Newspapers / The Chowan Herald (Edenton, … / March 6, 1958, edition 1 / Page 10
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PAGE TWO —SECTION TWO {■NATOS A j. SAM ERVIN 9sk ek * SAYS * «^Opm« B ;< Washington—The state of the! i nation’s economy is emerging as .' u chief issue before the Con . j gress. Halt The Depression | Congressional concern is focus ; ed on the rapidly developing re cession and toward measures to halt this downturn. Paradoxical ‘ ly, of last year the major eco • nomic concern was inflation. Con sumers, as you will remember, ; were then urged to curtail their . spending. Now a sharp reversal ■to recession has occurred and ■ more consumer buying is needed. ; Industrial production is off and. '•according to official estimates, J close to five million people are j jobless. Wise action is manda tory to stabilize the economy and to prevent a deepening of the re ' cession. Presidential Optimism The President has spoken hope fully of a business upturn be . ginning next month. On the ba ; sis of present information, I be lieve that this is a far too optimis tic view. Certainly no one would " encourage a “gloom or doom" at titude, or a panic reaction, to the current recession. Conversely, the easy optimism that speaks of the situation as just a “breather” or an “adjustment” is unwise and is of small consolation to those ] who bear the hardships of the re cession. What is needed is in formation and realistic evaluation of the economic state, from which adequate corrections may be made. Proposals Offered Various proposals have been ! offered in the attempt to bolster the economy. The Administra tion has offered higher defense outlays, an easing of credits, and a post office building plan. There is question whether these meas ures are adequate and whether they can be made operative in 1 time to effect relief. Congressional leaders have suggested other plans which are broader. These consist chiefly ot expansion; and speed-up in pub lie works projects such as high way construction, dam and flood control programs, and federal building. Consideration of these plans have not reached a con clusive stage but they will re ceive a priority treatment by the Congress. Tax Cuf A possible tax cut has also been Suggested. In the first session of , this Congress it had been hoped that some reduction in taxes ELECTRIC 3mm MOYE Electric Motor Shop ' Ref rigeratoTSt'f vice” ,i " J Generators - Starters -- Batteries 201 EAST CHURCH ST. -:- EDENTON, N. C. PHONE 3200 ( • Calvert * , l ? CALVERT DISTILLERS COMPANY. NEW YORK CITY*BUNDED WHISKEY*SC PROOF* 65% BRAIN NEUTRAL SPIRITS •i'.Wtialij ; ' *.. » * . . -.u- , might he made. With the advent of the Russian satellite last Octo ber and the further evaluation of defense needs, all such hopes seemed to have vanished. Again the tax reduction issue appears, this time proposed as a means to encourage consumer purchasing. While all of us most earnestly de sire tax relief, such proposal must be measured against the facts of our great defense needs and our already swollen federal debt. Any tax cut at this time would seem to call for further increase in the federal debt since defense spending must be main-1 tained. Unless a tax cut is felt j to be the only means to reverse the recession, Congress, in my j opinion, will not vote to cut taxes j this year. Ip the event that the recession deepens and other measures do not improve the | economy such cut may be made, j Traffic Jams While Washington offers many ! attractions to the visitor, it of- ] fers him as well extremely bad j traffic jams. This is especially j true during the morning and j evening rush hours when govern ment workers make their en- j trances and exits. With the rec ords now of last week most gov ernment offices were at a stand ! still because of traffic difficulties. Capitol Hill did manage to func tion without losing time. Arguments have continued for years in regard to an additional bridge across the Potomac to ease the traffic situation. At present the argument concerns whether !to build a bridge or a tunnel Meanwhile the traffic problems worsens and tie-ups are a fre quent event. To motorists who drive to Washington I would ad vise arriving during non-rush hours. Record Production Os Milk In 1957 A record of 1,790,000 pounds of milk was produced in North Car olina during 1957. The record output, exceeded the previous high (revised 1956 production) by 68.000,000 pounds. The 1957 pro duction was attained from an es timated 358,000 milk cows, 3,000 more than were on farms in 1956. Milk production per cow aver aged 5,000 pounds during 1957, an increase of 50 pounds over the 4,850 pounds reached in 1956. TRY A HERALD CLASSIFIED \jflns CHOWAN HSRAU. EDSInOH. NORTH CARQLINAf THURSDAY, MARCH 6. 1958. | Husbands Guests Os Byrd Gkib ■HHM !>. jjP^(h i^JK9E9 Above is pictured a few who attended a meeting of the Byrd Home Demonstration Club held at the home of Mrs. George Smith at Hayes, when husbands were special guests. In the picture, left to right, are: Mrs. George Smith, George Smiih. Earl While, M. T. Barrington and Haywood M. Phthisic. The National Outlook The Federal Reserve Steps In By Ralph Robey — —p The Federal Reserve System has finally made important news. To appreciate its action one needs to refresh his memory on a few elementary facts. By law all national banks in this country must be of the Federal Reserve System. State banks may be members if they comply with the same standards as national banks. We have about 13;500 commercial banks of which close to 6,500 are member banks. These member banks hold over four-fifths of all loans and investments in our commercial banking system. Also by law, each member bank is required to keep on de posit with its Federal Reserve Bank a stipulated reserve against its deposits. This requirement can be altered, within certain limits, by the Federal Reserve Board of Governors. Since 1954 the requirement for central Re serve cities. New York and Chi cago, has been 20 per cent; for Reserve cities—about 59 of the next largest centers—lß per cent; for all others, known as country banks, 12 per cent. Purpose of these reserve re quirements is to limit the lending oower of the member commercial banks. For example if a New York bank made a loan and gave the borrower the proceeds as a deposit, which is customary, it must have an amount equal to one-fifth of the loan on deposit with the New York Federal Re serve Bank. If the commercial ba'nk did not have this reserve it must obtain it. It could do this j by borrowing from the Reserve Bank, by selling securities and depositing the receipts with the Reserve Bank, or by borrowing a part of the excess reserve of an other commerical bank. There are three ways by which the Federal Restrye authorities mas*Hnnuence tHer*reserve' posi tion, or lending attitude, of the member banks. First, and the method used most frequentlv, is by buying and selling government securities in the open market. | When the Reserve Bank buys se 11 curities the amount of the pur . i chase always ends up in the de ;, posit account of member banks, thus giving them additional re serves. Conversely, when se curities are sold the accounts of ■ member banks are debited by the amount of the sale, which reduc 'i es their reserves and tends to :: make interest rates rise. ' j The second method by which 1 j the Reserve authorities influence ■ | commercial bank policies is by changes in the rediscount rate. :! Actually, this does not either in ', crease or decrease the reserve po- I sition of member banks, but it ■ does change the price at which | commercial banks may replenish ■ their reserve position through borrowing from the Reserve Bank. As a rule, open market operations are used to meet tem ■ porary elements in tfte demand and supply position of credit, and variations in the rediscount rate j arc used to indicate a basic | change jn the credit situation. The third method is by chang ing the reserve requirements. This is by far the most power - I ful instrument the Reserve au- I thorities have and it is used only ;j at rare intervals. But it was this instrument which the Reserve System has just used. Specifi ■ cally the reserve requirements for all banks were reduced one-half jof a percentage point. The ag • i gregate effect of this change is to i add approximately SSOO million | to the reserves of member banks. The reason for this action has ' been generally interpreted as a j desire to help business recovery. And it is probable that this de | sire did enter into the decision. However, it appears that a more powerful factor was the desire jto facilitate borrowing by the I U. S. Treasury. ; Primary reason for assigning ,t£is. greater Weight to Treasury | borrowing is that, through open j market operations and two re- I cent waves of rediscount rate re ductions, the commercial banks ! are in a position to take care of I business needs. But with the Government currently operating at a deficit it will be necessary' l for the Treasury to come to the market before long for additional funds. . • By ad4ing SSOO million to the| reserve position of member banks there should be no question of offerings being taken without difficulty, "and at reason able rates of interest. Mack Forehand Dies In Richmond Hospital James Alvin (Mack) Forehand, 27, died at 9 o’clock Wednesday morning of last week in a Rich mond hospital following a brief illness. Surviving are his parents, Mr. and Mrs. W. G. Forehand; two brothers, Gurney Forehand and D. C. Forehand, both of Edenton; five sisters, Mrs. Kenneth Cope land, Mrs.. David Goodwin and Miss Paige Forehand, all of Edenton; Mrs. Henry Wills of i Suffolk and Mrs. Edwin Byrum I of Carrsville, Va. Funeral services were held j Thursday afternoon at 3 o’clock at the" Rocky Hock Baptist Church with the pastor, the Rev. B. L. Raines, officiating. Burial was in Beaver Hill Cemetery. , Pallbearers were J. D. Peele, William, Bunch, Wallace Peele, Leon Bunch, Melvin Bunch and Kermit Jordan. Mrs. Hattie Rice Died Last Weekj Mrs. Hattie Haste Rice, 92, died Wednesday afternoon of last week at 6:30 o’clock at the home j of her nephew, Henry Haste, near . Edenton'after an illness of about , a year. She was a native of Cho wan County, the widow of the late Captain D. Rice, who for many years operated tug boats, and a member of the Rocky Hock Baptist Church. Surviving are three stepsons, William D. Rice of Portsmouth, George A. Rice of Wishington, D. C. and Bruce B. White of Wind sor; two nephews, Henry Haste of Edenton and Cecil E. Haste of i California. Seven grandchildren and five great grandchildren also survive. Funeral services were held at the Williford Funeral Home Sat- i urday afternoon at 2 o’clock. The Rev. B. L. Raines, pastor of the - jj&jP • ■? gt-v . : W : & s ■ v - t i : •: V . • • ■ ■- i ■ ; ... \ | i ' ' 1 1 ........ , , _ ... Am«rira’f on/y car viiA a hideaway har<Uep.— th « fV4 Skyiiner shown hers with the fabulous new k*fa*unger Th&ndezbird - ‘ ‘ ; ' ' v • i , * .>*«o It's like getting back 154 on every gas dollar! * 4 w ,'•«■■ JU- r Here’s the biggest savings story of the y year! And here's why. It all starts with Ford’s new dream of a drive called Cruise-O-Matic the newest, x n most versatile, most automatic of them all! Two new driving ranges let you choose your > starts for the road conditions that exist. For , example, in most of the driving youll dp, you can take off lively as a spring lamb if you wish. And on snow, ice or any slippery road surface, with the extra driving range you can get sure-footed starts that are steady and silky-smooth. -, Note, team this all-new automatic with - y Fprd’i new Thunderbird-powered V-8 SiiEi j | j Art .Chairman - —, Mrs. James A. Leggette (above) . of Williamston, has been named art chairman for the North Caro ) lina Congress of Parents and ! Teachers, according to the state I president, Mrs, J. Z. Watkins of . I Charlotte. Mrs. Leggette has studied art at the Art School of Chicago and with Frith Winslow of Plymouth. At present she conducts art class es for children in Williamston. As art chairman for the state PTA, she will plan a program of I art appreciation and’advise with ' local units as to how to integrate I it with all phases of parent-teach ! er work. Rocky Hock Baptist Church, of ficiated and burial was in Beaver Hill Cemetery. Pallbearers were John M. El liott, Willie Morris, Fred Tuns tall, Horace Bunch, L. C. Bunch and W. W. By rum, Jr. Center Hill 4-H Club Holds Meeting The Center Hill Local 4-H Club met Tuesday night of last week at the home of Joey As bell with Sunny White presiding. Joey Asbell read the Scripture and Emmett Jones, Jr., led the group irl prayer, Following the business session the meeting was turned over to Robert S. Marsh, assistant county agent. He discussed things the club members could do in observ ance of National. 4-H Club Week, March 1-8. He also discussed (with up to 3PO hp) and you % get as much as 15% better gas mileage, too! That’s be cause a special gas-saving rear axle ratio, is used to give you all the savings of “buut iri” overdrive economy. And'based on factory suggested retail ■ delivered prices, a Cruise-O-Matic Ford is priced lowest of the low-pride three with. *, comparable equipment. r ' So, with Thunderblrd go . . . down-to earth gas savings . . . plus Ford’s tradition ally low prices and high resale return you have the best reasons iri the world to . make yourself a deal on a beautiful new Cruise-O-Matic Ford! . nSSE"V*S23»?#V ' ' • • h < •». . lar ways and means of increasing I club membership. Mr; Mat>h J told about the Fat Stock Show, and Sale which will be held March .26 at the American Legion Building. . • ' Those attending were Totnmy Parker, Sunny White, - Frances Smithson, Emmett Jones, Jr., “Wisdom of the Ages” .i/figT : “Happy hr whose inward Angel comfort in gs can The desire to serve with sincerity of purpose brings JOHN GREENLEAF comfort. We are favored by WHITTIER many such testimonials. • t jjfiL <; !n9TIBfQHEWHRiPiIPPNnB?WVPi9Hi 1 1 TERMITES SWARMING? | ORKIN / SlNC^^^l9o! MAM / Jf® ” ! o> free inspection WORLD'S LARGESTPEST CONTROL COMPANY \ Phone 3223 1' . v Joey Asbell and Jimmy Turner. eetfng was by the fn'emberS saying the pledge, ♦; aft&Tj games were played an<f refreshments served. results USE THE HERALD CLASSIFIED ADS ■ v* l P ‘ ' •v.,« COME IN, ACTION TEST A t otuisrwrao I co t^nn '■law 7f| j 1 W ;>. s NOTHING NEWSA-IN TH* *<CKu) , f, >’•' T T,"‘- * » * f ;• i>f} ( .• -<#* i t \ 1 .
The Chowan Herald (Edenton, N.C.)
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March 6, 1958, edition 1
10
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