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J THE CLINTON CHBONICLE ' ' ■!<< ' Thursday, April 20, 1901 11*1 i> —* J — nistory xtovkwi An Answer What immediate results can we expect if the current proposal to increase the federal minimum wage and to extend the wage-hour law to millions of additional workers, large ly engaged in retail industry, is enacted into law?' History can help provide an answer. The minimum wage was last raised in 1966, at a time when the economy was expanding. Yet, according to the Labor Department, this wage boost was followed by “significant de clines in employment in most of the low- wage segments studied.” It also said, “Had the minimum wage increase become effec tive during a period of recession, its adverse effects on employment might have been much greater.” Today there is much concern over the un employment problem. Under these circum stances. the depressive effects of another increase in the minimum wage could be ex pected to be much more severe than in 1956. That is borne out by inquiries made by the Chamber of Commerce of the United States. To take one example, a retail chain esti mates that the arbitrarily higher wage would cause it to lay off up to 5,000 of its more than 20,000 employes. A smaller hotel chain, with 1,400 employes, estimates that 150 would have to be laid off. The only alternative, obviously, would be to pass the added wage costs along to. the consumer. In a highly competitive era such as this, that is not always possible—cuts in marginal employment would undoubtedly come first. Then, if added costs were passed on, we’d be in for a new round of inflation. And the worst sufferers would be people with small incomes. schools. Federal medical and dental scholar ships. The health plan for the aged, if passed this year, would be available on July 1, 1962 to 14.2 million Americans over 05 and pro vide up to 90 days of hospitalisation ($10 deductible the first nine days), up to 180 days of nursing home care and up to 240 days of visiting nurse service. The President insisted in his message that: ‘This is not a program of socialized medicine.” It “guaranteed,” he said, freedom of choice of doctor and hospital and is “in accordance with the traditional American system of placing responsibility on the em ploye and the employer rather than on the general taxpayer, to help finance retirement and health costs.” We had somehow felt the “traditional American system” involved looking out for the one’s own. Nor is there any “freedom of choice” regarding payment of the increased Social Security taxes — even among those who are providing their own health insur ance. Nor can we conceive of the Govern ment barging into the healing business in any large way without regimenting the med ical profession and entailing the customary extravagance, inefficiency and bureaucratic arrogance. Babson Discusses When This Bull Market Will Culminate The Right To Advocate Has a taxpayer the right to spend money, in ethical and legal fashion, in an effort to defeat or promote legislation which would affect his business and his livelihood and to regard the cost as a legitimate business ex pense for income tax purposes? Or, if he so undertakes to make his views known, must he do so at a heavy tax penalty ? These are not academic questions. The In ternal Revenue Service and other govern ment agencies have held that such expen ditures are not tax deductible. This has hap pened in the case of a number of enterprises which have used advertising and other means of expression to say what they think about legislative propositions. If that is not a legi timate business expense, which should be treated like all other business expenses for income tax purposes, one wonders what it is. The Committee on Federal Taxation of the American Institute of Certified Public Ac countants recently expressed themselves thus to the House Ways and Means Committee: “We believe the taxpayers not only have the right but have an obligation to express their informed opinions and share their experienc es with legislators and the public generally. When such activities bear a close relation ship to the taxpayer’s trade or business or to other activities engaged in for the produc tion of income and the methods employed are legal and moral, the expenses thereof should be deductible for income tax purposes.” Apparently only Congress can bring about a change in the existing IRS rulings. Let us hope that it acts, and with minimum delay. There is no room in a supposedly free coun try- for censorship by taxation. Clinton Davidson This Week in Washington of w&k in Russia. The average American fanner feeds himself and 28 otherf In Russia four peo ple on farms feed themselves and only six others in cities. “We need to tell—and re-tell— that story,” Mr. Freeman said. Unde Sam, M. D. Uncle Sam is going into the health bus iness in a big way if President Kennedy can sell Congress on his six-point proposal for Federal intervention in the fields of medical and nursing services and education, hospital ization, medical research, vocational re habilitation and “Youth Fitness.” The most controversial item is a revival (with some revision) of the medical care for the aged program that was rejected by Congress last year. Under the new specifi cations, the estimated cost of $1.5 billion to be met by a hike in Social Security taxes. The five other programs to be paid for with increased outlays of tax money are loosely figured to cost something over $56 million for the first year and $170 million the second year and-include construction of nursing homes and medical and dental Babson Park. Mass., April 20—After my fifty years of study of the stock market, I tender a list of signs for the culmination of a bull market, and offer an Important final conclusion. WATCH WALL STREET 1. I like to notice the number of shareholders of the larger corporations. When the number of shareholders begins to decline, it means to me that we are nearing the end of the bull market. . . that the insiders are selling out. 1. I watch the-level of brokers’ loans and the degree of market activity. There is a steady rise in both of these preceding the culmination of a bull market. , 3. I like to watch the published percentage of total borrowing by members of the New York Stock Exchange. When it is over 6% or more, the stock market is in a vulnerable position. STOCK PRICES AND MONEY RATES 4. A prolonged period of tight money with low bond prices and large stock transactions usual ly points to the termination of a bull market. Of course now, with President Kennedy attempting to control the money market, this situation is not so significant. 5. Although the Dow-Jones Averages may con tinue to go up for some time before the bull mar ket culminates, this does not mean that the stock you hold will go up any further. Therefore the table of New Lows which appear in the daily newspapers should be watched and compared with the general averages. BOND PRICES VS STOCK PRICES 8. Never wait until the movement in the stock market appears on the front page of your daily newspaper. The newpaper’s city editor determines when the stock market news should appear on the front page. It is always well to be acquainted with that man and And out how he stands with his holdings. 7. The relation between stocks and bonds is worth watching. As a rule, bonds begin to decline first. As long as the bond yields are falling, there need be little fear of the bull market’s culminat ing. 8. All the talk about mergers, consolidations, etc., should be read. Naturally, the directors of a company are in the best position to get earnings news. As long as the company is earning good money and its prospects are good, directors are not interested in consolidations or mergers Hence, these news items about consolidations may be good signals that a bull market is cul minating. In the case of the death of a large stock holder, this is usually a signal that the stock will sell off. When you make up your mind that the bull market is culminating, you should not be too anx ious to' get out at the top. When deciding to sell, enter an order to sell “at a fair market," rather than at a fixed price. Remember that the large brokerage houses always balance the relatives number of orders to buy or sell and the prices at which the orders are to be executed. As these brokers compare notes, when they go out to lunch, the game is stacked against those who are depend ing on “fixed” selling orders, Conclusion x In the long run, we must not for get Sir Isaac Newton’s “Law of Action and Re action” pronounced in 1687 and translated into English in 1729. Since the beginning of time, every period of prosperity has gone too for and has been followed by a period of reaction. When we were on the gold basis, the investor could forecast this change; but now we are on a political basis in stead. President Kennedy, the Federal Reserve, and Congress can extend the present bull market —but they are simply delaying the final evil day by so doing. FINALLY, ALWAYS BE PREPAR ED FOR SOME UNEXPECTED EVENT. SUCH AN EVENT USUALLY MARKS THE IMMEDI ATE CULMINATION OF A BULL MARKET THANKS. MR. Secretary of Agriculture Or ville Freeman’s testimony before the House Agriculture Commit tee recently on the farm cost- price squeeze deserves to be more widely reported than it was by most of the city press. Mr. Freeman has repeatedly emphasized that a correct un derstanding of farm problems must precede any sound solution of those problems. He believes that when all the facts are under stood farthers will receive praise rather than abuse from consum ers. “The average citizen has a dis torted image of agriculture l and the farmer,” Mr. Freeman said. “He does not understand agricul ture’s contribution to his own welfare and standard of living. “He recognizes, in short, neith er Agriculture’s success nor Its distress. Until this understanding gap is closed, farmers will be un able to make their full contribu tion to national prosperity, na tional security, and world peace.” BEST IN THE WORLD “U. S. agriculture has achiev ed a success unparalleled any where in the world or at any time in history. Many persons thought lessly blame farmers for the al leged ‘high cost of food.’ Others believe that ‘farmers are getting rich at taxpayers’ expense,’ or that ‘farmers are subsidized to make up for their inefficiency.’ These fallacies must be effec tively dispelled.” Consumers, for example, can buy almost one-third more for food for each hour of work than they could in 1947, even though food prices are higher. An hour’s work in 1960 would buy 2.5 pounds of beef compared with an average of 1.9 pounds in 1947-49 Since 1947-49 farmers’ share of each dollar spent by consumers for food has declined by 13 per cent, but the spread between what the farmer receives and the consumer pays has increased by 45 per cent. Department of Agriculture fig ures show the average consumer spent 27 cents out of each dollar earned in 1947 for food. Last year he spent only 20 cents. Food still is the biggest bargain in Ameri ca. FARM BREAKTHROUGH “In the past two decades,” Mr. Freeman said, “the average farmer has tripled his output per hour of work. Nothing like this has ever been known in the world before. It is one of the significant and important breakthroughs of human history. “The truth is,” Mr. Freeman said, “farmers have been subsi dizing consumers rather than the other way round. Because farm ers have been subsidizing the rest of the ecnoomy . , . farm income has steadily declined. “The incomes of our farm fam ilies are lower relative to the rest of our economy than at any Hm» since the 1930s. Farm net income has dropped about one-fifth while for the rest of the nation it has increased by about two-fifths in the pait 10 years.” The food that can be purchased with wages for one hour’s work in America would take four hours Hurricane Newt Of The .Week Mr. and Mrs. H. A. Copeland were Sunday dinner guests of Mr. and Mrs. Allen Coleman in Lau ren*. / Mr. and Mrs. Charles Young and family and Henry Clark en joyed supper at Panorama Lodge Sunday. Mr. and Mrs. Carroll Young and family, Mr. and Mrs. W. D. Bishop and family, Misses Sallie and Mary Frances Nabors enjoy ed Sunday dinner at Panorama Lodge. Charleen Young was an over night guest of Kay Caldwell Sat urday. Mr. and Mrs. J. R. Bartley visited Mrs. Bartley’s brother, Ralph Bannister, in Greenwood Sunday. Mrs. Pearl Smith is spending some time, with Mr. and Mrs. John Teague and Miss Dianne Teague in North Xugusta. Mr. and Mrs. Hugh Pegram and children of Brevard, N. C., visited Mrs. Pegram’s sister, Mrs. Bobby Neighbors, and fam ily Sunday. Mr. and Mrs. Ralph Lawson and family visited Mr. and Mrs. Allen Young, Mr. and Mrs. Her- shell Lawson Sunday afternoon. Mrs. Charles Hipp was a Sun day visitor of Mr. and Mrs. Allen Young. Mr. and Mrs. Allen Young will celebrate a wedding anniversary April 26. Mr. and Mrs. Curtis Taylor visited Mr. and Mrs. Jimmy Eu banks and daughter, Mr. and Mrs. J. O. Haupfear Sunday af ternoon. Dr. and Mrs. Mac Goings were in Greenville Sunday for the fun eral of Dr. Goings’ uncle. While there they visited Mrs. Goings’ sister, Mrs. B. J. Lawrence, and family. Mr. and Mrs. Jimmy Kirby Sunday afternoon visitors of Mr. and children of Greenville, were and Mrs. Dillard Young and family. Mr. and Mrs. Sam Wallace and family of Laurens, were Sunday visitors of the latter’s mother, Mrs. Mace Young. Mrs. Pearl Odell of Travelers Rest, spent some time recently with her sister, Mrs. Nannie Hitt. Mr. and Mrs. W. T. Scogin and Mitch visited Mrs. Dick Fennell in Greenwood, who is improving from surgery at Self Memorial hospital. CIRCLE MEETS The Martha Franks Circle of the Hurricane Baptist Chur met Wednesday, April 12, at the home of Mrs. Mace Young. An interesting program, “His Har- alds Will Proclaim,” was pre sented. After the program fellow ship and refreshments were en joyed. BROTHERHOOD MEETS The Brotherhood of the Hurri cane Baptiet Church met Thurs day, April IS, at the church. Sup per, coneietlng of barbecue chick en, rice, gravy, alaw, hot rolls, lemon pie, tea and coffee, was served by Mrs. Mace Young and Mrs. Dillard Young. W. D. Bish op presented the p pro gram. CIRCLE TO MEET Circle No. 2 of the Hurricane Baptiet Church will meet Thure- dya, April 20, at the home of Mrs. W. P. Gastley. HOUSEHOLD SHOWER A household shower was given at the home of Mrs. W. P. Gast ley on April 11 in honor of Miss Julia Peskopas. Twenty-two friends and relatives compliment ed her with a host of lovely gifts. Singing Sunday At Sacred Acres The regular fourth Sunday Gospel singing will be held at Sacred Acres Prayer Grounds on Sunday, April 23, from 2:30 un til 4 p. m. Sacred Acres are lo cated on the Ware Shoals-Water- loo highway. i The public is invited and all singers and musicians have a special invitation to attend. Rev. George M. Davenport is president of Sacred Acres. Blakely Places In N. C. Rifle Match Bill Blakely, son of the Rev. and Mrs. W. M. Blakely of Louis ville, Ga., won third place in the North Carolina R. O. T. C. Invi tational Rifle match. Bill has been a member of the Davidson R. O. T. C. rifle team during his two years at David son. During his freshman year he won his Expert medal and a medal for being a member of the N. C. R. O. T. C. champion team. While a student at Augus ta Military Academy he receiv ed a medal for being a member CLINTON, S. C., THURSDAY, APRIL 26, 1961 (Slinton (Etpronirlr use July 4, ia» — WILLIAM WILSON HARRIS - Jane U, 1*W PUBLISHED EVERY THURSDAY BY THE CHRONICLE PUBLISHING COMPANY Subscription Rate (Payable ia Advance) Out-of-County One Year $3 00. Six Months $2.00 .... One Year $4.00 Second Class Postage Paid at Clinton, S. C. i The Chronicle seeks the cooperation of its sufaecribets and readers — the appreciate wise suggestions and kindly advice. The Chronicle will publish letters they are aot of a defamatory nature Anonymous commimiretioni wfll aet be responsible (or the views or epMani of its win at aU Thie paper is There's no home like your own... and no place to finance your home like our association » Most families went a home of their own, and w* arc ready to help you own yours. Insured • Savings and Loan Associations like ours make more home loans than all other financial institu tions combined. Stop in and sea us about a home loan that ia personalized for your budget I • CITIZENS ® FEDERAL SAVINGS AND LOAN ASSOCIATION 2$0 W. MAIN ST. S. C. of the team which won in the Indoor Rifle match for all sec ondary military schools in the Second Army area. The Rev. Mr. Blakely is a live of Clinton, the son of late Mr. and Mja.'fL'F* Bis ly- "School Belles may soon be bridal belies. Now is the time smart graduates choose a sterling pattern and start their service ... because they’ll have mort by their wedding day! "ome in and select your i from our tion of the finest f ART YOUR PATTZRN WITH A SING LI TEASPOON *S00 <print shown nr. for <r«poom inctud* 1 l Tin) J. C Thomas, Jeweler “R’a Time That Count*” CLINTON JOANNA MttMMHf rtiyw WmI«s! - .1 PREVENT MOTH DAMAGE! Our Cleaning Process Moth Proofs! Send Ua Your Woolens and Winter Clothes For Cleaning and Preparation For Storage! FREE STORAGE CALL 83S-1492 FOR PICK-UP AND DELIVERY SERVICE SPECIAL CASH AND CARRY PRICES! SUNSHINE CLEANERS & LAUNDRY SHOE REPAIR —102 W. PtorU. 8L — SHIRT LAUNDRY