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THE PERQUIMANS wimmV MMOTORD, N. C FRIDAY. APRJL1 22198&
FACE TWO
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loo;u?;g AT WASHINGTON
By Hugo S. Sims, Washington Correspondent
Economic Picture Is Not Reassuring;
Harts and Debate Fail to Make Sense
The failure of business to improve
and the apparent inability of industry
to provide employment presents an
economic problem to the nation.
Recognizing the danger of a continu
ous decline, President Roosevelt last
week attempted to outline steps
which the Government might tae to
help the present situation.
Already Congress had authorized
the RFC to use $1,500,000,000 in
funds already appropriated in making
loans to industry and indeanitely ex
tending the period within which these
advancements can be made. Under
immediate consideration was the ap
propriation for work relief. Congres
sional and WPA authorities estimated
the outlay for the next fiscal year
will be around $2,000,000,000. Under
discussion and awaiting the develop
ment of national sentiment was the
proposal to use $1,600,000,000 in a
new spending program designed to
transfuse public funds into the ar
teries of trade and industry. Exact
ly how this "pump-priming" fund
would be used was uncertain.
profits were made under regulations,
restrictions and taxes, which, if any
thing have been lightened in 1938, the
profits made in 1937 tend to disprave
the allegation that the Government
has wrecked business. On the other
hand, some officiate, notably Harry
L. Hopkins, asserts that monopoly
and controlled prices have enabled
business to take the cream of the
Government's efforts and thereby pre
vent the full success of the Govern
ment's program. Business, however,
in the face of declining activity, con
tinues a clamor for relief from taxa
tion and reform and the plaintive
plea ie heard from various spokesmen
that the President do something to
remove fear by issuing a reassuring
statement
Altogether the economic picture of
the country is extremely futuristic.
To this observer, the recriminatory
debate now going on and the facts
do not make sense.
Three Giant Industries Lag as Rail
Problems Await Congressional Action
Several weeks ago, we discussed
the railroad problem, particularly in
relation to the securities held by var
ious institutions in the nation. . The
It seems reasonably certain that . importance of the railroad industry,
anv offort at "pump priming" will , nowever, io me economic weu-uems
nut with serious opposition, ine
attack in Congress will be based on
the opinion that huge expenditures
at this time will injure business and
destroy confidence and that further
increases' of the Government debt
v-might led to inflation if not repudi--Ation.
. These arguments will be em
phaelzed by business interests with a
of the country, cannot be over-esti
mated. Ordinarily, the railroads pur
chase twenty per cent of the capacity
output of key industries as steel and
bituminous coal, fuel oil and lumber.
A million-odd employees in 1936 re
ceived nearly two billion dollars in
wages and another million men em
ployed in industries working on
notable exception in favor of the use I equipment orders earned approxi-
of Government funds to aid ailing mately the same amount. It is easy
industries, such as the railroads. to see what prosperity for the rail-
., .j.. tn' roads would mean to the recovery
'SSZntZS ' GovSiS ! which everybody is hoping for.
spending. The spenders hold that the In February the railroads had an
' Government must pour out its money aggregate deficit of more than $40,
'to'nll the void" left by private cap- j 000,000 and since last June, their cash
3el. This they say, will provide on hand has dwindled by over $110,-
purchasing power and permit con
sumers to buy necessary products.
As products are consumed, the need
will arise for industry to make new
products. This cycle, it is asserted,
will lead to recovery. Opponents in
sist that the importance of a Govern
ment spending program is over-estimated,
that even four billion dollara
000,000. Some of them have merely
sufficient funds to cover ordinary day-to-day
expenses and consequently no
hope of buying needed locomotives
and freight cars. To illustrate how
the railroads' purchasing power has
declined, figures show that in 1937,
the carriers bought only twelve per
cent of the steel industry's output,
will nrM 1 than six ner cent to the This is proportionately about the
income of the American people, and same share that they were able to
add that additional spending, in-1 taKe in tne aarK year ivs&. oniy
Mnr actional national debt, will are the railroads unable to buy neces-
create uneasiness in the business com- sary rolling stock, but they sie un
nninity and frighten away many able to buy materials and supplies, to
times this amount in private capital. TaKe care oi aaequaie maintenance
Meanwhile, it is important to real- expenses.
iie that the country is not in the i Observers point out that the nation
position it was in 1932 and early has three great , industries building,
1933. There exists a confidence in automobiles and railroads. Complete
the safety of bank accounts, farmers
are assured of a reasonable purchas
ing power, WPA employment has re
moved fear from the hearts of mil
lions and there is no absence what
ever of abundant capital resources.
There is, however, one must admit, a
definite antagonism between Govern
ment and big business.
The hostility between Government
and business is extremely interesting.
prosperity depends upon the profit
able operation of these industries.
Anyone of them can prevent a serious
depression. When all three are out
vi cai f as j aic vvuu j t wj i- v,v-v
nomic state of the nation is certain
to be bad. With housing only slowly
and the automobile industry, over
stocked on materials bought in the
past, the importance of some recov-
It has been emphasized by opposition ery on the part of the railroads is
toward practically every reform ad- easily apparent.
vanced by the Administration. It has The entire question was thrown
been accentuated by increased taxa-1 into the lap of Congress by the Pres
tion and efforts on the part of the ident three days after the House de-
Government to use the tax weapon to feated h i s Reorganization Bill,
force business and industry to accept While declaring "some immediate
its program of reform. Business legislation" on the railroads is neces
leaders, rebelling against this Gov- sary at this session, the President did
ernment regulation, vigorously de- not tell Congress what the legislation
nounce Government interference with should be. He transmitted the recom
business and assert that, if let alone, mendations made by three Interstate
private industry and capital will pro- Commerce Commissioners, together
vide the means of successfully com- with considerable data, but refrained
bating the business recession. from advising the Congress as to par-
There are some strange angles to ticulars. Some observers saw in the
the picture. Eaminra of many laree presidential action a left-handed re-
corporations in 1937 set new re- touke, with the implication that the
cords. In view of the fact that theseproblem afforded Congress an oppor-
We Heartily
Endorse the
CLEAN-UP
PALW
COAlGtl
And From Us
YouTl Need ...
ANTISEPTICS
LOTIONS
DISINFECTANTS
:,- After the Work
Perfumes
Cosmetics
VALKEfi'S
Why Dothar about snack or
meala at home during the Cara
ptlfn? "Knock oft"- work for aa
hour and com down tor tatty
andwlch . . a rafraahlnf aoda
... a cup of the bat coffee in
town . . . azactly the right thing
for Janflcd nervaa and . weary
bodle. . -v i-
W use only the best of foods
and beverages, and our lea cream ,
well, we think it's the finest in
town. COMB IN AND REFBESJ3 r
XUUK!UXJ"1
Giant Milk Shakes
tunity to show its efficiency In direct
ing; governmental afTaira.
The President hai already made
clear his opposition to: any subsidy to
maintain present levels of employ
ment, present wage ratea and present
interest payments. . : Ha has insisted
that there is no reason for the Gov
ernment to guarantee ' nilroad reor
ganization bonds and he has been
positive in his . declaration against
Government ownership and operation
of the railroads. s
Despite the interest and efforts of a
few congressmen, there are slight in
dications that Congress Itself will do
anything effective to meet the rail
road situation. Undoubtedly, there
will be many bills presented to Con
gress but few of them will be prac
tical. It may end in some proposal
to provide funds to enable the car
riers to continue their business and
repay the loans . if possible. If not,
the Government will face the neces
sity of taking possession of some of
them and this will present the advo
cates of Government ownership and
operation with abasis for renewed
agitation. ....W., .. . ;
House Vote Hailed as Rebuke to
FDR; Opponents Declare It
Ends His Control j
The Reorganization Bill, first
brought foward in 1937, aroused very
little interest. It had been generally
conceded that some means were need
ed to tighten up the Government in
the interest of greater efficiency.
When the measure was brought up in
the Senate last month, telegrams and
letters of protest poured into Wash
ington. A barrage of criticism was
directed against the President him
self, who was accused of seeking dic
tatorial power. When the Senate
finally passed the bill 49 to 42 the
President remarked at Warm Springs
that "the Senate cannot be purchased
by organized telegrams based on di
rect misrepresentations."
Subsequently, when the Bill was
about to be considered by the House,
the President issued a statement, say
ing, "I have no Inclination to be a
dictator." This, however, did not
stop the attack -on reorganir'-tion.
The telegrams and letters continued
and most Observers became convinced
that the bill, hot important in itself,
had become a symbol of a determined
effort to administer- a rebuke to the
President himself.
The President, who was working
openly for the measure, undoubtedly
exerted full pressure to secure pas
sage. Although compromises had so
altered the bill that it represented
only 4 part of the Senate measure,
the incessant attack was effective and
the measure was killed by the vote
of 108 Democrats, 88 Republicans, 6
Progressives and 2 Farmer-Latiorites.
The final tabulation showed 204 to 196
in favor of recommit! ng the bill.
Undoubtedly. , the controversy was
seized upon by opponents of the
President's political program as an
opportunity to administer a personal
defeat It is just as certain that
some of the opposition within both
houses of Congress was motivated by
a personal dislike of the President.
There can be no question of this when
one considers that the bill defeated
was much milder than other measures
similar to its essential sections which
were passed by the House in a special
session last winter.
While opponents of the President
hailed his defeat as the beginning of
the end of his influence and the term
ination of his control over Congress,
the President termed the question
"solely one of policy." He concluded,
therefore, that the defeat of the bill
offered "no occasion for personal re
crimination" and said, "There should
be none." Despite this, the chances
are fairly certain that the issue will
rise again in the coming campaign.
The President, it is felt certain, will
carry the fight for his policies to the
voters during the summer and early
fall.
BIRTH ANNOUNCEMENT
Born to Mr. and Mrs. E. S. White,
at their home at Belvidere, on Sun
day, April 17, a daughter, Janet
Elizabeth. Mother and baby are re
ported to be doing nicely.
CROSSROADS
Mist Mary c Green, ' Mrs. W. G.
Shaw and daughter, Anne Winbome,
have returned to their home at
Wagram, after a visit with Mr and
Mrs. 'W. B. 'Winbornfti , -
Mr. and Mrs. B, M. Hollowell, Jr.
and daughters were supper guests of
Mr. and Mrs. W. A. Perry Sunday
evening.
Mrs. A. B. Hollowell and son, Asa,
Jr., Miss Esther Elliott and Wingate
Rice Burroughs, of Aulander; Mr.
and Mrs. J. W. Elliott, of Suffolk,
Va spent the week-end with Mr. and
Mrs. E. N. Elliott.
Miss Marguerite tta Evans has
returned to Greensboro College, after
spending Easter' with hert parents,
Mr. and Mrs. B. W. Evans.
Mr. and Mrs. T. E, Parker and
daughter, Dorothy, of Edenton, were
guests of Mr. and Mrs. W. At Perry
on Sunday afternoon.
Misses Frances and Helen Evans,
of Manteo, and Esther Evans, of
Hertford, spent the week-end with
Mrs. Z. W. Evans.
Miss Ella Mae Nixon, of the Bur
lington school faculty, spent the
week-end with her parents, Mr. and
Mrs. H. C. Nixon.
Miss Alma Winslow was at home
from- Chicod to spend the week-end
with her parents, Mr. and Mrs. E.
L. Winslow.
Justin Tune, of Mars Hill, is visit
ing Mr. and Mrs. B. W. Evans.
Mr. and Mrs. R. V. Knight and
son, Bobby, of Tarboro; Mr. and Mrs.
Aubrey Butler, of Roanoke, Va.,
spent Saturday with Mr. and Mrs.
E. Nl Elliott.
Mrs. Belle W. Parker,' Misses
Kathleen Parker and Nina Brown
visited Mrs. Ethel Hofler, at Gates
ville, Sunday afternoon.
Mr. and Mrs. W. H. Winbome,
Mrs. W. G. Shaw and daughter, Anne
Winbome, and Miss Mary Greene
were supper guests of Mr. and Mrs.
Dick Winbome at their home in Suf
folk, Va., Wednesday evening.
Mr. and Mrs. George Peele and
baby, of Rocky Hock; Mr. and Mrs.
Raleigh Hobbs and children, of
Hobbsville'; Mr. and Mrs. Wilbur
.f)
Hollowell visited Mr. and Mrs. Ralph
Hollowell Sunday afternoon.
John Welch, of Washington, D. C,
spent the week-end with his parents,
Mr. and Mrs. W. D. Welch; Sr.
Mr. and Mrs..Lindsey Evans and
sons visited Mr. and Mrs. E. N.
Elliott Sunday evening.
Mr. and Mrs. Jimmle Sutton and
baby, of Suffolk, Va., spent the week
end with her parents, Mr. and Mrs.
Isaac Jordan.
' Mrs. Alma Boyce is spending the
week at Morehead City with, her
parents. ' ;a.
Miss Sallie Elliott . has returned
from a visit with Mrs. A. B. Hollo
well and Miss Esther Elliott, in Au
lander, and is now with her sister, .
Mrs. W, W. Bunch.
Mr. and M. J. G. Perry, of Rocky
Hock; Mr. and Mrs. T. C. Byrum and -'
Mrs. Ellen Byrum, of Edenton, visit-Ju.
ed Mr! and Mrs. E. N. "Elliott Sun:
day afternoon. ;
Miss Orene Hollowell, of Reids- f
ville, and Weldon Hollowell, a student 4 .
at Wake Forest College, spent the
week-end with their parents, Mr.
and Mrs. B. M. Hollowell, Sr.
Miss Louise Bush, a student at "
Peace Institute, Raleigh, has returned Q
after spending the holidays with her
parents, Mr. and Mrs. A. S. Bush,
Mr. and Mrs. C. J. Hollowell and
son spent Sunday in Rocky Hock as
the guests of Mrs. Hollowell's par- :
ents, Mr. and Mrs. R. W. Leary, Sr.
Mrs. W. D. Welch, Jr., and daugh- ;
ter, of Washington, N. C., spent the
week-end with her parents, Mr. end t
Mrs. J. C. Leary. Mr. Welch came -V
for the day Sunday and took them
back.
Mr. and Mrs. C. J. Hollowell and
son visited Mrs. Joe Eason Sunday
evening. ;
Hutchings Winbome has returned
to Oak Rridge, after spending the
Easter holidays with his parents,
Mr. and Mrs. W. H. Winbome.
Mr. end Mrs. W. D. Welch, Jr. and
daughter, and Mr. and Mrs. J. C.
Leary spent Sunday with Mr. and
Mrs. W. D. Welch, Sr.
V
The dodo has been extinct since
1681.
Isn't this the real problem of Beer
-
' -and almost its only problem?
there ARE people, of course, who stead
fastly and sincerely believe beer to be intox
icating, or its use sinful, harmful, or a first
step toward use of "hard liquor."
Just as sincerely we hold that the weight
'of the evidence is overwhelmingly against
them... that beer is a mild, wholesome food
beverage... and that "there is nothing more
promising to combat the evil of too much
alcohol than the opportunity of drinking
good beer."
No.. .it is not in beer itself, we believe, that
its gravest problem lies, but in those condi
tions, undesirable to us all, which sometimes
surround its sale.
How should that problem be handled . . .
by brewers, by retailers, by consumers, and
by the public authorities? On its handling,
we believe, depends the ultimate success or
failure of the art and science of brewing,
with all its manifold contributions to human
pleasure and happiness and to the farm and
industrial welfare of this country.
In that belief, a short time ago the Brewers
Foundation was organized ... to align the
brewing industry with forces working for
the public good in this country.
Our underlying motive ... to perpetuate
and promote our industry . . . is of course
obvious. But equally obvious, we hope, is
the fact that our interests coincide with the
public interest.
Importantprogress hasten
members of the Foundation already represent
nearly half the production of beer and ale in
the United States; and these member are
pledged, individually and collectively, to the
Brewers Code, one significant clause of which
is as follows:
"We pledge our support to the duly con
stituted authorities for the elimination of
anti-social conditions wherever they may
surround the sale of beer to the consumer."
Being practical men, we promise no mira
cles. We cannot immediately or effectively
"police" the quarter-million points where
beer is sold (nor, to be fair, have we legal
authority in many cases to do so). Nor can
we, immediately, bring about full compliance
with the law among all retailers, nor honest
enforcement by all authorities.
But a beginning has been made.. .and we
do promise that you will see results from it. ,
How far we can go, and how soon, depends
very much on ourselves... but partly also
on you.
Public opinion, once aroused, can operate
to bring about honest enforcement of exist-,
ing laws. Restriction of your patronage only
to legal, respectable retail outlets can and
will operate to raise retailing standards.
Public preference for the products of Foun
dation members1 will bear witness of your
approval' both to members and to cooperat
ing retailers, and will encourage them to
renewed efforts.
This is, therefore, at once a statement of our
objectives and an. appeal for your support,
without which we mutt aS! short of our high '
hopes. We urgently invite your full and
sympathetic cooperation, v
UNITED BREWERS INDUSTRIAL FOUNDATION
31 East 40ttGtrcct, New .York, N. Y.
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Gotrtspontbuc 6 incited fiom grouts and
dividual everywker who art InUrqsted in th
brtwint industry and its social responsibilities, I
if
ha'
, f , tdetifitd in th advertising of mmbr$ h this tymbol.
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