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THE C -4fe—■ CHRONICLE Cliaton, 8. Cn Thursday, November 4, 1965 dote The Back Door „ Consolidation of several federal agen- dee into the new Department of Housing and Urban Development has focused atten tion again on the billions of dollars being spent through the “back door.” Back door spending means that the au thorization circumvents the normal legisla tive appropriation process and thus is not subject" to annual Congressional scrutiny. Sen. Harry F. Byrd (D.-Va.) has this to say: “Every major program and agency to be consolidated into the new Housing and Urban Development Department has unlimited authority to increase contingent liabilities against the Federal Treasu^r, in sured mortgages and to guarantee Ibcal bond issues for construction of new low rent public housing units.” The new department’s spending author ity and outstanding loans come close to $82 billion. The two main points of con cern are the fundamental mechanics—back door spending—and the large contingent liability created by long-range commit ments. Congressman George Mahon (D.-Tex.) holds “back door” spending practces inde fensible” and says that it is “a misappre hension to think that Congress exercises its full spending powers through the tradi tional annual appropriation bills.” How much longer will the taxpayers permit federal spending to escape regular year-by-year control? It’s time for Con gress to close the back door once and for all. In the fisacl year that ended in June, 1964, it was $47 billion—alomst eight times as much. And the current bill is much higher. So far as the individual is concerned, social security tax collections show what has happened. The maximum payment in 1949 was $30. Now it is $174. Next year it will rise to $277.20 and further increas es are scheduled thereafter. And there is good reason for believing that the fu ture increases will be greater than the cur rent schedules—government programs al most always cost more than the optimistic estimates. The bank’s publication, in discussing the welfare programs, says: “. . . the spec tacular growth has been—and will continue to be—in outlays for social insurance plans, which provide cash support to designated classes of people as a matter of right irre spective of need.” * That phrase—“irrespective of need”— is a vital one. Take, for instance, the new medicare law. The poor, the well to do, and the very rich will all be entitled to the same tax-supported services so long as they draw social security benefits. About all one can say is—What’s com ing next? SORT OF UNUSUAL ‘BUSINESS AS USUAL’ I Glover, planned and supervised the making and location of each picture. Pictures of the school clubs, yearbook and newspaper staffs, the band and majorettes, and the cheerleaders were made on Tuesday. On Wednesday the class officers, club officers, sen ior superlatives, and reporters and solicitors had ther ipictures taken. • « • Ito top magazine salesmen were announced last Friday. The salesmen and their sties are as follows: Tommy Johnson, $245.48; Pat Thomason, $U5.74; John Patterson, $110.88; Ed Rog ers, $184.84; Donnie Estes, $183.78; Wayne Butler, $184.41; Pat Thomason and Horace Hor ton got the two tig “Wooly Bool- ies.” The senior class turned in a total of over $5,800. the Bailey Memorial hospital. Reports are he is doing fine and will be home in a few days. His daughter, Mrs. Tol bert of Greenwood were to see him Sunday. Mr. and Mrs. Rufus McClain of La France spent Saturday with their daughter, Mrs. Charles Bannister and family. M. C. Crisp of Charlotte, N. C. was to see his mother Friday. Mrs. Effie W. Fuller accom panied by Col. and Mrs. C. M. Fuller spent last week at her home here returning to Colum bia Sunday. News MRS. MAUDE BRYSON Exodus From Cuba Let’s be dear about it in the very be ginning that we’re wholeheartedly in favor of welcoming every Cuban that Castro is willing to let depart from that island of misery. And that can apply, as far as we’re concerned, to every Cuban on the is land except one: Fidel Castro himself. But we think it important that it be clear, too, what this exodus from Cuba is all about The fact is that Castro’s cross bred Communism hasn’t been able to feed the Cuban people any better than the USSR brand has done in that gigantic jail, or the Red Chinese version in its bamboozled em pire. So, Fidel is frantically shipping out several thousand non-productive citizens that his economy can’t feed—the old, in firm, the vary young, the unemployable. Hungry people are discontented; Fidel fig ures to let us feed them, and thereby make his own dwindling Cuban-produced food go further in keeping his remaining minions fed better than starvation rations. Note that the bearded brandy-and-dgar despot has permitted none of the estimated 60,000 “political” prisoners to depart the attentive care he has given them, nor has he granted passage to any military-age young men. He fears they might re turn from Florida, gun in hand. We need badly to understand the beard ed one’s purpose, while we welcome each refugee with pride. And let us listen atten tively to the experiences with Communist treachery which they can recite; it will help us to understand our own peril. Certainly we would rather spend $100 million, or whatever it may cost, out of our federal treasury to help these refugees resettle here among us, than send one cent more in foreign aid to Sukarno, Nasser, or Tito. The United States has had few friends who stood more firmly with us in hemis pheric affairs than pre-Castro Cuba. Welcome—to our hungry Cuban neigh bors. May you find peace and renewed hope here. irrespective of Need” As everyone must know, this nation has gone a long way toward what is called a welfare state. But it's a safe bet that tew realise how fast the trip has been. It’s an equally safe bet—that equally few real ise how enormously the costs have escalat or. - The story is told in s publication of the Morgan Guaranty and Trust Company of Ntow York. In 1946—a mere 20 years ago —federal, state and local government spend ing on welfare activities came to $1 Babson’s Point of View On Credit and Debt . Ry ROGER W. RABSON / Babson Park, Mass.. November 4 — As the U. S. approaches the end of the fifth year of an economic upturn that has set many records, we are concerned about our rapidly rising private debt. We all, in fact, might well ask ourselves: How long will the inflationary state of mind of the public continue? RECORD INCREASE IN PRIVATE DEBT Many factors have combined to produce the business boom: Among these are population growth, technological advances, international tensions which have made it necessary to spend more and more for defense, the large amounts poured into foreign aid, and constantly climbing wages. Even so, without rising debt to feed on, the business boom would have long since burned itself out. There has been a tremendous boost in private debt in this country over just the past few years. From 1966 through 1964, the advance amounted to 104%. Going back father, to 1046 at the end of World War H, private debt through 1964 racked up a phenomenal rise of 488%. Adequate increases in credit are necessary, of course, to keep the economy on the upmove; rising debt provides the momentum for growth and progress. But the persistence and rate of the upspirti are governed by the capacity and willingness of lenders and by the capacity and willingness of borrowers. INSTALLMENT DEBT A very sharp step-up in the use of installment credit has been perhaps the biggest factor in keeping consumers spending heavily for goods and services. And it appears that they will be buying still more on installment in 1986. They have been “brainwashed” by long yuan of watch ing more and more people idling up debt and yet still seeming to keeptheir heads above water. The years of climbing personal incomes — in the face of steadily rising prices — have made debt repayment appear easy. There is now some $64 billion in installment debt outstanding — an increase of 50% since the beginning of the present economic upturn in 1961. We look for installment debt to move still higher over the next six months at least . . . unless the Federal Reserve ups interest rates before then and thus clamps a lid on the boom. GNP AND DEBT There is no denying that total private debt outstanding — corporate and individual — Is at record levels. Yet. high though it may be, it is still apparently supportable. The big question we have to face is the rate of rise. There is a sympa thetic relationship between Grots National Pro duct and private debt. Some economists claim that the present rate of rise in private debt is fully Justified by our expanding GNP. We do not agree. From the end of World War II through 1964, GNP increased about 184%; grots private debt ex panded 488%. This disparity has widened further in recent months; it is definitely a caution signal. Corporations — and individuals — the country over are prospering from rising asset values and mounting earnings. Confidence abounds, and everywhere is heard the magic word “growth”. Such attitudes are symptoms of the late stages of a boom. And the longer the boom runs without correction, the surer it is that more people will plunge themselves dangerously into debt. BOW MUOR V TOO MUCH * How much is too ranch? Only you can tell, for you know best the details of your overtil posi tion. We do say this: If we were owners of a small business, ws would think twice today More un dertaking expansions that would require lerge borrowings .. . especially if these were to entail repayments that ootid be met otiy on the busts of present volume and earnings. And If we were retail merchants extending instaUmsnt credit, we would screen applicants mors closely, keeping In minrf that 10% of an families now owing ment debt are already using more thin their disposable income for an. we would be careful not to win proceed always as rapidly at R tibe past ftw years. Stories Behind Words ky William 8. Ptaflald Carouse Competitive beer drinking was introduced into England during the 16th century. English soldiers adopted the custom from the Germans and introduced it to England. The custom was an old one among the Germans and was known as “garaus” — from “garaus trinken,” to empty the cup or stein. “Gar” meant all or entirely, and “aus,” out. The object was to turn up the stein and empty the contents in one drink. In English, “garaus” was changed to “carouse.” As a noun “carouse” denotes a drinking bout; as a verb it means to take part in a drinking bout or drunk en revel. Mr. and Mrs. J. H. Elledge of Ware Shoals were to see Mrs. Elledge’s parents, Mr. and Mrs. P. W. Finley Sunday. Mrs. Roily Bannister visited in Belton Sunday and Monday with Mrs. Roy Welbowrne and Mrs. Stella Day. Mrs. Edd Burns of Columbia spent several days during last week with Mrs. Roy Miller and other relatives here. Mr. and Mrs. J. W. Miller spent Sunday in Fountain Inn with their daughter Mrs. Hugh McCarter and family. G. C. Watts is a patient at Patronize The Chronicle Advertisers for those so dear newG OIVHATVE STERX.TNGr picture frame & pin cushion <930 Length 3 Vi" $12.50 Length JlV [Exciting new Gorham Sterling gift items... so perfect! The rich red velvet adds that extra sparkle of luxury to the precious Sterling in these Gorham gift items. Both the heart shaped pin cushfon and picture frame are ideal gifts for those you love most, as well as yourself. lninnlnp 'jr vwVvwlwl "It’s Time That Counts” CLINTON JOANNA Highlights From Clinton High By PATSY SIMMONS It was announcel Monday that two Clinton High School students have been selected as members of the All-State Chrous, and one other has been named to the All- State Clinic Chorus. Selected as members of the South Carolina All-State Cho rus are James Meadows, ten or; and Sheila Gilliam, soprano. Johnny Fulmer, tenor, was .se lected as a member of the All- State Clinic Chorus. These stu dents were selected from more than 1800 students who audition ed at six audition centers throughout South Carolina. For the audition each student had to sing a solo, sight read a hymn, sing a series of vocal exercises, and explain various musical terms. On November 14, these Clinton students will represent the school at the Fall Choral Festi val of the South Carolina Music Educators Association at Dreher High, Columbia. The students are members of the Clinton High School Chorus directed by Mrs. Frank Gilflllan of Newbeiry. • • • On Tuesday and Wednesday of this week The Clintonian staff was busy making pictures for the activities section of the year book. Miss Sheely and file co- editors, JUdy Aimer and Jeannie Finance qour car here and SAVE MONEY Our low-cost Auto Financing Plan means lower monthly payments for you. See us for your Auto Lou. M. S. Baiey & Son Bankers Established 1886 Member FDIC CUnton, 8. C. "4% Interest Paid On One Year Savings Certificates" ** of CUNTON, 8. C., THURSDAY, NOYE1 4, 1985 (BUntim afynmtri* Jtiy 4, MM - WILLIAM WILSON EARRa- PUBUSHED EVERY THURSDAY BY THE CHRONICLE PUBLISHING COMPANY Rate (Payable In Advance) One Year $4J9; <Bt Mentha a»aa . One Year $549 *; • Second Class Postage Paid at CUnton, 8. C. POSTMASTER: Send Farm 079 to CUnton Chronicle, Clinton, 8. C. - ■ .... cooperation of Up not of n •ml readers — the The Chronicle will for fSTVlews or opinions of Proto Association, Editorial Association Yaw ( man™ Program Today, Friday and Saturday The Greatest Disney Show of Them All! The!? OuHaicai the and conquered a dmal ,*rr ^ V v Walt ooum FMtana: 3:*5, t:t8, 7:21, 3:14 Saturday: Start 1:03 P. M. Mon.-Tues.-Wed., Nov. 8-9-10 iflBr mi CM. CM, 7:33 aW CM I lutrurlnir with TEAMK DATED OVEN WALLS DUitlNO OUR T.E. JONES & SONS W. Mala St FURNITURE 8334423