The National Outlook
Federal Aid For Depressed Areas
By Ralph Robb*
Both the House and the Sen
“fite have passed a bill enabling
the federal government to aid
depressed areas. There was
strongf-opposition to such a pro
posal/fcut there never was any
real tope of defeating it. Presi
dent Kennedy made this one of
his anti-recession measures and
the Eisenhower administration
had supported such an extension
.of federal government activity.
The cost of the measure will
be some S4OO million. At pres
ent there are 103 areas which
meet the requirements for help
as depressed areas. This is de
termined by the percentage of
unemployed in relation to the
average for the nation as a
whole.
There are many reasons why
an area may become depressed,
land these' are crucial from the
viwpoint of appraising the wis
dom of this measure. Some of
the more important of these rea
sons are:
High labor cost: This can
force up the costs of produc
tion and thereby increase pric
es. The result is a smaller mar
ket and less need for the old
output. This is one of the things
which has happened in the coal
fields. To aittempt to meet it
the mines have made enormous
investment in machines to keep
prices at a level which enables
the mto compete with alterna
tive sources of fuel.
Unfavorable business climate:
This may take the form of a
bad tax system, hostility on the
part of the local government,
misunderstanding of the prob
lems Qf management, refusal to
enforce the laws against labor
abuses, and so on. Where such
a situation is found it is to be
expected that business will not
remain any longer than neces
sary
Shrinking market: This may
Sickroom
supplies
I No matter what you may be
needing in the way of sickroom
supplies, always turn to this “Re
liable” pharmacy. You will find
this an excellent source, too, for
vitamins and other nutritional
aids, including special items for
the baby and special geriatric
needs for older persons.
And, bf course, we hope you
will make it a point to bring us
your Doctor’s prescriptions. We
are prepared to compound them
promptly and precisely as di
rected. You will appreciate our
courteous service and our uni
formly fair prices.
CRUTCHES FOR RENT
Hollowell’s
Rexall Drug Store
Two Bogiotered Pharmacists
Prompt Service Dial 2127
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.
be permanent, as, for example,
buggy manufacturing, or it may
be 'temporary, as in the case of
automobiles and steel today. In
either event it reduces the need
for workers and hence increases
unemployment in these indus
tries.
Transportation costs: With
competition as vigorous as it is
today in most lines, the cost of
getting a product to market may
become a matter of utmost con
cern. The result in many cases
is that a business will set up
units as close to its market as
possible, and this may leave
many workers at 'the old site
without jobs.
Exhaustion of a natural re
source: This is wha't gave us
the ghost towns of the west.
But it may happen in any field
which is based upon the ex
traction or manufacturing pro
cess of a natural resource.
Increased Productivity: From
the point of view of employ
ment, farming offers the best
example of this. Through mech
anization, larger units, better
fertilizer, and better seeds, the
increased output per acre has
been fantastic. The same pro
cess, to some extent, has gone
on in almost all industry.
Foreign competition: An in
creasing number of industries
are finding it difficult and
some, impossible to meet the
prices of competitors from
abroad. Wherever this is true,
it hurts employment in this
country.
Now financial aid by the fed
eral government will not, and
can not, offset any of these rea
sons for an area becoming de
pressed. This does not mean
that the problem is not serious.
These unemployed persons need
job, and the nation needs to
get them back to work.
Senator Wallace F. Bennett
(R-Utah), after listening to ex
haustive hearings on this bill,
said point blank in the report
of the Committee on Banking
and Currency that “the time to
stop a surge of federal inter
vention in the field of plant lo
cation is before the principle of
federal interfention is establish
ed.” Unfortunately iit is too
late for that now. But that
does not change the fact that
the expenditure of this S4OO
million will not begin to solve
the problem of depressed areas.
New VFW Auxiliary
Officers Are Installed
At a meeting of the VFW Au
xiliary held Thursday night of
last week new officers were in
stalled with Mrs. Patty Jordan
officiating as installing officer.
Those installed were as fol
lows:
President, Anita Conner; sen
ior vice president, Doris Toler;
junior vice president, Betty
Perry; secretary, Ellie Mae
Parrish; treasurer, Rose Good
win; chaplain, Birdie Harris;
conductress, Dora Stillman; his
torian, Helen Byrum; guard,
Mary Coffield; trustee for three
years, Bertha Mizelle.
The next business meeting
will be held Thursday night,
May 4, at the home of Mrs. W.
H. Coffield.
THE CHOWAR HERALD, EDEHTOH. NORTH CAROLINA. THURSDAY, APRIL 13, INI.
MAN FEELS LIKE A KlNG— With the ice of Lake Erie glistening beneath their feet, a mam and a boy bead
lor their favorite ice fishing spot, off Port Clinton, Ohio. Their sled hauls angling equipment.
Trends In U. S. Economy Abroad Stress
Productivity Record To Meet Needs
The American economy enter
ed the Sixties over a third more
productive in terms of output
per man-hour than it had been'
at the start of the Fifties, ac
cording to data compiled by the
U. S. Bureau of Labor Statistics.
The long-term figures likewise
show that the averall gains in
productivity were larger in the
last decade than in any previ
ous 10-year period on record,
thus seemingly putting the econ
omy at its best level of efficien
cy to date to meet the multiply
ing challenges of the times at
home and abroad.
The Question of Adequacy
However, with all the achieve
ments over the years, the ade
quacy of our performance on
[ the production front, the field
in which this country has so
long been pre-eminent, is com
ing under increasingly critical
reappraisal as the result of cer
tain recent trends.
The first of these is the cur
rent sluggish performance of
. the economy in its rate of
growth, accompanied by a dis
turbingly high level of unem
ployment and idleness of produc
tion facilities.
The second is the intensified
challenge to our competitive po
sition in world markets and to
our overall production efficiency
from both within and without
i the Free World. A particular
i problem in connection with this
; is the pressure on the dollar and
i the threat to its future value
resulting from the continuing
large annual deficits in the bal
ance of our international pay
ments and the drain on our gold
reserves, now at their lowest
level in years.
Importance of Productivity
It is against this background
that our productivity perform
ance takes on added importance.
For all studies show that rising
production efficiency and in
creasing output per man-hour
are intimately related to the na
tion’s strength and progress en
tering virtually every phase of
■ economic activity including our
rate of growth, manpower utili
zation, costs of production, price
stability, and international com
petition.
The Bureau of Labor Statis
• tics figures show that produc
tivity in the private economy,
which embraces both agricul
ture and the nonfarm sector and
also includes certain Government
enterprises selling products and
services like the Post Office and
publicly-owned utilities, increas
ed 37 per cent for the 1950-59
period as a whole. This com
pares with a rise of 33 per cent
for tl\e Forties, the previous
high.
A breakdown of the figures,
however, shows that the results
were influenced by an extra
ordinarily large productivity
gain in agriculture, where out
put per man-hour rose 86 per
cent in the last more
than three times the rise in the
Forties. In relation to the gen
eral economy, the latest figures
show that agriculture accounts
for less than 10 per cent of total
private employment and under
5 per cent of total output.
The bulge in farm productivi
ty reflects both technological ad
vances in agricultural produc
tion and rising investment in
machinery and the general farm
plant. Along with this, too, is
the factor of massive Govern
ment assistance through price
stabilization operations and other
outlays, which in recent years
have involved multi-billion
spending of public funds an
nually.
The Role of Investment
Productivity in the nonagri
cuttural area of the economy in
creased 28 per cent in the last
decade as against 25 per cent in
the Forties. A .diverse group
of manufacturing and nonmanu
facturing industries is included
here, and alao trade and the
formance than the rest of the
group.
Fundamental to the produc
tivity achievements ot our econ
omy as well as that of other
countries is the effectiveness
with which human and material
resources or blended and em
ployed on a foundation of high
investment and technological in
novation. The investment pro
cess stands out decisively here,
in its translation into more ef
ficient tools of production in
the form of new plant and
equipment, and in the expansion
of research and development ex
penditures to discover new and
improved products and to add
to the store of technical knowl
edge.
Recent studies by the Bank
for International Settlements
show a close correlation between
investment and economic growth,
with Japan and Germany out in
front in both respects in recent
years and the United States well
down on the list of the demo
cratic world. Since personal
savings are basic in our capital
formation and investment pro
cess, the matter of their adequa
cy is a natural question under
the conditions and problems fac
ing the nation today.
A1 Phillips Seeking
Re-election May 2nd
A1 Phillips, Councilman from
the Second Ward, last week,
filed as a candidate for re-elec
tion in the municipal election
Tuesday, May 2.
Mr. Phillips has served one
term on the board, having been
elected in the 1959 election
when he defeated Raleigh Hol
iowell by a count of 211 to 118.
Mr. Phillips is serving as a
member of the Finance Commit
tee and assistant to the Street
Commissioner.
TRY AHLRALD CLASSIFIES
JACQUIN’S Q
RO YALE jii
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D/IJ7UEO FROM GRAIN -80 PROOF JlcmwmWCmaftlJ
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A yfU wife who prefers gas for cook
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Ail "•.* your Green's Fuel Gas dealer
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‘'MHQ'i ling comfort and convenience.
GREENS FUELJ|I,
Western Gas Service
204 S. Broad PHfINE 3122 Edenton, N. C.
Meetings Planned
For Grain Program^
C. W. Overman will notify |
all farmers on the mailing list!
of two meetings to be held pos- j
sibly on Monday night and!
Tuesday night of next week. At
these meetings the feed grain
program for 1961 will be ex
plained in detail.
Briefly, the main information!
is as follows: A farmer with
less than 25 acres of grain can >
put the entire acreage in thei
program. A farmer with 25 to!
100 acres of grain can put in
20 acres plus an additional
twenty percent of his two-year
average acreage. Farmers with
100 acies and over may put in j
up to 40 r ;. The minimum that !
any farmer can put in is 20','v
of his two-year average acre
age.
Payments will be based on j
average farm yields and will j
vary. Payments on the first 20
percent of the acreage will
range from $28.30 to $52.30 per
acre. The sign-up will begin
just as soon as the ASC office
receives the forms, which are
expected any day. At the time;
of sign-up, one-half of the farm
payment will be made. The
other half of the payment will
be made after performance is j
checked. Farmers have until
June 1 to 'sign up. June 1 is
closing date.
State-Local Bond
Vote Approvals
Top S4O Billion
Electorate In Favor of
Process of Meeting
Important Social and
Public Needs
A total of more than S4O bil
| lions in new bond issues for
capital and other purposes by
State and local governments all
over the country has won pub
lic approval at the polls in the
post-World War II period to
provide the educational and oth
er community facilities needed
by an expanding population and
growing economy.
Last year saw a new high in
public support for such expendi
tures, with the voters approv
ing more than $6 billions in the
proposals for new projects. This
was more than double the 1959
figure and well over a billion
dollars above the previous high
set in 1956. The figures were
compiled from data gathered by
the Investment Bankers Associa-1
tion of America.
The Need for Savings
Approval by the electorate is,
of course, just the first step in
this process of meeting social
and public needs. Savings and
investment are essential to com
plete it by providing the mar
ket for the securities involved. j.
It is significant to note, there-'
fore, that State and local bonds
rank as an important medium of
investment for the funds of the
people’s thrift institutions as
well as other investors. A U. S.
Treasury Department tabulation
of the distribution of the own
ership of these securities shows
insurance companies as the sec
ond largest holder next to the
classification of individuals.
Holdings by life insurance com
panies alone currently exceed
$3 billions.
While public approval for pro
posed new issues regularly runs
high at the ballot ix>x, the rec
ord shows this to be anything
but a rubber stamp operation.
! Some proposals just make it by
a narrow margin, as well as the
lease of a Sl'V billion California
water and irrigation project in,
1960. Many others are rejected
annually for cost or other rea-,
sons. Last year, for example,;
saw a very high proportion of!
| acceptances, figuring out to
around $7 out of every $8 of the
total of the proposals submitted |
Guaranteed by Uncle Sam:
A retirement pkn that will return
SL93 for every SI.OO yon put is
|
Tnvcfex Would you like to before —in just 7 years, 9 months.
I \ be sure that every Bonds bought before June 1, 1959, earn
l -oONDS J dollar you put aside more, too —an extra )■> % from then to
\«fg|pjs|§gsg|» J for retirement will; maturity.
' pay you $1.93 later t You can get your money, with inter
on> It can be done, est, any time you want it. Bonds are
(jLy fl j and here’s an ex- i a ready reserve that you can cash any
ample: time at any bank. But it pays to keep
Buy a SIOO Savings' them.
Bond (for $75) each Your money is guaranteed by tlie
month for 17 years and 9 months. II.S. Government. Bonds are an aliso
(This is exactly ten yearn longer than lutely riskless investment. The Govern
the official maturity period for Bonds, ment i>romises you that the cash value
and means extra interest earnings.) At of your Bond will not drop—it can
the end of that time, you can cash in only grow.
a Bond every month for the next 17 lour money can't l>r lost or stolen,
years and 9 months, and each one of The Treasury will replace your Bond*,
them will pay you $145. free, if anything happens to them.
This works out to $1.93 for every SI.OO Y ou save more than money. You help
*w U *?e*r: m 7"" please note . save the peace with every Bond you
the $75 figure is only an example. You buy . Peace costs money-money for
car } Pjf? 05 or as much as you like science, education, military strength.
into thisr etirement plan. See the chart. And the money you save helps keep
our nation’s economy strong.
SOME ADVANTAGES YOU MIGHT Pick the amount you would like to receive
THINK ARDIIT each month for 17-? r years
„ j*36.2S 472.50 *145.00 *290.00 *725.00
You can save automatically with the u. 75 ! 37.50 75.00 150.00 I 375.00
Payroll Savings Plan. Tell your com- years, 9 months j 1
pany how much to set aside from your **
pay for Bonds. This way you won’t monihs'trom 25.00 50.00 100.00 200.00 500.00
forget to save and your savings will jjjjJJJ
add up automatically. ™ r th_ | I
Hold each bond for another 10 years
in^ r * 8t ’ a ! . m s Ch j 36.25 ! 72.50 ! 145.00 290 00 ! 725.00
tunty. This new rate, which went into Im . 9 months | j ■ | |
effect June 1, 1959, makes your Borid ~~—- ," . „ ~,, ’
money grow faster. Series E Bonds
now mature 14 months earlier than of wh Bond.
You save more than money with
IIS. Savings Bonds
Buy them where you work or bank
S&gfcSSSSs The Chowan Herald 0
to the electorate. In 1959 the
proportion ,of approvals was sub- j
starrtially lower at little more,
than $7 out of every $lO.
Impact on Construction
Bond elections for capital pur
poses aie a major factor in pub
lic construction, which in re- ;
cent years has represented more
than a quarter of the nation’s
entire building activity. By the:
nature of the process involved t
there is usually a considerable,
time lag between voter approval j
and translation of the project 1
into reality. Thus the approvals
of the last few years will be a
sustaining factor in over-all con
struction demand in the years
ahead.
Bond election proposals are
submitted to the electorate all
year round, and not only in No
vember. They cover a wide va
riety of projects lr.v.nveo a u, c
YOUR VOTE ANI) SUPPORT
WILL BE APPRECIATED
RICHARD D. DIXON, JR.
CANDIDATE LOR
Councilman Fiivsl Ward
In The iYlimieipal Election
Tuesday, May 2, !%1
Cali ns for
/j |i rn fS ijiiiek action.
I* j 1' ' top scry ice
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\V. Eden St. PHONE 3519 Edenton
r—SECTIOH owa
PAGE SEVEN
every-day life of the community
and the nation, such ag schools
and other educational facilities,
roads and bridges, water and
sewer projects, public housing,
and recreational facilities. In
most years school bond approv
als have headed the list in dollar
totals of all projects involved,
and last year came to over $2
billions, up sharply from recent
years.
One Way To Do It
Junior was a little terror, the
scourge of his home and the
neighborhood so Papa was un
derstandably surprised when
Mama suggested they buy him a
bicycle.
“Do you think it will improve
his behavior?” inquired Papa.
“No.” answered Mama grimly,
“but it might spread his mean
ness over a larger area.”