f '• '■ 1 ' ^ ' ' v
The Carolina Watchman “l:
_A NEWSPAPER DEVOTED TO THE UPBUILDING OF ROWAN COUNTY ,
FOUNDED 1^32—1Q5TH YEAR SALISBURY, N. C., FRIDAY MORNING, AUGUST 21, 1936 VOL. 104 NO. 4 PRICE 2 CENTS
All the gold in the United States
;s now in the possession of the
Federal Treasury. There are $10,
000,000,000 of it. Gold is worth
$31 an ounce, so that there is a
total of 285,742,857 ounces of
cold owned by the United States
Government. This figures out at
17,858,928 pounds, or almost 9,
000 tons.
Those figures are of immediate
interest in Washington, because this
whole 9,000 tons of gold is just
about to start on its way from the
vaults of the Treasury and of the
Federal Reserve banks to its secure
hiding place in the great new gold
vault which has been constructed
at Fort Knox, Kentucky.
The problem of transportation
has given the Treasury considerable
concern. If this 9,000 tons of gold
were to be shipped in ordinary
freight cars of the standard capa
city of 30 tons, it would make
a train of 300 cars.
That isn’t safe enough, however,
so specially designed armored
freight cars have been provided.
These, will be coupled into trains
filled with armed guards, and it is
expected that more than 50 such
trains will be required to move the
nation’s treasure to its new home.
REASON FOR NEW VAULTS
There are two reasons why the
gold reserve is being stored in Ken
tucky. One reason is that the gold
storage vaults in the Treasury at
Washington and in the Federal
Reserve banks are overcrowded.
The most important reason, how
ever, is that this is a measure of
military preparedness.
Washington and New York, mil
itary experts believe, are too ex
posed to attack from a foreign
power in case of war. While the
chances are greatly against any suc
cessful raid upon the Atlantic and
Pacific Coasts, yet that is a possi
bility, and for years the military
and naval authorities have been
urging the concentration of gold
and of basic industries in the Mis
sissippi Valley, between the Alle
ghenies and the Rockies, to make
them more secure in time of war. J
Whether the United States cam
avoid being dragged into another!
general European war is a hotly de-l
bated question. That Europe will
be at war within two or three years,
even although the Spanish situa
tion may not be the immediate pre
cipitant, is now generally believed
here. The hard-boiled and some
what cynical observers of long
experience feel certain that what
ever our present intentions, Amer
ica cannot help being involved if
the expected war should drag on
for a year or two.
WAR AND°CURRENCY
There is pretty general agree
ment that one effect of war in
Europe would be world-wide cur
rency inflation. Indeed, the inter
national armament race has already
resulted in greatly increasing the
demand, and consequently the
price, of a large list of commodities
required by armament makers. In
dustrial production and consump
tion of goods is rising steadily.
Nearly all European nations are
financing their deficits by inflation
of bank credits, lhus all oi tne
world’s moneys have a lower pur
chasing power, measured by the
gold standard, than they have had
at any time since the great infla
tion of the German mark in 1920
21.
While the neutrality laws passed
by Congress last year are an effort
to prevent American bankers from
financing a foreign war, the latest
reports indicate that there are more
than $6,000,000,000 of foreign
money invested in American securi
ties, which the governments of the
various countries involved aould
commendeer and convert into dol
lars, thus enabling them to purchase
war supplies here in our own
money.
Anything like a United States
Government loan to a foreign na
tion for war purposes is prohibited
under the Johnson Act, to any na
tion which has not settled its obli
gations to the United States. It is
anticipated here that the impend
ing war situation may result in
offers from some of the largei
European nations to settle theii
debts remaining from the last wai
on some compromise basis. No seri
ous move in that direction has been
made, however.
WORLD MARKET CHANGES
The whole problem of interna
(Continued on page twelve)
Reynold s Daughter Gets $30,000^)00
July Revenue Jumps 30 Per Cent
Income Rises
On All Lines
66-Million Increase For
First Month Supports
Morgenthau’s No-New
Tax Promise
Washington.—A jump of $66,
728,906 in internal revenue col
lections for the first mfonth of the
fiscal year as compared with the
| same period last year was reported
by the Treasurey with some items
showing increases of several hund
red per cent.
The total rose from $221,633 in
July of last year to $288,326,539
in the same month this year, or al
most 30 per cent. All the major
categories of taxation registered
gains, ranging from $12,752,211
for taxes on liquors to $36,931,
477 for miscellaneous internal re
venue.
Ihe report was of special inter
est in view of the statement by
Secretary Morgenthau last week,
after a White (House onference,
that no new taxes would be asked
at the next session of Congress.
Morgenthau said at the time,
however, that his estimate was
based on future p$>spects more
than on actual tax collections so
far this year.
The Treasury report showed that
corporation income taxes more
than doubled, rising from $14,
364,S33 to $29,065,623. Indivi
dual income tax payments rose
from $9,598,915 to $11,052,514.
Excess profits tax collections gain
ed from $174,319, to $1,048,371.
Estate taxes increased from 14,
224,356 to $29,014,452, while
gift taxes jumped from $96,766
t6 $327,212.
Liquor taxes were up from $47,
266,198 to $60,018,409, establish
ing a new record. Distilled spirits
jumped from $16,547,846 to $23,
521,873. Taxes on beer and other
malt liquors increased from $29,
940,473 to $3 5,920,901. Wines
and cordials, however, dropped
from $777,878 to 575,643.
In the tobacco category, all
classifications showed increases ex
cept cigarette papers and tubes
which fell from $72,161 to $67,
070. Cigars gained from '{l,088,-,
661 to $1,185,917, cigarettes from
$39,416,581 to 044,404,651, snuff
from $469,297 to $575,380 and
smoking and chewing tobacco
from $4,763,878 to $5,063,381.
The tax on bonds, issues of capital
stock and conveyances yielded
$2,116,357 last year and $2,479,
125 this year; thansfers of capital
stock $1,623,493 and $1,654,281,
taxes on future delivery contracts,
$261,540 and $283,024; and taxes
on silver bullion sales, $69,828 and
$370,249.
Tax collections on automobiles
reflected the improvement in that
■ industry, jumping from $3,089,
686 to $7,706,395. Trucks gained
from $466,820 to $964,5 81 while
parts and accessories increased from
$428,5 30 to $748,542 and tires
(Continued on page twelve)
7 New Paralysis
Cases Reported
In State
Raleigh.—Dr. J. C. Knox, direc
tor of the division of epidemiology
of the State Board of Health, said
Wednesday seven new cases of in
fantile paralysis had been reported
by city and county health units
in the last week.
Two cases were diagnosed in the
City of Durham, he said, and
Guilford, Haywood, Mecklenburg,
Orange and Wilson counties each
reported one. The total was an in
crease of five over the number of
cases reported the preceding week,
but a decrease of 10 from, the cor
responding week one year ago.
New Fabrics Feature Fall Fashions I
mo*-...
NEW YORK . . . Above are two smart Fall outfits which are being
featured in fashion parades now under way here. At the left is a cape
ensemble of a soft knitted wool mixture with tiny raised flaps in white
and light gray on a darker gray hairy surfaced ground. Right, seated,
a model box jacketed suit of dark green tweed flecked with red. The
skirt is gracefully flared.
Corn Soars To
$1.37 As Drought
Increases
Chicago.—Corn prices jumped
to the highest peak since the post
war period Wednesday as Weather
burear crop experts reported the
driught was growing worse in the
farm belt.
Quotations rose as high as $1.37
a bushel on the Chicago Board of
Trade, again passing wheat in re
versal of normal market condi
tions.
Corn futures, wheat, oats and
rye hit 1936 highs in the wake of
reports of continuing heat on the
Western plains.
Barium Cntildren
Enjoy Outing At
Mirror Lake
One hundred and twelve chil
dren from Barium Springs orphan
ige six years of age and older, en
joyed Wednesday at Mirror lake
near here as guests of the manage
ment.
The youngsters had swims in
the morning and' afternoon, and
snjoyed a picnic dinner. Joe B.
Johnston, superintendent; Miss
Ann Johnston, Miss Rebecca Car
penter, George Neal and Miss
Lorena Clark were in charge of the
group.
State Farm
Goods Bring
$43,177,000
Washington.—The Bureau of
Agricultural Economics reported
cash receipts from the sale of prin
cipal farm products in North
Carolina for the first six months
of this year were $43,177,000.
This compared with $34,434,
000 for the same period of 1935
and $45,896,000 for 1934.
Both cotton and tobacco, the
principal crops of North Carolina,
are sold chiefly in the latter six
months of the year.
The bureau said the gain in cash
receipts was due in general to the
larger quantities of products sold,
since prices as a whole averaged
slightly lower this year than last.
Photog Must
Go To Trial
Regardless
Asheville.—M. Ball, Asheville
newspaper photographer, plans to
attend the trial of Martin Moore,
negro charged with the slaying of <
Helen Clevenger.
He was assigned to it by his!'
paper to make pictures.
He was summoned as a State
witness because he made pictures.
Finally, he was. drawn on the
special venire from which the trial
jury will be chosen.
Approve Loan
For N. C. Lines
Washington.—The Rural Elec
trification Administration has ap
proved a loan of $310,000 to build
rural electric lines in North Caro
lina.
The loan was to the Johnston
County Electric Corporation,
which plans to build 295.3 miles'
of lines to serve 1,535 farms in
Johnston, Wake and Harnett coun
ties.
The co-operative is sponsored
by the Statq Rural Electrification
administration at Raleigh.
The new loan supersedes a pre
vious one for $80,000.
Log Roller Challenge J
SEATTLE . . . Miss Lydia Passos
(above), is a log roller in her own
right and even though elected
“Queen" of Lake Samrmmish for
1936, she’s issued a challenge to
all male log-rolling f :t%nps to
come on and just try to dump her,
during the annual festival.
John Henry
Hauser Dies In
Hospital
John Henry Hauser, aged killer
of his son-in-law, fred Styers, in
Davie county some years ago, died
Tuesday in a Winston-Salem hospi
tal.
The oldest man to be convicted
of murder and sentenced to die in
the state of North Carolina, Haus
er rested comfortably in a hospital
in Winston-Salem, awaiting death1
from natural causes, rather than!
from having 'electricity dhctt
through his aged body.
Convicted and sentenced to
death, the supreme court of the
state sent his case back to the sup-j
erior court for another trial, but
before it could be heard he had to'
be taken to a hospital for treat
ment. That was four years ago— ■
md he remained in the institution,
with the charge of murder hang
ing over him until death settled
the affair.
U. S. Plans Seed Program For Farmers
Will Purchase
Seed Supplies
Drought Area Committee
Begins Tour of Arid
West To Report To
The President
Washington. — A $10,000,000
seedpurchase program to help farm
ers whose grain for next season’s
planting was destroyed by drought
was framed this week by adminis
tration officials.
While the seed program was dis
cussed, the drought’s devastating ef
fects were reflected on many
fronts. Increased farm and foot
products prices pushed the whole
sale commodity price index up on<
per cent. The forest service re
ported 1,078 fires during the first
10 days of August. Shortages ol
red spring and durum wheat fore
shadowed continued imports.
Looking toward a long-range so
lution of the arid West’s problems
the Great Plains Drought Ares
committee headed west for a 3,00C
mile trip through the hardest hit
regions, winding up with a report
to President Roosevelt at Pierre
South Dakota.
Plans for purchasing grain seec
through the Federal Surplus Com
l
modities corporation on funds from
the Farm Credit administration
were made at a conference between
F. R. Wilcox, President of the cor
poration, and W. I. Myers, farm
credit governor.
But officials said it might not
be possible to make an announce
ment before Tuesday of next week.
Technicians employed on the
project said the Farm Credit ad
ministration would lend “not more
than 10,000,000” to the Federal
Surplus Commodities corporation
to purchase seed supplies of spring
wheat, oats, rye, barley and other
i grains except corn, for resale to
farmers.
The price to farmers would re
present the cost to the government
plus carrying charges. Sales would
be made on a cash basis.
| Decision to finance seed pur
j chases through the Farm Credit ad
ministration was said by officials
to have resulted from a conference
with Secretary Morgenthau who ob
j jected to direct loans to farmers
! by the Commodity Credit corpora
tion.
The secretary, however, was re
ported to have approved commodity
credit loans to farmers on seed corn
sealed in farm cribs. The corpora
tion made loans on farm stored
corn following the 1934 drought
from which seed subsequently was
sold to farmers whose grain was
not suited to planting.
Jesse W. Tapp, chairman of the
Agriculture Department’s drought
committee, said a telegram from
Report Road
Program 90 Per
Cent Completed
Raleigh.—Chief State High
way Engineer, W. Vance Baise said
North Carolina's $1,890,000
county road betterment program,
started last spring, now is about
90 per cent completed.
W. F. Hess, 65,
Ends Life With
Pistol Shot
William F. Hess, 66, railway car
repair man, was found dead of a
pistol wound in the heart near his
home Tuesday night. A note
found beside the body said he had
been in ill health. A pistol was
found nearby.
associates in Nebraska reported that
State would need 1,000,000 bushels
more seed corn for the 1937 crop
than currently was in prospect
from the 1936 harvest. Even Iowa,
which normally produces 16 per
cent of the nation’s commercial
corn supplies, was expected to go
beyond its own boundaries in
search of seed for the new plant
ing.
• Buy In "Greater Salisbury”.
Tax Checks
Help Swell
N. C. Coffers
Raleigh.—Three tar checks to
talling more than $4,000,000, re
ceived by the State during the last
month, helped swell the cash bal
ance of North Carolina’s general
operating fund from $600,787.17
on July 1 to $5,509,503.17 on July
31.
The combined monthly treasur
er’s and auditor’s statement, re
leased on Tuesday by Governor
Ehringhaus, shows the total cash in
the treasury as of July 31 was $24,
441,521.41.
A total of $6,341,309.79 in
general fund receipts for the
month were reported, against ex
penditures of $1,432,593.79.
The highway fund, which had a
balance of $9,795,408.03 on July
1, showed receipts of $2,613,
556.83 during the month, and er
penditures of $1,600,000, for a
balance of $10,8^18,964.86 on
July 31.
BENT FENDERS
Woman driver—"Can you fix
this fender so my husband will
never know I bent it?”
Garage mechanic—"No, but I
can fix it so that you can ask him
in a few days how he bent it.”
Specifi il Age
Of 28 Reached
Mrs. Babcock, Now Liv
ing in Connecticut, As
sumes Full Control Of
Estate.
Winston-Salem, Aug. 19—The
Twin City Sentinel said today Mrs.
Reynolds Babcock, daughter of the
late R. J. Reynolds, had passed her
twenty-eighth birthday and come
into full control of her estimated
$30,000,000 share of his tobacco
fortune.
\The Sentinel said that, although
no formal announcement had been
made, Mrs. Babcock, who now
lives in Connecticut, had taken
over control of her share of the
estate which was administered un
til her birthday August 8 by the
Safe Deposit company of Balti
more.
The will of the founder of the
Reynolds Tobacco company pro
vided that his children not gain
control of their shares of his great
wealth until they reached 28.
The inheritance which came to
Mrs. Babcock, the paper said, is
apart from the estate of her moth
;r, Mrs. Katherine Reynolds John
sjon, from which Mrs. Babcock re
ceived a life income.
Mrs. Babcock was married about
six years ago to Charles H. Bab
cock, Jr., New York brokage em
ploye, and they reside with their
two children at Greenwich, Conn.
She is the second of the wealthy
Reynoldses to receive a portion of
the estate. R. J. Reynolds, Jr., old
est child, came into his inheritance
about two years ago. Nancy Rey
nolds Bagley, second girl of the
family, will be 28 in 1938.
Smith Reynolds, fourth child of
Reynolds, was mysteriously shot
to death here in 1932 before he was
old enough to receive his princi
pal.
His wife then was Libby Hol
man, Broadway torch singer,
whom he married shortly after
being divorced f«(om his first wife,
the former Anne Cannon, daught
er of Joseph Cannon, wealthy
Concord manufacturer.
A long court battle was fought
over his estate with his two former
wives, the child of each, and his
brothers and sister^ contesting. A
settlement recently reached split
the fortune among the contenders
with participating lawyers getting
large shares.
Mrs. Babcock several months ago
purchased the Reynolds mansion
with extensive surrounding estate
Reynolda, where Smith Reynolds
died of a pistol wound.
It was on this estate, which her
mother developed and which in
cludes a model village, farm, dairy
and other facilities, that the four
Reynolds children matured. Here,
after the death of, the senior Rey
nolds, Mrs. Reynolds-Johnsjon lived
with her youthful second husband,
J. Ewdard Johnson, who had been
a teacher in the Reynolda private
It was here also that Mrs. Rey
nolds died after giving birth to J.
Edward Johnson, Jr., who was co
heir in Mrs. Reynolds-Johnson
estate, an inheritance entirely sep
arate filom the one left in trust by
her first husband.
Heynolda itself was left equally
to the Reynolds children and to
Mrs. Reynolds-Johnso'n’s second
family, husband and son. However,
soon after her death, Johnson took
his son to Baltimore where he now
lives.
For years the Reyntolda estate
was silent except for the presence
of caretakers, as the Reynolds chil
dren scattered abroad.
Once more it echoed to the gaie
ty of young people in 1932 when
Smith Reynolds, somber young
flying millionaire, brought his
Broadway crooner bride, Libby
Holman, here for his honeymoon,
accompanied by a number of
guest.
Following a gay party, Smith
was found fatally shot.
—Buy In Salisbury—