Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1940-08-01

! p. m. Wednesday,
would not DE SURPRISE! 10 see MIL
! lion jobless people 60 back to work
before snow flies. Wage rates Will
not be much higher.-perhaps only
2 per cent on the average. The m
crease, furthermore, will be due 10
the boosting of rates in selected jobs
rather than 4 general mark-up IN
wages. | do not forCscc any serious
gain in strikes. The public will not
tolerate interference from any source
! in the defense job.
While things will look brighter Tor
city workers, l do not believe that
rural areas will fare so well. only
moderate gain in prices OF certain
farm products is in prospect, despite
| the fourth smallest acreage since
1915. There is big demand for food
rsturrs in Europe, but we can do MOTH
ING about it as long as Britain )
blockade remains unbroken. Dairy
products. eggs. canned goQGS, cattle
and hogs are among the farm pro-
ducts that ought to sell higher this
fall. On the whole, prices may aver
age around 3 per cent above a year
ago with total cash farm income On
Guiding government chccks) register
ing little bigger increase.
Small Rise I'm Living Costs
With the demand for goods sharp
ly increased. with major war on
abroad. with the prospect for higher
taxes. many people are worried over
runaway rise in living costs l
think such fears are unfol'nded Tor
the present even though the basic
trend of living costs is upward.
Household bills are expected to move
ahead only acknowledgement much
more than 3 per cent over the cur
rent level. The biggest mark-up VIII
come in food. If taxes are figured IN
to the living costs, the average Will
be somewhat higher because taxes
are scheduled to hit the highest point
in 25 years some time in the near
future.
Heavier payrolls, higher farm IN
come. bigger dividends, plus liked
living costs, should mean briskcr re-
tail sales. But trade in the final hall
of 1899 was good so that the gain
over last years level may average
less than 5 per cent for all lines
including groceries, novelties, 1urnl-
a:,rire. automobiles. dry goods. Price
tags will continue their modest mark
UPS of early 1910, but need be only
3 per cent above the corresponding
months of 1899. Advertising volume
should increase at least 5 per cent
over the like period of last year.
Good News For Investors
Not only should Wage-earners,
business men, and farmers be better
off. but investors should see in
creased income. In fact, the next few
months will see the largest dividend
payments since 1887 providing Con-
gress is reasonable about taxes.
Right now stocks are the cheapest
/ in years based on earnings. World
wide uncertainties, plus excess pro-
| fits tax threats, have unnecessarily
! frightened investors. Hence, prices
of certain stocks should move ahead
as business activity and profits con-
| inue to gain. Selection will be the
kevote with steels, rails, munitions,
machinery. and retail trade shares
lmost favorably situated.
Interest rates will remain at very
low levels; but high-grade, long
term bonds should be weaker. Sec
ond-grade bonds-partcularly rails
are temporarily in strategic posi-
ton because Cd the excess profits
tax does not hit them and CIV rail
traffic promises to reach new post
! 1929 peak this fall. Roads serving the
! industrial area are the best bet. The
! Treasury has a job on its hands to
underwrite the mammoth defense
program without putting the govern
ment bond market "on the spot"
No War Forecast
Foreign trade should hold at cur
rent levels. well above a year ago.
Loss of our continental European
markets should be offset by increas-
cd trade with South America and
perhaps with the Far East. Great
| Britain will continue to be a big
customer as long as the war lasts.
No one knows what the outcome of
the war in Europe will be. My be-
lief is that it will eithe: end very
soon or will drag on for long time.
Whichever happens. I will not change
my forecast on business for the next
six months. This same statement APP
plies regardless of who is elected
president in November.
All in all. the remainder of 1910
promises to be the most active final
half year in history. Our standard Of
living. however. will not increase be-
cause the defense program will not
""oate more goods for us tn divide.
0nlv AS more uceful ooodS are nro-
'''~~1 n'~ +Loro marc to divi1a-anI
o.-1-- ~ +l,-~a ,-o ---I- ~ IL;
vide does the standard of living in