Hie National Outlook 1
Interest jiates Have Deelihed
By RXlph Kobev :
Recently interest rates have;
declined at an amazing pace. A]
fdw weeks ago the vast majori-j
ty of government bonds of morei
than five years’ maturity werej
selling at prices which gave a
yield of above 4Vi percent. To
day the majority of ..them are
selling at prices which yield less
than 4*4 percent. This 4*4 per
cent is used as a reference point
because that is the legal ceiling
on government obligations of
five years or longer maturity.
The rate on Treasury bills has
shown just as great a decline.
N6t long ago the government
paid 55 percent for funds for
just under five years. Today
it has to pay only a shade over
3 percent on both 90 and 180-
day bills, and the rate on five
year money would be about 4
' Some Causes of the Drop
This sharp decline in rates
was not expected. The follow
ing have been important in
bringing it about:
1. The demand for credit by
business has been less than had
been anticipated. Among the
factors leading to this result
have been less need to borrow
for taxes, less volume of busi
ness than expected, less need
for funds with which to carry
inventories, and —in many in
stances because of the weather—
less need for cash for invest
ment in capital and equipment.
2. The Federal government
currently is running a surplus.
This means that it does not have*
to make demands upon the
money market for additional
funds. The issue of a few days
ago, including a 25 syear bond,
does not disprove this. For the,
next fiscal year the estimate is
that the surplus will be $4.2
billion, and it is that prospect j
which influences interest rates.!
3. There is less fear of infla- 1
tion. This is one of the ele-'
ments which has caused the de-]
cline in common stock prices. |
As a result of the changed at-j
titude on inflation investors are
more willing to buy fixed in-1
terest obligations, and a poten-|
' x. /^-
By ROBERT E. LEE
(For the N. C. Bar Association)
Timber Contracts -,
The Hudson Lumber Company
wants to cut and remove all of
the trees in excess of a given
size from a tract of land be
longing jo Dawson. The price
and other details of the trans
action have been orally agreed
upon by Dawson and the Hud-!
son Lumber Company. Is the
oral agreement between the par
ties valid and enforceable?
No. This is a type of contract
that the law requires to be ini
Standing trees are just asj
much a part of the land as!
houses or buildings erected 1
; thereupon. As a consequence, a
contract to sell or convey grow-!
ing trees, or any interest in or
concerning them, must not only
be in writing but also executed;
with all of the formalities re- i
quired for a transfer of real,
A contract to sell growing (
trees to be cut and removed by
the purchaser, does not transfer
to the purchaser the ownership
to the land, but it does give to
him the right tp enter upon the
land and to carry away that
which is part of the land. Be
ing a transfer of an interest in
real property, the transaction
must be in writing.
As between the parties them
selves, a written contract to
convey standing timber is valid
without registration in the coun
ty court house. It can be spe
cifically enforced of su£d upon,
k By in order to be enforceable!
[against creditors of the land
owner* and other purchasers for
> i tial lender does not insist upon I
. j having a normal rate of interest
] plus whatever he thinks neces
‘l sary to offset the rise in prices
:J resulting from inflation.
' 4. The Board of Governors of*
the Federal Reserve System is
* also less fearful of inflation and (
; in consequence is leaning a little
less heavily “against the wind”
than it was a few months ago.
; The Reserve System has not
turned to an easy money policy,
but the figures indicate that it
: is giving the commercial banks
a bit more leeway for making
loans and investments than it
was a short time ago.
5. There is widespread convic
tion that while this will be a
good year from the point of
view of business in general, it
will not be a “boom year” in
terms of production, prices and
This represents a rather com
; plete shift from the thinking of
a few months ago, and is all
to the good.
Decline of Rates Is Temporary
Such are the developments
which have created the decline
in interest rates. Equally im
portant is whether the lower
rates will continue, and if so,
for how long.
It would be pleasant to say
that we have seen the high of
interest rates for the- indefinite
future, and it would be doubly
pleasant to say this if it were
based upon the fact that private
saving is increasing to the point
where -it meets the demand at
current interest rates. But there
is no justification for such a
statement. We have not in
creased saving, we have not
eliminated the underlying threat
,of inflation, we shall have to
continue to fight to protect the
projected surplus of the gov
ernment, and the demand for
j business loans soon will pick up
I again in volume.
■J In other words, the decline
,of interest rales must be re
jgarded as temporary and there
jis no legitimate basis for the
‘j Congress refusing to eliminate
I the present 4*4 percent ceiling)
lon government bonds.
| the county in which the land is
'situated. If-4ie doesn't and the
! landowner sells his land to a
I purchaser for value, the buyer
of the timber has lost his right
to cut and remove the timber.
Bailey orally agrees to cut
and deliver all of the standing
| timber on a tract of land he
owns to the Thompson Lumber*
Company for an agreed price.)
Is the oral contract valid,
Yes. Bailey has made a eon-1
tract to deliver cut trees or logs
to the Thompson Lumber Com-j
pany. Such are items of per
sonal property. Contracts con-1
cerning personal property are
not required to be in writing, j
This is not a contract involv
ing an interest in land, since
i the cutting and delivery of the
! logs by the owner constitutes a
conversion of the standing tim
ber from real property- into per
sonal property. Bailey has
, merely agreed to sell the lum
ber company personal property
' that was once real property.
| The transaction does not involve
a transfer to the lumber com
pany of an interest in land.
Rings And Rings
| If it isn’t the door bell or
1 telephone,” mumbled the busy
| housewife, “it’s the ring around
| Willie’s wrists, neck and bath- I
Now Is The Time To
Beautify Your Lawn
USE HYDE PARK EUROPEAN
t (Bushel Size Bales)
Evergreen Lawn Grass
, (Stays Green Year-Round in Shade or Stmshinc)
Home Feed & Fertilizer Co.
,W. Carteret St Edenton, N. G PHONE 2313
- THE CHOWAN HERALD, EDENTON, SOftTH CAROLINA, THURSDAY, APRIL 14. 1980.
SCHOOL AM) YOUR CHILD
By John Cftroy. Appalachian Slate Teacher* College
j “Don’t bet your child’s future
lon his 1.Q.” |
* That warning comes from Dr.]
Lee Reynolds, professor of edu-|
cation at Appalachian State I
| Teachers Colelge, Boone, N. C.
I.Q. (intelligence quotient) ha?
just about become a household
term and many 'parents anxious
ito know their child’s score on
so-called intelligence tests have
secured the youth’s I.Q.
Quite often, knowledge of his
I.Q. without understanding how,
to interpret it is dangerous,
states Dr. Reynolds. Many use
it to map out 'their child’s fu-j
ture as if the figure were an all
revealing fortune teller.
If Junior’s I.Q. falls on the]
high side (100 up), they con
i sider that he carries in his brain
a guaranteed ticket to success!
in life. The higher the I.Q.'
(140 approaches genius level),
the greater a success he should,
On the other hand, a mother
and father discovering their
Junior’s I.Q. below average (100 j
down) may have a let-down
feeling and believ£ the child.
doomed to a fate of being un-l
able to succeed in difficult en-|
To parents with such distort-!
ed notions. Dr. Reynolds states;]
“It takes more than a mental
number to achieve success.”
There’re the important factors
of drive, hard work, ambition,
belief in one’s work, and being]
able to consider, understand!
and work with others.
A person with a lower 1.Q.!
but possessing these quakties
can usually outdistance a higher
I.Q.’er without them, he says.
Still intelligence tests are
quite valuable instruments, Dr.
Reynolds emphasizes. They have
been found generally reliable
for measuring many abilities
, that indicate intelligence—such
as command of words, capacity
to deal with ideas, and flexi
bility in taking an idea out of
one context and using it in an-!
Still they’re not always cor-]
, rect. And if they were, Dr.]
( Reynolds qualifies, they don’t-
I measure everything that’s con
sidered part of intelligence such
; as personality, getting along]
r* with others, “stirk-to-itnesftr” j
and .special aptitudes.
The only real test of intelli-'
zj | }~i A counts in
'•*'s set repair
TV troubles disappear f ll
fast when we get to /AT"**) 1 I ®|ll
work on them! Most /fc M I \Mm
repairs can be made IJm il A
right in your home .. . Ay, | h
quickly and at modcr-
Jackson’s Radio & TV Service
W. Eden St. PHONE 3519 Edenton
gence is life itself, further states
j the Appalachian professor. Of
].ten there’s little relation be
| tween I.Q. and success in life.
I A study of over 100 of Amer-
I ica’s top executives revealed
that what put them on top were
realism, judgment, tough-mind
edness and energy. One execu
tive is reported having said to
his wife: “I took one of those
intelligence tests, dear. Thank
God I’m the company presi
Another study showed that
success in science doesn’t re
! quire exceptionally high I.Q.’s.
“Over a third of Ph.D. graduates
picked at random from three
I leading science and engineering
schools had I.Q.’s of under 120.”
How about success in teach
! One researcher asked a num
ber of leading educators to name
the main qualifications. “Not
| one of them mentioned 1.Q.," he
said. “All agreed on enthusi
asm and ability to inspire.”
I Dr. Reynolds, who supervises
a freshman class of gifted stu
dents at Appalachian, has found
I that a few of the occasion so
| called gifted failed to achieve
| commensurate with their ability.
I “In short,” Dr. Reynolds con
] eludes, “if a parent is really
worried about his child’s future,
he should instill within him the
qualities of imagination, hard
work, curiosity, love of learn-
I ing and self discipline.”
] The youth’s future will take
| care of itself.
Mrs. N. K. Rowell
Sails For Europe
Mrs. N. K. Rowell sailed for
Europe Wednesday aboard the
Hamburg-Atlantic liner “Han
seatic” which is due in South
ampton, England, April 19lh.
From Southampton Mrs. Rowell
will take the train to London,
! where she will spend several
i days sightseeing and shopping,
j From London she will fly to
Paris to meet her daughter, An
I After several days in Paris
! sightseeing, both will start on
]an extended auto tour of Bel
-1 gium, Holland and the Scandi
j navian countries, stopping off in
‘ Holland to see the tulip festi-
lS«i i 'm *' i
'/*’ V" y Hli
TEN SI 0 N—Officers of the 1
submarine Sargo watch the in
struments as the, craft hovers
beneath polar ice. The sub sur
faced through a soft spot at
the North Pole.
val. They then will return to
Hohenfels, Germany, where Miss
Andrea Rowell is stationed.
From Hohenfels several trips
are being planned to tour south
ern France, Spain, Italy, Swit
zerland and time permitting one
or two of the satellite countries.
The trip through Italy will in
clude stops at Milan, Florence
and Rome before proceeding I
further South to visit Sorento!
and Capri. Tickets have already,
been obtained to attend the mu
sic festivals at Bayreuth and
Saalsburg and the Passion Play
at Oberammergau. In all Mrs.
Rowell expects to be gone sev- ]
BIRTH ANNOUNCEMENT j
Mr. and Mrs. David Kool of,
Portsmouth, Va., announce the]
birth of a 7-pound, 11-ounce
daughter. Mrs. Kool is the for
mer Miss Marie Phillips, daugh
ter of Mr. and Mrs. Madison
Phillips of Edenton.
How Christian Science Heals
A regular radio program
W€Dj Sunday 9 A. M.
® Model WA-6.')OS
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3-- Water Saver offers a savima sd 2P 4-
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A ‘ hi tub of wash water ciuc.il.av-, ~■,•>.11 tmrs
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rral Kl< trio Filter-Flo Washni. S\ -'- os
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, How The Filter-Flo Washing
1. Even ■•groond-m" din is .ouii ■, vwr«l
f away as elnihes an-* washed Ci if a yerw foa
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2. Heavy sand and silt arv- swenvi '«,v
L of washbaskei bv sT«-.-,a! lev -.>« nW -\c"i •
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| \ A Pump eemiinnouslv cw-Mlav-c water outs awl
l fZtj if throueh fitter, ct.-wm" and nrvihv.r-rye njt
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SEE IT NOW AT YOUR CE DEALER
QUINN FURNITURE CO.
STREET EDENTON, N. C.
Art Show Will Be
Held April 23-24
Continued on Page 7—Section 1
Section 6.—Wild Flowers.
Section 7. Unusual Arrange
Section I.—Mantel Arrange
Section 3.—Occasional Tables
Section 4. Kitchen arrange
ments and accessories.
Section I. Primary Grades I
1 to 3.
Section 2.—Elementary Grades j
4 to 8.
Section 3.—High School 9 to
The following rules are set I
forth by the sponsoring or
Competition is open to resi
dents of Edenton and Chowan
All exhibits are to be entered
in the owner’s name on blanks.
Exhibits shall be received be
tween 8:30 and 11 A. M. on Fri
day, April 29.
All exhibits must be removed
at 10 P. M. April 29.
The committee will take pre
cautions for the safety of the
property of the exhibitor, hut
will not be responsible in case
I of loss or damage.
I When judging is being done
I only judges and proper officers
will be allowed in show room.
Prizes will be as follows: First
prize, blue ribbon; second prize,
red ribbon; third prize, yellow
! ribbon sweepstakes, gold ribbon.
Those who will be unable to
j get their entries to the Barker
j house on Friday morning can
! call Mrs. Kermit L. Layton.
J phone 3637, and they will he
To help defray expenses,
voluntary contributions may he
made at the door in the form
of a silver offering.
Final Phase Os i 960 Census
Begins On Saturday, April 16
The 1960 Census of population ;
and housing enters its final !
stage on April 16 when a pick-1
ed group of interviewers begins l
a “mopping up” operation to
complete the ten-year inventory
of the Nation’s people and their
The interviewers are primari
ly concerned with accounting for:
the “blue” household question-'
naires which were left at ecory •
fourth household during the Ifijst i
stage of the census which start- j
ed on April 1. A small num- 1
ber of persons have failed to )
mail this report form to the •
Census Bureau’s district office.
Also, some of the report forms i
which have been received have’
not been completely filled out. j
The “clean up” interviewers -
will make personal visits to the
SPRING IS HERE
Need Wiidow Serene?
We Can Now Make Either
Wood or Alum in uin Frame
Sereens Any Size You Desire.
AND lilt READY WHEN
THE INSECTS ARRIVE
M.G.B rown Co , Inc.
LUMBER IIARIW VRK
lU H IMNL SI ITI.IKS
Phone 2135 Edenton
; tooMsehoJds tram whkh ivpoct
j forms have mots fee«« revcHYvd
j arotS ofetawn the aaswwrs to the
consults questions. They will al
so seek, fey tte-lKcfAoae. anel per
sonal visits, the answers to ques
tions left feJamk or tmcorreetljr
answered tm the report forms al
ready sent to the cemsws office.
1 First Voter l thiunA id was
j torrifely niwsaui whew Congress
1 stopped senudiwg ms (tree seeds.
ScooPd Voter-1 think id was
■;a waste ton- CVngirvss; to send us
If too seeds. They ought to plant
jrtfee seeds and setwd ms the ve*e*'
’ TRY A HERALD CLASSIFIED