The Carolina Watchman
A NEWSPAPER DEVOTED TO THE UPBUILDING OF ROWAN COUNTY Cenfrury Club
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FOUNDED 1832—103RD YEAR_ SALISBURY, FRIDAY MORNING, NOVEMBER 16, 1934 VOL. 103 Noflfi PRICE 5 CENTS
WAiHINOION
Building Enthusiasm
The Second Step
Planning Public Works
Central Bank, In Effect
Leveling Out Politics
The biggest noise in Washing
ton just now arises from the en
thusiasm over the plans of the
Federal Housing Administration to
<;o ahead at full speed withr the
building of millions of new houses
all over the United States.
Under the first section of the
Housing Act some 30,000 indivi
dual loans have been made by banks
and other lending agencies for
home modernization. These are
instalment loans made by private
capital under a Government guar
antee against loss. The banks have
welcomed them partly because of
the guarantee and partly because
there is a net yield of nearly 10 per
cent profit in them.
Now the Second part of the
plan, of organizing national lend
ing associations and encouraging
existing institutions to finance new
building at 5 percent on long term
mortgages, with the same Govern
ment guarantees, is being started.
Whether it will get under way as
last as the modernization loan part
of the plan is still uncertain. The
Administration, however, will put
all the pressure possible behind it,
bent upon three objectives.
First, it wants to get workers in
the biulding trades back to work
as soon as possible.
Second, it wants to induce pri
vate capital to come out and do
some work as soon as possible.
Third, it wants to reform the
whole "mortgage racket” and es
tablish an entirely new national
system, under which nobody will
have to pay more than > percent
interest on moragage loans.
This home-building program is
very close to the President’s heart.
If it works as hoped, it should put
many,many billions of dollars into
circulation and relieve the unem
ployment burden as nothing else
has done.
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Next on the Federal program for
consideration when the new Con-1
gress meets is a much bigger and]
broader scheme of public works
than has yet been announced, fin
anced partly by Government loans
to localities, partly by direct Gov
ernment grants of money. The
theory is that if the Government
spends a billion dollars it will cre
ate four or five times as much busi
ness, with consequent real work for
. the unemployed. Nobody knows
yet, because the Administration’s
plans are not complete, how big
this new Public Works program
will be. There is talk of "five
billion a year for five years,” but
that is only talk thus far.
How to do this and keep on with
•he other lines of work in which
Uncle Sam is spending money,
without resorting to currency in
flation, is keeping some of the fin
ancial and economic experts awake
o’ nights. There has been, of
course, a great inflation of credit
worked by the same system that
was used during the war. The
Government sells its bonds to a
bank, taking a deposit credit on the
bank’s books for the price paid.
The bank then can, in turn, when
in need of currency, "hock” the
bonds with the Federal Reserve
Bank and get brand-new Federal
Reserve notes, which, in effect,
have nothing back of them but the
(Continued on page four)
WANTED AT
ONCE!
in every section of
Rowan County Corres
pondents and Repre
sentatives to work for
the WATCHMAN.
An interesting prop
osition will be made
you. Send in a news
letter from your sec
tion for our next issue
and tell us if you would
like to represent us.
Address:
J. R. FELTS,
Manager.
Salisbury, N. C.
i
Unemployment
» Insurance To
Be On Program
Recommendation To Be
Made To Next
Congress
STATES HAVE PART
Washington.—President Roose
velt announced in a brief speech
that he would ask the next Congress
to enact legislation providing for
unemployment insurance.
Mr. Roosevelt’s address was
made before a gathering of his eco
nomic security committee and the
recently named advisory committee
to the original body.
Mr. Roosevelt asserted that some
months ago he began the work of
making a beginning in the task
of providing social insurance for
the American citizens. Speaking to
members of the committee before
him, he said:
"I have not changed my opin
ion. I shall have recommendations
on this subject to present to the
incoming Congress. . .
"On some points it is possible to
be definite. Unemployment insur
ance will be in the program.”
Mr. Roosevelt, in his address, re
iterated his earlier expressed view
that unemployment insurance
should be a co-operative undertak
ing in which both the Federal Govr
ernment and the 48 states have a
part.
| Better Business
Contrast With Slump Of
Last Autumn Seen In
Many Barometers
New York.—From far and near
come reports of expanding business.
In sharp contrast with the au
tumn of 193 3, most business baro
meters have been slowly gaining
since Labor Day.
Retail trade has quickened mar
kedly in the past 10 weeks, prom
pting merchants to prepare for the
best Christmas season in three or
four years.
November and December are
normally months of slackening op
erations in the nation’s factories,
but the strength of the current sit
uation leads business analysts to
look for the smaller than usual
year-end let down in manufactur
ing, while goods already produced
are distributed to eager Christmas
,hoppers.
mis is Decause inventories in
most business lines have been sharp
ly reduced and consumer demand
ihould penetrate quickly to the
manufacturer. The situation was
■adically different at this time last
fear. Industry has just come
:hrough a summer of hectic arti
:icial stimulation, as goods were
:urned out at a feverish pace to
ieat rising material prices and
ligher operating costs under the
:odes. This year a pronounced lull
ieveloped late in June, and the au
:umn resumption has been slow
ind cautious.
Business analysts acknowledge
(Continued on page five)
Fire Destroys
Eight Colored
Dwellings Wed.
Fire Wednesday afternoon de
frayed eight houses in the western
lection of the city and occupied by
:olored families, all the houses were
rompletely destroyed, including the
lousehold furnishings, as the flames
vere fanned by a high wind, which
juickly consumed the whole row of
louses which were closely built to
:ach other.
Seven of the buildings were own
id by Hudson and Hudson, local
ittorneys, while one was owned by
iverett Taggert, colored.
Loss is placed at several thousand
lollars.
Bonus, Inflation Blocks Forming
For Test In Incoming Congresl
Groups Seek
Popular Aid
For Moves
Administration Acts To
Stop Proponents Of
Measures
30-HOUR WEEK
President Roosevelt’s power will
be tested early in the 74th Congress
by inflationary, bonus ancf other
"blocs”, it appears.
Although the election was gen
erally construed as a personal en
dorsement of the President, spokes
men for the ultra-progressives have
already disclosed plans to push
legislation frowned upon by the
white House in the past. j
The battle for cash payment of:
the 2,300 million dollars soldiers’
bonus may be the first. Represen
tative Patman (Democrat), of
Texas, already has assurance that
the bill will be labelled "No. 1” in
the House. Bonus advocates are
expected to demand assurance of a
rote from speakership candidates.
Senator Elmer Thomas (Demo
:rat), of Oklahoma, is expected to
>pen the inflation drive even be
fore Congress convenes, with the
tope of obtaining action before the
regular program is shaped. *
Administration leaders are con
fident that the President will rulei
Congress. The real hope of the
bloc leaders, they say, is to create
so much sentiment for measures
that the White House may agree
to a compromise. This practice
was followed in the last session.
Among the "bloc” proposals, in
addition to the bonus and paper
inflation are:
Complete remonetization of silv
er, urged by the "silver bloc.”
Creation of a central bank to
issue all money.
Enactment of a mandatory 30
hour week law, with exceptions.
A soak-the-rich plan of taxation,
boosting the present high inheri
tance and income taxes.
A new CWA plan, with funds
enough to provide jcbs for all un
employed.
Refinancing of all farm indebt
edness with "green back” currency.
Administration leaders ' have
evidenced an intention to prepare
the administration program as
speedily as possible to prevent the
''blocs*’ from swinging into action.
One of their aims is a short ses
sion of Congress. By rushing
through the administration pro
gram, leaders hoped to be in a
position to declare adjournment be
fore many group measures have
reached the voting stage.
Advocates of a central bank of
issue, on which the administration
has turned thumbs down, gained an
ally in Senator Borah (Republi
can), of Idaho. The movement
for this institution has been spon
sored by Democrats and Republi
cans.
Leaders of the American Federa
tion of Labor are convinced, from
answers given by candidates in
questionnaires, that there will be
more sentiment for a 30-hour
week. Senator Black (Democrat),
of Alabama, who once pushed a
30-hour week bill through the
Senate, may lead the movement.
HOPE MILLS MAN KILLED
Frank Butler, 22, of Hope Mills
was fatally injured; Clarence Ster
ling of the same place is in a hos
pital at Fayetteville, as the result
of an automobile wreck near thereJ
A stranger known as Johnson'
Smith, with several aliases, driving!
a car bearing a Tennessee license is
being sought by the authorities, on
evidence that the man drove in
front of. the Sterling car, causing!
it to plunge down a 20-foot em-|
bankment.
Bankhead Act
To Be Amended
Kerr Given Assurances
Changes In Law Be
Considered
Washington. — C o n g r essman
John H. Kerr of Warrenton, N. C.,
was given assurance here that offi
cials of the agricultural administra
tion will begin at once a survey and
a series of conferences looking to
amendments that will make more
workable the present Bankhead cot
ton control act.
Judge Kerr, author of the bill
for controlling the production of
tobacco, also conferred with J. B.
Hudson, in charge of tobacco and
peanuts, and was told that a poll
of the growers will be taken at
once to determine whether they
want the law continued after 193S.
In a statement, Judge Kerr said:
"I came here to confer, among
others, with Senator Bankhead
with reference to amending his
control act so that it will provide
i more equitable plan for the cot
ton growers of North Carolina.
"It is my opinion that the pres
ent arrangement must be changed
considerably. I personally favor
the acreage control plan and will
discuss this with -growers in the
state next week when C. A. Cobb,
cotton authority for the agricul
tural administration, goes to North
Carolina for a conference.
"I anticipate some objection to
the acreage plan from the south
western sections, of course, but the
greater poundage we make in North
Carolina is offset by the greater
economy of production in Texas
and Oklahoma.”
As for the result of the election
he continued:
"More than at any time since he
took office, the President will have
behind him a sympathetic con
gress. Our people, perhaps a little
more than those in some other sec
tions, know that the New Deal
has started us well on the way to
recovery. There’s much to be done
yet and the election is a mandate
from the people to the congress to
give renewed support to the Presi
dent.”
Retail Sales Show
Rise In October
Washington. — Retail sales
throughout the country swung
higher during the first half of Oc
tober, according to an analysis
made by the National Retail Dry
Goods Association.
In a mid-monthly survey among
stores in 75 representative cities
the association estimated that de
partment store dollar sales through
the country as a whole increased
approximately 8 percent in the
first 13 shopping days of October
as compared to the similar period
in October 193 3. This gain fol
lows a 4-percent increase in depart
ment store sales in September com
pared with September 1933, as re
ported by the Federal Reserve.
What was considered of especial
significance in the results of the
poll was a considerable increase in
the number of unit sales in the re
porting stores. The association
figured the country-wide increase
in transactions for the first half of
October as against last year a
mounted to 6.75 percent—probably
the greatest advance in this figure
achieved over a period of many
months.
MOTHER OF DEAN HOUSE
DIES
Mrs. J. A. House, mother of R.
B. House, administrative dean of
the University of North Carolina,
died at her home at Thelma Satur
day of heart attack. She was the
widow of the late sheriff of Hali
fax county.
Largest box of Apples Is Shipped East
8EATTLE . . , The largest box of apples ever shipped is now enroute
to Detroit. It contains 75,650 winesap apples, a choice crop grown at
Yakima, Wash. The box was loaded on a flat car and sold to the highest
bidder, a Detroit buyer.
Annual Red Cross Roll
Call Began Wednesday
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The annual canvass for Red
Cross membership began Wednes
day and will continue through
Thanksgiving, and an intensive
campaign is to be launched to se
cure memberships in the organiza
tion.
| Leaders of the drive this year an
1 ticipate a usual enthusiastic re
sponse from the citizens of Salis
bury and the county, who have in
the past subscribed heartily to the
wcrk which the Red Cross has car
ried on in relieving distress.
More volunteers are needed for
the canvass, states Mrs. G. F. Con
rad, secretary of the Chamber of
Commerce, where the headquarters
of the Red Cross will be maintain
ed. Anyone desiring to cooperate
with the sponsors of the drive can
telephone 3 5 8, supplies and infor
mation my be obtained at this of
fice.
Five outstanding services make
; up the health-conservation pro
gram of the American Red Cross,
according to the annual report just |
issued in Washington. These ser
vices are first aid and life saving,
which together have trained more
than a million persons; nursing,
with an active enrollment of 36,
133 registered nurses; Public;
Health Nursing, conducted by 7,-|
5 00 nurses in 424 chapters last
year; and Home Hygiene, which
has taught more than 700,000 men
and women simple ways of caring
for the sick at home.
The achievements of the Red
Cross in public health nursing place
it among the leaders in this field.
"This service was organized in
1919 to meet needs developed by
the World War and the ravages of
the flu epidemic which in 1918-19
took so great a toll of life.
"Since that time Red Cross nurs-1
ing services have been pioneers in
more than one-half of the counties j
in the United States.”
"Red Cross courses in home hy
giene and care of the sick are es
pecially important in times of de
pression, because they teach families,
to maintain hygiene conditions in
their homes and to recognize symp
toms of illness early enough to pre
vent serious consequences.
"Our courses in first aid have
been instrumental in saving lives j
of the injured; in safeguarding the !
accident victim until the physician;
arrives and in reducing time lost j
by workers in factories, mines and!
other industries. We are also giv- j
ing the course extensively to police;
and fire departments throughout!
the country, and to state highway!
patrols.”
Everyone is invited to join the
Red Cross during the annual mem-1
bership roll call which continues
to Thanksgiving, to have a part in'
the health program and the other
humanitarian services of the Red
Cross.
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25 P. C. Cut In Cotton
' AAA Aim For 1935;
i
Washington.—Reduction of cot
ton acreage by approximately 25
per cent in 193 5 has been drafted
in the program of the Agricultural
Adjustment Administration which
according to authorities informa
tion, has been approved by Secre
tary Wallace.
The 25 per cent basis is on the
average of around 41 million bales.
It is also planned to provide in
creased payments to co-operating
farmers.
The program is regarded yet as
"unofficial,” but it is virtually cer
tain the secretary will sign the
order for the acreage reduction.
Under contracts that have al
ready been signed by cotton farm
ers of the South for 1935 is a
clause providing that the maximum
cut to be made by Washington is
not to exceed 25 per cent.
Reduction consumption of cot
ton in America and a large carry- ■
over crop are said to be reasons for ;
the adoption of the new program, j,
H. A. Rouzer Files 1
Bankruptcy Request
Lists Liabilities Of $131,
665 And Assets To
taling $18,867
Harold Allen Rouzer, automobile
dealer and business man, of Salis
bury, has filed in United States
district court in Greensboro formal
request that he be adjudged bank
rupt. He lists liabilities of $131,
665.65 and assets of $18,867.02.
The petitioner claims a real estate
exemption of $1,000 and a personal
property exemption of $500.
New Congress Jx>
Back RoosevJji
Seventy-Four Per Cent
Stand for Varied Phases
Of New Deal Plans
Washington.—A rough cross
section of opinion in the new Con
gress, indicates it will be extremely
responsive to Roosevelt leadership.
Greenbacks by legislative fiat
appear out. On questions of the
veterans bonus, 3 0-hour-week and
the like, numerous middle-ground
ers apparently intend to base their
final positions on that of the Pre
sident at the time of the show
down.
1 nis Uoes not mean that anti
administration majorities are im
possible, but rather that major
vetoes—if any—may carry morj
authority than last winter. Two
were overridden then.
The extent to which victors in
the recent campaign were non-com
mittal on big issues while pledging
support to the President "right
down the line’’ is noteworthy. The
potential effect in Congress is
clear.
A random survey while necessar
ily inconclusive, discloses a sympa
thy for the new deal in general in
the next Congress that conforms
remarkably with Democratic
strength in senate and house—
abotltJ 74^p^' Hence; -though
less than 200 of the combined
membership of 531 were covered
in this survey a degree of validity
is evidenced.
By tabulating the recorded stands
of various winners last election and
of senators not before the electorate
at the time, from campaign speech
es, answers to questionnaires, past
votes and the like, some interesting
signs of what to look for were ob
tained. In occasional instances, the
sentiments crossed party lines.
Budget balancing evidently will
be deferred by general consent.
Relief and public works spending!
hardly will be curtailed yet.
Doughton’s Assailant
Gets Thirty Days Onj
Stanly County Roads
In county court in Albemarle
Monday morning, J. S. (Ceph)
Blalock was sentenced to serve 30
days on the county roads following
his conviction of having commit
ted an assault upon Congressman
R.. L. Doughton on the streets of
Albemarle on the morning of
rhursday, October 4. Blalock,
through his attorney, G. Hobart
Morton, gave notice of appeal, and
aond was fixed at $200.
The veteran congressman was the !
>nly witness for the prosecution.
Mr. Doughton stated that he was '
.valking down street alone when he '
leard some one behind him mak
ng abusive remarks anent the '
'cotton bill.” The word "robber”
ind other words of like character
vere included. Mr. Doughton
itated that at first he believed some
>f his friends were talking in a
oking manner, but when Blalock
:ame up beside him and continued
n the same vein, he saw that Bla
ock was in an angry mood. He
laid that Blalock kept saying that
i man who would rob the farmers
ts he had done should be beaten i
jp, and that he believed he would
lo it. "About that time,” said the 1
:ongressman, "Blalock took hold of i
ny coat and struck me twice in the '
face. I struck him back once or
:wice, and he then pulled away c
from me and went on out into the 1
street, whereupon I told him to i
:ome on back and that we would
settle the argument. I did not i
mow Blalock, but was trying to ;
find out his name in order to pre- .
fer charges when a policeman came
sack up street with the defendant.” i