Henderson daily dispatch., 1940-12-31


success Of the British blockade SUP
plemented by the destruction OF
German crops.
Let's Look at the Record.
Let me say that 1871 should be tho
best business year this country has
ever witnessed. Everything from
cradles 10 cottinS. including divi-
dendS and pay envelopes, should
SHOW 4 Tine gain over 1910. We hear
much bowling about taxes. When
YOU consider, however. that the eX-
cess profits tQX on firms with large
invested capital does not begin I'M
III they earn eight percent, even
taxes are not SO serious.
Industrial activity directly relat-
ed to defense will account for about
10 percent Of total 1871 business.
Production indirectly related to de-
tense will also aggregate about 10
percent. Thus. in l94l. 20 percent
Of our total business activity will
come from armamentS. | expect the
BabSOncnart Index Of Business TO
average about 10 percent higher than
n 1910. Notable gains should take
place IN textiles, shoes, mining. foods,
printing. publishing. Shipbuildng,
building. freight traffic. and many
other industries. BY spring, business
volume Will be recording new all
;.n2e high.
II would be foolish to put a def
mite figure on what the BabSOnchart
Index will show in 1911, but should
not be surprised if it averages 125.
Estimating the counUy'S income for
1910 at S74.0O0.000.000. fore
cast rise to we'll above $4,000, 000,-
600 for 1911. The 1889 figure was
TO.OOO.000.O00. The greatest national
income to date was in 1929. when
:, was So 1855, 900 900. This calls for
: reduction in unemployment Of
80 percent. an increase in building
o.. 20 percent and an increase in
..taI trade OF 81 percent. This
means that sales OF physical volume
o.. merchandise will show moderate
sans. as retail prices will average
ra,v slightly higher than they We're
last year. This is a very healthy
.gn.
War or Peace. Business Will be
Better.
! believe that we would have 4
prosperous 1871 irrespective of our
defense program. The big business
backlog. the great shortage of houses,
and the unprecedented supply OF idle
:..dS are bound to lead to 4 return
.. good times. When we add to this
lac. the tremendous effect OF the
defense program, the result is stag
se..ng. II you have any doubt, read
i, vo,,v newspaper OF the contracts
..te BY the government every daJ
e.. ,..oDlieS OF all kinds. Not only
IT,. re demand for goods be great
- ding World War II. but our
industries are in far better position
- handle the business. The auto
noble .aduStry. for instance, has
bull. ag0roXimately 100000 cars
since 1918. It is now prepared to
build a.rplane engines and machine
guns. as we'll as trucks and tanks.
The electriC-pONer industry,
thanks 10 PreSiden: Roosevelt, has
cl"e.ed the o)untry with a vast net
wo... of transmission lines, furnish
.ng :odav power at rates 10 percent
a~.yw those of 1918. Our generating
rssacitv is from four to five times
ina, of Great Britain or Germany.
Experts say that the war will be won
~ oil. II so. we are fortunate in
.a-ing three-fifths of the annual
wprld's production, distributed by
a.er $4,000 miles Of pipe lines TO
al parts Of the country.
We have over One-third OF the
abroad mileage of the world. The
physical condition Of Our railroads
mas improved as money, which here
.otore has been spent on interest
mas been put into maintenance. Let
Us not forget our telephone service
which connects 10000 communities by
nearly 1OO.OOO,OOO miles of wire. All
Of these items show tremendous in
creases from every point OF view
Whatever may be the truth as to
the nations preparedness for war,
il is certainly true that we never
before were so well prepared Tor
great industrial expansion.
What About the Railroads?
As readers know, l have never
recommended railroad securities
since I spent two years as assistant
20 the secretary of Labor at WASH
ington, from 1917-19l9, and fought
with leaders of the railroad unions.
I came back from there saying that
even if any cream should rise from
the railroad milk, it would be SKIM
med by labor and never reach stock
holders. Railroad security owners
are further faced with severe COM
petition by the truck, the bus. the
airplane. and the automobile. Even
today, approximately 10 percent OF
the nations freight and 20 percent
Of the nations passengers are oelng
transported on rubber. These figures
moreover, are increasing at the rate
of about 20 percent a year; Wnile
the percentage Of freight and pas
Sengers hauled by the railroads IS
constantly declining. When railroad
earnings look good in 1941, THIS Will
De the time to get out and stay OUT.
Do not be fooled on the lon9-puli
outlook by news items OF rising car