THE PERQUIMANS WEEKLY. HERTFORD. NORTH CA30LINA. FRIDAY. JANUARY 10, 1858.
:-Nw High Of m Billions,
.1 Stakes In Fight On Inflation
The annual cost of private and erate in this respect
ublic pension and retirement' - The size and scope
of these
' rograms has been rising steadily
a keeping with the growth of
.'.lese plans in recent years and
ided up tq more than $13 bil
'.ons in 1956.
That sum represented the com
bined payments by employers
and employees as contributions'
into the funds to provide the
benefits under the various plans.
vOn an overall basis, close to two
plans, and the certainty that they
will grow in the years to come,
likewise point up one of the big
stakes in the current fight against
inflation and the efforts to pre
vent a further erosion in the buy
ine Dower of the dollar.' Private
and public pension and retire-
ment oroerams now . cover the
predominant part of the Ameri
can working population. An esu
mated 14 million workers are
"thirds of the payments were made covered under private plans
.ay employers, including Govern-j representing about one person in
: meni ior mose on ine puuuc pay-
iroll; but the employer proportion
.pi very much larger under private
ylans alone, insured and nonin
fiured. 1
Their Economic Impact
v Indicative of the size they have
! ttained and their economic im
pact, the combined pension and
-retirement program contributions
in 1956 were the equivalent of
t
otal personal income before
taxes last year. They figure out
o approximately $200 for every
ody employed in the civilian
.working population,
f With contributions of more
than $13 billions a year and still
Rising, and with combined assets
that approached the $75 billion
mark at the end of last year, pen
sion : and retirement programs
fave become a major factor in
the nation's savings and invest-
a .. ...
mem process though there are
every four in private nonfarm
employment. The overwhelming
majority of these are also cover
ed under Social Security.
Need for Stable Dollar
A retirement benefit, whether
under a public or private plan, is
essentially a promise of future
buying power to the recipient
when he leaves the working pop
ulation. Inflation plays no favor
ites as between the, two. Ob
viously, therefore, continued sta
bility of the dollar is vital if pen
sion and retirement benefits are
to live up to future expectations.
Figures compiled from private
and Government sources show
that combined contributions into
the funds behind public and pri
vate retirement programs added
up to an estimated $13.3 billions
in 1956. The comparable figure
at the end of 1951 was just about
$8 billions, indicating a growth of
over 60 per cent in a five-year
basic distinctions with regard to period alone.
iow private and public plans op- Employers, including Govern-
Congratulations
i
to the
Hertford Banking Company
, on the grand opening
of its new
Ultra-Modern Riiilding
f J.F. HOLLO WELL AND SON
BUYERS OF FARM COMMODITIES AND HOGS
Phone 2841 Winfall
m:k-:":M"X:M"X:
ment as an employer, paid an e-
timaiea o Duuuns ui urns vi
tributions last year, or 60 per
cent. of the total.
Under private plans alone, as
contrasted with publicly-sponsored
plans such as OASI, employ
ers made combined contributions
of $3.2 billions in 1956 and em
ployees only $500 millions.
Under public plans, which are
founded in the taxing power of
Government, the contribution
breakdown is 50-50 in the case of
OASI and Railroad Retirement.
Employees covered under Federal
Civilian Retirement pay about 60
per cent of the annual contribu
tions, whereas under State and lo
cal retirement programs the em
ployee contribution averages out
to about 45 per cent.
The Investment Story
The system of contributions and
their breakdown is just one of
the
and private pension and .retire
ment programs. Another is their
impact on the capital market.
Private plans, insured and non
PAY RISE EXCEEDS
PRODUCTIVITY GAIN
' INCREASED
V INCREASED
I PRODUCTIVITY,
r
Prent
ptrhwr
94t '48 '49 '30 '51 ; '52 '53 . '54 'iS - 195
Prepared by NAM from Gov't. Statistic " 4
4
Investigations as to the cause of
rising prices are proceeding in the
nation's capitol amid a good deal
of controversy, and one of the im
portant questions is whether 'pay
differences between public increases are exceeding produc
tivity gains ana rorcing prices up.
A recent governmental report
covering the bulk' of the econo
my, supplied the figures on the
insured combined, play a big nndlchart revealing that, wages have
:xxx:x:xm5-M":
direct role in the financing of
eoonomic expansion. With a rate
of growth in recent years of
about $3 billions a year, combined
assets of these plans added up to
an estimated $28 billions at the
end of 1956. Close to half this
total is invested in corporate
bonds, assuming the same dis
tribution in investments of the
funds behind insured pension
plans as life insurance assets in
general. Nearly $4 billions
more are invested in mortgages
on homes and commercial prop
erties. Other large investments
are in common stocks and U. S.
Government securities, about $3
billions in each case at the end of
last year.
Data on the investment of funds
behind State and local retirement
programs show that non-governmental
securities have been play
ing an increasing role in their
portfolios, though still a minor
part of the total. On the other
Hand, by law all the funds in the
plans sponsored by the Federal
Government are invested in U. S.
securities.
Savings Accounts
Are Insured Up
To $10,000 Each
Savings accounts in the Martin
County Savings and Loan Asso
ciation are insured up to $10,000
each by the Federal Savings and
Loan Insurance Corporation, a
permanent instrumentality of the
United States government.
This gives added protection for
the depositor, but the directors
of the association feel that the
best protection is sound manage
ment of the affairs of the associa
tion. This is constantly stressed
at all meetings of the board.
The more we study, the more
we discover our ignorance.
Shelley.
climbed muoh faster than the
output per hour. The spread be
tween the two factors shows the
extent of the excess.
Each unit of output has to carry
part of this excess wage cost, with
the result that labor cost per unit
has been going up. Many belif ve
that this is the main lever that is 'vantage.
forcing prices up.
The ,-governmbnt report stated
that "productivity is a crucial
element in the wage-cost-price re
lationship. It represents the mar
gin, within which wage increases
can be granted without increas
ing production costs or curtailing
the amount available for other .in
come, payments." In other words,
when wages go up faster than
productivity production costs rise
and naturally prices go up to cov
er some of the increased produc
tion costs. However, inflation' of
this type hurts some income
groups while others, whose wage
payments increase faster " than
productivity, gain an unfair ad-
1948..
1949..
1950..
1951..
1952.
1953..
1954..
1955.
1956..
Pay Per Jour
Increase Over 1947
(Percent)
8.8
12.2 '
185
29.0
36.3
43.3
48 1
...53.6
61.4
Productivity
Increase Over 1947
V (Percent)'
2.7
7.2
13.3
14.4 -16.2
18.7
21.1
25.5
26.1
Lag In Savings
Broad Impact
On Economy
The American people have rung
up a series of outstanding eco
nomic records year after year in
the prolonged period of prosperi
ty since the end of World War II
with one very important and vital
exception. That is in the matter
tf personal savings.
Figures compiled by the U. S.
Department of Commerce show
that, while the economy as a
whole has expanded by about 20
per cent in the period from 1953
to date, personal savings have
little more than held their own
in dollar amounts for the period
as a whole and have actually fall
en in relation to the growth in
income. The period since 1953 is
taken as less subject to abnormal
conditions and influences than
the preceding- war and post-war
years.
Implications of Lag
Thus the recent lag in savings
has not only been out of tune
with the expansionist trend in
the rest of the economy but has
had a direct bearing on two of
the basic problems with which
the nation has been confronted.
These are the shortage of new
if
DON'T MISS ATTENDING THE
GRAND OPENING
of the
NEW HOME OF THE
Hertford Banking Co.
To realize how ultra-modern the new building of this
institution really is.
We-congratulate HERTFORD BANKING COM
PANY for bringing this building, which is a credit to
the Town and County, to our community. , V
WHEN IN NEED
of Petroleum Products Call Us . . We
Distribute Pure Oil Products
WINSLOW OIL COMPANY
Phone 3336
Hertford, N.G
OUR CONGRATULATIONS I
to the
Hertford Banking Company
on the grand opening of its
New Modern Building
GAS KITCHEN
ju juiu uinu uume you wani a moaein kiicnen . one
that's attractive, efficient, compact, easy to work in and easy
to keep clean. That's an all gas kitchen. And you can have it
BO matter where you live, with PYHOFAX Bottled Gas. '
Pyrofax Gas is a clean, fast, dependable fuel. It's easy
lo install, too ... no expensive wiring ... it is piped in di
tect to your range, refrigerator, or water healer, from twin
cylinders outside your house, -
Come in and see us today . . . let us show you how easily,
how economically Pyhofax Gas Service can modernize
your kitchen
Superior BOTTLED GAS SmWc
T0C3 "PYXCFJaX GAS BUTEOTC3
AnSUUt for Me win fraorAX Cm
Maow Cm and Caiouc lUnou Inm axrvaiaAos '
m tad Iitaio Watts Hums MmiUy kaewa room
. , batten and other $u appliances. . t
HARRELL GAS - COAL CO.
PHONG 3881 Nt Ta Pf fa allium Hlxh Rehaol HERTFORD
PHONE 6994 1 ; !. Faarlnc Stfrct , ' ELIZ. CITY
PHONE 3310 , ' s 8. Broad Street , ' V . EDENTON
savings to meet capital and in
vestment needs, and the strength
and persistence of the basic in
flationary pressures in the econo
my. Evidence is yet to be conclu
sively supplied that the climb in
living costs and the wage-price
spiral have spent their, force. So
far the prove toward easier money
by Federal Reserve authorities
appears more a shift in emphasis
in recognition of economic soft
spots and Government financing
needs rather than as a positive
sign that inflation has been lick
ed. Department of Commerce fig
ures show a pronounced rise in
the last few years in virtually all
the basic indicators of economic
expansion, with new highs in the
ascendancy. Gross national prod
uct, for example, has gone up
more than $70 billions from 1953
to date, personal income after
taxes by about $50 billions, and
consumer spending by practical
ly as much. '
The Recent Trend
-put as far as personal saving
is concerned, the annual
economy . and ' personal 'income er a five-year or 10-year contract
levels were much lower-than they
are now, and the dollar's buying
power higher as welL . ,
Furthermore, the rate of per
sonal saving' in relation- to in
come has fallen significantly in
the last five years. In 1953 the
people in the aggregate saved
just under 8 cents out of every
dollar of personal income after
taxes. The comparable figure this
year is less than 7, cents. This
may look like a small difference,
but a change of one cent in the
savings rate means $3 billions a
year in new savings at current in
come levels.
Tree Planting Plan
For North Carolina
seems to have been bumping into
a ceiling of $20 billions a year.
That was the aggregate for 1956,
and is ..likely to be the total for
this year also, according to the
indications. .'; While higher than
1955 or 1954, the 1956-57 annual
level of savings is just barely
above the 1953 savings total of
$19.7 billions,
Under the1958 Soil Bank Con
servation Reserve tree planting
contract program, North Carolina
farmers who place eligible land
in tree cover can earn one of two
establishment payments, accord
ing to Dan Hatch of ASC
Hatch says that if active gully,
wind or streambank erosion re-
total quires special efforts to stabilize
land and insure planting success,
the establishment cost-sharing
rate, may be $20 per acre. Spe
cial efforts may consist of plant
ing trees to closer than average
spacing,' planting windbreaks,
mulching the area with litter,
land grading, etc.
In addition to the above estab-,
when the general lishment tost, you may sign eith- add my income to what I owe.
on erosion control-type planting.
The full rental. rate in either case
is $1Q per acre. , , ' , '
' Hatch says, that where special
erosion Control efforts are not
needed, the establishment cost
sharing rate will be $12 per acre.
The rental period will be 10 years
and ine full rental rate is $10 per
He adds that spacing recom--mended
for timber production
plantings at the regular establish'
ment cost-sharing rate of $12 per
acre will give you an average, of
500 or more live trees per acre at
the end of the first growing sea
son. This is the minimum needed
to qualify your planting as sue-;
cessful under North Carolina Soil
Bank requirements for timber
production planting.' : : .
If ' erosion control planting is
needed, spacings are designed tq
give a minimum of 600 living
trees required at the end of Jlhe
first growing season during' an
average year.
Simple Arithmetic T,"
I
"I suppose,.: like , many other
husbands,-- you can't say what
your wife pays for her hats and
dresses." . . - "
"Oh, yes, I can too much '
"But, joking aside, have you
ever stopped to figure out how
much your wife's clothes cost
you?"
It isn't necessary. I simply
Perquimans County's Oldest Firm
OFFERS ITS
CQNGRA TULA TIONS
to the -t -
Hertford Banking
ON THE COMPLETION OF ITS,
ULTRA-MODERN BUILDING
& and
n BEST WISHES FOR
ITS OPEN HOUSE
We hope we may have the pleasure of joining you
in the "OPEN HOUSE" celebration and the inspection
of this modern structure.
v AFTER THE OPEN HOUSE VISIT OUR STORE
AND INSPECT OUR LINES OF
NEW FALL MERCHANDISE
You Will Find Everything Needed By the Entire
Family at Right Prices. ' v
J. C. Blanchard & Co., Inc.
"Blanchard's" Since 1832
BEST WISHES
to the
Hertford Banking Co.
UPON THE ERECTION OF ITS
New Modern Building
We are pleased to join others of this community in
congratulating. TflE HERTFORD BANKING COM-.
PAN Y in bringing its fine building to our town and ,
county. ', . '
WE TAKE PLEASURE
IN SERVING OUR FRIENDS AND CUSTOMERS
WJTH THE REST IN ;
Hardware - Paints - Evinrude Motors
Boats and Sporting Equipment
5HK
17
Hertford, Norfh Carclifia4 ,
4 ' ww)tfw
V