11 m mm m 7 ' _ ' r '
' BHBWms wT> Bifmil’iv ‘ PlnniiAl I nmln»n
iriwic is Nations wgpst Loner
Interest-Earning Personal Assets
' Lead Individual Debts By TA To 1
I • - (. , I
I Meet the nation’s •biggest lend-,
per. He is" the typical American
Multiplied'“toy millions, familiar-1
My known PS John Q. Public, and I
luhot the banking system or any i
Iwther of OUr financial or thrift!
Institutions' These ' are essen
[fHhlly custodians and intermedi
iaries through which the people’s
savings and other accumulated
| funds are channeled into the
I Country’s productive life.
L Os course, people are borrow
l*rs as Well as lenders, often at
[ the same time, and generally are ’
(more conscious of their debts I
I and carrying charges' in the 1
course cf their everyday affairs.!
I And many persons are imore of;
I a debtor than a creditor at cer
pain, perigjjs in the life cycle, j
so in the case of j
llhe average younger family in'
tihe early stages of a career and -
! establishing a home.
| More Lender Than Borrower i
t Nonetheless, the public at :
(large is ftjr rnjbre a lender than
I a borrower wljen aggregates are
| considered, according to j data
compiled by ithe Federal! Re
serve System lip its study of the
flow of funds throughout) the
economy. « Thgse figures show
that at the- end of last year; peo
ple as a wbole,had interest-bear-j
ing pfacticaily $455 ; bil-!
lions in 56inds behind personal j
iprotection programs (life insur-i
ance, etc.),, savings accounts .and
loans and investments, and to
tal personal debts of $lB2 bil- ,
lions, a margin of two and one
L 4 1
f-JUNIOR - MISSES AND HALF SIZES
.I m U ■ ML. jSL. Jos 1, jJH Sk, . BLI
aw ffl 6&X3mßtßfK£ ■ imW WiHi Mr
"■ HH HH OHMI VHB
Greatly Reduced for
fo.9| DRESSES $6.95
f§2.95| DRESSES ....... $7.95
11495 DRESSES .. . • $8.95
1|7.95 DRESSES $10.95
Eij..., •• • $12.95
.. . $14.95
ji r Hi ,
l . Edenton. N.G ,IT If
j half to one. The figures in
clude nonprofit institutions, such
as private schools and hospitals,
I as well as individuals.
As an indication of magnitude, j
'the interest-bearing assets own-'
ed by the public at the end of!
last year exceeded the assets of
the entire banking system by
more than $l7O billions, a mar
' gin of eight to five.
Thus interest is a two-sided
coin as far as the public is con
cerned. Billions of dollars are
, received directly every year on
| savings accounts and other in
terest-earning investments. Fur
j thermore, investment earnings
; contribute a fifth of the income
iof U. S. life insurance compan-|
jies ahnually, thus holding down
| the cost of life insurance, and |
' are likewise an important factor!
in the operation of the nation’s
far-flung pension and retire
ment system, public and private
combined, and the attainment of
Whai The Numbers Show i
There is likewise a preponder-1
-ance of numbers in the owner-i
ship of interest-earning assets as |
compared with the debt side of ;
the ledger. For example, there
are over Jls million policyhold- 1
ers in U. S. legal reserve life in-'
surance companies, representing
practically two out of every
three persons in the population. |
There are more than 120 million ;
savings accounts, and the great-',
er part of the working popula
tion is covered by public and
_ m CHOWAN HERALD. EPENTOK, WORTH CAROLINA, THURSDAY. JANUARY 5, 1961,
, . \ «v ' -
private pension and -retirement
plans. "With respect to debt,
thb Federal Reserve Survey of
Consumer Finances indicates
| that about two out of every
* three of the natron’s 57 million
! spending units have some per-
I sonal debt. In almost half
. these cases the debt involves a
nonfarm home mortgage.
| The biggest single component
j in the Reserve Board’s, .compila
tion of the public’s .interest
bearing assets is the classifica
j tion of time deposits and sav
| ings shares. The total here was
$155 billions at the end of last
year, more than double the com
parable figure in 1950.
Savings in life insurance, ex-1
eluding insured pension funds,!
were the second biggest total,!
adding up to more than SB7 bil
lions at the. end of 1959, half j
again as ereat as at the' begin- j
ning of the Fifties.
Growth of Pension Funds i
Savings accumulated behind!
insured and noninsured pension)
funds, public and private com-1
bined but excluding OASI, I
showed the biggest rate of,
growth of all the people’s in-j
terest-earning assets during the,
last decade. The total at the!
end of 1959 was just under $74
billions, more than three times
the like figure in 1950. The ex
pansion here has been paced by
the consistent growth in private
U. S. Savings Bonds owned by I
individuals came to just under)
$46 billions last year. Here J
there was a decline of almost)
$4 billions from 1950. Mortgage
loans provided by individuals
totaled practically S3O billions at
the end of last year, three-quar
ters greater than in 1950. A
combination of Government and
private bondholdings plus mis
cellaneous loans added up to $63
Research Is Key to Southern
Progress in Challenging 60’s
I (This is first in t series of articles
dealing tcith vital research programs in
Southern universities that promise the
| master key for unlocking the region’s
vast treasures in the decade of the
I ATLANTA, Ga. —“I think research
does mean a better South, It could
, mean a leading South.”
1 With those words Governor Cecil H.
Underwood of West Virginia, chairman
of the Southern Regional Education
Board, recently gave the Southern states
a master key to progress in the chal
Boosting Southern Income^*
Froof of the past effectiveness of re
search activities in the South is found
in a look at the past two- decades of
j research in the area.
| Research has provided from SO to 75
, per cent of the 250 per cent increase
In the per capita income in the South
, since 1939,
Basic research on long-chain poly
mers has resulted in the development of
| nylon, the manufacture of which is lo
j cated almost exclusively in the South,
I University research into the electrical
behavior of solids resulted in the de
| Vflopment of transistors, of which a
! single Southern firm now provides one
. third of the nation’s supply.
More than half of the nation’s chemi
cal plants have located south of the
Mason-Dixon Line in the last few years
7— a fact noteworthy since the chemical
industry is one of the most research
minded of all industries.
Into the Space Ago
Research has already launched the
South into the age of space.
Ceramic engineers at Georgia Tech
1 have discovered that ground fused silica
molded at room temperature makes a
| substance so hard that it can be used
for rocket nose cones. Their discovery
could be the basis for a hundred million
dollar nationwide industry.
Students and faculty at the University
of Maryland designed the delicate in
strument payload carried in the rocket
which put the first U. S. satellite in
orbit. The success of “Project Farside,”
brought personal congratulations from
' the south today has.*«
IN THE NATION '
THE SOUTH'S SHARE of the nation's popu
lation is still twice os large as its share in
research expenditures. More important, the
region's part of the national income is con
sistently greater than the per cent of funds
spent for research.
billions at the end of 1959. some
two-thirds greater than the 1950
The dominant factor in the
growth of personal debt over the
past decade has been mortgage
loans on one-to-four family non
farm homes, reflecting the rec
ord increase in home ownership
in the priod. Total nonfarm
mortgage debt, primarily on
homes, topped $125 billions at
the end of last year, more than:
three times the 1950 figure.
Consumer loans at the 1959 year
end added up to just under $44
billions, close to two and two
thirds times the comparable to
tal in 1950. The balance of per-
I sonal debt, consisting of borrow
ing on securities and other loans,
«n $2* 5 °
gItVER JLA BEL
THESE STUDENTS represent the young South
erners the late Gov. J. Melville Broughton of
North Carolina had in mind when he said
about the South, "At long last we ore be
ginning to substitute the research laboratory
for the wailing wail."
University of South Carolina research
into the effect of atomic waste on plant
and animal life in the Savannah River
area has provided a stockpile of infor
mation available for use at any other
site where an atomic installation is
These and other examples of impor
tant research have been cited by the
Southern Regional Education. Board in
its recent publication, “University Re
search—What It Means to the South.”
There are three major sources of sup
port for research in the South—govern
ment; industry and the universities.
Here we are primarily concerned with
basic research in the universities.
Universities, then, lead in the dis
covery of principles and processes which
may be adapted to technological ami
New Breakthroughs Needed
“Our region needs the basic research
our universities produce,” said Dr. Rob
ert C. Anderson, director of the SREB.
“Without fundamental knowledge, and
new breakthroughs into the unknown,
all the applied research of our indus
tries will become stymied before long.
Without the new scientific talent which
our universities produce, our whole way
of life would come to a standstill.”
The South Lags in Research
By 1960, the nation as a whole is
spending over $lO billion annually on ,
research and development.
Expenditures for organized research
in the South's publicly-supported uni
versities have risen from $23 million to
SSB million in six years—from 8.5 per
cent to- 12.6 per cent of the educational
and general budget. The national aver
age is now 16 per cent.
In spite of its recent advances, the
South still lags behind the rest of the i
nation in amount of research provided.
Thnjigh it holds 30 per cent of the na
tion’s population and 23 per cent of the
nation’s income, it provides only 17 per ;
cent of the nation’s research.
Next — Research Means Dollars for
came to some sl3 billions last j ]
year, more than double the 1950;,
(Range of horsepower choices from 110 to 155)
Take a Tempest out on the highway and put it through
its paces. This car is a whiz at moving into fast-stepping
company on an expressway. Takes you from a standing
, star t to a safe operating speed in seconds .. . gets you up
a steep hill in high gear.
Run the Tempest over the roughest road you can find. It
rides like the big ones because it’s balanced! The engine’s
up front—the transmission’s in the rear. And it’s got
independent suspension at all four wheels. Tires dig in
firm on curves and turns. Full 15-inch wheels make car
look big. Tires last. Brakes run cooler.
Before it hit the market, Tempest had 3,000,000 miles of
testing by engineers, pro drivers and a team of teenagers.
Its reliability checked out 100%. Owners have rolled up
millions more. The only kick is the one it puts back in
4 driving. Try it!
THE NEW TEMPEST IS SOLO AND SERVICED BY YOUR LOCAL AUTHORIZED PONTIAC DEALER
COLONIAL MOTOR COMPANY of EDENTON, IniT ‘
IM-IM 3a ~ l EDXMTOH. H. c. D»l, Lieu. Ife.-yi
Investment In People Boosted, 1
More Than Doubling In Decade
A development of outstanding
significance in recent years is
the magnitude attained by in
vestment expenditures on the
j nation’s resources of human
i capital as distinct from outlays
| on material means of production.
Thts investment in people,
aimed at promoting their pro
gress and well-being as a cardi
nal national principle now adds
, U P to tens of billions of doi
| iars annually from private as|
well as public sources. It is
• concentrated largely in the fol
lowing three areas:
Three Major Areas
Education, to give our working
population, and particularly the
oncoming generation, the foun
dation of knowledge for the
wide range of professions and
skills required by an industrializ
Health, through greatly ex
' panded hospital facilities and
) medical research, which have)
[contributed to spectacular in
creases in longevity and length!
jof the average working life in
; recent decades.
j Morale and peace of mind,
Much as is inherent in life in
surance and other individual and
j family protection programs de
signed to meet the economic im
; pact -of death, disability, unem
ployment, and retirement.
| There are many other pro
grams of this broad nature in
volving outlays that are large
but not readily measurable. Tak
en together, ail these programs
have been providing a rapidly)
I increasing proportion of ourj
i population with the training andj
| attitudes needed to handle out!
present-day technology efficient
fly and successfully, the indis
■ pensable to economic growth.
Big Rise in Outlays
In the aggregate, expenditures j
on investment programs of thisi
'nature have more than doubled I
! over the past decade, accordingi
Ito data obtained from private
1 and Government sources. Last|
! year the total of such outlays j
! added up to more than s7l bil-1
i lions, equivalent in their finan-i
cial magnitude to around 15 per!
cent of the nation’s entire eco-1
nomic activity as measured by)
the gross national product. The!
comparable figure in 1950 camel
to somewhat over s3l billions,
the equivalent of approximately
II per cent of that year's gross
Os equal importance with the
growing size of this investment 1
in people is the amount and!
proportion of these expenditures'
that have continued to reflect
voluntary action and decision.
This is particularly significant
in the area of individual and I
family programs where, despite
a big expansion of Government-1
sponsored plans backed by the;
taxing power, private programs
ave consistently represented
| about 60 per cent of the com-)
bined funds being contributed to 1
this protection. The life insur-j'
ance companies are the biggest
single medium for these pro-i
The figures likewise show that
outlays for private hospitals, ac
count for over half of all hospi
tal operating and capital ex
penditures. Even in the field of
education, traditionally a Gov
ernment function and where
public funds are dominant, pri
vate outlays have been running
over a fifth of all expenditures. |
Expansion in Education '
A review of the last decade
shows that expenditures on the
nation’s educational plant, in-;
eluding new construction, ~ have
increased almost two and one
half times, from s9*/.; billions in
1950 to $221;, billions in 1959.
This is a substantially larger (
rate of growth than that of the!
j economy in the period, and gives j
! t>n indication of the extent that
tile nation is meeting the e'hal-j
j tenge of an expanding popuia-i
: tion in this vital area. The re- '
| suits with respect to the aver- 1
j age American are manifest in!
j the marked rise in the educa-)
; tional attainment of the adult '
population over recent years.)
particularly in the number and j
proportion of high school and;
| college graduates, with the ini-,
[proved individual earning power
i that has accompanied this trend.'
j Expenditures on the nation's;
i hospitals, including construction.;
I increased from s4‘d billions in
; 1950 to sß' ! j billions in 1959.1
) practically double. The latest
j figures on medical research
i showed a rise of from less than
SIOO millions in the late Forties!
ito more than S3OO millions a 1
Individual Protection Program 1
The last two decades have wit- 1
nessed a remarkable expansion I
of a far-flung system of pro-)
tection for the individual and
family under private and public j
sponsorship, consisting of life in -1
TEMPEST BY PONTIAC
I surance, private pension and re
tirement programs, public re
j tirement systems (Federal, State
! and local), accident and health
1 insurance, workmen’s compensa
| tion, and unemployment insur
ance. Funds contributed to these
I programs combined added up to
just over S4O billions in 1959,
, well over double the comparable
I figure of sl7 V 2 billions in 1950.
) With sll'v billions of pre
, miums under life insurance con
, tracts last year and some $3.6
billions under accident and
health protection, a total of $15.1
billions, the life companies rep
resent the biggest single ele
ment in personal protection pro
117 Get Old Age
Aid In December
Mrs. J. 11. McMulian. superin
tendant of welfare, reports that
during December 117 persons in
Chowan County received old age
assistance,, with a total of $4,340
being distributed. During the
month 23 aid to. dependent chil
dren received $1,4i0. while 39
eases of aid to permanently and
totally 'disabled; cases received
$1,909 and 11 blind aid cases re
There were four cases of emer
gency assistance during the
month costing $50.30. Other fi
nancial a ■ ’ ncc included six
easts hospiia'i/td in the county
costing $089,02. of which the
county's part was $518.82, and
four cases hospitalized, outside
the county, $57.60,. There was
one medical co.-r. costing $25 and
a bus ticket to New York. $14.74.
X <4% /// 4 b
V* Jljl 5»