Newspapers / The Chowan Herald (Edenton, … / April 22, 1954, edition 1 / Page 19
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People’s Savings Increased More Than Personal Debt For First Time Since 1946 Reflecting: Prudence In Personal Financial Affairs first time since the early posPm-ld War II period, the growth in accumulated long-term savings of individuals in 1953 more than match ed the net increase in personal bor rowings even though the American people went some $lO billions deeper into debt during the year. This development Is all the more significant considering the fact that 1953 as a whole was a record year for consumer spending and economic activity in general despite the level ing-off which has occurred in recent months. It suggests a growing un dercurrent of prudence in the hand ling of personal financial affairs. A further growth in savings and a high rate of debt repayment combined to tip the balance in the favor of sav ings for the year. Debt Total sll2 Billions Preliminary figures from Govern ment and private sources indicate that the total of personal debt outstanding, incurred primarily to buy homes, cars and other durable goods, added up to approximately sll2 billions at the end of last year. This was about $lO% billions over the personal debt aggre gate at the end of the year before, but it was a substantially smaller net rise than either in 1952 or in 1950. At the same time, accumulated sav-, ings of individuals in life insurance! and other long-term thrift mediums ( increased by an estimated sl2 billions during 1953 to a total of approximate ly $206 billions at the year-end. This was the largest annual gain on record except for the three years of 1943 through 1945 when savings were ab normally high due to wartime condi tions. The figures thus indicate that the growth in the people’s “nest egg” in 1953 topped the year’s rise in out standing personal debt by more than a billion dollars. This was the re verse of the trend which prevailed from 1947 through 1952. In 1950 alone, the net increase in the personal debt burden of nearly sl3 billions was more than double the year’s growth in accumulated savings. Repayments Also at Peak Long-term savings of individuals, as rffelcri by the Home Loan Bank PIMPI, consist of funds accumulated behind the insurance policies, thrift accounts in cemmercial banks, deposits in mutual savings banks and in Pos tal Savings, savings capital in sav ings and loan associations, and cur rent redemption value of U. S. Sav ings Bonds owned by individuals. Per- ' sonal deb’s comprise mortgages on one-to-four-family non farm homes, consumer credit, agricultural mort gage and non-real estate debt (ex cluding Commodity Credit Corporation loans)), and life-insurance policy loans. As a matter of fact, the people bor rowed more money last year than ever before to finance their purchases. Re payments. however, were at record levels, also. For example, figures compiled by the Federal Reserve Board show that installment credit ex tended came to $29.8 billions in 1953, up $1.4 billions over the year before. Repayments, though, increased to p uiH Jones o * sooo Jgggj PINT $3.25 h qt. BLENDED WHISKEY. 86 proof. 72*A grain neutral spirits. Frankfort Distillers Corp., N.Y.C. » -,,-i n rxru-u-UT. $26.7 billions, or more than $2 bil lions above the 1952 total. Total con sumer credit outstanding, of which in stallment loans are the major part, rose by just over $3 billions last year as against an increase of more than $4 billions in 1952. In the home mortgage field, the Heme Loan Bank Board estimates that close to S2O billions of nonfarm mortgages of $20,000 or less were re corded in 1953, about 10 per cent above the previous year. Much of this represented refinancing of mortgages on existing structures incident to their transfer. Amortization of home mort gage debt is placed at well over $3 billions a year, and by the nature of the amortizing mortgage this annual total will increase as time goes on. Looking at the savings and debt pic ture as a whole, the American people right now owe about 54 cents for ev ery dollar they have in accumulated long-term savings. This is a substan tially lower personal “liquidity” ratio than since the early Forties, but it is more favorable than the ratio that existed before World War 11. In 1940. for example, the people as a whole owed 65 cents for every dollar of theb accumulated long-term savings, while the comparable ratio in 1929 was 85 cents in personal debts to every dollar of accumulated savings. The most favorable ratio was in 1945, when the people as a whole owed only 25 cents for every dollar they had in accumu lated savings. | Somewhat over a third of the 1953 , increase in long-term savings was in funds accumulated behind life insur ance policies. Large gains also were shown by savings and loan associa tions and by savings deposits in banks. In the borrowing area, home mort gages continue to be by far the big gest debt booster with the total last year showing a net rise of approxi mately $6 billions or more than half the total increase in personal debt foi 1953. |i» Bring in your favorite programs crystal- mm K * clear, by letting us keep your set in tip-top pj [>l condition always. Ask our Service flf| Jackson’s TV and RADIO Jl| THE CHOWAN HERALD. EDENTON, N. C„ THURSDAY APRIL 22, 1954. Hot Jelly Served In Deadly Forms By U. S. Soldiers Fort McClellan, Ala.—The most ruth less enemy of mankind is being used by American soldiers as they learn diabolical new techniques in fighting with fire here at the Army’s chemical training center. The “fast bum” technique normal ' ly is applied by flame-throwers spout [ ing fiery napalm—jellied gasoline—in \ two to three-second bursts. Combat [ use has demonstrated that these hot, licking tongues of flame destroy the | enemy even though they are entrench \ ed in well-fortified bunker positions where bullets or explosives fail to rout them. The Great Destroyer treatment of ten was used effectively to combat the 1 enemy during the war in Korea. ' To disrupt and discourage mass at ‘ tacks by the Communists in Korea, ' U. S. soldiers used stationary or em * placed flame-throwers for close-in de fense. Portable squirt guns were used -j to throw a searing and long-burning •j ball of fire from 40 to 60 yards, while ■ mechanized flame-throwers carrying ' the torch projected their fiery tongues ’ out as far as 200 yards. !; “Foogassies” and Molotov cocktails f'! —-napalm land mines and improvised t hand grenades—made by loading land ? i mines and mortar shell-casings with ?: the napalm mix also were used to com • bat the “human sea” tactics employed I by the Communists. ! Airborne belly-tanks bearing 165 i’gallons of the napalm mix proved -'their worth during the war as anti ?! personnel and anti-tank weapons. -| Napalm does not depend on a direct . hit for its effectiveness. A near miss ■ jwith napalm is as good as an on-tar ■ get hit with anti-tank weapons, ba t zookas, artillery, mortar or tank fire. - This is true because napalm covers an f area larger than that affected by the t burst of a nigh explosive bomb. Its searing gel bums off natural cover, penetrates slits in bunkers or armor, : and engulfs enemy soldiers within the area in an inferno of approximately 1,500 degrees Fahrenheit. ' Although fire as a weapon is as old as war itself, the development of napalm combined with ingenious American delivery methods has added new impetus to the hottest weapon in warfare. Fire was first used by armies at tacking and defending the fortified cities of Biblical times. In those days burning oils and flaming straw and resin fire-balls served as incendiaries. In 424 B. C., a hollow tree trunk, a bellows and a basin of glowing coals, sulphur, resinous woods and other highly inflammable substances were used to destroy enemy fortifications. Fire survived as a weapon of war until the introduction of gun powder in 1 the 15th century. Firearms caused armies to engage in battle at dis ! tances which could not be spanned ef ' fectively by incendiaries. As a result, fire faded into the background. Means for scientific use of fire on the battle iiiS ! INSURANCE i « . A four-letter word—and I crops ruined, the work of years lost! But Farm Bureau protects you. At t low colt, your crop and 5 home can be safeguarded, Non-assessable, full coverage. No fears, no j tears, no debts for years when covered by Farm Bureau. ! PARKER HELMS 204 Bank of Edenton Building PHONE EDENTON 671-J-5 ! LONNIE HARRELL Route 3 PHONE ROCKY HOCK 114 ■farm bureau mutual fire insurance co. W' 'I'WI- f . V/VWVWW»/WVNArwV'^WWWWV»A/>^/\/>^^ , >A/WS/VSAA/N^^V\^i/WVW%A/Vy\^ PAY BY " CHECK ,: -•- i I j It’s easier to pay by check. You save time j| ‘ )! and steps. It’s safer to pay by check. You avoid the risk of handling - cash. It’s more ef ficient to pay by check. You have a record of j all transactions, with the cancelled check as II evidence of payment. It i J | Your personal checking account is welcome J | at The Bank of Edenton. Open your account |j: now and enjoy the benefit of our complete |j checking and deposit facilities. ijl BUY UNITED STATES BONDS I THE BANK OF EDENTON | j EDENTON, NORTH CAROLINA Safety for Saving Since 1894 MEMBER FEDERAL RESERVE SYSTFM J||| MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION field were not developed until World War t In 1915, the Germans used their “Flammenwerfer” (flame projector)' on the French front with little or no success. Today American flame throwers apply the 20th century “hot foot” with devastating efect. The average young man today thinks a dollar isn’t worth a dollar. UlduM you {fade a feting for a fe Dollar? m % You can if you use Natural Chilean Nitrate of Soda ■ for your top-dressing and side-dressing needs. It costs a little more because it's worth more. But the difference in cost usually can be measured in pennies per acre, while the differ ence in value often amounts to dollars per acre. Chilean “Bulldog” Soda gives you generous extra value. The nitrogen is 100 per cent nitrate. It’s 100 per cent available J (quick-acting) ; 100 per cent dependable. The minor elements make crops stronger, healthier. The sodium—26 pounds in every 100-pound sack—is a key to maximum returns on your ' entire fertilizer investment. It offsets the bad effects of acid forming fertilizers...increases the efficiency of mixed ferti- ! lizers containing them. It releases “locked-up” potash in the - soil...increases the availability and efficiency of soil phos phate... reduces potash, calcium and magnesium losses by leaching...develops larger, deeper root systems. Sodium builds up the productivity of your land— more j each year. It’s an essential element for some crops... bene- i ficial to most and necessary - ... for maximum yields of many. >.. | WGt Pennies-per-acre differ ence in cost may mean ® NITttAU Os SOOamI m dollars-per-acre difference K : > 6««*« MT n s 'Jmi m sets l* in value to you. Chilean I *** kim SATCHEL “Bulldog” Soda is the best j fertilizer your money can / /afcnsgapfrftX IE/ buy. Use it for all of fV<bgU9j|p J CHILEAN/-sgK filf. N j # SOPA*-—» -SECTION TWO-] CHRISTIAN CHURCH SERVICES Services at the First Christian Church have been announced as fol lows by the pastor, the Rev. E. C. Alexander: Bible School, Sunday morning at IP o’clock; morning service at 11 o’clock; | young people’s meeting at 6:30 P. M., evening service at 7:30 o’clock. Wed nesday Evening Bible Class meets at Page Seven
The Chowan Herald (Edenton, N.C.)
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April 22, 1954, edition 1
19
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