The Clinton chronicle. (Clinton, S.C.) 1901-current, April 20, 1961, Image 4
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THE CLINTON CHBONICLE
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Thursday, April 20, 1901
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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
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