North Carolina Newspapers is powered by Chronam.
Monday, August 29, 1983The Daily Tar Heel7D
A lot of money, no candidates . .
By KELLY SIMMONS
Gov. Jim Hunt
A little more than one year remains before the
1984 Senate election, but Sen. Jesse Helms and
Gov. Jim Hunt are off and running, spending a
great amount of money along the way.
Neither party has announced an official candi
dacy in the 1984 election. In fact, neither party will
even acknowledge an active campaign.
But from April 1 through June 30 of this year,
the Helms for Senate Committee spent an average
of $52,061 a week on campaign costs. The Helms
re-election committee placed 3,937 advertisements
criticizing Hunt and praising Helms in 167 news
papers; 25,542 advertisements on 100 radio stations
and 353 commercials on 15 television stations from
April through June.
The now defunct North Carolina Campaign
Fund spent $724,000 for advertisements and mail
ings directed against Helms, without promoting
Hunt's name, during the time it was in existence.
John Bennett, a Hunt political aide, said the
Hunt Committee expects to spend about $5 million
before the fall election. Hunt supporters have pre
dicted that Helms will spend $14 million on the
Out-of-state contributions to both funds have
lined the "pockets for campaigning this summer.
Eighty-three percent of the contributions of $1,000
or more are from out of state on the Hunt side and
about 56 percent of the contributions of $1,000 to
$5,000 to the Helms campaign are from outside
Helms' ads, which ran in small daily and weekly
newspapers across the state, criticized Hunt. In
return, a Hunt press secretary, Brent Hackney,
called the ads "sleazy." And the Helms committee
removed the ads.
Anti-Hunt ads in North Carolina newspapers
have connected the governor with liberal leaders
like Chicago Mayor Harold Washington, Sen. Ed
ward Kennedy, D-Mass., and the Rev. Jesse
Jackson. One ad criticized Jackson's drive to
register more black voters in the state.
Hunt's aides have called the ads racist, but
Helms supporters argue that they are necessary to
counterattack the liberal attack on Helms. At
either end, they are both fighting a battle which
neither will admit has begun.
Besides the extravagant amount of money the
two camps are spending, both have received sup
port from religious leaders during the past several
months. In July, the Rev. Jerry Falwell made
several stops in the state to promote Helms. "If for
some reason a determination were made that we're
going to have a benevolent dictatorship and only
one person could run it I don't want that, never
going to have it I wouldn't have to think twice.
I'd say Jesse Helms," Falwell said in a Charlotte
conference of lay people July 5.
Falwell said during his voter registration drive
that he hopes to increase N.C. conservative voters
Falwell' s voter registration drive began six weeks
after Jesse Jackson, president of operation PUSH
(People United to Serve Humanity) started his
North Carolina crusade to register 250,000
Southern black voters in the state before the 1984
election. However, Falwell said his registration
drive was not in response to Jackson.
Religion, race and money are going to play ma
jor roles in the 1984 race, but, as of yet, negative
campaigning from the Helms camp has not af
fected a strong Hunt lead.
A Charlotte Observer poll released this summer said
that Hunt would defeat Helms if the election were
held now. Hunt supposedly leads Helms 50 percent
to 31 percent among all residents in a statewide
survey. He holds his strongest lead among black
voters 73 percent to 9 percent over Helms.
The poll reports show that Helms leads Hunt
only among those who think Reagan has done a
good or excellent job, among registered
Republicans, voters in large towns and in house
holds with incomes between $25,000 and $30,000.
Democrats outnumber Republicans 3 to 1 in the
Hunt's spokesman, Gary Pearce, said he was
surprised that the Hunt camp held such a domi
nant lead over Helms because of the negative ad
vertising the Helms committee has been running
against Hunt. However, Hunt's support is steady
throughout the state. He holds the lead among
blue and white collar workers and among those
highly educated as well.
The support on both sides will grow, and the
media costs will mount. With 15 months to go
before the fated election, Helms' expenses are
already approaching the average cost of an entire
Senate campaign in 1982, which was $1,746,230,
according to the New York Times.
Helms ran the most expensive campaign in
history in 1978, spending almost $7.5 million to
defeat North Carolina Insurance Commissioner
He won that race. Just goes to show you what a
little money will do for you. And there will be a lot
of it in this race.
But, of course, no one's in the race . . . yet.
Kelly Simmons, a junior journalism major from
Reidsville, is an editorial writer for The Daily Tar
A student's town
By JOHN CONWA Y
They decide what the level of taxes and services
will be for residents. They decide how much
development should take place, in addition to the
location and type. They decide where roads
should go. Why do so few people seem to take
interest in what they do?
They, in this case, are members of the Chapel
Hill Town Council. The problem of voter apathy
is not unique to Chapel Hill, but in a well
educated community such as this, voter interest
and participation should be much greater than
that recorded in i the past' "" '" 'V1
In the 1981 municipal elections in Chapel Hill,
only 31 percent of the registered voters went to
the polls. In neighboring Carrboro, the voter
turnout was only 6 percent better.
Student interest in municipal elections is even
more dismal than that of permanent residents.
Although there are no statistics available, town
officials estimate that less than 10 percent of the
University's 22,000 students vote in local elec
tions. This would be understandable if students
had no stake in Chapel Hill. But for most,
Chapel Hill becomes home. And the decisions
that local elected officials make have a definite
impact on students' lives in Chapel Hill and Carr
boro. With local municipal elections less than three
months away, some candidates are already mak
ing formal and informal announcements of their
candidacy. And there will be some issues in this
election which will be of special interest to
Almost every present member of the Chapel
Hill Town Council believes that density and
development will be key issues in this year's elec
tion. "If there's a single issue, it's growth and how
to manage it," said Jonathan Howes, an incum
bent on the council who is expected to run again
this year. "Many people feel that growth is
changing the community for the worse."
The development dilemma centers on the ques
tion of density how many people should be
allowed per square foot in Chapel Hill.
Neighborhoods with single family dwellings
generally oppose the nearby building of high-
density apartment complexes and con
dominiums. With the student population at the University
continually increasing each year, there will be a
need for high-density, low- to moderate-income
apartments. The Town Council makes decisions
regarding density and development, and the stu
dent body can make its voice heard by voting in
the local elections this fall.
Another issue of student concern that the
council will be acting on is the thoroughfare plan.
Most students probably don't even know what a
thoroughfare plan is, let alone what it proposes.
Some of the proposals of this plan include the
j. one-way pairing of Franklin and Rosemary
Streets, widening of the U.S. 15-501 Bypass and
extending Pittsboro Street, which would require
the removal of the Kappa Alpha Fraternity
house, as well as the relocation of portions of
other downtown buildings.
All this has a definite impact on the University
community. Yet how many students will vote in
the November elections to show their concern?
Any student who has a car in Chapel Hill
knows that parking is a problem. The Town
Council is now considering a proposal to con
struct one, or possibly two, parking decks on
Rosemary Street. The proposal has come under
strong fire from residents who believe the parking
decks would destroy the attractiveness of the
Issues like development, road plans and park
ing confront Town Council members each year.
But students can't seem to take a few minutes out
of their days to register and vote.
This year, Student Government, along with
the Elections Board, will make a concerted effort
to get students to register to vote. Hopefully, they
will make student voter registration more con
venient. It's well worth the time to become acquainted
with candidates in this year's elections in Chapel
Hill and Carrboro and to learn where each can
didate stands on student-related issues. That way,
if the council votes to raise transportation costs
or limit apartment construction in Chapel Hill,
students will have a right to complain.
John Conway, a junior journalism major from
Cumberland, Md., is city editor oj "The Daily Tar
Field of contestants grows,
but issues are secondary
By CHRISTINE MANUEL
The governor of North Carolina is ranked among
the weakest ten governors in the nation, according to
"Politics in the American States." But there are at
least 10 well-known politicians in the state who are
fighting for the job, which goes up for grabs in 1984.
.When Jim Hunt leaves his post as governor after
eight years, his heir will have the opportunity to.
shape North Carolina politics well into the next
decade. Hunt has established the office as a powerful
force across the state, largely because Hunt was the
first governor in the state's history to succeed himself.
Hunt says he will remain neutral throughout the up
coming campaign, but the 10 contenders are now
scurrying to gather support from around the state. .
The most interesting development in the race is, for
an unusual twist, on the Republican side. For the first
time in recent history, it seems there will be a real fight
for the Republican nomination. U.S. Rep. Jim Martin
of Davidson will give up his secure seat in the House to
run for governor and has strong support in the Pied
mont and west. He is rather conservative, yet is in
dependent from the National Congressional Club, an
organization begun by Sen. Jesse Helms.
The Congressional Club, which concentrates on na
tional elections, has dominated the Republican party
in the state almost to the point that the Club is indeed
the party. But now Martin has a chance to strengthen
the Republicans so that they may truly become a
major force in state politics. North Carolina has for
too long had a one-party Legislature, and seeing a
strong Republican party on the state level can only be
good for state government.
But the Congressional Club does not seem ready to
unlock its grip on the Republican party. Last week, Bill
Cobey, former UNC athletic director and candidate
for the U.S. House, announced that he may run for
governor. In his unsuccessful race against Rep. Ike
Andrews, Cobey was strongly backed by the Congres
sional Club. He also ran against Lt. Gov. Jimmy
Green in 1980, giving him experience in organizing a
statewide race. A conservative who campaigned as a
family man, Cobey still remains close to the Congres-
fis fs!v -r-
Sen. Jesse Helms
sional Club and has already received the Club's en
dorsement for governor.
The third Republican considering entering the race
is State Sen. Cass Ballenger of Hickory. Ballenger has
had the most experience in state government of the
three Republicans, having served five terms in the
Senate. He has been quietly campaigning for the
Republican nomination for almost a year, but still
does not have the statewide prominence of the other
two candidates. But Ballenger has wide , contacts ,
"among the state's Republicans. , . , , , ,, . a,
There have also been reports that Martin supporters
have urged Ballenger to leave the race for the sake of a
strong Republican Party. If Martin and Ballenger split
the traditional Republican vote, the Congressional
Club will surely keep its hold over the party.
The Democratic side is no less complicated. The
race is already congested and the party divided.
State Attorney General Rufus Edmisten holds the
best position of the seven democrats. One poll in June
showed that 28 percent of the state's Democrats favor
Edmisten, making him by far the leader. He also has
an impressive organization and statewide visibility. As
the state's chief law enforcer, he has been in the
limelight announcing drug busts, consumer protection
laws and other popular causes. Political analysts have
said they think Edmisten is almost certain to end up in
a run-off facing either state Insurance Commissioner
John Ingram, Charlotte Mayor Eddie Knox or former
" state Commerce Secretary D.M. "Lauch" Faircloth.
Ingram, who ran against Helms for the Senate in
1978, has gained statewide noteriety in recent years.
He is a maverick among the state's Democrats who
frown on his unpredictable style. Ingram has little
organization and has trouble raising funds, yet he has
a loyal group of supporters whom he can count on for
the 1984 election.
Knox has served as Charlotte's mayor since 1979
and has also served as a state senator and chairman of
the state Advisory Budget Commission. Knox is cur
rently courting the black vote, by supporting black
Charlotte mayoral candidate Harvey Gantt. Although
Gantt has in return supported Knox, their en
dorsements seem strained. Gantt and Knox bitterly ran
against each other for mayor of Charlotte in 1979.
Another problem Knox faces is financial support
within the Charlotte area, his stronghold. With Martin
in the race, many conservative Charlotte businessmen
are giving their support to the Republican. And being
from Charlotte doesn't help him around the rest of the
state. Political analysts have noticed that voters in
most states are wary of candidates from the state's
Faircloth, one of the best fund raisers in the party,
is a wealthy Clinton businessman who is quickly find
ing support among the state s conservaUye Democrats
and busihessmen? AS i Hunt's 'C&rnmerce Secretary, he
brought many hew'jbbs to the siate.'AIthough he has
remained close to Hunt, Faircloth does not have state
wide recognition and has never before run for any
political office. He was also an aide to former N.C.
governors Terry Sanford and Bob Scott.
Thomas Gilmore of Guilford County was the
secretary of Human Resources during Hunt's first
term. A sincere politician who campaigns for a more
open state government, Gilmore is considered only a
longshot to win. However," he does have considerable
strength in the Greensboro area.
Former Superior Court Judge Lacy Thornburg
resigned his post in March to run and was first to of
ficially announce for the office, but he still remains a
relative unknown. Thornburg, who is from Sylva, is
running strong only in his native west, and may carry
many mountain counties.
Only a few months ago, Lt. Gov. Jimmy Green was
almost a sure candidate for the governorship. But the
two-term lieutenant governor was indicted on bribery
and conspiracy charges in June and awaits trial. Green
has denied all the allegations, but his political future
still seems bleak. He was low in the polls even before
his indictment. Green does have strong supporters
who have been loyal to him throughout his legal prob
lems. There you have it the field of contestants. And if
you noticed that issues seem to be secondary in this
election, you may be right. For now, who will be
North Carolina's next governor depends more on fund
raising, regional support and unified parties. So much
for issue politics.
Christine Manuel, a junior journalism and political
science major from Fayetteville, is state and national
editor of The Daily Tar Heel.
By CHARLES ELLMAKER
"High federal deficits? That's bad. (Isn't it?)"
"The dollar's getting stronger in Japan? ''Good.
Now's the time to buy that new Datson. "
"The U.S. Government owes over $1 trillion?
Why doesn't the Treasury just print more money?"
Much of the national news each day focuses on
the U.S. economy. Financial buzz words like
"prime rate" and "Ml" are heard frequently, but
seldom understood. . t
Many Americans have lapsed into economic il
literacy, feeling secure in giving automatic, safe
responses to what they're sure is bad or good, and
certainly politically influencing, economic news.
Citizens find it easy to criticize economic decisions
made by key office holders, especially President
Ronald Reagan, because they feel safe in following
the lead of more knowledgeable critics.
Of course, everyone cannot be as knowledgeable
as economists about the financial matters of the
country, so they must rely on those "in the know"
to supply them with competent information. Still,
Americans should have a rudimentary knowledge of
how the American economic system runs and
should hear arguments from both critics and ad
vocates of economic policies before making up their
minds about high-level decisions.
Many Americans have no concept of the possible
effects of high deficits on the economic well-being
of the country. Or how exchange rates affect the
balance of trade and American buying power over
seas. Or how the money supply can influence the
rate of inflation.
Ironically, even a basic knowledge of economics
may not be enough in this case since economists
constantly argue about the effects of such factors.
There are no clear-cut answers to economic prob
lems." Case in point: Many economists believed that
recession and inflation were opposing forces. They
were baffled by the recession of the early-to-middle
seventies when the economy slowed to a crawl and
inflation soared to double digits.
Now economists are debating the effects of high
deficits. While most agree that in the long run high
deficits cannot continue, they still disagree over
whether they will significantly affect the amount of
loan money available to the private sector.
Since the government borrows from private
sources whenever it spends more than it collects in
tax revenue, many economists believe that the
money being invested in the federal government will
not be available for private lending, effectively shut
ting out the private sector from loan money. The
result would be high interest rates and a sharp
decline in economic activity: a recession.
Federal Reserve Board Chairman Paul A.
Volcker created such a situation soon after his ap
pointment by former President Jimmy Carter by
artificially raising the interest rate the Federal
Reserve banks charge private lending institutions.
Banks and other institutions subsequently raised
their rates to individual and corporate borrowers.
Since few could afford to borrow money at in
flated interest rates,' business activity slowed
dramatically, causing massive layoffs. Still,
Volcker's strategy worked to drastically reduce the
inflation rate, his primary goal.
The Reagan administration has been panned for
record deficits over the past two years, and much of
the blame for the recession was placed with Reagan.
Yet, Volcker's tight-money policy certainly in
fluenced the recession and the subsequent drop in
inflation more than supply-side economics.
Thus, give credit where it is due. Reagan didn't
create the recession, but then again he shouldn't
take credit for what has been a Federal Reserve
orchestrated recovery, either.
Probably the most significant contribution
Reagan could have made toward a sound fiscal
policy was his reappointment of Volcker as chair
man of the Reserve Board. Reagan knew a good
thing when he had it, and his pragmatic decision to
reappoint Volcker despite Volcker's original ap
pointment by Carter has been lauded by
Republicans and Democrats alike.
Volcker has now lowered the Federal Reserve
lending rate sufficiently to allow banks a freer hand
in their lending policies, spurring constant, but
cautious, growth in the economy, and while most
economists agree that the huge deficits accrued by
the Reagan administration's tax-cutting and in
creased defense-spending measures are not now in
fluencing significantly the amount of borrowable
money left to the private sector, some economists
warn that sustained high deficits could crowd out
private borrowers in only a few years.
And Volcker remains cautious about a too-fast
recovery that could propel inflation back near dou
ble digits. His move to raise the Federal Reserve
lending rate one-half of a percentage point shows
his commitment to holding inflation down by
limiting money supply growth.
Unemployment, once at post-war levels, has
shrunk slowly as corporations remain cautious
about increasing productivity, and thus manpower,
until they can be sure that the recovery will be sus-
Since Volcker is continuing his successful cam
paign against inflation, it is up to the Reagan ad
ministration to guard against allowing deficits to
swallow up funds needed by the private sector to
drive the expanding economy.
With the economy a key issue as the 1984
presidential campaign approaches, it is vital for
voters to base their electoral decision on sound
economic awareness. Although shades of gray
abound when determining who caused what in the
economic arena, greater awareness of the how's and
why's of the economy can help ensure that voters
will know what to expect through 1988.
Charles Ellmaker, a senior English and jour
nalism major from Orange Park, Fla., is a stqff
writer for The Daily Tar Heel.
I ; ; . -
KNS.N0,WE POMT &L01YOVER HOUSES AWMORE,
MOW WE (JU5T RAISE WUR INTEREST RATES...