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y * I Cliiton, S. C., Thursday, June 23, 1966 THE CLINTON CHRONICLE Stockholders Should Wake Up r lhe people are the stockholders in the greatest corporation in the world, the, U. S. government. Just as is in a business corporation, they elect the officers and directors of the “company.” If the officers of our government cor poration spend its money faster than income and good business practice war rant, it is up to the stockholders (vot ers) to express their views at annual meetings (elections). If they don't do this, and if they accept constantly greater dividends (gifts) than the corporation's income can stand, they are headed for trouble. In the case of government, that means assessments (increased taxes) for ev ery stockholder (citizen)—or economy ■ to bring the operating costs of the cor poration within its income. , The stockholders in the U. S. gov ernment have a choice—they can in struct their hired officers and directors to cut expenses to income, or they can pay higher taxes. The result of rising public debt, waste and demands from voters for handouts is inflation. The stockholder voters are getting a taste of inflation. But, they have seen nothing yet, un less they curb their own demands and those of their elected officers and di rectors. They still have free elections and the right to vote and express their wishes. to cure; to further encroach on the rights of indivdiual states; to useless ly increase the tax burden on both busi nessman and employee appears as a tragic misdirection of a basically sound idea.” THE AMERICAN fTAY Prelude to Civil War Insurance Versus Welfare A bill now before congress proposes to scrap our present unemployment com pensation system, long adapted to re gional needs by the states, replace it with one dominated by another federal bureau and turn a sound insurance pro gram into social welfare. In a carefully thought out discussion, R. G. Follis, chairman of the board of the Standard Oil Company in California, shows the consequences that may be ex pected if the present system is aban doned in favor of outright welfare pay ments. The existing system is financed by a tax on payrolls. Benefits have been steadily enlarged, inequities have been eliminated,'and the reserve fund has continued to grow in spite of the fact that the states have paid out $40 billion to jobless claimants for periods up to 26 weeks. Under this insurance con cept, the states have adopted an “expe rience rating” plan for employers who pay the bill. Those with stable, year- round work forces pay less than those with seasonal or unstable work forces. The! plan has worked well. Under the federal law now proposed, the “experience” rating” feature would be scrapped and the entire unemployment system would be largely shifted into the hand* of the federal bureaucracy. The state agencies would be relegated to the role of disbursement offices. In prac tice, the claimant under the federal pro posal would very likely receive more pay for doing nothing than his employer formerly paid him for working. Fed eral i&yroll taxes would double. State payroll taxes would nearly double. As Mr. Follis points out, no one should, object to extension of present benefits in the states whenever unem ployment reaches recession level. Nor should there be any objection to ex tending unemployment benefits to a much wider tfange of beneficiaries. “But,” as he concludes, “to arbitrarily scrap our present fair and satisfactorily working system to build the foundation for another welfare bureaucracy in Washington; to actually encourage un employment, the very disease we seek Babson’s Point of View On The New Economics” By ROGER W. BAUSON Babson Park, Mass., June 23—Before World War II, most economists and busi nessmen accepted cycles as being as “nor mal” as marriage and babies. The Bibli cal fat years would be followed by the lean years. The upward, or action, phase of the business cycle would be followed by reac tion. Babson’s made Newton s theory of action and reaction famous . . . as applied to economics . . . during the early decades of this century. OUTLAWING DEPRESSIONS But after World War II, people began asking: “Must we have the hardship and pain of recessions?” Across the seas in England a new economics prophet emerged . . . Lord John Maynard Keynes. He greatly influ enced the thinking of President Roosevelt before the war, and later the attitudes of Presidents Truman, Eisenhower, and Ken nedy. In a word, Lord Keynes said that business cycles were not necessary, that they could be flattened out by the govern ment’s applying stimulants to a lagging economy and curbs to a booming one. Generally, Keynsian economics held that, when conditions were depressed, government should spend more heavily to offset lack of spending by consumers. Then, however, and this is most important ... the English financial wizard held that inflation should be avoided by the administration’s collecting more in revenues than it paid out. Appar ently, he recognized that if more and more were spent and more and more lent, pros perity would degenerate into inflation and a grand bust. So impressed were the politic ians irv the U. S. that they passed the Full Employment Act of 1946, making it the gov ernment s business to see that depressions would be outlawed. ENTER THE INFLATIONISTS During the terms of Presidents Truman and Eisenhower, there was a strong disposi tion to avoid over-stimulating the economy. But, toward the end of President Eisenhow er’s time in office, and especially during President Kennedy’s short stay, a great im patience with the nation’s rate of econom ic growth spread through an important group of young, “liberal” economists. They emphasized that other Free World nations were growing faster than the U. S. They blamed this on our government’s habit of ap plying the brakes too soon. The “New Economists,” as they are now called, promoted inflation as a way of life. Claiming that a “little” price advance was far better than the sufferings of unemploy ment and meager profits, they preached per petual prosperity. Growth musirtTever cease . . . our economic climb must be more im pressive than anyone else’s. A ROSE BY ANY OTHER NAME? Under the Administration of Pres dent Johnson, the New Economists have had things pretty much their own way. U. S. growth has been admittedly phenomena^. But in-the last year the price level for con sumers rose almost 3%. Strangely enough, the same public who accepted this 3% cut in their purchasing power without a whimper would have hollered to high heaven if the President had suggested a 3% sales tax on all production to pay for the Viet war. Also, it should be noted that the New Economists readily admit that some infla tion is the price we must pay to avoid the hardships of recessions. But no one of them has stated flatly how much is enough and how much is too much. And that is where the big danger lies. To many of us old- fashioned economists, it looks as if the new theories are no more than the old boom-and- bust credit sprees that were first made in famous by the South Seas Bubble in Eng land and by John Law in France over two hundred years ago. SIGNS OF FATIGUE And while the controversy rages, we no tice that it is taking more and more dollars of inflation to make a lesser add tion to lh" dollar price of our Gross National Product. In the last five years government spend ng rose by 74% and Federal Reserve credit climbed 50%; yet GNP was able to move up only 34%. If this trend continues, we may find that the medicine of the New Econo mists will “work” only when first applied. Like so many other stimulants, the long-run effects may turn out to be bad. The Nullification Controversy in South Carolina, 1816-1836 . i low ' -y : . ..O’.. ■ •>**#•«*•*• Stories Behind Words By William S. Penfield Masochism A normal person does not likq a physical beating. It has been noticed for centuries, though, that some persons take great pleasure in having someone they love punish them physical ly. The abnormal psychological behavior was not given a name until late in the 19th century. Leopold von Sacher-Masoch was an Austrian novelist who lived from 1836 to 1895. Von Sacher-Masoch described this abnormal mental condition in one of his works; therefore, it was called “masochism.” The word acquired the broadened meaning of “enjoyment of any abuse or humiliation heap- on oneself.” McCauley Burial Held Here South Carolina’s key role in events leading up to the Civil War is the subject of “Pre lude to Civil War: The Nulli fication Controversy in South Carolina, 1816-1936,” by Wil liam H. Freeling, just pub lished by Harper & Row. South Carolina planters of 1816 are described as aristo cratic and prosperous, enjoy ing their fine Madeira and turtle soup, their elegant balls and horse caces, yet involved actively in affairs of the nation. In the next 20 years, this contented world fell apart, Mr. Freeling shows. Eco nomic distress, fear of slave rebellion, and the prospect of emancipation of the $80-mil- lion worth of slaves in the state on whom the economy depended, led the “proud gen-, tlemen of South Carolina” to extreme states’ rights doc trines, he writes. He discusses the many rea sons why the state’s economy was declining and says the protective tariff administer ed the final blow. “Customs officers at the port of Charleston annually collected over $500,000 more in duties than the federal government spent in South Carolina, thereby adding im pressively to the flow of capi tal to wealthier sections of the country,” he writes. Carolinians suffering eco nomic loss for whatever rea son. cencentrated their ener gies on ending the protective traiff as the one aspect of the depression of the 1820’s which they felt could be avoided, he writes. Sensitivity to the slave is sue played a major part in nullification, he says, revising previously accepted theories of historians. By WILLIAM H. FREELING It was commonplace for Southern states to crusade against high protective tar iffs, he says, but South Caro lina nullifiers were unique in their willingness to take their cause to the battlefields. By 1832, they were seeking to nullify federal law by re fusing to obey it, and by 1836 they were trying to break up the Union, Freehling says. Heroes on both sides are introduced. Among them are John C. Calhon, who valued the freedom to own slaves more than the survival of the Republic, but thought mistak enly he could save both, and President Andrew Jackson, who threatened to hang him and lead the army into South Carolina. Other colorful personalities included are Denmark Vasey, brilliant Charleston mulatto who bought his freedom with a lottery ticket, and nearly brought off a large-scale slave rebellion, and Martin FINAL SETTLEMENT Take notice that on the 19th day of July, 1966, I will ren der a final account of my acts and doings as Guardian of the estate of Shirley Lorene Bled soe in the office of the Judge of Probate of Laurens Coun ty, at 10 o’clock a. m., and on the same day will apply for a final discharge from my trust as Guardian. Any person indebted to said estate is notified and required to make payment on or be fore that date, and all per sons having claims against said estate will present them on or before said date, duly proven, or be forever barred. MARY ELIZABETH BLEDSOE, Guradian June 16, 1966 J23-4c-J14 Van Buren, the “Little Ma gician” who plotted craftily to replace Calhoun in Jack son’s esteem. The Society of American Historians awarded the au thor the Allan Nevins Prize for the book. Before writing it, Mr. Freehling traveled In the South 16 months investi gating the mass of material collected in the half-century since the last full-scale study of nullification was written. The author is an assistant professor of history at the University of Michigan. He formerly taught a year at Harvard. He is a magna cum laude graduate of Harvard, College, and was a Woodrow Wilson Research Fellow at the University of California at Berkeley from 1961 to 1963. CREDITORS’ NOTICE All persons having claims against the setate of J. E. Ev ans, deceased, are hereby no tified to file the same, duly verified, with the undersign ed, and those indebted *0 said estate will please make pay ment likewise. Leona Evans, Route 2, Kinards, S. C. June 8, 1966 J16-3C-J30 CREDITORS’ NOTICE All persons having claims against the estate of R. A. Steer, deceased, are hereby notified to file the same, duly verified, with the undersign ed, and those indebted to said estate will please make pay ment likewise. RICHARD DUDLEY STEER and ROBERT LINDLEY STEER, Executors, Box 396, Greenwood, S. C. June 3, 1966 J9-3c-J23 >9 Greenville — William How ard McCauley^ 34, of Rt. 3, 4 Severn Lane, Taylors, a wholesale routeman for Pet Dairies, was dead on arrival at Oconee Memorial Hospital following an accident involv ing his truck and another at about 1:00 p.m., Wednesday, June 15, on State Highway 183 near Walhalla. He was born at Joanna, a son of Mrs. Nellie Howard McCauley'of Clinton, and the late John Paul McCauley. He was a former resdient of Clinton. Mr. McCauley was a 1951 graduate of Clinton High School, and last week receiv ed his 10-year safe - driving award from Pet Dairies. lie was a member of Lee Road Baptist Church. Mr. McCauley served *n the Army Engineers Corps in 1952 and 1953. Surviving are his wife, Mrs. Dor,s McDonald Mc Cauley, a daughter, Miss Pamela Anne McCauley; a son, William Howard Mc Cauley; his maternal (grand mother, Mrs. Lyda Garrett Howard, and one brother, was a former resident of Clinton. Funeral services were con ducted Thursday at 4:00 p. m. at the Lee Road Baptist Church by Rev. Hugh Coop er, Rev. J. H. Walker and Rev. F. Stanley Hardee. Burial was in Roscmont cem etery, Clinton. Let the grass grow, George (but not under your feet). i Your Chevrolet dealer is mowing prices right now! CLINTON, S. C., THURSDAY, JUNE 23. 1966 (Clinton (Etjronirlr Established 1900 July 4, 1889 — WILLIAM WILSON HARRIS — June 13, 1955 PUBLISHED EVERY THURSDAY BY THE CHRONICLE PUBLISHING COMPANY Subscription Rate (Payable in Advance) i Out-of-County — .._ One Year, $4.00; Six Months, $2.50 ; One Year, $5.00 \ Second Class Postage Paid at Clinton, S. C. POSTMASTER: Send Form 3579 to Clinton Chronicle, Clinton, S. C. 29325 .v . The Chronicle seeks the cooperation of its subscribers and readers—the publisher ill at all times appreciate wise suggestions and kindly advice. The Chronicle-Will iblish letters of general interest when they are not of a defamatory nature. Anony- ous communicaions will not be noticed. This paper is not responsible for the views ot opinions of its correspondents. -v. Member: South Carolina Press Association, National Editorial Association if National Advertising Representative: AMERICAN PRESS ASSOCIATION New York, Chicago, Detroit, Philadelphia Protection... A Safety Deposit Box is your best friend . . . when it comes to protecting jewelry, im portant papers, family heirlooms . . . any thing you may value. / Our modern vaults provide modern protec tion against fire, theft, loss or other calami ties. And the cost is just pennies a day. See us soon! 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