Henderson daily dispatch., 1935-12-27

! the budget is far from pelnS naletalC-
! ed. There will be at least q $Z'ooo'ooo'-
! 600 spread between income anu OK
penses in the fiscal year eholis :ulie
30, 1887. Because Of the elecCloll9'
there is little to fear from heaVy ne"
! taxes this year unless the supreme
Court throws the AAA Ploce99lii9 /,
levies into the ash-can along WIN 'he
NEsA codes. In that event substitute
eXcises might be enacted.
Regardless Of what the court oe-
cidcs on this vital cornerstone or the
New Deal, some farm prices are IKE
/ ly to back off during 1886. nave
in mind hogs and their by-products.
The cycle Of livestock production lS
once again upward and quotations IN
this particular group VIII pron''pIy
soften during the year. me same
| comments apply to the dairy industry
ana to field crops; although, WIN thc
, weather such an unknown FACTOR, IL
is poor policy to make any dogmatlc
forecasts ut this season. AS Tor cot
ton, | believe we are due 10 recap
ture Il good portion OF the exports
lost during 1884 and 1885 so that
! prospects favor moderately hlGher
prices for this vital southern crop.
Higher Wholesale Prices
Industrial commodity prices should
! resume the rising trend which was IN
terrupted when the NRA began TO
crack up. They will be sufficiently
inflated to boost the Department Of
Labor Wholesale price index between
five and ten per cent. sharp advances
from now on depend TO large eN-
tent upon. the type Of business re-
ViVal which we experience. Continual
ton of the normal, healthy revival
which VIC are now enjoying would
bring about only moderate mark-ups.
! If, on the other hand, we should go
/ on another spending jambOrce and
credit initiation should get under fun
steam prices would mount rapidly.
The latter is now unlikely, for the
New Dealers will do all they can to
prevent any sudden price rise before
clcctiOn-time.
This should be good -.GwS to those
consumers who have Iclt re pinch
Of slowly rising living costs. Right
now food prices are close to the high
est level in five and a half years, but
they are nearing their peak for the
time ding Next December the aver
age hOusehOldar's running expenses
will total five per cent larger than
today, but his food bills are unlikely
to be any higher than right now
they may even be less. The rise will
probably como in clothing Give per
cent?, rent (eight per cent?. and fur
mia h III 1la
tricity and gas statements will be
coke. and OLD will be moro burden
some.
''IIclp Wantcd"
[ have already given my opinion on
the outlook fOr the heavy industries
where unemployment has been so
severe. With these businesses getting
back on their feet, the number Of peO-
pie returning to work will be one Of
the highlightS later on in the year.
Sharp gains in demand for durable
goods during recent months is a valid
reason for not expecting too big a
percentage rise in employment early
III the New Year However. as volume
picks up in these lines, activity will
industries. The concrete result will be
more jobs, fatter pay envelopes, and
higher wage rates by next December.
The news in 1886 will probably
headline more strikes than during the
period just closed. However, lacking
any stiff increase in living costs. and
no real shortage Of un7killed labor
aa yet, have no fears Of prolonged
tie~ups in any major industry next
year BY next Christmas, Industrial
employment and factory payrOlls
should stand at a new peak for tho
recovery pcriOd-~roughly 10 per cent
above the 1885 level. One features aof
the coming twelve months from a
labor standpoint will be the demand
for, and premiums commanded bv
skilled workers. Ali factors point to
marked Improvement in purchasing
power in industrial areas.
Further Farm Recovery
Buying power in farm sections will
alsOb G higher-probably from five
to fifteen per cent. No matter what
the Supreme Court may decide on
the AAA, benefit payments TO farm
snow flies. With more acreage plant
ed and a fourth year of drought un-
likely, crops should be better. Lar
ger harvests, multiplied by approx
! mately the same prices, equal larger
total income. Since the cost of the
products which the farmer must buy
will not be much higher, his profits
in 1886 should continue the upward
tendency which started several years
ago. Farmers have now greatly re-
duced their debts, so their Increased
| income will mean even more money
| for new purchases.
Merchants face the best trade out
look in five years. The combination
Of increased farm income, larger fac
tory payrols, and greater dividend
| payments should Eoost sales in most
lines between eight and II per cent
above the 1885 average. Because
wholesale prices arc not slated for
| aFV Sharn advance retail nricn taT9