The Waterbury Democrat., 1941-12-17

will Do better prepared, with new knowledge and ability, to meet the competition vixen the postswar eco. homie battle is resumed.
 Business will Do protected into the new year with the stimulus Of record breaking retail trade during this year.end holiday season. The present year shows new peaks reached In retail sales. They will very likely be sustained in tho year ahead. Part of the increase la dollar volume, however, will reflect rising prices.
 "A temporary setback to consumer buying can De anticipated in the later winter and spring months, l. c, in tho period around the first inc come tax date. Then, for the first time, many vii realize more fully just what Q def0nSe tax bill means,
 No Effective Price Control
 "Hlgher prices will Do evident in ie42. The currently.advocated price control measures ere not likely to do tho necessary job of holding down prices. Price control requires sufficient authority plus efficient, dlsinteFeBted administration. Tx. emption of such potent sectors ot the price panorama as labor costs and farm prices will prevent any sound solution, regardless Of the ability Of the administrative body and It's desire to check price infiG- tion."
 UnbFidied inflatlon will not take place during ie42, MT. HeiInan dc. clareS, but the national debt will continue It's upward climb during the year.
 100 Billion Dollar Debt Total?
 An eventual one hundred billion debt S not improbable before VIC are through with our present efforts. A quick conclusion to the present war might keep it below that limit, were there not already indications that most of the world expects us to be the 'angels' of world Feconstruc. tlon-the godfathers of c worldwide WjA. Therefore, we should keep in mind that the postswar readjuSt. ment era will very likely witness some continued rise in our national debt.
 Labor Problems
 Management will continue to be faced with labor problems in the year ahead. The public reaction to extremes in labor demands, however, Is resulting in an increasing pressure by government, designed to bring the effort of the unions in line with the needs Of tho emergency.
 "The new year will not witness the achievement of fundamental lR. bor stability. It will see c further. ance of the trend to Q labor control led government in this country.
 National Income Rising
 "Our national income reached q high point of approximately 0i bile Hon dollars in 1929. Tn ioli 1t was advancing at a rate that indicated Q total around the 90 billion mark, perhaps higher. And in i042, it Is al. ready predicted, national income will exceed 100 billion dollars.
 Despite this trend, despite the highest industrial production In our history, the security markets will not substantially reflect the greater ac. tivity. Although there will be ap- preciation in value, there are, many weighty factors against Q rapid rise. They include increasing wage rates, heavier taxes and many other high. CT costs which will hold down the return per dollar of investment.
 '"The long.term outlook is also inc fluenced by the specter of excess inc dustrial capacity when the war en. ergency years are past. The new year will see a continuation of the of profit margins, which will be an extension of that in ef. feet for over decade.
 Latin American Trade
 ITO meet our domestic and dee fense needs, and as a means of 3orestalling Axis moves in Latin America, we have practilly doubled our imports from that area during the past two years. This has helped bring about 6 boom in those coln- tries. They are looking to us for manufactured goods, machinery and many other types of eQuip- ment.
 Our ability to meet this de- mand has been hampered by q | shortage Of cargo space for ships l ment of goods and by the priority l and export control rogtalations | that have been set up in this