a much better method than selling all the timber to a saw mill operator and letting him go through the property at one time cutting the best and wasting the remainder.—Vass Pilot. NEGRO SAVINGS According to tentative estimates based on a survey of North Carolina building and loan associations and Negro shareholders in such associations, investigators, working with a local committee of the “Durham con ference,” find that Negro shareholders have at least ?6,000,000 invested in the white building and loan associations of the state, and nearly $700,000 in Negro associations. The 1926 annual report of the in surance commissioner of North Caro lina is the source of the information upon which the estimates are based. According to this report there are seven Negro building and loan asso ciations in North Carolina, with 1,380 shareholders. The total assets of these associations are $665,667.11, an average per capita investment for each share holder of $600 and over. The report further reveals that 12,451 Negroes are shareholders in white associations Assuming, as a conservative basis for their estimate, that Negro shareholders in white associations have a per capita investment not less than that shown in Negro associations, the committee estimates that the Negro shareholders in white associations have a total in vestment of more than $6,000,000. The striking fact is revealed by the survey that two Negro building and loan associations of Durham, which have combined assets of close to $372, 000, have well over one-third of the total assets of all Negro associations of the state. They have over 400 share holders, or close to one-third the mem bership of Negro associations in the state. The Mutual, of Durham, is the largest Negro association in the state, —Durham Herald. N. C. PAUPERS Pauperism in North Carolina, as far as one can judge by the reports of coun ties on outdoor poor relief and county TEACH THRIFT The paramount challenge to edu cation in America today calls for the effective teaching of personal econoimcs—for education in the management of personal incomes so that they will give every in dividual a good living during his productive years and provide certain security for the non-productive years of his old age. Our chidren today are passing through our educational systems practically without instruction for placing their lives on a sound economic basis, virtually without direction in the elementary prin ciples of financial success. Econom ics has been pitched above the average mind. What we need above all is an economic philosophy gauged for the work-a-day require ments of plain people, with instruc tion in it started in time to help school students get a right begin ning in the management of their personal affairs. When public education teaches students to manage their personal affairs prudently and gives them an understaiyJing of the value and prop er use of money then we will at tack economic folly at the source and begin to save our people from the tragedy of financial dependency. — William E. Knox, President of American Bankers Association. homes for the aged and infirm, is not decreasing, declared Roy E. Brown, head of the division of institutions of the state board of charities and public welfare before the second annual meet ing of the fourth district of welfare workers. Mr. Brown said that in 1921 it cost North Carolina in cash, exclusive of farm produce, $583,000 to care for 1,600 inmates in 93 counties. In the year ending June 30, 1927, it cost 89 coun ties $700,000 to care for 1,900 inmates. Add to this an estimated total of $200,- 000 spent for outdoor poor relief in the counties of the state? and it x is easily seen that North Carolina counties are spending close to a million a year for relief of poverty. Pointing out the necessity of careful supervision of county homes in order to obtain more adequate and economi cal care, Mr. Brown revealed the fact that out of 400 paupers in the county homes of the Fourth district, 266 were unable to do any kind of work and of these 145 were in constant need of medical attention. The great need is for better hospital facilities, he commented, giving the work in Vance county as an example, where a county hospital is providing in an unusual way for the indigent sick of the county, as well as giving con stant care to six inmates. The average per capita costs for the counties in the fourth district were given: Caswell, $26.74; Durham $39.64; Franklin $28.12; Halifax $67.82; Har nett $36.24; Johnston $13.13; Moore $39.22; Nash $39.09; Orange $19.24; Person $25.69; Wake $30.00; and War ren $22.34. The average for the whole state is $26.34. —Durham Herald. THE ROAD TO TENANTRY During the last year the Southern Pacific lines in Texas and Louisiana have been sending out through H. M. Madison, agricultural agent, Texas and New Orleans Railroad, Houston, a large number of '‘i>ive-at-Home” letters to the people in the territory served by that railroad. The October letter discusses the road to farm owner- i ship versus the road to tenancy, and contains, in part, the following: “The other day some men were talk ing about the rapid growth of tenantry. One remarked that ‘the road to tenan try was paved with bought supplies.’ “The road to tenantry is paved with buying corn, buying bacon, buying lard, buying molasses, buying potatoes, buy ing pork, buying yams, buying oats, buy ing hay, buying horse, chicken, cowand bog feed. These buyings lead straight to involuntary sales of mortgaged crops; involuntary sales of cotton; in voluntary sales of farm tools, and at last to involuntary sales of land. When the last involuntary sale has been made, the farmer loads his per sonal effects into the wagon; his wife and children climb in, and they drive down the lane to the gate that opens on—tenantry. That man was right. The road to tenantry is paved with bought supplies. ‘Look at the other road—the road to ownership. It is paved with home grown crops—table supplies, feeds, livestock. There are sales of surplus corn, oats, eggs, livestock, bacon, lards, fruit, vegetables and surplus sales of almost everything that can be grown on the farm. These surplus sales bring surplus savings. When enough of them have been made, the farmer buys a car; bis wife and children get in with him and they drive do’^n the highway till they come to a gate. It opens inwardly, and they drive up to—ownership. * ‘The road paved with bought supplies is traveled by the one-crop farmer; he is on the way to tenantry. The road paved with voluntary sales of home grown crops is traveled by theLive-At- Home farmer; be is on the road to. ownership. Both of these roads start from a place called the Beginning; a few years out, at a place called Youth, there is a fork. Absentee landlords, town-dwelling landowners and those who loan money on crop mortgages are likely to say the one-crop road is the best. But it leads to what they want, ^tenants. Is that the road you want to travel? The other road is open, paved with voluntary sales of surplus crops and leads to ownership.”—Manufac turers Record. CALIFORNIA COUNTIES, A law placing all counties in Cali fornia under a budget system was signed by the Governor on May 12, and goes into effect on January 1, 1928. One provision reads as follows: “Expenditures made, liabilities in curred, or warrants issued in excess of any of the budget appropriations originally determined, or as, thereafter revised by transfer, as herein provided, shall not be a liability of the county, but the official making or incurring such expenditure shall be liable there for personally, and upon his official bond.” After a budget has been approved, transfers are not permitted, even by a four-fifths vote or upon the petition of every taxpayer within the county, be tween the general classes of ‘capital outlay’ and ‘maintenance and support.’ —Adapted from the American City. UNSELFISH SERVICE About thirty years ago, Stephen M. Babcock, agricultural chemist at the Wisconsin Experiment Station, invented the Babcock test, which has revolu tionized the dairy industry. The in vention would have made him a mil lionaire bad he cared to commercialize it. Instead, he refused to accept a cent, choosing rather to give it free as his contribution to humanity. Now another agricultural chemist at the Wisconsin station has made even a greater contribution to human welfare and has chosen to follow the example of Mr. Babcock in refusing to turn it to pecuniary profit for himself. He is Dr. Harry Steenbock, a slender, shy, 40-year-old scientist, who has dis covered a way to treat ordinary foods with ultra-violet rays so they will be a cure for rickets. Food manufacturers immediately be came interested, and one concern of fered him a royalty guarantee of $900,- 000 for only a part of the rights. Dr. Steenbock did not accept. With two deans of the Wisconsin institution, be formed the Wisconsin Research Founda tion, to which he turned over all his rights. He never has received a penny of the profit from his discovery and he never will. America likes the spirit of the two scientists of Wisconsin’s agricultural college. It takes moral stamina to turn down a million dollars.—Capper’s Farmer. SAVINGS DEPOSITORS PER 1,000 POPULATION, 1926 In Banhs, Building and Loan Associations, and Post Offices In the following table the states are ranked according to the number of peo. pl^ per 1,000 population who are depositors in the savings departments of banks and trust companies, mutual savings banks, building and loan associations, and postal savings depositories. In the case of building and loan associations the figures are for 1925, in all other cases for 1926. The table is based on informa tion contained in the Statistical Abstract of the United States for 1926. In a few states the number of building and loan members could only be approxi mated. In the United States as a whole there are 496 depositors in one or another of these savings institutions for each 1,000 people. Of course some people have piore than one savings account and are thus counted more than once. Massachusetts leads with 1,066 depositors for each 1,000 of its population. This would not be possible were not some people depositors in more than one institution. Fifteen states rank above the average for the United States. This group includes all the New England states, all the Middle Atlantic states, Michigan, Illinois, Iowa, and California. None of the Southern states .except West Virginia, Louisiana, Florida, and Virginia have as many as 200 savings depositors per 1,000 population. North Carolina ranks thirty-fourth among the states with 199 depositors per 1,000 population, which is practically equivalent to one depositor per family. Paul W. Wager Department of Rural Social-Economics. University of North Carolina Depositors Depositors Rank State ' per 1,000 Rank State per 1,000 population population 1 Massachusetts 1,066 26 Louisiana 293 2 New Jersey 932 26 Kansas 288 3 Connecticut 894 27 Florida 284 4 Vermont 893 28 Virginia 248 5 New Hampshire.... 857 28 Wyoming 248 6 Maine 843 30 South Dakota 236 7 Pennsylvania 786 31 Colorado 228 8 New York 778 32 Montana 214 9 Michigan 762 33 Indiana ;.... 210 10 Illinois 739 34 North Carolina 199 11 Maryland 732 36 Kentucky 196 12 California 698 36 Arizona 144 13 Iowa 670 ^ 36 North Dakota 144 14 Rhode Island 693 38 Missouri '. 132 16 Delaware 623 39 South Carolina 126 16 Utah 481 40 Georgia 122 17 Washington 479 41 Oklahoma 118 18 Wisconsin 453 42 Alabama 114 19 Nebraska 448 43 Arkansas 106 20 Ohio 428 44 Idaho 90 21 Oregon 382 46 Mississippi 79 22 Nevada 330 46 Texas 73 23 Minnesota 320 47 Tennessee 72 ' 24 West Virginia 304 48 New Mexico 64