The coastland times with which is combined the pilot and herald of Belhaven and Swan Quarter. [volume] (Manteo, N.C.) 1959-1973, 1961-06-23
REMARKS BY FORMER N. C. GOVERNOR
AT MACS HEAD CONVENTION MONDAY
Address by Secretary of Commerce Luther H. Hodges North
Carolina Seedmans Association at Mays Head


men, and | certainly am not ar
: agricultural expert, l thought il
might help today to give you q
brief rundown on how the economy
looks to us at the moment anC
what Roadway we have been max
ing with our efforts to promote
growth and expansion for business
of all kinds.
There is no question but that
the economy is on it's way up now
and that the recession is behind
US. Personal income, a broad mea-
sure of economic trend, advanced
in April to a seasonally adjusted
annual rate of about SAIL billion
which topped the progression
high of last fall. Preliminary fig
ures indicate there was a further
substantial rise in May.
i Nonfarm employment in May
rose 100000 to 52.5 million, almost
double the usual climb for the
month. In durable goods manufac-
turing, where employment had
fallen by almost 100000 from
February, 1860, to March, 1861
there was a sharp job increase of
nearly 10000. The factory work
week, which has been increasing
for four months now, again moved
!, up more than seasonally in May
Il Consumer buying is trending
up-retail sales in May rose about
l percent over April after seasonal
adjustment-and so are manufac-
; turers' inventories and manufac.
!, turers' shipments and new orders
l Inventories increased in April
r after seasonal allowances, for the
: first time since mid-1960, with the
: gain amounting to about 500 mil.
: lion. Meanwhile, shipments by
: manufacturers rose percent from
March to April and new orders
8 percent.
!, Industrial production in April
spurted three points to los percent
! of the 1857 average, tn highest
!, level in six months. The signs are
!. that there was a futher substantial
. increase in May,
In addition, there IS brighter
outlook for capital spending. The
--latest survey by the Commerce
Department and the Securities anG
: Exchange Commission indicate:
, that business OUTLAWS for new plant
and equipment will rise in the thirt
| quarter of 1861 for the first time
: since early 1850.
Finally, with the help of certain
monetary steps and a highly favor
5 able balance of trade in the frs
quarter, our payments account!
/ with the world have taken a de
cided turn for the better.
In the first three months of 1861
: our net loss of gold and dollar
: dropped to a seasonally ADJUSTED
, annual rate of about 81 million
) compared with a rate of 81 billiol
) in the last quarter of 1860. Equal.
= important since February the out
, flow of gold from the U. S. ha
5 stopped entirely, and there ha
/ actually been a small buildup il
: our gold stocks.
+ This improvement in our bust
/ ness situation is most encouraging
1t means we are finally gettini
/ people back to work, increasing
: the flow of income and profits
: and reviving purchasing power il
: our markets.
!, But welcome as it is, recover
does not mean we have put GU
: economic problems behind us. w
a must still face the truth that flo
: the last several years the growt
). rate of the United States has bee
! disturbingly low. Through recessio
1 and recovery alike there has bee
a widening spread between the na
D tons output and it's productiv
4 capabilities. And there has bee
: growing unemployment. Jobs sim
S ply have not been reappearing tn
way they once did when the bus
ness cycle was on the upswing.
!. The exact growth rate of tn
y American economy may be mat
e ter of some controversy. But
0 think everyone can agree that GU
!, industrial growth rate now is be
3 low the level we have achieved i
r the past. And certainly it is we
{ below the rate of growth of man
o industrialized nations today.
Q From 1947 through 1860, tn
d gross national product of tn
8 United States in constant dollar
d increased at an annual rate of 8.
f percent year. In the first hal
: of this span, the rate Of growt
{ was 4.3 percent annually; in tn
h last half, from 1868 through tn
t end of 1860, it was Is percent.
y Now compare this with some Q
: the gains by the countries Of Wes