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OVER 3 BILLIONS ^ Starts New Fiscal year With Record De fense Spending I f!v IKVING fERLMETER WASHINGTON, June 29.—UP)— mrernnient, chalking up a defi fjie ?u f 53 700.000,000, will end one cit d* j j.ear tomorrow and start on . nne which, as a result of the a new U,1C defense program, will be the Sliest in peacetime history. ' The expiring fiscal year produced nW spending record of about * 600.000.000, revenue totaled about 00 0 0 0.0 00 leaving a deficit ex reeded in peacetime only in 193( .ten the soldiers bonus was paid "t figures on income and outgo 'not be known until the middle nest week after year-end reports !re received from field offices.) ‘ y present, treasury officials are figuring on expenditures of approxi mately $10,5°0.000.°00 and income ol about $7,000,000,000 in the new year. „ these estimates hold good, the deficit will be about $2,800,000,00( because the treasury is figuring on (ting about $700,000,000 from a 5ozen government corporations which have been instructed to turn back part of their capital. There is every prospect, however, that expenditures will be far great er' than $10,500 000,000. President Roosevelt has disclosed that expan nf the rearmament program is under consideration. He mentioned n0 figures, but authoritative quar ters said that this might involve a $5,000,000,000 outlay. At the turn of the fiscal year, the treasury owed about $43,000,000 000 and had less than $2,000,000,000 of its statutory borrowing authority left But the new defense program carried with it $4,000,000,000 more borrowing power. Transition of the budget from a peacetime to a preparedness status was marked in many items. In the old year the treasury spent $1,575, 000,000 for defense. In the new year, the bill will approximate $3,600, 000,0 0 0. Appropriations for next year are much larger, but much of the work won’t be paid for until the fiscal year beginning July 1, 1941, Last year, WPA and other work relief cost $1 S40.000.000. Next year it is expected to fail to $1,400,000,000. U.S. PREPAREDNESS URGED BY M’NUTT (Continued From Page One) tendon to the expansion of our mil itary and naval defenses. "AVe cannot foresee the future. “But as we face the unknown, we can enjoy the sense of security that comes from a united people, con scious of their power, devoted to their government and consecrated to the ideals which have guided them through every crisis of their history. “Loyal and determined, we stand together with unflinching courage anti unswerving faith in our des tiny.” He compared the ways of life with that of totalitarian countries and said that youth of America, instead of being forced to give portion of their years to military and war service, were helped in every way to get a good start in life. He re ferred to the Civilian Conservation Corps and to the undertakings of the National Youth Administration. "It is said that we are unprepared for war. And. it is true that we have not thought war and talked war and "anted war. It is true that we have not taken a year or two out of the lives of our young people to train ill LIU* scienue Ul. wauaic. xu iW3 true that we have not spent 10 or 12 w 15 per cent of our national in come for tanks and guns and war planes and battleships.” The celebration included a magni ficent parade in Albemarle, a bar becue luncheon for thousands of guests in the park, the dedication ceremonies and a water carnival, bathing beauty contest, fire-fight ing and archery exhibition, camp fife program, and concluded with a lance in the Albemarle armory. HcXutt was introduced by Rep. Robert L. Doughton of the 9th district, who spoke of him as a ffeat American, a great democrat, 1 great statesman.” Governor Hoey officially present bhe nark to the people of worth Carolina ‘‘and to all others - the United States” in the name •t the department of conservation development. [JE STUBBED HIS TOE 0N' A MOUNTAIN SEATTLE, Wash, tff)—Out of a Possible grade of 4 points in a five Jear engineering course, Jack Ralph Benjamin made 3.996—and 2JS downfall was a screwdriver. “Rough he got top grades in every ether course, he managed only a R iu a shop course in which his job to turn out a screwdriver on a lathe. ■_ADVERTISEMENT Lemon Juice Recipe for Rheumatic Pain ® you suffer from rheumatic or uritis pain, try this simple inex nsive, home recipe. Get a pack °f Ru'Ex Compound, mix it of 4 f Uuart of water, add the juice __ 4 'onions. Often within 48 hours Wjnetiines overnight — splendid (j. Ue are obtained. If the pains not Quickly leave you, Ru-Ex Is s ^°St you nothi"S to try. as ’t u ,° d under an absolute money and '’Uarantee. Ru-Ex is for sale Dru recommended by Saunders 'here 'ire and drug stores every -_Laying Keel of 45,000-Ton Superdreadnought - --- con^ructimf'stVrK^!?^.,^' '„?!?dward> con,ma,,dant °f the third naval district, drives the first rivet as ceremony was nnt , UOOO-ton superdreadnought Iowa at the Brooklyn, N. Y„ Navy Yard. The A. Dunn Cleft 1 V *!'e pu,lt; Awaiting their turn at the riveting machine are Captains Charles Peeking between ' of naTy yard, and Thomas B. Richey, yard production officer, put on the wave fn *i ^''mmander J. E. Kieman, hull superintendent. The Iowa, largest battleship ever put on the ways for the navy, is expected to be three years abuilding.___ ALIEN REGISTRY BILL IS SIGNED (Continued From Page One) gress outlaw the communist party and the Nazi bund. The big job of registering and fingerprinting the estimated 3.500, 000 aliens in this country will be carried out by the justice and post office departments under direction of Solicitor General Francis Bid dle. The plans already have been worked out by the two departments in cooperation with the census bu reau. Biddle had an opportunity to talk them over with Mr. Roosevelt on a cruise on the Potomac this afternoon. Other guests on the overnight trip included Jesse Jones, federal loan administrator. Under the law, registration of aliens must begin within 60 days and must be completed four months later. Biddle said in an interview that before actual registration there would be an intensive education campaign to acquaint the aliens with what is demanded of them. This will be carred out through more than 1,000 foreign language newspapers, hundreds of other publications> clubs, societies and churches having alien member ship, radio stations which broad cast in toreign tongues ana tnrougn English speaking groups which have contact with aliens. Biddle said that an appeal for help probably would be made to service groups such as the Lions, Rotary and Kiwanis clubs, cham bers of commerce and the Ameri can legion. Postmasters and their aides in some 45,000 postoffices will regis ter and fingerprint aliens. The postoffice department will make out the registration cards and' mail them to the aliens, turning over the original registration data to the immigration service for check ing against the lists of legally ad mitted aliens. The fingerprint rec ords will be turned over to the de partment of justice foi classifica tion and filing. Biddle said that fingerprinting would not be entirely strange to postmasters, since those in charge of first and second class offices now fingerprint all of their em ployes. _ , Congress supplied $3,000,000 for the registration job and $500,000 for classifying and filing the fin gerprints. These prints are to be kept separately from others and will be listed in an alien non-crim inal section. 1 MOSLEY’S WIFE HELD BY BRITISH (Continued From Page One) and defied a crowd which tried to throw her in Lake Serpentine. Lady Mosely, 30 years old, was arrested at her country house, Savetay Farm, Denham, Bucks, near London. Plainclothes men took her into custody under the blahket defense of the the realm regulations. Her husband, Sir Oswald, was arrensted May 23. Them marriage was annouced bv Sir Oswald in his fascist news paper, "Acton”, on Nov. 30, 1938 in the same issue which disclosed a son had been born to them a few days previously. Sir Oswald said the' marriage bad occurred in 1936. It has been reported they were married at Munich, and that Hitler was the guest of honor. The marriage announcement praised Lady Mosley at length for her activities in Sir Oswald’s blackshirt “British Union,” now dissolved. Lady Mosley previously was married to the honorable Bryan Walter Guinness, of the Brewing family. They were divorced in 1934. Hr father, Lord Redesdale (pro nounced Reedsdale) is the second Baron. He has announced publicly that he is no fascist 2 WEATHER (Continued From Page One) WASHINGTON, June 29. — yp) — Weather bureau records of temperature and rainfall for the 24 hours ending 8 P. m., in the principal cotton-growing areas and elsewhere: Station High Low Prec. Asheville, cloudy _ 78 66 0.16 Atlanta, clear _ S3 69 0.20 Atlantic City, cloudy . 81 69 0.29 Birmingham, cloudy _ 84 69 1.16 Boston, cloudy _ 79 60 0.02 Buffalo, cloudy_ 67 58 0.04 Chicago, clear_ 66 58 0.00 Cincinnati, clear _ 73 63 0.00 Cleveland, cloudy_ 66 58 0.14 Dallas, cloudy _ 88 __ 0.09 Denver, cloudy_ 94 59 0.00 Detroit, clear_ 70 56 0.00 El Paso, cloudy_ 89 69 0.19 Galveston, cloudy_ 86 61 0.00 Jacksonville, rain_ 91 75 0.00 Kansas City, clear_S4 55 0.00 Key West, cloudy_ 88 82 0.00 Little Rock, cloudy _ 82 68 0.00 Los Angeles, cloudy _ 75 59 0.00 Louisville, clear_ 75 63 0.00 Memphis, cloudy _■_ 80 69 0.01 Meridian, clear_ 84 73 0.55 Miami, cloudy _ 89 83 0.00 New Orleans, cloudy _ 88 77 0.20 New York, cloudy_ 79 68 0.02 Norfolk, clear_ 90 77 0.00 Pittsburgh, cloudy_ 67 60 0.20 Portland. Me., cloudy 74 53 0.58 Portland. Ore., clear _ 85 50 0.00 Richmond, clear _ 89 72 0.00 St. Louis, clear_ 78 58 0.00 San Francisco, cloudy 64 57 0.00 Savannah, cloudy __ 81 78 0.25 Tampa, cloudy_ 91 81 0.00 Washington, cloudy _ 85 72. 0.04 Wilmington, clear_ 82 78 0.01 GIFFORD NAMED BY N. C. PRESS (Continued From Page One) Miller, editor of the Charlotte Ob server; Mrs. E. F. McCullough of Elizabethtown, Ed M. Anderson of West Jefferson, W. K. Hoyt, gen eral manager of the Winston-S'alem Journal-Sentinel; and Herbert Peele, editor and publisher of the Elizabeth City Daily Advance, mem bers of the executive committee. Nylon Hose Replacing Silk ‘Very Slowly* ASHEVILLE, JUNE 29 —UPI—Be lief that all the Nylon available in the world this year will not be sufficient to produce more than five per cent of all the stockings needed and that production next year could not got above ten per cent, was expressed yesterday by Earl Constantine of New York, president of the American Associa tion of Hosiery Manufacturers. The raw silk market during the lost vear. he said, had caused difficulty because, after several years* stability at about $1.75 a pound, silk had sorared as high as $4.65 a pound, and recently had dropped to $2.69. Subnormal placement of orders, he continued, resulted in part from the entry of nylon into the stocking market and from men wearing so many short soteks. Too, he said, women had steadily increased use of anklets. The directors also were told that the construction of new plants ap parently stopped during 1939, after three years in which about 200 new ones were built. Constantine said the industry was growing in the South, which now has more than a third of the nation’s capacity. 2 Co-Ed Freed On Charge Of Attempted Murder fort COLLINS, Colo., June 29. -A3?)—Lois Jeanne van Orsdel, 19, Colorado State college co-ed, was freed today of charges of attempt ing to kill her football player sweetheart in a lovers’ quarrel last November. ’ Deputy District Attorney Winton M Ault ordered the charges drop ped after Walter (Bud) Lyons, halfback who was near death for several weeks, and his mother, Mrs. Jessie Lyons of Mount Harris, refused to prosecute. Lyons was shot during a visit to Miss Van Orsdel’s apartment to bid her goodbye on the eve of the Colorado State-New Mexico univer sity football game at Albuquerque., STATE’S INCOME HITS NEW MARK (Continued From Page One) in 1937-38. They indicated excel lent business in 1939. The sales tax, a barometer of business from June 1, 1939 through May, 1940, brought in a record $1?,206,076.12. The best previous yield, received when the tax did not permit exemptions now in ef fect, was $11,320,245 in 1936 - 37. Last year the levy brought in $10, 997,883.87 with most of the exemp tions in effect for the entire fiscal year. Gasoline taxes brought in $25, 905,732.83, to exceed by $1,500,000 the $24,440,996.29 last year, and in dicated good business up through May. The 1939 legislature estimated general fund revenue, including $2,500,000 highway diversion, would be $40,563,014 and that ex penditures would be $40,873,522.57. Without any highway funds the re ceipts were within $420,000 of the estimate. The legislature figured highway receipts would be $33,845,538 and expenditures, not including the pro posed diversion, $32,357,890. Re ceipts ran slightly more than $2, 000,000 ahead of the estimate. June general fund receipts were $2,655,761.55, an increase of $350, 422.80 over last year. The sales tax brought in $1,014,981.43, from business done in May, as com pared with $938,744.21 a year ago in June on May business. Gasoline receipts this month were $2,269,487.30, compared With $2,114,485.04 a year ago, and high way receipts totalled $2,558,636.99, compared with $2,389,670.27. Every item of revenue except gift taxes showed an increase over 1933-39 collections, and a change in method of collection was made on gift taxes. June receipts were 11.06 per cent ahead of June 1939 and fiscal year receipts were 10.24 per cent ahead of 1938-39. 1 Raleigh Liquor Buyers Seek To Avoid Taxes RALEIGH, June 29.—UP)—'Thirs ty Raleighites went on a buying spree tonight and practically empti ed the shelves of the city’s four liquor stores in a last-minute effort to avoid new defense taxes of 10 per cent on spirits. The new taxes will apply to all liquor sold sold in the state’s 27 wet counties. 4 NATIONS NOT TO ATTEND MEET (Continued From Page One) :he ways of “vigorous people,” today called for American solidarity based on the mutual respect and freedom of each country to organize itself politically according to “its own ten dencies, interests and necessities.’’ “Thus we understand the Monroe Doctrine and thus we practice it,” he said. Vargas, who spoke before the maritime workers—Brazil’s strongest labor union—has ruled Brazil through a dictatorship for all ex cept three months of his 10-year regime. He disclaimed for Brazil any choice among the belligerents of Europe. "Our duty,” he said, “is to main tain strict neutrality. ... In the defense of Brazil . . . the obligation of every Brazilian is to conduct himself in a manner to keep Bra zil out of war.” The president refused to “take back” his June 11 speech, which at first was interpreted by some quar ters as defending European dicta tors and contrasting with President Roosevelt’s message at Charlottes ville, Va., on June 10, the day Italy entered the war against France and Britain. Vargas on June 11 said "Vigorous peoples fit for life must follow the route of their aspirations . . . We are marching toward a future differ ent from all we know in economic political and social organization, and we feel that old systems and anti quated formulas have entered a de cline. It is . . . the beginning . . . of a new era.” The Brazilian president later in formed Mr. Roosevelt that his speech could not be regarded as contradictory. Today he told the maritime workers that his June 11 talk was "a call to attention in view of the hard lessons the present days impose on peoples with the mobili zation of all energies in order nol to be surprised or caught by events “I called the attention of Brazili ans to Transformations occurring ir the world before which w’e cannoi remain indifferent . . . Reaffirmec ■our intentions of pacific collabora tion and solidarity with the brothel peoples of the continent whose des tinies are identified with ours b; historic bonds . . . showed the ne cessity of fortifying the country eco nomically and militarily.’’ BALKANS ARMIN( AGAINST OUTBREAt (Continued From Page One) mobilizes, informed military source said tonight. The nation went on daylight sav ing time for the first time in its his tory to conserve electricity and oi! The fleet resumed its position a the mouth of the Bosporus after ; her readiness to defend hersel against attack if the Balkan powde keg explodes. The Turkish press emphasized th nation’s desire to be friendly wit) Russia, however. BUDAPEST, June 29.—(/P)—Mil: tary preparations continued in th Balkans tonight although it was be lieved that Hungary and Bulgarit under diplomatic pressure from Gei many and Italy, had decided to d< fer their revisionist claims upon Rti mania. If this postponement of demand is definite and the crisis in th Balkans has been surmounted, it i cruise along the southern tip o Bulgaria's Black Sea coast. Anatolian soldiers marched towar the Bulgarian border. The genex-al picture in Turkey wa that of a nation marshalling its lane sea and air foi-ces to demonsti-at assumed that a clear promise wa given by the Rome-Berlin axis pari ners that the claims of Bulgaria am Hungary will be met in full later. Political observers opined tha Bulgaria and Hungary were told ti wait until southeastern Europe ha been “reformed” under a policy o “peaceful revisionism.” These observers viewed the pro ceedings as a diplomatic victory fo: Germany and Italy at a time whex they need peace in this importan production area. Carries U. S. Good Will to Chile Ordered to Valparaiso, Chile, on a good-will mission, is the II. S. S. Phoenix, above. The 10,000-ton cruiser is the third U. S. warship re cently dispatched to South American waters. U. S. COLLECTIONS SET N. C. RECORD (Continued From Page One) 88 which was collected during June 1939. This was also $4,466,075.11 more than the $29,088,803.47 which passed through the collector’s hands enroute to the internal re venue department in Washington in June of the previous peak fiscal year. Figures last year fell $16,391,314. 79 under the record set the year before. The new high mark comes at the close of seven yers as col lector for Mr. Robertson. The office has been located here since July 14, 1934, when the internal revenue division was transferred from Raleigh. Mr. Robertson stated that no breakdown of figures was avail able, but that the new record was set through collection of existing sources of Federal revenue, no new taxes having been included in the sum. Extreme dilligence in search for sources of tax income . , POMATOES N JACKSONVILLE, June 29.— Pomatoes and topatoes, bah. So say Kami Agent Hugh Overstreet and Newton C. Cook, Farm Security Administration supervisor for Onslow county, but they’re not anxious to get into any argument over the ap parent large number of poma toes, topatoes or whatever you want to call them being found in Eastern North Carolina this year. Admitting that someone did cross a potato and a tomato and produce a vegetable—or is it a fruit?—of some sort, the two farm experts, however, declare that the tomato—appearing nobs on potato vines being lound nowadays is not a tomato at all, but a potato seed pod. was given as the reason for the large collections. Under departmental rules Mr. Robertson had no comment to make on the figures, but they are provement in business conditions in the state and nation. 2 WILLKIE BRANDED INTERVENTIONIST (Continued From Page One) feat the republican presidential candidate. “Willkie is vulnerable in his Wall street connections and in his atti tude toward war and the demo crats to win must make the most of his weakness,” he said. With the republican convention over, capital political interest veered to the forthcoming demo cratic convention at Chicago begin ning July 15. Most democrats, confident that President Roosevelt would accept a third nomination, appeared to believe that the only major issue facing their convention would be selection of a vice-presidential can didate. Senator Ellender (D-La) predict ed that nomination of Mr. Roose velt for a third term would be “practically unanimous except for a few favorite son candidates.” The Louisiana senator said that renomination of Vice President Garner, “if he will take it,” would be a harmonious move. “If Garner won’t have it, I be lieve Senator Byrnes (D-SC) is le-aHincr thp fiplH ” F.llender said. As a preliminary to the demo cratic convention, it was announc ed that a subcommittee of the democratic national committee would meet in Chicago July 11 to consider a plan for reapportioning delegates to future conventions. 1 RECOVERED SMITHFIELD, June 29 — Vfi—'The body of Jesse Adams, 28, of four Oaks, was recovered yesterday from Holt lake after a search which began early yestrday when he failed to return home after a swim in the Lake Thursday. He had suffered a broken neck. 2 SAVE! SAVE! SAVE! Renew your fire or auto insur ance in a strong non-assesrablo mutual company. Current savings 25 per cent. F. E. LIVINGSTON & CO. MUTUAL INSURANCE i -7he Qo^iasid line of Beauty SHEER ZZJOVELINESS ...IN A MisS implicit^ You won’t yearn for the inside of a refrigerator, if you are wear- l ing this Gossard! Because, the f\ porous rayon striped mesh / (1 keeps you naturally cool: I I Elastic waistline straps assure l | ! you of a trim middle. 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NEW SUMMER FROCKS 2.55 Floral prints and solid pastels in exquisitely tailored styles, dainty touches of ruffling on the dressy styles and smart stitch ing and casual collars on the sport frocks. Beautiful details in tailoring and design—prints that seem so cool—styles that are so appropriate, and a price that is so low, they’re irresistable! NEW POPE GOSSER (HINA | 54 piece Dinner set in gold border patterns with pastic blue or green borders. Service for 8 including dinner plates, bread and butter plates, cups, saucers, fruit dishes, soup plates, sugar and cream dishes, platters, gravy | Q j and vegetable dishes. A wonderful value at only .1«/*DU _ * 36 piece floral pattern china service for 6 _ .9.95 32 piece sets in floral and nautical patterns _ ____3.95 10 7.95 ''