Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1937-01-01
Real Prosperity This Year,
Is Roger Babson's Forecast
Continued from Page One.)

1887 should be a real boom in home
building.
Non-residential construction, aside
from public works, should also enjoy
big gain. Plant expansion or mod
ernization is a necessity for many
concerns. Prices of building materials
are on the verge of a sharp MAKEUP.
Demand for skilled building me-
chanics will soon Zoe reflected in high
er bids on jobs. Bargains in existing
structures are pretty we'll picked over.
If you must modernize, renovate, re-
pair, or build, let out your contracts
now!
Extend Leases Now.
The same applies to rents. If you
have a favorable lease extend it now
for a five-year period. After a 10 per
cent advance last year, rents will pro-
badly increase another per cent in
1937-maybe more in Well-lOcated
areas. With the optimistic prospects
for building and rents, look forward
to a profitable year for real estate
ment with rising values and with &C
tivity at least 20 per cent above 1886.
| The outlook for real estate and
building is typical of the outlook for
all capital goods industries such as
locomotives, mp, power stations,
and machinery. These businesses are
improvement than the consumer
goods industries. Employment in the
heavy group year ago was rs per
cent of normal; today it is IS per
cent; and by next Christmas it should
b. 95 per cent.
Where To Get Jobs.
The 100000 heavy industry work
ers who are still jobless should dwin-
die to 100000 by the end of 1887.
This would leave only 100000 out
Of joss next December and of this
number 100000 are the floating job
less or are unemployable. BY far the
best bet for new jobs will be in these
industries My advice to young men
looking for job today is to learn a
building or machinery trade or to join
the sales force of a building materials
or machinery concern!
Skilled workers are going to de-
mand, and get, higher pay in 1887.
While total employment should liz
crease perhaps 5 to 8 per cent, wage
rates should be stepped up by at least
that amount or more on the average
Payroll totals should show a rise not
less than 10 per cent. But remember
fatter payrolls mean heavier produc-
ing costs. The latter in turn mean
either a mark-up of selling prices or a
cutting of profit margins.
Sees Rising Prices.
Three years ago higher costs would
have meant Simmer profits. This year
they will mean higher selling prices
This holiday season we are waving
goodbye to a buyers and employers
market. For the first time since 1929
we shall see prices during 1897 con-
trolled by the seller and wages by the
employee.
Gone, temporarily at least, are the
days when orders were taken below
cost simply to keep the machinery
from getting rusty. Gone are the days
when people would work for nothing
simply to keep up their courage. In
addition to higher producing costs the
Robinson-Patman Price Act, if strict.
ly interpreted, will push distribution
ed on wholesale and retail invoices.
OAdHp LW<MA-OpS AIchU.
Wholesale quotations on 1874 prod
ucts-from raw material to finished
goods-have risen 3 per cent in the
last three months and are at a new
top since September, 1880. Next Christ
mas this price average will be per
cent-maybe 10 per cent-higher than
it is today.
Four years ago wheat was selling at
the lowest price in three and a half
centuries-41 cents a bushel. Because
it was cheaper than to pay freight,
corn was being burned for fuel in
place of coal. Milk was being poured
on the streets to reduce over-supplies
of butter and cheese. There was a
bounty on baby pigs. :.
Today wheat is around $135 per
bushel. Corn is being imported from
Argentina. Much bulk fbutter sold in
United States markets comes from
abroad. Bacon is a delicacy once
again. This all goes to show much
more powerful are the rules of nature
and economics than the laws of man.
The drought, the AAA and short sup
plies, plus better business and heavier
consumption, have doubled farm
prices during the last four years. Now,
what about the outlook for farm
prices this year?
Another Good Year On Farms.
Grain and cotton prices depend on
the weather and paintings. Based on
current acreage estimates and bar
ring drought, prices of these products
should not be much higher next De-
cember than they are today Meat
prices will edge upward for our live
stock population is near the lowest
point in years. Dairy, egg, and poul-
try prices will advance under the i'm
petus of higher producing costs dur
ing the first half. Good prices plus
higher production should lift farm in
come between to 10 per cent during
the new year.
Farm profits will be somewhat less
due to mark-ups in the prices of pro-
ducts which the farmer has to buy
With farming continually more profit
able, good land (now up 20 per cent
over the depression low will continue
its gradual rise. This recovery in
agricultural prices is a very bullish
factor in the business outlook but do
not forget that it means higher living
costs in the city.
Clothing To Cost More.
I'm fn ho OF