Henderson daily dispatch., 1933-12-29

seed-corn when we soak that fraction
of the population which is largely re-
sponsible for new enterprises, new
building, and new employment. 1t is
equally short-Sighted to increase the
load of real estate taxes on the al
ready oVer-burdened thrifty home
owner group. The whole population
should at least help to pay the depres-
sion bill The reaction to excessive
taxation is coming. Therefore, l feel
1884 will see lower municipal taxes
even though federal income tax levies
will be higher
Bonds Depend on Washington.
Washington operations as 1884
opens, are not likely to improve the
prices of long-term bonds. The Tuar-
ket for Governments will tend to be
unsettled through a variety of causes.
For one thing the Capitol will re-
sound with talk of ''Greenback" and
other forms of initiation demanded by
the conflicting groups III Congress.
Other members mya clamOr for a
public and civil works program rNn-
ming as high as ten billion dollaAs.
in addition to the vast appropriations
already diSbursed. Under these Cir
cumstances, [ believe many investors
with important holdings Of long term
Governments will turn to short term
Government issues.
The general bond outlook can be
surveyed from two viewpoints. In the
first place, if the dominant influence
is natural recOvery-the rising tide of
fundamental conditions then the
bond market generally will strengthen
In the second place, if the natural
recovery should be OVer-shadowed by
continued talk of artificial Initiation,
then prices of high-grade bonds would
not fare so we'll. If initiation is kept
within reasonable limits, medium and
Iow-grade bonds, which have been
selling at ad iscount, will tend to act
like stocks. Low-priced rail and real
este bonds are illustrations. More
over, commodity bonds, such as the
oils and metals, likewise have some
thing to gain from further infI&tion.
New Highs for Stocks
The stock market of 1934--like every
other market and economic activity
will be strongly influenced by the
forces started and controlled by
the country has suffered enough de-
preston to offset the excesses of the
1923-29 period of over-expansion The
old score is practically settled and
the piper's bill is almost paid in full.
According to the Law of Action and
Reaction the backbone of tHN 1884
stock market should be the natural
upward swing of fundamental re-
covery There remains, then, the great
question which Washington ana
Washington alOne-can answer: Will
the Administrations revivalists ana
reformers help or hinder this natural
trend?
Handouts of funds stripped from
taxpayers may prod business tenn
porarily and rally the markets. but
Tor permanent recovery we must
have a resumption of investment buy
ing by substantial investors. Re
gardless of washington, 1 forecast
that Enthusiastically chosen stocks
will sell higher in 1884. Next wear
will see a continuation of the buu |
market which began in July of 1892
but readers may be sure that 1894
will be an even greater year of Sc
lectivity than 1888. I want to en-
phasize very strongly that diversifi- |
cation in 1884 will be more import-
ant than ever. Distribution of risk
will be the best insurance of all for
investors.
Industries Forecast
What is the outlook for the vari- /;
Gus lndustriesP he tremendous pick
up IN business which the chemical
companies experienced in 1888 will
continue in 1884. The oils are in q
goVernmeSt regulation of production
strong position TO benefit both from
ana Tor further initiation. The huge
sums being spent for public works
will help the building and constrrc-
ton companies. Improvement in the