Newspapers / The Chowan Herald (Edenton, … / June 25, 1953, edition 1 / Page 15
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Debt Is Now At Record $640 Billions With! Private Botrowingln Van; s4,oooPer Capita One of today's major questions is whether the American people have been borrowing too much too fast. This question is attracting increasing attention as the result of the fact that the total of debt—government, busi ness and individuals combined—show ed another big increase to a record high in 1952, and is still going up all along the line. Preliminary estimates indicate that the gross debt of the economy rose by nearly S4O billions more last year to reach a total of about $640 billions at the year-end. This (figure is about $175 billions, or nearly 40 per cent, greater than the total of gross debt at the end of World War II in 1945. It is almost three times the aggregate owed in 1940. The big expansion since the war has been in private debt. Gross .borrow ings of business and individuals com bined more than doubled in this period, rising from $155 billions in 1945 to an estimated $330 billions at the end of last year. Os this total, individual and noncorporate debt to gether showed a greater rate of in crease than did corporate debt, mov ing up from $55.5 billions in 1945 to about $137 billions at the end of 1952 for a rise of nearly 150 per cent. Home mortgage debt and consumer credit led the debt increase in rate of expansion in the period. Rising debt is a normal accompani ment in expanding business activity, and plays a vital role in a high-pro duction, high-consumption economy like ours. However, a volume of debt of the present size, amounting to the equivalent of some $4,000 for every person in the population, would alone seem to call for caution. Besides, more observers are refer ring to the length of the boom and the heights it has reached, the ques tion of whether some readjustment is in the offing, and the growing strain on the money and capital markets to supply the increasing demands for funds of the Federal Government as well as of state and local govern ments, business and individuals. Then, too, averages do not show where, and at what income levels, the major por tion of the debt is owed. In view of this, therefore, the re cent uptrend in interest rates, small though it may be by past standards, is a constructive development. In ad dition to providing a long-needed in centive for the saver, it tends to make POWER! PERFORMANCE! AND LOW PRICE! i drive ifahc/Uath Why too/fer -for bo/fer Vbu Can't deal a Abnriac' 9iH ,v iM 4 - , , * ft Pipfil +•:•• • l)1 j 101 -pij|Pw»iMfi y 3all» general motors lowest pricer eight Jhmtiac CHAS. H. JENKINS MOTOR COMPANY, Inc. * Phone 147 105 to 109 E. Queen Street N Edenton, N. G 1 , CHAS. H. JENKINS & COMPANY BDBNTON WILLIAMSTON WINDSOR AHOSKIE AULANDER business and individual borrowers think twice before taking on new debt commitments. The question of when debt in gen tral becomes too burdensome, and just where the' danger point lies, has never had a ready answer except in hind sight, because debt-bearing factors change with the economic atmosphere. Right now, when judged by such fac tors as the rate of growth in debt in relation to national income, the posi tion of debtors as a whole compares favorably with all previous periods except the abnormal World War 11 years. For the 1940-52 period, for ex ample, the total gross debt has shown an increase of about 195 per cent, based on the U. S. Department of Commerce debt series. National in come, on the other hand, rose about 257 per cent in the period. For the period from 1945 to date, national in come has increased almost 60 per cent as against less than 40 per cent in the total gross debt. The total of debt | last year was about 2.2 times the na-j tional income for the year as against ( a ratio of approximately 2.7 times in 1940. Thus economic activity has grown more than debt for the 1940-52 period. It is likewise significant to compare the trend of private debt alone with the annual gross savings of business and individuals combined. The figures show that only in 1947 did the growth of debt exceed the year’s savings in the private sector of the economy. Last year the margin was about two to one in favor of savings, one of the best showings of the post-World War II period. Furthermore, in contrast with a generation ago, there are two addi tional factors today with a favorable P£sr CONTROL | RATS * ROACHES - MICE - /LIES I THE CHOWAN HERALD. EDENTON, N. C., THURSDAY, JUNE 25,1953. bearing on debt. The first is the (amortization principle, which is an in | herent part of all home mortgage debt and is found in other parts of the pri vate debt structure as well. Debt re payment on home mortgages alone is now estimated at about $3 billions a year, and represents an important per sonal savings as well as debt reduc . tjon item. Most consumer debt is on a regular repayment basis also. The second important factor is the growth of credit life insurance, which [ covers borrowers for the amount of! unpaid loan balances. This type of’ life insurance provides added protec tion for the family's thrift program in case of the death of the borrower. CLOTHING PRICES DECLINE Average prices paid J>y North Caro lina farmers for specified clothing ' items on March 15, 1953, were gener ally lower than prices paid in mid- . March of 1952. The only item in this group showing an increase over the previous year was knee-length rubber boots. Compared With December 15, 1952, prices of most items were un changed to slightly lower. FURNITURE PRICES LOWER r Average prices paid by farmers for | most furniture items on March 15, 1 1953, were generally lower than prices paid on the same date a year earlier. For most items prices were also below the averages for the pre vious quarter, December 15, 1952. I -nnnnn- - i - - - ipr^gipi WHITE PERCH FISHING | We are now prepared to take care of fishing parties from four j to twelve people. All bait and tackle furnished, including ice. j PRICE $4.00 PER PERSON Enjoy a Day’s Fishing In Albemarle Sound! ' FOR RESERVATIONS CALL j i a Kermit Mizelle j PHONE 681 - : - EDENTON, N. C. | ■V\A/WWWWWVWWV' 1 _ _ * Kitchen Komment When ironing shirts, the job is made easier by sprinkling shirts with fine spray and folding them carefully as you go to prevent unnecessary wrink ling. Dampening with hot water pene trates the fibers faster. If you want to dress up an inex pensive main course into a fancy main dish, with a French accent, here’s how: j Broil trout or a similar fish in the usual way. Shortly before the fish is done, make an amandine sauce by melting margarine and mixing chop ped almonds into the margarine. Pour over the fish just before serving. Wisdom consists in rising superior both to madness and to common sense, and in lending one’s self to the uni versal delusion without becoming its dupe. Amiel. naaa^wwvnaaaaaaaaaaaaaa^aaaaaaaa^ SUPER MARKET < .... t i B£^QjQ£Q2E&BD2ffiu39HMI When you first sit behind the wheel of a new Pontiac forget its very low cost and concentrate instead on its performance. Guide it through city traffic and see how its big, high-compression engine gives you amazing &et-up-and-go. Then take it out on the open road and feel how it provides power to spare. *' Next, see how relaxed you Are in Pontiac’s roomy, luxurious interior, Polio Workers Will Meet In Greensboro All chapter chairmen of the Na -1 tional Foundation For Infantile Para lysis or representatives are urged to attend a workshop conference at the Sedgefield Inn at Greensboro on Thursday, July 2, from 9 A. M. to 5 P. M. Basil O’Connor of Nw York, presi dent of the Foundation, is scheduled to attend, this meeting. IN MEMORIAM To our Dad, who left us for awhile on August 3, 1952: “This Father’s Day” In our thoughts, today, I’m sure Were only past memories. We can only dream and pray But the mind and the heart sees. We sat an imaginary plate today, Placed a make-believe gift by his chair Just something small with a card in aide But wrapped with such love and care. We saw him smile as he opened it As we wished “Happy Father’s Day.” | He thanked us, then we felt his love— j He didn’t have to say. We teased him then as we always did About having no “Children’s Day.’’ Little did we know in those happy hours God would take our Dad away. We’ll all meet him with God, I know. Till then we’re lonely and sad, But I’m sure we’ll have another chance To say to him, “Happy Father’s Day, Dad.” —By his Daughter, p MARION NIXON SAUM. KIDNEYS 7” MUST-REMOVE : EXCESSWASTE When kidney function slows down, many folks complain of nagging backache, loss of pep and energy, headaches and dizziness. Don’t suffer longer with these'discomforts if reduced kidney function is getting you down—due to such common causes as stress and strain, over-exertion or exposure to cold. Minor bladder irritations due to cold, dampness or wrong diet may cause getting up nights or frequent passages. Don’t neglect your kidneys if these condi tions bother you. Try Doan’s Pills—a mild diuretic. Used successfully by millions for over 50 years. While often otherwise caused, it’s amazing how many times Doan’s give happy relief from these discomforts —help the 15 miles of kidney tubes and filters flush out waste. Get Doan’s Pills today! Doan s Pills I how easily Pontiac handles, how sure footed it is on any type of road. Add to all this Pontiac’s distinctive Dual- Streak beauty and you know you’re commanding a car that represents true fine car quality through and through.! We suggest you come in and put Pontiac through its paces. We’re sure you’ll agree that here’s mighty power ful proof that dollar for dollar you can’t beat a Pontiac. -SECTION TWO —j LEARN TO MAKE TASTY FROZEN DESSERTS Keep cool this summer with deli cious frozen desserts. Amy Alden, food expert, offers recipes for sher bets, ice cream whip and other hot weather dishes. Look for this helpful feature in the July sth issue of THE AMERICAN WEEKLY Magazine in Colorgravure with the BALTIMORE SUNDAY AMERICAN Order from Your Local Newsdealer *I^CNb\BIUTY INTELLIGENT, devoted, selfish, dependable. A good deg is truly Men 1 * best friend! He companions our lonely hours, guards our homes end children ... and asks nothing but permission to continue serving. Intelligent, unselfish, thought, ful service is behind our repu ,tetion for dependability. Your choice of appointments deter mines the cost of the cere mony., mmm EbmBSmSI I MB IR V 4 hERALD CLASSIFIED AD Page Seven
The Chowan Herald (Edenton, N.C.)
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June 25, 1953, edition 1
15
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