STATE TREASURER CALLS UPON
LOCAL GOVERNING BODIES TO
PREPARE FOR READJUSTMENTS
“During the last decade the
people of our country have
learned to look to national and
state governments for social aid.
The need for such benefits will
be much greater when the war
is over than at any time in our
history. When post-war adjust
ments disrupt the economy of
our State, citizens most affected
will seek assistance first from
the State government, and it is
not beyond the realm of possib
ility that the State will be ex
pected by the Federal govern
ment to assume in full the bur
den of relief. This possibility
numes it an tne more imperi
tive that our State and local
units of government should con
serve their revenues to the
greatest extent possible during
this period of prosperity. After
the war is over, if not before,
we may expect an economic and
social problem of nation-wide
scope and I believe it will be
disastrous for us to fail to recog
nize this and when the time
comes that government spend
ing is necessary we should be
prepared.
This responsibility will very
definitely rest on State and lo
cal governments because they
are closer to the people directly
affected and we have no right
to expect the generosity of the
Federal government which it
has extended to us in the past
for economic readjustment. Fin
ancing the cost of this war alone
will be all the burden that the
Federal government can bear.
Failure to make adequate pre
paration for social, financial and
economic readjustments which
must certainly follow the term
ination of the war will invoke
consequences comparable to
those experienced in the early
’30s: namely, public borrowing,
high interest rates and increased
taxes.
Any prudent individual or
business man plans for the fu
ture during periods of prosper
ity by setting aside a portion of
his income or profits to protect
himself against the day when
his earnings will decline, and
it seems to me that the State
and local governments in North
Carolina cannot afford to be
less prudent by neglecting these
cardinal principles of sound
management anti business.
Governmental costs should of
course always be kept in reas
onable bounds but it is abso
lutely necessary for us to in
crease some of our appropria
tions. with a substantial increase
for the public schools. After
this is done a logical applica
tion of the remaining surplus
is to reesrve for contingencies
arising during or after the war
and then when we are confront
ed with a crisis we will be able
to meet it. We will be in a posi
tion to reduce taxes during a
period of distress when the peo
ple are less able to pay them,
and at the same time, provide
the means for carrying on all
normal functions. It must be
borne in mind that the citizens
of the State always suffer from
the same economic malady as
government, and increased tax
es at such times are a real bur
den and often cannot be paid.
Lack of reserves in the late
’20s and early ’30s compelled the
State to create a deficit of nearly
$15.000.000.. even though the op
erating cost of the State govern
ment had been drastically re
duced which made it necessary
to borrow over $12,000,000 from
banks at an interest rate of *6
per cent. There should be no
criticism of the officials who
were in office at this time. It
was the only thing to do be
cause they were faced with eith
er taking that action or closing
the schools of the State, and
seriously impairing other func
tions of the State government
which would of course have been
the worst calamity which could
have ever happened to us. It
was very fortunate for us that
the banks had enough confid
ence in the officials who were
in office at the time, and we had
kept the credit of the State in
such condition that we. were
able to borrow the money and
to carry on. They had not had
an opportunity such as we have
now to accumulate a reserve—
if they had. we could have saved
$5,455,051.56 which is the amount
paid in interest on the notes and
what will have been paid at ma
turity on the bonds issued to
take up the notes. I
We have now an opportunity
to accumulate a reserve in order
that this may not happen in the
future. I am therefore recom
mending that legislation be en
acted allowing us to set aside a
substantial part of the surplus
in a reserve fund. If it were
not for the fact that we will, in
all probability, need this money
in the next few years the proper
thing to do would be to put it
in the Sinking Fund and buy
our own bonds and reduce our
indebtedness by that amount.
The bonds could not, of course,
be ljought at par but at the pres
ent market price if we could
set aside 820,000,000 we could
save 8400.000 yearly in interest
since we would own the bonds,
and the interest as it became
due would belong to the State
of North Carolina; however. I
since there is a possibility that!
we may need this money in the,
next few years and sinpe it
would be impossible to buy
enough short-term North Caro
ana tfonas to ansorn tms sur
plus I am suggesting that we
buy as many bonds of this type
as it is possible to secure, and
that we invest the balance in
short-term bonds or notes of the
United States government, and
this can be reinvested as they
become due until the money is
needed. It would not help the
Federal government for us to
buy long term-bonds and then
sell them long before maturity.
It is my understanding that the
United States Treasury Depart
ment is not recommending that
bond purchases be made which
will have to be liquidated long
before they are due.
Our laws governing the finan
cial affairs of the local units of
government provide that any
surplus at the end of the fiscal
year must be used for the re
duction of taxes in the ensuing
year.' Under normal conditions
and times this is a wise pro
cedure to follow, but under con
ditions existing at this time and
nn account of the fact that most
local units have a much greater
surplus than they normally
have, due largely to the fact
that there have been greater
collection of delinquent taxes
than at any time in the past few
years, and curtailment of capi
tal expenditures through lack of
availability of materials and
equipment for which budget pro
vision was made, I am also re
commending that legislation
should be enacted allowing
them to set aside a part of that
surplus in a reserve fund to be
invested either in their own
bonds coming due within the
next few years, or in short-term
United States government bonds
or notes in order that they may
be readily converted into cash
when the money is needed.”
BLACKOUT TOO REAL
The blackout at High Point.
N’. C., was too realistic for
George Maxwell. When fire
crackers, simulating bombs, be
gan to pop, he rushed out with
his trusty shotgun and blew
the top from his favorite shade
tree. He thought it was a cam
ouflaged airplane flying low.
THERE’LL BE NO ‘JAPAN’
When the Tennessee Valley
authority completes its giant
Fontana dam in 1944, there
won’t be any Japan—that is,
Japan, N. C. The unincorpor
ated town will be 50 feet be
neath the Waters of Fontana
reservoir.
January >» ii Dm data Mi by Uaola Sam whan ovary*
body on a payroll ought to bo anrollad In tho War
Bond Payroll 8aoings Plan. Join tho HllAn who aro
doing thoir part—pladga younalf to "Top That 10%
' by Now Taar'aJ"
This 8paca it a Contribution to Ammtiea’u
All-Out War Program by
A. J. CAVENAUGH, Jeweler
Wallace, N. C.
County Growers Gan
Boost Cash Income
By Group Marketing
Duplin County’s 5,385 farm op
erators can increase thair cash
income as much as $140,000 a
year on fruits, nuts and vege
tables alone by working with
retailers in developing group
marketing programs, it was esti
mated today by a leading dis
tributor of North Carolina crops.
“With approximately 40 farm
ers in this county and more
than 5,600 farmers throughout
North Carolina using farm mar
keting cooperatives to stream
line wartime distribution, the
general trend toward group ac
tion in marketing is one of the
most important agricultural de
velopments in the state,” ac
cording to Earl R. French, mar
keting director of A and P.’s
produce-buying affiliate, the At-,
lantic Commission Company.
“Our experience shows grow
ers can boost their income 10
to 15 per cent by working to
gether to provide adequate vol
ume and standard grade and
pack and by working with dis
tributors to cut out unnecessary
handling operations and costs.
This 10 to 15 per cent would
bring approximately $92,000 to
$140,000 extra annually on fruits,
nuts and vegetables alone to
Duplin county growers, who in
one recent year received $922,
549 from their sales of these
products. Growers could sim
ilarly increase their cash income
from other crops by group ac
tion,” French explained.
As an indication of the effec
tiveness of cooperation between
growers and distributors. French
said economies worked out
through group marketing pro
grams were one important fac
tor helping North Carolina grow
ers to realize $1,834,443 last year
for fresh fruits and vegetables
sold through the Atlantic Com
mission Company.
With wartime food supply
conditions emphasizing the need
for shortening commercial dis
tances between growers and
consumers, group marketing
programs can not only aid the
“Food-forJFreedom” program
but also provide a vitally im
portant key to post-war farm
prosperity. French declared.
He pointed out that the
groundwork for building these
programs is already well pre
pared in North Carolina, which
' group-markets” tobacco, cot-'
ton. dairy products, poultry,
eggs and hogs.
New Rationing Board
Member To Serve As
InformationalContact
A new member is being aD
pointed on Rationing Boards
throughout the State to serve
as informational contact with
the public. The place for this
member on the board of the
Citizens Service Corps is ob
vious. and all members of the
Community Service Committee
which he heads should be close
ly associated with the Service
Corps if maximum results are
to^be achieved in this essential
Field without over-lapping and
duplication of effort. It is stat
ed that copies of this agreement
between OCD and OPA on this
subject have been submitted to
County Chairman of Rationing
Boards and County Directors of
the Citizens Service Corps.
GIVE UP RIFLES
At a meeting of Clinton coun
ty (la.) American Legion posts
at Wheatland last week all posts"
voted to give their rifles to
Company I of Clinton for use
in the war.
BONDS TO BOMB HOME
Gus Diakoumes of Spokane.
Wash., read that Americans had
bombed his native Pylos in
Greece. He rushed down to buy
$1,200 worth of war bonds—so
they can do it again.
“All Greeks feel as I do,” he
said.
Compliments
Aubrey L. Cavenaugh
Beer Retailers
Working Jointly
To Get Results
North Carolina Retailers Is
Meetings Held in Wallace
and Other Towns in East
ern North Carolina Pledge
Cooperation to Law En
forcement.
THIRTY-THREE JOINT
MEETINGS WERE HELD
Beer Retailers Met With Po
lice and Foundation Of
ficials During
Month '
Raleigh, Dec. 24.—North Car
olina retailers set a high mark
in November and December for
cooperative participation in the
Brewing Industry Foundation’s
self-regulation and Army camp
program to eliminate undesir
able conditions and practices in
licensed retail beer outlets.
Thirty-three meetings were
held. Total attendance exceed
ed 900.
With all gatherings approxi
mating 100 per cent attendance
of neighboring outlets, retailers
met with police and Foundation
officials at Goldsboro. Greens
boro, Hickory,- Statesville, Mt.
Olive, Wilson, Pikeville, Fre
mont Henderson Kinston, La
Grange, Selma, Smithfield, Wil
mington, Wallace, Dunn, Lilling
ton Durham, New Bern, Ayden,
Washington, Williamston, Eliz
abeth City, Edenton, Windsor,
Hertford, Bethel. Tarboro, En
field, Whitakers, Rocky Mount,
and Greenville.
In Durham, Captain Ballard,
provost marshal at Camp But
ner. heard tavern men and deal
ers pledge cooperation to the
North Carolina Committee of
the Brewing Industry Founda
tion. to law enforcement agen
cies and military authorities.
At Wilson, retailers voluntar
ily agreed to stop sale of beer
at 11 p. m. and during church
hours on Sundays. Tarboro
dealers agreed to close at mid
night and to refrain from sales
during church hours. Elizabeth
City retailers fixed 11 p. m. as
closing hour, and decided not to
open on Sundays until 1 p. m.
Workstock B
jj§ Issued By
Horses and mules are the
largest, and one of the most im
portant, classes of livestock In
'North Carolina. Their value is
two times as great as that oif a}l
cattle and calves, and five times
as great as the value of all hogs
and sheep. ,
With this, and the rationing
of power machinery on the farm
in view, the State College Ex
tension Service has issued a
new workstock bulletin to sug
gest better care of horses and
mules on the farms. The publi
cation is War Series Extension
Bulletin No. 12, “The Feeding
and Management of Horses and
'Mules.” A copy will be sent
free upon request to the Agri
cultural Editor State College,
Raleigh.
The text for this eight-page
pamphlet was prepared by Sam
L. Williams who wap Extension
animal husbandry specialist at
the college before he was re
cently called into the Army as
a reserve officer. The publica
tion is well illustrated and it
contains suggested grain mix
tures for adequate feeding of
workstock.
"Raising of horses and mules,”
wrote Williams, “is a profitable
business when they are used as
a source of farm power and as
a means of increasing the farm
income from the sale of surplus
animals produced. Four good
animals ca% plow four acres,
disc 15 acres, or harrow 30
acres a day in the spring sea
son; do other kinds of farm work
at a proportionate rate; and
raise enough colts for replace
ments—if properly managed.
“In this way, the work ani
mals reaching an age of 6 to
7 years can be sold each year
and younger animals used to re
place them. A good team of
well broken horses or mules will
demand a much higher price
than matched pairs of yearlings
or two-year-olds.”
Edenton tavern men decided to
close nightly at 10:30 p. m. Re
tailers of Wilmington voted to
close at midnight Saturday and
during church hours Sunday.
Dunn dealers fixed 10 p. m. as
closing hour Saturday night.
Colonel Edgar H. Bain, State
Director of the North Carolina
Committee, warned the nine
hundred dealers that “any vio
lation of a beer license will see
you without a license.”
for SHOES . . .
IN WILMINGTON
—IT’S THE—
CINDERELLA BOOTERIE
COAL $7.75
TON, DELIVERED
Satisfaction Guaranteed
, WALLACE ICE & GOAL GO.
Phone 2641
Railroaders Warned
Against “Loose Talk*
Norfolk. Va., Dec.
to the constant and
danger of “loose talk” _
tog military activities the Sea
board Railway Is farthering its
effort* in this campaign by dis
tributing a leaflet on the miff
ject to every employee of the
system. “Travelers, also, should
be on guard,” C. E. Bell, pas
senger traffic manager,. pointed
out. “Wherever one travels he
sees imprepaive evidence of the
war effort. Discussion of any
military activity, even though Tt
is felt to be of common knowl
edge, may easily put a military
is given against n
more and stories, i
Hitler's prlncipledf
the masses by a ion
paign of lies and
and misleading facts
up with “you can’t
agent by the way -i
you can tell him a
by the little wings
PICYCLE
Tire and Tube
We Have Second Hand
New Paris and Accessories
We have a complete line of all
sizes of Pennsylvania tires and
Our price is right. When you get
tificate see me.
WORSLEY OIL CO.
Jobber of American Oil Co.
TOBACCO SEED FOR
1943 PLANTING
"‘f-M
WE CARRY CCkER’S PEDIGREED TOBACCO SEED,
ALL VAJMETIES ,
Mammoth Gold-Strain 5... $2.00 per oz.
Gold DoUar-Strain 13.J... $1.00 per oz.
Yellow Mammoth..$1.00 per oz.
VifgmiaBiighrfceaf .$1.00 per oz;
Jamaica Wrapper___.... $ JS5 per oz.
Bonanza ......... . .... $ .85 per oz.
1
■ Wf''
GET YOUR PEDIGREED TOBACCO SEED NOW
FOR IMS SEASON
■ UK IS™ vliNvvn
A. C HALL