North Carolina Newspapers

THE JOHNSTONIAN THE JOHNSTONIAN AND JOHNSTON COUNTY SUN CONSOLIDATED SELMA, N. C., THURSDAY, AUGUST 2.j, 1932. NUMBER 34 The Home Loan Bank System Is Explained Tobacco Men Have Faith In Price Outlook Address by David Lawrence Deliv ered Over the Network of the National Broadcasting Company System On August 7, 1932, From 8:00 to 8:15 P. M., Eastern S. T. Tonight I want to tell you some thing- about the additional system of banking which was recently au thorized by Congress, and which is just now in the process of being or ganized. The new Federal banking system will bear a relationship to the home ow.-ier that the Federal Reserve System bears to the commercial bouses and business firms of the country. The Federal Reserve Sys tem, which ,was enacted in 1913, made available a central banking institution to better enable commer cial banks to serve their business customer.s. Later, the Federal Farm Loan System—this is to be distin guished from the Federal Farm Board—was established to facilitate the financing of agriculture, and to make loans on farm mortgages more readily available. Now comes the third step in the development of these banking systems, a method by which home mortgages may be placed on a better financial footing. and whereby home financing may be encouraged and fostered. Tn Getting up the new system. Congress hatf the benefit of the pattern of organization ’and opera tion of both the Federal Reser-ie Svstem and the Federal Farm. T.oan System. There were a number, of im portant differences to be taken into account in the new set-up, however, and extensive hearings were held by the Banking and Currency (>mmit- tee of borh the Senate and the House of Representatives, before ac- tl^.i was taken. At these bearings both nropon- ents of the projected legislation ■were heai-d. The eU'im‘-, of those who believed that there 'vas a dis tinct need for the new system were given, as v.-ere the allegations of th.ose who thought its establishment a mistake. In the give and take of the discussion, many dilfiiadt'es were pointed out iiad .step.s suggested to remedy them as far as po.ssible. The result was that the bill as finally passed was greatly perfected over the form in which it was in troduced. Just as amendments have been found necessary from time tn time in tne Federal Reserve Act and the Federal Farm L.oan Act, so experience will show wheio this ncv; sy.stem can he improved. The fundamental idea behind the Ho;ue Loan Bank System is that there shall be a number of regional banks, of which three classes of home mortgage lending in-t:tutions, the building an! loan association, the savings banks, and the insurance companies, mav become members, j’j.st as the natioiial and ce'rtain if the state banks may join the re gional Federal Reser'-;, banks. There vdll be a central cUpows'iry board at Washington corre.spondi.rg to ;.'ie Federal Reserve Borrrd. The regional banks will rediscount the paper of the three cla.sses of m-nnbo.-s when property secured by home m-irtgage loans.which they have made to their customers. The central supervising agency, the Home Loan Board, will be made up of five members, to be appointed by the President, with the approval of the Senate. Not more than three of them can be from the same po litical party. The personnel of the Board has just been announced, with former Representative Franklin Fort of New Jersey as Chairman. eight nor more than twelve regions, in each of which a home loan bank will be e.-tablished. The first set of eleven directors for each of these operating institu tions will tje appointed by the Home Loan Board at Washington. Later, but two of the eleven directors will -be appointed in this manner, the other nine being chosen from among persons connected with the home financing business, elected by the member institutions grouped in three classes, according to their size. The directors of each bank will incorporate and open the books for subscrijrtions to the stock by insti tutions eligible for membership. There is also provision for non member borrowers and for direct loans to home-owners. If the stock subscriptions within thirty days have not reached the amount fixed by the Home Loan Bank Board as the de sired capital for the bank in ques tion, the additional amount required will be subscribed by the Treasury up to a maximum of $125,000,000. Each of the banks must have a minimum capital of $5,000,000, The Government subscription will be handled through the Reconstruction Finance Corporation. The Government is .guaranteed a minimum interest of dividend return upon its stock subscription of two per cent per annum, and a higher rate, if a higher rate i.s paid on other stock. This payment to the Government is cumulative. The amount of stock to which a member in.stitution must subscribe varied' w-ith the amount of home mortgage business it does. The'min imum is one per cent of the un paid principal of the subscribers’ home mortgage loans, but not less than $1,500. In additi .u to -Ts capital funds, regional -lome loan b: nks may pro cure funds to ad'v'ance to its mem bers’ by borrowing through the is suance of bonds or debentures. These instruments will be the joint obligation of all the home loan banks, as the bonds of the Federal land banks are the joint liability of all. They will not be guaranteed by the United State.s, and mu«t bear a notation to that effect. The bonds or debentures must be secured by 190 per cent of their amount in home mortgage loans, cash or Uni ted States securities They will be tax exempt, except for surtax, es tate, inheritance, and gift taxes. The regional banks may make ad vances to member institutions upon the security of home mortgages. No more can be advanced to any one member than twelve times the amount of its subscription to the capital stock of the lending bank. No home mortgage loan may be accepted as collateral security for a loan by the regional bank if it has more than fifteen years to run to maturity, or if the value of the real estate exceeds $20,000 or if the mort,gage is more than six months past due. A home mortgage is defined by the act as a first mort gage or first lien on real e.-tate in fee simple, or leasehold under re newable lease for not less than ninety-nine years, upon which there is located a dwelling for not more than three families. The regional home loan banks may advance up to sixty per cent of the unpaid principal, but not more than forty per cent of the value of the real estate, on the se curity of amortized home mortgage loans given for original terms of eight years or more, or which are secured by a pledge of stock ma- While Some Newspaper Reports On Southern Markets May Have Been Exaggerated, General Feebng Is That Prices Are On the Upward Grade and Will Be Much Better IV'hen Our Markets Open. Mrs. Jesse W. Bailey Dies Wednesday Night Now thaf the^^ Board has been j turing in eight years or more. They of the may advance against any other named, the establishment Sy.stem can proceed. Congress made an appropriation for the origin.al set-up of the organization, 'tint after it is started, the expenses of the Board are to be borne by the region al banks, just as the expenses of the Federal Reserve Board are as sessed against the Federal Reserve Banks. It is important that .this fact be kept in mind in connection with both of these banking systems. They are not supported by appropriations of Eederal funds received from tax payers, but are self-supporteng in- .rtitutions, except for the provision in the case of the new law, for a Treasury subscription to the stock. When the Home Loan Bank, Board has been organized, it will proceed to divide its field, includin.g Alaska, Hawaii, the Virgin Islands and Puerto Rico, into not less than Smithfield, Aug. 24.—Experienced tobacco ■warehousemen and others connected with the tobacco business who have been -watching the prog ress of the crops, and keeping tab on conditions, both in and out of the tobacco trade, appear to be ex pecting that prices will materially improve by the time of the opening of the markets in this section. Ac cording to reports from the south ern markets, there has already been -some improvement in prices of the lower grades since the opening there, though it seems that the boosters of the markets who have been sending- reports to the news papers each of whom wanted to make the best possible showing for his market, have over rated the small improvements that have de veloped from time to time; and some farmers who have carried tobacco to the border markets have been disappointed as to the prices received. It-ls said that just a very little good tobacco has been sold, and that this has brought prices about in line with those prevailing last year; but the poor and trashy grades are much more in demand than they were last year, and some of them are bringing double what they sold for last year. It is said that the iTnijrovement in prices reaches from the poorest grades up to those sellin,g>' last year around 10 cents; but there appears to be very little change from last year in prices now paid for the grades above 10 cents. Tho.-e who have been watching the markets from year to year seem to be agreed that , prices for real good tobacco have usually been better in this section in October and November, than during- the earlier periods when the weather was warmer'. There now appears to be at least three good reasons why those who have good tobacco should not sell at this time: 1. It is a noticeable fact that economic conditions are now im proving along .nearly all lines. Peo ple who have money to invest are becoming convinced that the bottom of the depression has been reached, and that prices of all farm prod ucts may be expected to gradually improve. This should improve the demand. 2. The fact that there is usually less risk to the buyers in handling- and keeping- good tobacco in cool weather than in hot weather. 3. Many tobacconists who have been keeping posted as to the prog ress of the crops in the states south of North Carolina, appear to be convinced that the crops in those states are going to prove to be much shorter than the trade is now expecting; and that when the crops there have been all sold, the buy ers, manufacturers, and exporters will wake up to a realization that they mu't .get busy in order to se cure what they need. One tobacco nist afew days ago said that he was expecting- to see a real scram ble on the markets in this section later in the season for some of the better grades. In view of all the circumstances there appears to be more and better reasons for expecting an advance than a .decline in tobacco prices. -Mother of C. A. Bailey, of Selina, and Had Been 111 About Two Weeks With Heart Trouble—Fu neral To Be Conducted From the Home Friday Afternoon. Mrs. Jesse W. Bailey, aged 69, died at her home near the Corbett- Hatcher school, seven miles north of this city, last night at 11:45 o’clock, after an illness of several weeks of heart trouble. Mrs. Bailey was one of Johnston county’s best kno-wn women and greatly beloved by all who knew her. She is sur vived by her husband and the fol lowing- children: Clarance A. Bailey, of Selma; J. E. Bailey, of Smith- field; Miss Minnie Bailey, trained nurse, of Raleigh; MUses Myrtle and Mamie Bailey and D. T. Bailey. The funeral services will be held from the home tomorrow (Friday) at 3 o’clock and the interment will take place in the family burying ground near the home. A Family Reunion. The desceirdants and friends of Miles, John and Noah Barefoot, (deceased) will hold their annual family reunion at the Noah B. Bare foot homestead in Sampson County, about 8 miles east of Dunn, on Fri day before the first Sunday in September, 1932, being the 2nd day of September. All relative- and friends are in vited to attend this reunion and carry \vell filled baskets. Be sure to attend this reunion and meet rela tives and friends that you may nev er see any more. N. G. BAREFOOT. Napoleon Deans And Son, Lonnie, Get 30 Years Sharp Gains Made Verdict of Not Guilty As to Frank j Strickland Who Was Indicted In Price of Cotton I Jointly With Deaiises For the Slaying of William H. Waters. Spectacular Rise of From $2.75 to $3 Per Bale Due To Crop Ex pectations Deejease. New York, Aug. 24.—A spetac- ular advance of $2.75 to nearly $3 per bale in cotton today was at- tribut&d- to Jieavy g-eneral buying promoted by expectations of a sharp reduction in crop estimates and en couraging reports from the cotton goods trade. December contracts sold up to 8.47, an advance of 56 points from the previous clo-ing and of $15.85 per bale from the .June low. July contracts sold up to the 9-cent level. Benson’s First Bale Sells At Nine Gents Benson, Aug. 24.—The first bale of new cotton was sold on the mar ket here Tuesday morning by R. C. Neighbors to Charles Johnson. It bi-ought 9c per pound, and weighed 528, class middling, staple 15-16. Circle “B” Entertained. Lespedeza Variety Test Attracts Farmers Bentonville Township Sunday School Asso. home mortgages up to fifty per cent of the original home mortgage loan, if that amount does not ex^ ceed thirty per cent of the value of the real estate. The home loan banks cannot do a regular banking business, although they may carry non-checking ac counts for their members, upon which not more than two per cent per annum interest may be paid. The loaning- to members which charge excessive rates of interest is guarded against by a provi.sion that no institution may retain member ship or have the ^lorrowing privi lege if the net cost of any loan made to a home owner after July 22, 1932, exceeds the maximum le- gal rate or lawful contract rate of interest in the State where the (Continued on last page) The Bentonville Township Sunday School Association will meet at Mill Greek Disciple Church on the fourth Sunday afternoon, August 28th, at 2:30 o’clock. Besides several good talks by prominent persons there are seven schools in the Township that will take part in the program. This will be the last Township meeting prior to the County meeting in Septem ber, and all schools are especially requested to be represented. The public is especially invited. THE DIFFERENCE. Says Sir J. Arthur Thomp.son, no ted scientist: “Much of the contro versy between science and religion would disappear if men would rec ognize that science is fundamental description in terms of the lowest denominator, while religion is su preme interpretation in terms of the greatest common measure, which is God.” (BY J. B. SLACK) A group of fifty farmers attend ed the short farm tour last Friday afternoon when thfee farms were visited. The first stop was made at the Lespedeza variety test on E. J. Wellons’ farm near Smithfield. Here the group inspected the four dif ferent varieties of lespedeza grow ing side by side and estimated the yield of each per acre. Mr. B. E. Gardner won a bushel of lespedeza seed which was offered for the one estimating nearest to the total yield each variety would make per acre. On weighing the plots cut from each variety after it had been cured, the yields Were as follows: Tennes see 76, 2,880 pounds per acre; fcobe, 3,024 pounds per acre; Ko rean, 800 pounds per acre; Comon, 3,360 pounds per acre. On an acre basis this made a total of 10,064 pounds. Mr. Gardner’s estimate was 11,050 pounds. It -will be noted from these figures that the Korean is not very well suited to this section. After listening to short talks by E. C. Blair, Farm Crop Specialist, and B. Troy Ferguson, District Agt. both of State College, the group went to the county home farm and looked over the plan of crop rota tion now being followed there. The group was also .given an opportuni ty to see a good permanent past ure that -was sown on this farm a year ago last spring. Much inter est was also manifisted in the to bacco barn on the farm which has been converted into a sweet potato curing house. From the county home the group went to its last stop which was the farm of R. R. Holt on No. 10 highway between Smithfield and Clarton. Here a good permanent pasture sown last spring was seen. Mri Holt also had some fine pure bred Hereford cattle grazing on this pasture. Circle “B” met at the home of' Mrs. J. T. Hughes Tuesday even ing with 13 members present. An enthusiastic business session was presided over by the leader, Mrs. W. D. Fields. Dues collected and money turned in on different proj- j In last week’s paper appeared an account of the slaying of William H. Waters and the testimony given at the original hearing which was presented to Superior Court during- the recent trial. The defendants each went to trial under a plea of not guilty, but when the state rested, such a clear case had been made out against, Deans and his son that they entered a plea of guilty of murder in the . second degree, which plea was ac cepted by the court. The court then sentenced the two men to the state prison for a term of 30 years each at hard labor. At the same the court directed a verdict of not guilty as to Frank Strickland who was indicted jointly with the Deans men, and he was released from further custody. Another important case disposed of in last week’s Superior Court was that of State vs. E. L. Sum- rnerlin, who had been indicted on a charge of rape. He got 30 years in the state prison. • Besides the regular jury of 19 men, a special venire of 25 men were drawn and duly summoned in order to secure a jury and this en tire list was exhausted before the jury box had been filled. The plain tiff in this case was Bethel Lang ston, a step-daughter of E. L. Sum merlin, who wa.s the first witness introduced by the state, and appear- ects amounted to $5.47. A social 1 ed to be a mere child. Her‘story hour was then enjoyed, during which | was related in quite a convincing time a “name” contest was enjoyed, ■ manner and but for a request by Mrs. W. D. Field- being winner and the judge that the charge be mod- was presented a lovely box of ified, Summerlin’s fate might have handkerchiefs. The hostess, assisted been death instead of a 30-year bj her little daughter, Annie Hood sentence. Hughes, served sandwiches and ^ j Mrs. David Poole Willing Workers Cla.ss Entertained. | GommitS Suicidc Mrs. Vick Johnson was hostess to | David Poole, aged about 35 the members of the Willing Workers y®ars, committed suicide at her Class at a very delightful meeting ^^ome three miles south of Clayton. on Tuesday evening, August 16. A profusion of summer flowers was used in the hall and living room. In the absence of the president, Mrs. Johnson presided over the business session, after which paper and pencils were passed for a flow er contest. Mrs. .J. T. Hughes was winner and was presented a lovely hanging- basket. The ho-itess, assist ed by her daughter, Mrs. Luther Pittman, served delicious frozen custard and cake. Indiana People Visit In Selma AMERICAN ATHLETES LEAD IN OLYMPICS After sixteen day.s of unprece dented competition, the forces of the United States emerged with the greatest collection of victories in the last twenty years. Winning eight of the se\'enteen competitions, they had quite a great lead, Italy being next with three championships to her credit. Manf of the events were quite close, and many former rec ords were shattered by the contest ants, not less than 13 world’s rec ords being broken. The attendance also surpassed all other records, the paid attendance for all events having passed the 1,000,000 mark. The next Olympaid is to be celebrat ed in Bvlin in 1936. Rev. and Mrs. Aubrey Moore, of Indianapolis, Ind., and Rev. and Mrs. L. R. Gray, of Sheridan, Ind., visited at the home of Elder and Mrs. H. F. Hutchens during- the past week end. Rev. Mr. Moore, who is a cousin of Mrs. Hutchens, is pastor of the First Christian church of Indianapolis, and Rev. Mr. Gray, who is a brother of Mrs, Hutchens, is pastor of the Christian church at Sheridan, Indiana. On last Sunday Elder and Mrs. Hutchens and his visiting guests, attended chui-ch services at the New Port Primitive Baptist church where Elder Hutchens filled an appoint ment in the pulpit. Accompanying them were Mr. and- Mrs. W. R. Smith and Mr. and Mrs. A. L. Lang ley, of Selma. The party, accompanied by friends from New Port, went fishing out on the Atlantic Monday. There were 25 people in the fishing party and they report a good catch and an enjoyable trip. Rev. and Mrs. Moore and Rev. •and Mrs. Gray left Selma Tuesday, going- by way of Spartanburg, S. C., where they expected to vi.-it Mr. Gray’s brother before returning to Indiana. A Lincoln county farmer sold 80 bales of alfalfa last week to a rab bit breeder near Charlotte. The al falfa acreage in Lincoln is being steadily increase. One cooperative carload of limestone was recently ordered for the crop. Catawba county poultry growers are caponizing their cockerels in stead of selling them at the pre vailing price of ten cents a pound. Thursday evening- of last week. Mrs. Poole was in a room with her husband and young eight-year-old son when she announced that she was going into an adjoining- room to take a bath. In a short time a gun fired and Mr. Poole rushed into the room and found his wife Jn a dying condition. Mrs. Poole spoke twice after her husband reached her side, but in a short time she was dead. The shooting took place about 9:30 and by 10 o'clock Coroner J. H. Kirkman, who -was summoned, immediately, was on the scene. The coroner found a note pinned to a cover on the mantlepiece in which she stated: “This is hard what I am fixing- to do, but I think it is the best way out.” About a page of rough tablet paper was -written to iler husband and little'boy. She told her husband to take the little boy with him, “as he is old enough,” and she also told >him to kiss the boy a thousand times for her, and asked him to be/ good to him. She also said: “Tell my daddy goodbye.” The husband stated that he knew of no reason why his wife should have committed suicide. It is re ported, however, that the couple- had had domestic trouble and had been separated. The decea-ed -was the daughter of W. G. Bunn who lives near Clayton. After reading the statement left by the deceased, Mr. Kirkman de cided that an inquest was not nec essary. It is said that Mrs. Poole had lived in Selma a few years ago, either during her girlhood or after her marriage. The stockholders of the Madison Farmers, a local farm organization in Madison county, paid 4 percent on a $22,000 business at the annual business meeting recently. The County agent of Moore coun ty has aided the authorities of the local county home to cut their gro cery bill in half this year by a planned system of food and feed production. A lesp'edeza sericea association has been formed at Red Springs in Robeson County to promote the gi-owth of this new perennial le gume.