The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-05-27
By J. c. BASKERVILL
The Times-News Bureau
Sir Walter Hotel

RALEIGH, May 27,-Although
the general assembly finally gave
him a balanced budget. which al
most Immediately boosted North
Carolina bonds from 10 to 20
points, putting the state back
upon one of the frmest credit
foundations it has been upon in
four wears or more, Gov. j. G. b.
Ehringhaus is still not satisfied,
It was learned here yesterday. he
is determined that the credit OF
the state can still be further i'm
proved, that it's bonds must 60
still closer to par and the result
ing profits flow again into bnsl-
ness and industry. ,
AS result, it is understood
that the governor has already
launched upon a rather bold plan
that if carried through will rank
next in Importance to the balanc-
ing of the budget in its relation
to the fiscal affairs of the state.
The details of the plan are being
closely guarded until announce
ment can be made of its complete
success. But the few who know
what the plan is are confident
that it will not and cannot fail
and that its consummation VIII
not only chalk up a new Ehring-
haus victory, but put North Caro-
lima in the forefront of those
states that have put their tinan-
cial houses ~ order.
Announcement of the success
of this new plan and how it IS
expected to help both the State
of North Carolina and everyone
in it, is expected any day now;
It is agreed that this plan could
not even have been conFidered It
the general assembly had not
finally passed a revenue bill that
will balance the budget beyond
the shadow of a doubt.
Many people still do not real
ize why it is so tremendously M
portant for the state to have a
balanced budget, and what the
balancing of the budget has al
ready meant to the state. But II
the budget had not been balanced
it is probable that most of the
banks that are still open would
either be closed now or be forced
to close by the end of the year.
For almost all the banks in the
state own large blocks of state
bonds. An estimate obtained yes
terday from the state banking de-
partment indicates that banks IN
fhe state own not less than $25,-
0OO, 900 worth of state bonds at
the present time. In addition
there is about $2,000,O0O worth
Of state bonds in the closed banks
of the state. If the budget had not
been balanced, the value of these
bonds would have deprecated to
such an extent that many OF the
banks would have been still fur
Their deprecated.
But since the budget was bal
anced two weeks ago. the Vaue
of North Carolina bonds has been
going up steadily, the average in
crease so far having been about
Ito points. On an investment of
S25, 100000, this means a gain in
value of S2,500,000. Thus the as
| sets of the open banks in the
| state have increased fully ST.
| 100000 in value since the general
ASSEMBLY passed the, revenue bill
| balancing the budget. This also
| means that the value of the state
bonds in closed banks has in
| creased 100000 in the past two
weeks and that the depositors
stand to get 100000 more thar
they would have if the budget
had not been balanced.
All of this is also proving help
full to business and industry. For
| if the assets of the open banks
Ehave increased $2,500,000 in
value on their North Carolina
bonds alone, these banks thus
/ have S2,50O,0O0 more which they
can lend out to business and in
dustry. But officials of the bank
ling department point out that the
rise in the stock market and the
increase in the value of stocks,
government bonds and other