Imperial Valley press., 1938-12-30

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likewise increase. However, 1 now
foresee no widespread strikes such
as 1887 witnessed.
Wages may edge higher in 1899,
but 1 do not expect any great
increases, suc1 as we had two
/ years ago.
Farm income should also be bet
/ ter. Farm products prices can
score moderate advances led by
wheat. corn, fresh vegetables, and
/ potatoes. Butter, eggs, and milk
should not sell for much more
than they did in 1888. Cattle will
feature the livestock picture, while
bigger supplies of lambs and hogs
will hold down their prices. With
wool demand high, and world sup
plies not burdensome, higher prices
are logical.
/ Indications now are that produc-
/ ton of farm products, while less
than last year, will again be above
+ average. So barring drought or
other abnormal weather conditions,
farm income may jump 10 per cent
above 1888.
Food to Boost Living Costs
Food eats up practically 40 per
cent of the average family's budget.
Hence, the strengthening of farm
products prices is the biggest fac
tor in the living cost outlook. In
addition to bigger food bills. cloth
ing will also cost more in 1889
perhaps per cent. An advance
in fuel oil prices from current low
/ figures by Spring is a distinct pos
sibility. Soft coal prices may rise
slightly The demand for coal may
increase as people find that a
fully automatic stoker gives GER
tain sections cheaper heat than
does oil.
Rents should not move much
in either direction except in the
case of especially desirable urban
properties. Taxes, of course, will
be no lower. Electric light and gas
rates will continue their long-term
downward trend. Home furnishings
in general, will cost more. Adding
up all these various items, my es-
innate is that by next Christmas
we may find total living costs 5
to 8 per cent above present figures.
Higher Wholesale Prices
Before leaving living costs, in
dustrial commodity prices should
be mentioned. They have been
trailing recovery to date. In fact,
| they are actually lower on the aver
age than they were when business
started to skyrocket last June. So
an advance is in the cards for
prices of such raw materials as
hides, leather, rubber, gray goods,
zinc, lead, lumber, and the like.
Building to Face Industries
Nearly all industries can look
ahead to better business in 1889,
A possible 25 per cent gain i'm
building with costs creeping slow
Iy upward) will be the most i'm
pOrtant. A sharp ncrease-around
40 per cent-in auto assemblies
will stimulate activity in many re-
lated industries.
With industrial activity rising, it
is only logical TO expect higher
stock prices. Increased business
better earnings, pressure of idle
cash, healthier trends at Washing
ton should all help to strengthen
the market How far the advance
will go. am not prepared to say,
Readers ask that 1 name those
stock market groups which I feel
have the best outlook. l do not
like to do so, but will mention the
chemicals, oils, electrical equip
ments, rail equipments, building,
machinery, and steels as having
good prospects. For ten years, I
have never recommended a rail-
road common stock and l do not
intend to get messed up in this
sick industry now. However, I be-
lieve that the rails may have the
best chance of all groups in 1899
for percentage gains.
Peace Prospects Gloomy
I urge investors to leave foreign
bonds alone because international
relations will continue in a tur-
moil. The Munich Pact merely
postponed warrior how long, no
one knows. 1 am more optimistic
than most observers, but I am not
willing to predict-as 1 did year
ago-that there will be no war in
Europe during the New Year. l
feel, however, that Great Britain
France, and the United States will