The National Outlook
The Federal Reserve Eases Credit \
!,\ By Ralph Rom*
•For weeks it has been evi
dent that the Federal Reserve
System was keeping the com
mercial banks under a little less
restraint in the making of loans-
This now has been confirmed by j
a reduction in the rediscount
rate, which is the charge madei
by the Reserve System for loans
to its member commercial banks,
f All the Federal Reserve Sys-j
t«m can do in the way of con-'
tpoßing the landing policies of
its member banks, aside from'
sing that they comply with'
law, is to increase or de
crease the reserves of the mem
ber banks. Since every bank is
required by law to maintain a
reserve of a designated percent
age of its deposits, this item of
control is quite effective.
There are three methods by
Which the Reserve banks can
«excise an effective influence
upon member bank reserves.
First is to change the reserve
requirements themselves. There
is both an upper and a lower
limit to what the reserves must
be, but within these limits the
Reserve Board may set any fig
ure it believes wise. This pow
er is relatively seldom used be
cause it is of massive propor
Secondly, the reserve position
of member banks may be chang
ed by the purchase ,or sale of
Treasury obligations by the Re
serve 'banks. This is what is
known as open market opera
tions, and is the method used
fbr day-by-day and week-bv
Finally, the Reserve banks
trfay change their rediscount
rates. This does not change
the volume of reserves hut it
does change the cost at which
reserves may be obtained b,v
borrowing from the Reserve
banks, and it is important as aj
reflection of the attitude of the,
Reserve Board on the credit and
At all times there are some
banks which have more reserves
than are required and other
banks which are rediscounting
in order to meet the reserve re
quirement The degree of pres
sure exerted by the Federal Re
feree System upon the lending
policies of the commercial banks
is determined by the difference
between the excess reserves and
the deficient reserves. This dis
Beverly Lake Has Said It, Over And Over Again:
“I COULD NOT CLOSE THE PUBLIC SCHOOLS IF I
WANTED TO - AND I DO NOT WANT TO!”
Let's check the record once ami for all!
Xohody, not even the Governor of North
Carolina, can close a single public school!
North Carolina's legislature and North Caro
lina’s voters reaffirmed that in 1956. That was
the year that our school law was passed. That
law was drafted by the "Pearsall Committee.” It
is known, as you know, as “The Pearsall Plan.”
The legislature overwhelmingly passed the
law. The voters endorsed it by a margin of al
most five-to-one. Only the legislature—and the
people—can change the law.
The public knows this. Any lawyer in your
community knows it. .!><• him about Article IX,
Sections 2. 3 and 12, Xorlk Carolina constitution.
So, when anyone frightens you with talk
about "closed schools," they are using a deliberate
"The lYarsall Plan” places with the people
of North Carolina th> ri*kt oi decision regarding
their schools. The real strength, the real effec
tiveness of "The lYarsall Plan" is the "Pupil As
signment Act.” This is the law that has been used
by the Attorney General oi North Carolina in the
Federal Courts. It is the law on this subject in
North Carolina that the United States Supreme
Court has heb c refused to review.
And who wrote the "Pupil Assignment Act”?
BEVERLY LAKE WROTE IT!
And. How About The Press?
Many of North Carolina’s newspapers have
joined in spreading the word that Beverly Lake
would dose your schools.
Those newspapers are NOT FOR Beverly
P»ii Ffcrßgr Laad Friends Os Beverly Like
mm ■nimrii imummimm
ference may be either plus or
minus, but when the Reserve
banks are exerting restraint the
deficient reserves necessarily ex
ceed the excess reserves.
I The evidence of an easier
credit policy over the past sev
. eral weeks has been a decline
fin the amount by which redis-[
(counts exceeded excess reserves.
• For a while this figure was held
'at about S4OO million, then
I through open market operations
the figure was reduced to
'around S2OO million, and for the
past few weeks the figure has
In the face of this, and in view
of the fact that open market
rates of interest have been de-<
clining. it was natural for the
rediscount rate to be reduced
from 4to 3 l a per cent. This
reduction does not indicate .that
the Reserve System believes wel
are on the verge of a business I
decline. All it indicates is that
in the judgment of Reserve au
thorities tne forces of inflation
are appreciably less sti-ong than
they were a few months ago.
that we are not faced with a
boom, and that the demand fbr
bank credit will not become ex
This is very different from
what is known as an easy money
policy. The Federal Reserve is
not attempting to force interest
rates downward: it is merely rec
ognizing the change which has
taken place in the open market
in the demand for and supply of
funds. This is, in other words,
an example of flexible monetary
policy—and that is the best poli
cy that any nation can have.
MASONS CALL OFT MEETING
McKay Washington, master of|
Unanimity Lodge No. 7, A. F. &!
A. M.. announces that the stated
'communication of the lodge,
I scheduled for tonight (Thursday)
i has been called off. This action
was taken due to a district meet
ing to he held the same night
WORKING IN DURHAM
Clarence Lupton. Jr., left Fri
day for Durham, where he will
hi* director during the summer
for the Long Meadow Swimming
, F\h»l. The pool is operated by
! the City of Durham.
W Bp . M
■F » * -'■r V i
w *s■> * .... '
f a ~«****w ;
' * Jb't
THANKS, CHUM— A small fawn, found lost and starving,
gives an affectionate nuzzle to 4-year-old Gayle Schoen as
feeding time conies around in its new Austin, Tex., home.
Holding the deer is brother Wayne.
Farm Egg Prices Due To Rise;
But Producer Income To Drop
Farm egg prices will average j
about 35 cents a dozen in the|
July-September quarter, predicts
a Tar Heel poultry economist
“They’ll be 38-39 cents dur
ing October-December.” says Dr.
William L. Henry. He’s a mem
ber of the national four-man
Poultry Survey Committee, and
an ag economist at State Col
The committee is sponsored by
the American Feed Manufactur
ers Association. American Poul
try and Hatchery Federation.
National Turkey Federation and
the Poultry and Egg National
Board. Henry’s comments and
predicts are from a report made'
by the committee.
“These prices are four to eightl
cents above the same periods
of 1959.” says Henri'. “But in
come to egg producers for the
full year of 1961 is expected to
be below 1960.”
The income drop will result
from a decrease in the number
of egg-type chicks hatched in
Thev are AGAINST Beverly Lake!
* Do you recall that these same newspapers
also OPPOSED "The Pearsall Plan” in 1956?
you remember their warnings?
They told you—in" 1956—that schools would
be closed if "The Pearsall Plan” were adopted.
They told you—in 195 ft —that racial tensions
They told you —in 1956 —that ‘‘The Pearsall
Plan" would be knocked down by the United
States Supreme Court.
THEY WERE WRONG ON EVERY COUNT.
And they are wrong—yes. intellectually dis
honest—today in 1960 when they join with those
in their false attacks on Beverly Lake.
Now. Here's The Truth . . .
Let’s get the record straight, for once and
for all. Beverly I.ake is your best hope for keep
ing your schools open in peace and harmony.
He understands the problem.- He knows the
real enemy of peaceful, effective schools. The
enemy is not the decent God-fearing Negroes of
North Carolina. THE ENEMY IS THE NA
TIONAL ASSOCIATION FOR THE ADVANCE
MENT OF COLORED PEOPLE!
The NAACP thrives on “moderate” public
officials who prefer surrender to a firm policy.
If North Carolina DOES NOT have strong lead
ership during the next four years, the NAACP
will be in the saddle! t
.And then, YOUR SCHOOLS WILL CLOSE.
Get the record straight. Find out—for your
self—about Beverly Lake!
He is the man who will keep your schools
OPEN. He is the man North Carolina NEEDS
for Governor at this crucial hour.
THS esowAIT KESALD. EDES7OK. HOllTn CAROLINA. TKURgPAT. JUNE i>, H6C.
j the first six months of this year.
I It's expected to be 22 per cent
less than the corresponding pe
riod in 1959.
“Some adjustment is expected
because of a substantial increase
in the July-Deeember hatch,
however,” says Henry.
Net result: By Jan. 1, 1961,
the number of hens and pullets
of laying age is expected to be
four to five pier cent under a
year earlier; but, because of the
July-December hatch increase,
layer numbers and egb produc
tion are likely to be about the
1 same by the April-June 1961
, quarter as a year earlier,
j Producers who have delayed
I buying replacement chicks are
j advised to get them now, so they
will lay in late 1960, or earlier
“We expect farm price of
* broilers to average between 16
and 17 cents during te July-
September quarter, with the
•j September price well below the
quarterly average," says Henry.
Broiler marketings will be
about eight per cent greater than
for this period in 1959, but sup
plies of competing meats will be
1 Why the increase in broiler re
\ “Hens are being retained long
er, smaller and larger eggs are
being set and more second gen
eration stock is being used,” says
Henry. “This demonstrates once
more the high degree of flexi
bility bf broiler chick supplies
in response to the demand for
The supply of broilers for the
October-December quarter may
be as much as five per cent
greater than for the same pe
riod in 1959. “With such a sup
ply, the price would be expect
ed to average about 15 cents
for the quarter,” says Henry.
“Last year, the price rose sharp
ly early in December. This was
unusual and is not expected to
be repeated this year.”
U. S. farm price of turkeys
during August and September is
expected to average 20-21 cents
—one to two cents below last
year, says Henry.
Some price increase will oc
cur as the season progresses;
but no repetition of the sharp
price increase of last year is
expected,” he says.
Turkey tonnage marketed dur
ing the major holiday season is}
expected to be five to eight per
cent larger than last year.
£ cmc calendar]
Continued from Page 1. Section 1
meet Monday night, June 20. at
House furnishings and home
management leaders will meet at
the Advance Community Build
ing Tuesday afternoon. June 21.
at 2:30 o'clock.
The Rev. Alfonso Jordan of
Raleigh, native of Chowan .Coun
ty. will speak at the Community
Building at Cross Roads in the
interest of the candidacy of Dr.
I. Beverly Lake for Governor
Friday night June 17, at 8
Edenton's Rotary Club will
meet this (Thursday) afternoon
at 1 o'clock at the Edenton
Chowan T* ! be or Red Men
will meet Monday night at 8
M. G. BROWN CO., INC.
WE SELL ONLY QUALITY BUILDING MATERIALS
FREE LOCAL DELIVERY
We Deliver Elsewhere For A Very Small Charge
Ask About Our Mittwork Dep^rtlhent
Windows & Doors We Build Odd Size Cabinets
Storm Sash D< *? r ® •* * Windows Glass
0 and other Millwork „
Screens . -any item built to Counter lops
Blinds your specifications. Mantels
MnnFPIV Do-It-Yourself” Fans FYPFBT
lUULUWN See Us For FREE Handyman
CUAW DAAM Plans. We have the ideas and UI?T D
SHOW KUOM mat erials to help you get the HELP
job done economically.
Benjamin Moore Paints
Inside - “NONE BETTER” - Outside
I Ornamental Iron Porch Columns I
And Railing |
liV/IWIJ alfil iVV/ * t-iivlLii ' A * A AaiA^A^ :
2135 Edfljuto Cm
Set For July 27-29
Invitations to attend the Gov
ernor’s Statewide Conference on
Aging, to be held in Raleigh
July 27-29, were mailed this
week to the 100 County Coordi
nating Committees on Aging and
other interested groups and in
dividuals throughout the State.
In urging a large end enthusi
astic attendance at the 1960 con
ference, Governor Hodges stated
in the invitations that "We
North Carolinians must take a
good look at the opportunities
we have for insuring the well
being of our elder citizens, and
for utilizing to the fullest the
wealth of knowledge and experi
ence these valued citizens pos
The opening session of the
Conference is scheduled for 8:00
P. M., Wednesday, July 27, at
the Hotel Sir Walter. The Gov
ernor will be the principal
speaker. The Conference will
continue through noon, Friday,
July 29, with . general sessions
featuring outstanding speakers,
and concurrent workshop sections
covering eight subjects of par
ticular interest to older people.
Primary purpose of the Con
ference is to bring interested
North Carolinians together to (1)
discuss the problems and po
t tentials of the State’s increasing
number of older citizens, (2);
evaluate present services and;
opportunities, and (3) make rec
ommendations for future action,'
both within North Carolina andi
to the Federal Government)
through its 1961 White House
Conference on Aging.
There is no registration for the
Conference and it is open to all
Yets Urged To
There are more than three
million veterans in the United
States who ought to take a close
look at their GI insurance hold
ings, Sumner G. Whittier, the.
Administrator of Veterans As- j
fairs, says. They are the vet-!
erans who still hold GI term j
The VA administrator said
this is the type of life insurance
which is fine for a young grow- J
ing family, but may become pro- J
hibitively expensive for the yet-1
eran nearing retirement age.
According to VA records, North
Carolina veterans hold 83,025 GI
term policies. In Virginia there
are 77,678 of this kind. Ken
tucky veterans have 59,637 term
policies. West Virginia veter
ans have 45,307.
A World War I veteran wrote
a letter recently to Administra
tor Whittier, saying, “Feel free
to use my present plight to
warn other, term insurance hold
ers. I find myself nearing 70,
unable to continue my term in
surance payments at their great
ly increased rate and unable to
obtain new insurance coverage.
If I die, my wife has nothing;
yet over the years we have in-
GEORGE H. PRTVOTT
RESIDENCE FOR SALE
Located Highway 17 South, approximately l'j miles from
city limits. Brick house, 5 bedrooms, 2 full baths; on
large lot; desirable location.
IF INTERESTED CONTACT
T. B. SMITH, Agent
PHONE 2959 -t- EDENTON
A pipffs counts in
TV troubles disappear | ===Hpfc
repairs can be made fJH JA [ ‘i|Hl
Jackson’s Radio & TV Service
W. Eden St. PHONE 3519 Edenton
vested more than SB,OOO in this
form of insurance.”
Whittier said VA is not try
ing to tell individual .veterans
how to handle their insurance
programs. But' VA does believe
that each policy-holder ought to
review his GI insurance hold
ings periodically to be sure they
meet his current and long-range
needs, he explained. 1 v ‘
Os World War II veterans, VA
said about 2,191,000 have con
verted their GI policies to per
manent insurance, while 3,116,-
000 continue to hold term pro
tection. More than 312,000
World War I veterans have con
verted their policies to perma
nent form and more than 16,000
still hold term policies.