Henderson daily dispatch., 1933-12-29
HENDERSON, IN c. DAILY DISPATCH FRIDAY DECEMBER 1888

Labor troubles have dropped sharp
ply from the local point of Importance
which they held last fall. There may
be further troubles if the wage and
hour, schedules do not work out sat-
iafactorily, but l see little Likelihood
Of any sceriOus strikes during the
early part of 1881.
Higher Farm Prices Next Year
In the agricultural sections. we will
see further definite increase in pur~
chasing power. Higher farm prices,
resulting from either normal ecOno~
mic conditions, or artificial initiation,
will mean the farmer will have more
money to spend in 1884 than in 1898.
Higher commodity prices mean high
er living costs in 1884, but not in tho
early months. Whether or not wage
levels throughout the whole year will
be able TO keep pace with the ad-
vance in living costs is difficult to
say at this time. l am sure, however,
that if we should have artificial in
flatiOn living costs would outdistance
any increase III wages. The result
would be hardship and suffering rath
er than relief for the wage-earntng
and white-collar classes.
AS 1888 comes to a close, about 20
per cent of all the industries in the
United States have been coded The
NRA has done more for labor at
one stroke than their unions could
in a generation. Under the NRA. in
dustry has been given it's first real
chance to govern itself and I sincere
ly hope that trade associations will
have the courage to accept the cha)-
lenge Either the trade associations
will police industry or the govern
ment will discipline the trade assO-
Citations. In the meantime the Ad-
ministration, to "stop the gap" is
spending about $6OO,OO0,OO0 on it's
Civil Works Program. This sum will
flow directly into consumer purchas-
ing power.
Brighter Retail Outlook.
The prospect of greater public buy
ing power in 1884 definitely means
better retail trade. Recently, sales
have been showing a good improve
ment over 1882, and I look for a
continuation of this trend in 1884.
Retail prices in 1888 have been push
ed up briskly as a result of the NRA
plus higher raw material prices. l
feel that markups in early 1884 will
be more temperate than recently, but
nevertheless, we will have higher re-
tail prices as 1884 advances. AS in all
channels of credit, installment sales
terms will be more lenient. Install
ment buying should quickly revive
as the public gains faith in the be-
Of n of ifolTy ho
After four years of nearly contin-
uous decline, l anticipate a change
in the trend of advertising of all
types In the closing months of this
year increases over a year ago in
radio, magazine. and newspaper ad-
Vertising have been recorded. Don't
think for a minute that competition
under the NRA codes is dead Alert
concerns will be out to get their share
Of the gain in public purchasing pow
er. Each selling organization will have
to shaw good reasons why the pub
lie should buy its merchandise rath-
er than that of someone else. AS a
result of the codes, however, the en-
rhasis must be on quality rather than
on price in 1884. Accordingly, l feel
that radio and publishing concerns
vii! be preaching easier a year from
today.
Budget Problem Serious.
| now come to a part Of the busi-
ness picture which is being strongly
emphasized at present-and rightly SO
the Increasing burden of debt. Prl>
vatc debt during the last three years
has been pretty thoroughly adjusted,
but government debt municipal, state
and tcderal-cOntinucs to grow at an
appalling rate. History shows that in
flatiOn in other countries has always
been precipitated by an unbalanced
budget. The governments practice of
having two budgets-an "eXtraOr-
dinary' and an "ordinary" only an
attempt to kid" the public There
must be an end to billion dollar ap-
preparations if faith in government
obligations is to be maintained.
Frankly the budget problem trOu-
bles me. We cannot go on increasing
taxes forever without throttling busl-
ness. Surtaxes, even when confisca-
tory, are only a drop in the budget
compared with the huge volume or
business which they ieopardise. We
are destroying ourare destroying our