The Rocky Mo
VOLUME 5, NUMBER 26
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i Relief, Recovery and Reform Ar« I
; Still the Nation's New Three R's
The three R's, famous in educa
tional circles not so many years ago,
have become in this year of grace,
1938, Relief. Recovery and Reform.
' Which Comes First?
During President Roosevelt's firsc
term of office, there was constant
debate as to whether relief and re
covery should precede reform. Tho
debate continues today, as the nation
again faces a severe economic flop,
and officials continue to study its
- causes, and by investigation, and leg
islation to find out why it happened,
and how it can be prevented in the
future.
In 1938 we find some twelve mil
lion persons totally unemployed and
many more have only part-time em
ployment. Business activity has slum
ped almost to where it was in 1933,
but actually there is a vast differ
ence. Then, private charitable resour
ces and the funds of state and local
comnMmities were practically exhaus
ted. There had been no acceptance
by tho Federal Government of its
responsibility in providing relief for
the unemployed.
Employment Trends.
/
Continued unemployment, in spite
of all that has been done, is ex
plained, in part, by basic economic
conditions. According to the Pub
' lie Affairs Committee, official sta
tistics show that there were only
three-fourths as many jobs in indus
try in 1936 as in 1920, although pop
ulation increased twenty per cent
in tho interval.
Since 1929, employment in indus
try has decreased one-fifth. In ad
dition, there has been retrench
ment on many sides, throwing
thousands of professional and white
collar men out of work, and large
numbers of farmers, small trades
men and proprietors have been
forced into bankruptcy where they
are unable to support themselves
in their usual occupations.
The Spending Policy
While the spending policies of
the Administration from -1933 thru
1936 had a great deal to do with
the measure of recovery which fol
lowed, critics point out that once
the purchasing power of the Govern
ment was cheeked the recovery
movement ceased. Advocates of
spending, however, declare that it
stopped too "abruptly," was pushed
too high by the payment of the sol
diers' bonus which the President op
posed, and that the ground gained
was thrown away by over-production
and the control of prices in 1937
when the Government was trying to
step out of the picture gradually.
Road To Recovery?
Anti-New Dealers insist that per
manent recovery can- be had only
through the activity of private in
dustry and assert that a chlange
in Administration or the adoption
of now policies by the present Ad
ministration, would point the way
toward prosperity. They continual
ly demand a "changed attitude" on
tho pa.rt of the President, a real
"breathing spell" and the restora
tion of "confidence." This has been
the argument since 1933 behind tho
cry "recovery before reform."
It was repeatedly asserted that
the nation's tax la\ys were largely
f responsible- for the upset in busi
ness last Fall. Congress was told
byjlmany business leaders that if
it Vould revise drastically the tax
laws, recovery would begin. How
ever, the congressional revision of
the tax laws, as repeatedly suggest
ed, has been followed by nothing
to indicate that this was the for
mula for curing the troubles of
American business.
Reform Barriers
The idea that the President, in
pressing his reforms, has done so
at tho cost of recovery is another
widely advanced theory for business'
troubles. For this reason, there
have been repeated efforts to per
suade the President to "stimu
late confidence." This, it is said,
t \ (Please turn to page four)
ENROLL MANY
FOR CLASS IN
LIFE SAVING
Classes Arc Instructed At Municipal (
Pool At 12 O'clock And 1 O'clock
Dally
Two classes in Red Cross life
saving are now being taught daily
at the municipal swimming pool. Be
cause of the large number of appli
cants enrolling in the course, the
one class begun earlier in the week
has been divided and Leon Grimes
life saving examiner, has been se
cured as an additional instructor,
it was announced today by Mickey
Bennett, manager of the municipal
pool.
One of the classes is taught by
Mrs. Bettie B. Straub, also a life
saving examiner. The staff of the
municipal pool assists in the instruc
tion of both classes.
The 10 day course includes in
struction in junior Red Cross life
saving, for applicants 12 to 17 years
of age, and senior Red Cross life
saving, for applicants 17 years of
age and older. The instruction is
free and the classes are open to
the public, it has been announced.
Persons 20 years of age and older
who wish to take the examiners'
course in Red Cross life saving,
which will be offered later in the
summer, may register now at the
office of the municipal pool, the
sponsors announced. Requirements
are that the candidate be 20 years
old ajid of fair swimming ability,
it was stated. A Red Cross district
examiner from Washington, D. C.
will teach the course.
Junior members now enrolled in
clude the following: C. G. Walton,
Tom Dunn, J. D. Price, Frank Wal
ler, Jane Gay, Ruth Summerell, Ula
Garland, Prances -"Jorsett, Leon
Robbins, Irvin Nichols, Verne Shives
James Corinth, George Valentine,
Howard Turner, Teddy Poplin, Jim
my Ricks, Alvin Moore, Glenwood
Smith, Edgar Williams, John Pop
lin, William Bryant, Louise Harper,
Jack Robbis, Bobby Adams, Rus
sell Proctor, and Julian Hunt.
Senior members are as follows:
Charles Marshburn, Robert Thomp
son, James Suiter, Billy Avera
George Fox, Snead Low, Woodall
Rose, Robert Grimes, Edward Carter.
Doom Seated For
Zion City, Seems
The gigantic religious colony of.
Wilbur Glenn Voliva at Zion City,'
111., which for one-third of a cen-1
tury lias held together as one ot
the most ambitious colonization
schemes in America is facing almost 1
certain ruin.
For the first time since John Alex
ander Dowie realized his dream in
1899 of a religious-industrial com
munity on the shores of Lake Mich
igan, titlo to most of tho land in
Zion is about to pass from t*«e name
of the church lie founde(R. A ; , '- i
Threats of the break-up of the
Voliva empire eamo tho past ween;
with tho lifting of $50,000 income'
tax lien against 2,100 pounds of
land in Zion. Frank T. O'Brien, coun
sel in bankruptcy for Voliva,
Dowie's successor, had tho federal
tax lien lifted so the property cau
be .sold to satisfy more than sl,-
000,000 in debts to 500 creditors.
When the community was found
ed at the turn of the century,
Dowie had a following of 20,000. He
transformed tho marshes and dunes
into a 6,600,000-acro subdivision. Un
der his magic touch, thriving fac
tories sprang up. The bank, tho
lace and candy factories, tho far
mers and tho town merchants all 1
paid a tenth of their profits as a
tithe to the Christian Catholic Apos
tolic church in Zion.
Dowie turned tho wilderness into
a $7,000,000 property. Hundreds of
converts were attracted by the mag
netic character of his teaching and
healing, and his power to arouse
I his followers.
(Please turn to page four)
ROCKY MOUNT, NORTH CARP
Honored by University of Miami
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Receiving the Oonorary degree ol doctor of philanttbopy from Presi
dent B. F. Ashe of the University or Miami, Mrs. Grace Eames Doherty
also accepted the degree of doctor of science for Her huAand, Col. Henry
L. Doherty, wlm was unab!? to attend the university's annual com
mencement.
No Justification For Gross
Sales Tax Now
The State Merchants Association at its annual meeting
at Blowing Rock, passed a resolution requesting the Gov
ernor to use his influence to have the sales tax repealed
The resolution described the sales tax as a "crushing and
entirely unjustified burden upon the poor class and that it
was said to be established as a temporary measure and
with a 15 million dollar surplus in the State Treasury there
was no longer any need for the poor to be called upon to
pay and the merchants to act as collectors of this tax."
The Rocky Mount afternoon paper in commentation on
the Merchants resolution stated "that this resolution had
put the Governor on the spot and proceeded to justify the
sales tax by stating that the Federal Government was
spending so heavily and was so much in debt that it was
very necessary for North Carolina to keep its finances in
fine shape."
With the free spending that has gone on in North Caro
lina for the last few years there has accumulated a 15 mil
lion dollar surplus and it will be well remembered that
when Governor Gardner went out of ofice he left an 18
million dollar deficit considering the surplus that was in
the Treasury when he took hold. NoW' can any economist
stand before the people of North Carolina and say that
this sales tax is necessary to keep a balanced budget when
this deficit of 18 million dollars has been covered and there
has accumulated a 15 million dollar surplus besides and
nothing has been said about practising economy yet. With
each year we see hundreds and hundreds of new offices
and jobs created that never existed before. When Govern
or Morrison was Governor there was not ever a pardon
clerk now there are more than 50 people connected with
the pardon office.. This all may be good but I believe that
the sales tax which was described by Commissioner of Rev
enue, A. J. Maxwell, "as the most successful way ever de
vised by human ingenuity to tax poverty." The gross
sales tax is a tax on poverty as stated by the Commission
er of Revenue. His views have changed since he made this
statement, but, nevertheless, the facts have not changed
The Governor should recommend that this gross sales tax
ebremoved for there is no apparent need for it and the
Merchants Association realizing that the Governor was in
control of all of the state tax money collecting in North
Carolina and naturally this control of this amount would
have its effects on the Legislature and therefore very apt
ly directed their petition to the Governor rather than the
Legislature.
ROCKY MOUNT TOBACCO MARKET MAKING PREP
ARATION FOR BIG FALL
Preparations are now going forward for the opening of
the tobacco market in August. Repairs are being made by
the warehousemen to the warehouses.
We saw a press account of a recent meeting held by the
Smithfield Tobacco warehousemen in Smithfield at the Ga
briel Johnson Hotel bringing together those interested in
the welfare of the market for the purpose of promoting
the Smithfield market. They had a fine supper and after
much discussin it was agreed the best way to help the
Smithfield market was that all interested in the Smithfield
market should go out over the area which should sell in
Smithfield and see and mix with the people. The merchants
were asked to spend the Wednesday afternoon in which the
• stores were being closed for visiting the farmers out in
t-he tobacco area rather than spending their time at a base
ball game and at the beach.
We believe this same mode of procedure for the promotion
of the Johnston County capital mark»t, would be a fine
thing for Rocky Mount. Eating among ourselves is a fine
thing but the best way to bring tobacco to Rocky Mount
is for the Rocky Mount citizens and businessmen to go out
over the tobacco area which should sell in Rocky Mount
and see the people personally and acquaint them with ad
vantages of selling tobacco in Rocky Mount.
.INA FRIDAY, JULY 1, 1938
BANKERS SAY
FINE CRUISE
Retiring President F. P. Spruill Is
Elected State Vice-President
Of A. B. A.
F. P. Spruill, president of the Peo
• pies bank and retiring president ef
the North Carolina Bankers Asso
ciation, was elected North Carolina
Vice-president of the American Bank
ers Association during the state 's-
annual' convention and
cruise, returning Roeky Mount
•bankers reported. •
Millard F. Jones of the Planters
bank was elected representatives to
the nominating committee of the
American Bankers Association at a 1
business meeting during the cruise.
He retired as a member of the
A. B. A. executive committee, being
succeeded by R. E. Kerr, a Char
lotte banker.
Retiring President Spruill was
presented a gift of silver service by
the North Carolina Bankers Associa
tion' as ho relinquished the office.
The. convention cruise to Nassau
and Havana, which began June 18
was described by local bankers and
guests and out-of-state guests, in
cluding New York and Richmond
bankers, as "the most successful and
enjoyable" convention the associa
tion has held.
Aboard the criuse ship Reliance,
Miss Kate Spruill was awarded a
prize for deck tennis and R. Gra
ham Dozier, also of Rocky Mount
received three prizes for deck sports.
SET RECORDS
IN FINANCE
North Carolina Finishing Biggest
Revenue And Expenditures Year j
IN History
North Carolina, despite the reces
sion and a new set of tax weights
on the revenue scales, will end tho'
1337-38 fiscal year with record tax
collections and a balanced budget, 1
Revenue Commissioner A. J. Max-1
well predicted.
Altogether, the State lias spent
close to $78,000,000 in the last 12 j
months—a record sum nearly double'
the expenditures of a decade ago.'
The total, however, includes several'
million dollars given the State by'
the Federal government and road
construction and Social Security pay
ments.
The 1937 General Assembly raised
the pay of all public school teach
ers and other State employes, to
compensate partially for salary
slashes during the leanest years of
tho depression. The Assembly au
thorized Social Security payments
to the indigent aged, blind and de
pendent children. It appropriated
$1,500,000 for free textbooks for
children in elementary schools; $2,-
344,000 for permanent improvements
at State institutions; $050,000 for]
new office building here and $250,-
000 for a State advertising program.
The textbooks, new buildings and
permanent improvements are being
financed through bond issues. Other
expenditures are coming, for the
most part, out of this year's tax
receipts.
What accounts for the record re-1
ceipts?
The General Assembly increased
slightly the personal income tax in
tho higher brackets. Income tax
collections this fiscal year will ex
ceed by several hundred thousand
dollars the record of $11,013,081.59,
set in 1936-37.
The Assembly enacted a State tax
on intangibles, which will gross
close to $900,000, of which half will
be turned over to the counties.
Tho State tax on liquor was in
creased from three to seven per cent
and will set a new record of more
than $1,500,000.
Although the tax on gasoline was
not increased, increased consump
tion of the motor fuel will result
in record collections of more than
$23,000,000.
Although the Legislature exempt
ed certain basic foods from the
three per cent sales tax and re
duced the cost of automobilo license
tags, the sales tax and the license
tax almost will equal the records of
$11,325,661.48 and $7,422,723.15, re
spectively, set in 1936-37. ,
Tobacco Farmers
Get 53 Percent Of
> State Farm Income
North Carolina tobacco farmers
received a total of $143,115,000
last ear, representing 53 per cent
of total farm cash income from all
sources, W. H. Rhodes, chief statis
tician of the State Department of
Agriculture, announces.
North Carolina growers led the
nation in production and sale of
flue-cured tobacco and collected 73
per cent of the total cash income
from all flue-cured tobacco types
produced in the United States during
the calendar year.
Tho revised estimate of tobacco
production and income for the 19-
37 crop revealed:
1. North Carolina's 1937 crop was
j tho largest on record, but brought I
! $26,575,000 less than the 1919 crop.
2. Growers produced 595,530,000
pounds of tobacco in 1937, or an
average yield per acre of 884 pounds
on 674,000 acres.
3. Acreage devoted to tobacco last
year was an increase of 12 per cent
over 1936.
4. Producers' tobacco marketed on
the warehouse floors of North Car
olina during the 1937-1938 season
averaged 24.4 cents per pound as
compared with 22.9 cents received
during tho previous season.
Rhodes said the increase in pric
es paid for the flue-cured crop last
year was "a result of the greatest
increase in demands for cigarette
(flue-cured) tobacco since the World
War and a reduction in demand for
most other types.''
FIGURE TOB.
DAMAGE IN
NASH COUNTY
County Agent J. S. Sugg Estimate*
$50,000 To $75,000 Loss From
Hail Friday
Nash county's tobacco crop loss
as result of the hail storm last
week-end will amount to $50,000 or!
$75,000, County Agent J. S. Sugg es-J
timated after looking over the dam-j
aged sections Monday.
About 500 acres of tobacco in
Nash suffered a 30 per cent average
loss from the hail, the severest of
which fell late Friday, the county
agent reported.
The damage is as much as 200
acres amounted to as much as 75 per
cent, Sugg said, and in some places
the tobacco ivas totally destroyed.
The county agent said Monday af
ternoon that the severest hail dam
age he. saw was on the farm of
Percy Richardson, a negro farmer,
who had 15 acres of tobacco totally
destroyed.
Most of the hai! damage in Nash
done by the storm Friday was re
ported in a mile-wide area extend
ing from near Flood's Chapel east
ward along the eastern edgo of
Spring Hope to a point two miles
east of Castalia. The storm seemed
to vary in severity in that area,
the county agent reported, causing
| more damage in some spots than in
I others. ✓
The hail also struck in another
j section of Nash near Silver Lake.
Colorca in arms a
*ir&t umoai £o2>m
Harry Powell, elderly Negro ten
ant farmer of nearby Edgecombe
county was showing folks around
Rocky Mount today the first cotton
blossom seen here this summer.
Powell said the blossom came from
a farm owned by Dr. M. L. Stone
a nil Walter Bulluck of Rocky Mount
located about a half mile east of
here.
Tho bloom grew on Mexican
strain cotton planted April 4, he ad
ded.
NOTICE
Those desiring to subscribe to The Rocky Mount
Herald may do so by sending SI.OO with name and ad
dress to The Rocky Mount Herald, Rocky Mount, N.
Name _
Town State Route No
SI.OO PBRTBA*
DANIELS OFF
TO MEXICO
Ambassador Ends 60-Day VuatiM
Stay; Accompanied By Mr*.
Daniel,
Washington, June 25.
dor Josephus Daniels returned to kin
post at Mexico City today after; a
stay in this country of exactly tiK*
months, the longest vacation period*,
he has spent since assuming list
post in 1933. Ho was accompanied
by Mrs. Daniels.
Mr. and Mis. Daniels came boms
especially for the celebration of
their golden wedding anniversary
on May 2. Mrs. Daniels has remain
ed at Raleigh practically the en
tire period, but Mr. Daniels has.
spent much of the time in Wash
ington, confering with President
Roosevelt and Stato Department «f
--ficials concerning conditions in Mex
ico, including the situation created
by the action of the Mexican gov
ernment in expropriating the prop
erty of American and British oil
firms several months ago.
When Ambassador Daniels' leavj
expired on May 19, he was request
ed by Secretary of State Corded
Hull to remain in this country for
further conferences. Ambassador
Daniels held the last of several con
ferences today with President
Roosevelt shortly before taking ft
train for Mexico City.
The Ambassador declared upon
leaving that he hud enjoyed his
stay in this country, but maintained
his policy of silences as to official
matters, saying that any statement
about the Mexican situation which
might be made would come from the
State Department.
Newel* Demand*
w* £ r y*. '• * y 3
Deplores Republicans' Tendency ta
Vote In Democratic Primaries
Charlotte, June 25.—Jake F. New
ell, state chairman of the Nortii
Carolina Republican executive com
mittee, today demanded separate
registration books fur Democrat®-
and Republicans.
He issued the statement after
writing a letter to P. M. Caudle of
High Point, in which he deplored
what he said was the tendency of
the State's Republicans—especially
in Guilford County—to vote in tha
Democratic primaries.
Newell said that he believed tha
State Board of Elections is just a*
anxious o bring about clean vot
ing conditions as he.
"A Republican should be too proud
of himself to seek hospitality wlierr
he is not wanted," Newell said. "Ha
should be too proud of himself to
go in company where lie is not*
wanted, though he be paid for hi®
presence during the day.
"The Democratic party is entitled
to have a primary controlled by
Democrats. The Democratic party
should be solely responsible for its
nominations and its conduct.
"My position is that Republicans
going into the Democratic primaries
cannot fail to have an evil effect
on both tho Democratic party and
tho Republican party.
"We cannot blame the Democrats
for the election of The New Deal
administration. There were not
enough Democrats to elect it, and
Republicans, by their weakness, ar®
responsible for putting it in."
Pilots to be trained at live fields
in use of new device to land air
liners despite storms.
4-11 club members who liavo been
in the work for a few years a.o
in better i hysical condition than
new ones, tiiid the home and farm
agents of Cleveland County. Tha
applies particularly to teeth, eyes, na
sal passages and the like.