PEOPLE I WEB It.S3 PERSONAL DEBT i
FOR EVERY DOLLAR BF INCREASE IN
law SAVINGS DUMNG MB
The American people in
record spending spree last year
added the 'equivalent of $1.63 to
their personal debts for every dol
lar of increase in their long-term
savings.
Figures compiled from Govern
ment and private sources show that
the total'Of. personal debt jumped
by more' than S2O billions during
1965 to an estimated $147 billions
at the year-end. This represented
by far the biggest yearly increase
of its kind on record, and it was
half again its great as the previous
paak annual rise in personal debt,
of more than $1? billions in 1953.
These debt figures consist of mort
gages on one-to-four-family non
farm honfes; installment and other
consumer credit, agricultural mort- (
gage and non-real estate debt, and i
life insurance policy loans. ,|
The Recent Trends
At the same time, accumulated
long-term savings of individuals in
life insurance, savings accounts!
savings and loan assrthiations, and
current redemption value of U. S.
Savings Bonds owned by individ
uals, but not including home own
ers’ equities, increased by approxi
mately $1212 billions during 1955
to bring the total to an estimated
$28216 billions at the end of the
year, according to the Federal
Home Loan Bank Board. While
this increase was second only to
the one in 1954 as the largest for
any year in the decade since the
end of World War 11, it fell $8 bil
lions short of matching the net 1
amount that the people had ex
panded their borrowings during the
year, primarily to buy homes, au
tomobiles and other durable goods.
The records show that a rise of
such proportions in the net debt of
individuals at the expense of sav
ings occurred only once in recent
years. That was in 1950, when the
increase in individual debt for the
year was twice that of the rise in
long-term savings. That, however,
can be explained in the light of the
special circumstances prevailing at
the time—the outbreak of the Ko
rean War and its implications for
the consumer superimposed on the
fact that the people at large were
still in a catching-up period from
the shortages resulting from World
War 11.
Two Basic Questions
Here in these recent trends in
personal debt and individual sav
ings, and their relationships, is a
factor with a direct bearing on two
of the basic economic questions of
the times. The first is whether, in
the interests of sound economic
progress, the people have expand
ed their debt too much too fast.
The second is the adequacy of the
present level of individual savings
in view of the big expansion of
capital and investment needs up to
now and the certainty that these
needs will grow greatly in the
years ahead. It is significant in
If You Need Money To Finance or Re-
Finance Your Farm At Low
Interest Rates... SEE
T. W. JONES
Edenton, North Carolina
. Representative of One of the Nation’s Largest
Insurance Companies
TAKE UP TO TWENTY YEARS TO REPAY LOANS
- ■ ■♦» *• 1 '
I • $ • ">*- ■
K '-$••- We constantly fight against the ever rising costs (
§K 17of doing business. To win this fight, we never stop
IU •' " pur search for more efficient and more economical ]
By: : Otways of keeping service quality high.
Ks C That’s why we’re sere that-yew telephone, will continue,
B biggest bargain in your family budget. / ~
this connection to note that the
growth 1n personal debt exceeded
that of accumulated long-term sav
ings of individuals by about sl7
billions irr the last decade, and that
since 1946 the growth of savings
exceeded that of debt in only one
year, 1954.
It is a recognized economic tru
ism that the soundest method of
financing industrial expansion and
economic growth, without paying
penalties for inflation and all its
attendant ills, is out of. the sav
ings of the people. Up to recently
the record in this respect was en
couraging. In 1964, for example,
the people’s savings in life insur
ance and other thrift institutions
provided half of the new money
( made available by the capital mar
| ket to meet the credit and invest
| ment needs of business and indus
try, home owners, and Government
(Federal, State and local combin
ed).
Rising Capital Needs
In 1955, however, according to
preliminary figures, these demands
on the capital market expanded by
more than a third to a total of close
to $45 billions while the contribu
tion of institutionalized savings in
creased only slightly. As a result
the funds made available to the
capital market by thrift institu
tions fell to little more than a third
of the total. This is why more and
more attention is now being paid
to ways and means of encouraging*
more personal savings to provide j
'the economy with the funds need
ed for continued expansion and for .
a further rise in living standards.
While all forms of personal debt i
have increased in the last decade,
the figures show’ that home mort
gage debt, estimated at SB9 bil
lions at the 1955 year-end, was five
times bigger than it was at the end
of 1945. Owners’ equities in their
homes have, of course, increased
also but there are no figures for
this. Consumer credit has risen
some sixfold in the period, from
less than $6 billions at the end of
1945 to more than $36 billions last
December, with installment debt
■ the big factor.. Aggregate farm
debt has more than doubled in the
decade. Life insurance policy loans
have shown a relatively modest
rise, both proportionately and in
dollar totals.
As a result of recent trends, the
total of personal debt at the end
of 1955 came to the equivalent of
83 cents of every dollar of accu
mulated long-term savings of in
dividuals at that time. This was
just under the proportion that pre
vailed between the two in 1940, hut
it compares with a ratio of only 25
cents in personal debt for every
dollar of long-term savings at the
end of 1945.
Children need love, especially
when they do not deserve it.
—Harold S. Hulbert.
THE CHOWAN HERALD, EDENTON. NORTH CAROLINA, THURSDAY, MAY 10, 1956.
Happy new Khmer new year.
The average home garden soil I
does not have sufficient organic
matter in it to keep it in the best
condition. A good way to obtain
this organic matter is to build a
compost pile. During the spring
and summer there will he a lot of
materials available for composting
such as leaves, grass clippings,
weeds, cornstalks an d canning
wastes. Weeds with riuened seed
heads should not he used. Plants
infected with soil-borne diseases
such as tomato wilt should not be
put in ttie compost.
Build the compost pile in a shady
place. The sides should be verti
cal and the top should he slightly
depressed in the center to retain
rainfall. On each layer of plant
material put a thin layer of gar
den soil (about one inch) and add a
few handfuls of a complete garden
DriverellrgedTor
Consider Children
Little Ones Lack Adult
Judgment Neces- »
sary In Traffic
“Children don’t think, cars don’t
think, so you must think!”
Tar Heel drivers received that re
minder of their responsibility for*
the safety of children in traffic
this week from Major Charles A.
Speed, Director of the State High
way Patrol’s Traffic Safety Divis
j ion.
j Major Speed, a fattier himself, is
j personally interested in a year
(around child pedestrian safety pro
gram.
“Drive as if every child you meet l
■spfllfn <•.» e* f t ?
"" ' ;:v '^
HPmCi 5H|
Bib JW
•uL ' IH F - '"■»»——
Special
Its Bigger than Both of em
jjy
-but its price makes it one of * r
Americas 3best sellers! '
It’s as simple as this:
Only two cars in all creation outsell Buick. And they
are two of the well-known smaller cars.
So maybe it will pay you to ask how come Buick has
zoomed to the No. 3 spot with such fast-selling
company.
Well, one answer is the beautiful and brawny Buick
Special you see pictured here and the low price it
' carries.
It’s the biggest bundle of high-powered performance
and high-fashion luxury ever offered in Buick’s lowest
priced Series.
And that means more people want it and can afford it,
because it’s priced only a few dollars more than its two
smaller-car rivals—even less than some models of those
very same cars.
But the big answer comes from a sure fact more folks
have discovered: you get more pure automobile for
your money in Buick than you get elsewhere.
Here, you get the extra wallop of big new Buick power
, AI It CONDITIONING
« m
COOL NIW LOW PRICK
It COolt, filter*, d.humldifi**.
Gtt 4-S.oion Comfort tn your now tukk with gaauim
PRIOIOAIRK CONDITION INO
1 ■""" 1
fut™ YOU* CAR-CHECK "“»■ RETTER AUTOMOIIIM ARE WILT RUICK WIU RUUD THEM
I CHAS. H. JENKINS MOTOR COMPANY
[ ' DEALER'S FRANCHISE NO. 1263
PHONE 147 Edenfo^N.C.l
fertilizer such as an 8-8-8 or 5-16-5.
This will hasten the breakdown of
the fibrous, coarse materials which
have a low content of nitrogen and
other plant nutrients. . Bacteria
which do the work of composting
require a readily available supply
of nitrogen and mineral nutrients
in order to rapidly break down to
compost materials. If stable ma
nure is available it will make a
valuable addition to the compost.
As soon as the compost materials
are well rotted they should be dis
tributed and worked into the gar
den soil. The purpose of the com
post is not to furnish the neces
sary fertility for growing crops but
to supplement regular plant food
applications as a source of organic
matter for maintaining the physi
cal condition of the soil.
is your own little boy or girl,” he
said. “If you treat all children as
you want other motorists to treat
your children, you’re not likely to
run down a youngster who heed
lessly darts into your path.”
This solicitous attitude is neces
sary, the major continued, because
children can’t be expected to use
adult judgment in traffic. On this
score, he roundly condemned the
driver who fails to give youngsters
a break in traffic and who insist
on right of way and other legal
prerogatives.
“It’s the nature of youth to be
impetuous and sometimes heed
less.” Major Speed said. “It’s the
duty of adults to protect children
from the results of their own heed
lessness, even if their actions are
wrong.”;
Major Speed listed the following i
I rules for drivers and urged them to i
Best Buick Yet
H' 1 I
Hjß
SAUCY MlSS——Moppet swiping the
sweets from comer drug store foun
tain wears a party dress by La
France in a John Wolf cotton print
with step border.
memorize eaeh one:
1. Always expect the unexpected
where children are concerned.
2. Give young hike riders every
' ' j
VEGETABLES Taste Better
FROM YOUR OWN CARMEN (jjjfiV
Plant Quality Tested j
For Tasty Vegetables, v
Lush Salads This Summer! J/rjjp
■ l
raised to a new high and pouring in smooth whisper
from a brand-new 322-cubic-inch VS engine of true
high compression.
Here, you get the matchless buoyancy of Buick’s great
new ride—the extra-safe feeling of Buick’s new handling
ease—the extra stretch-out comfort of Buick roominess
—the extra solidity and strength of Buick structure—the
extra pride and prestige of Buick’s new styling and dash.
Here, too and nowhere else you can get the silk
smooth performance and flash-fast response of Buick’s
advanced new Variable Pitch Dynaflow*-the world’s
only transmission with the gas-saving mileage and
switch-pitch action of the modern airplane propeller.
This week—this very day, if you wish—you can sample
all these Buick blessings to your heart’s content and
your pocket’s joy. Why not drop in on us and do just
that?
*New Advanced Variable Pitch Dynaflow is the only Dynaftow
Buick builds today. It is standard on Rnadmaster, Super
and Century—optional at modest extra cost
on the Special.
.• *** MCHII ouasoh VT* /
’. on iv
*•,, k«q Wot fcftAinft
break.
3. Drive with extreme caution
| near schools and playgrounds and
< any place where children may be
I expected to gather.
4. He especially alert in school
areas for signs, signals, traffic po
lice, school patrols and for children
themselves.
Lapsed GI Insurance
May Be Reinstated
Lapsed GI term insurance still
may be reinstated before the end
of the term period, the Veterans
Administration said in answer to
numerous inquiries.
VA said it has found that many
veterans believe they no longer are
entitled to GI insurance when they
have missed several premium pay
ments on 5-year term policies.
However, the agency explained,
if the 5-year term has not expired,
the policies may be reinstated with
the payment of two monthly pre
miums.
A medical examination is re- J
quired if the policies have been j
lapsed more than three months. |
No examination is required if the
policies have been lapsed less than
three months and the policyholders
are in us good health as they were j
on the date of lapse, VA added. I
Any contact office of tile Vet-'
GOVERNOR HODGES WANTS MORE
INDUSTRY IN NORTH CAROLINA.
PUSH THIS GOOD NORTH CAROLINA PRODUCT!
Dentists say: “wonderful" .. . “best I've ever used" . .
"best ever made” . . . “lu st on the market” ...
OLAG T r%t r r H e
AT DRUG STORES EVERYWHERE
MR. FARMER:
SEE US FOR YOUR
SEED PEANUT I
SHELLING
ALL j
I HAND PICKED
jg READY-TO-PLANT 1
1 Ch owan Storage Go. |
L. E. BUNCH, Mgr.
k W. Carteret St. Edenton, N. C.
i?l _ 3}
Stags
bourbon
6 Years Old
X:
- v ;-l " v.
■II ■■ ■!■■■-■ i nwi-nmni .'aii-a.miUff-iai r -“ *** fc ■
ttLn w «* Al ’ JSSfej* l
Be w b fIH kV ■II
jft PROOF. TOE SlAfifi MSI. CO- fBAHKfQKT. Bt» 3
SECTION TWO
PAGE SEVEN
erano Administration will assist,
veterans in reinstating GI term in
surance.
1 __ M
| Til love of home, the love of coun
try lias its rise, Chat). Dickena.