The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1943-01-07


suffer most.
COMMODITY PRICES AND
LIVING COSTS
Prices of practically all COM
modities are at their low with
the exception of certain ones that
are now imported from India, the
Far East and Africa. AS we are
shipping loads of men and sup
plies to these points, ships may
bring back supplies of cocoa, cof-
fee, olive oil, dried fruits, cork,
antimony, lead, manganese, hides
and skins, mercury, molybdeum,
zinc and other commodities.
Throughout 1913 there will be a
continued pressure to pierce price
ceilings. These ceilings will be
kept down fairly we'll on goods
which the armed forces need.
Thus far the OPA has made no
distinction between essentials and
non-essentials. Not only is this a
very difficult thing to do, but it
is good politics to class everyone
alike. The war against initiation,
however, will never be won in
this way. The only way to keep
women from buying unnecessary
clothes, for instance, is to let the
prices of these clothes increase to
a point where the price tag hurts.
Therefore, during 1943, I forecast
a Redistribution of the essentials
and non essentials. Prices will be
held down on the essentials, but
retailers will be allowed to charge
higher prices for non-essentialS.
There will be a little increase in
living costs, but care in buying
and less waste can more than Off
set any increases.
SECURITY PRICES
I believe that the Dow-Jones
Stock Averages will go to points
during 1943 higher than anything
seen in 1912; also that bond yields
and stock yields will tend to come
closer together. This may mean
decline in the price of low-cou-
pom, long-term bonds and an in
crease in the price of many stocks.
This especially applies to stocks
of companies which are not ham
dicapped by cumulative preferred
issues or bond issues. Remember,
the London Stock Market is wit
Messing the highest prices it has
seen for five years. Certainly, in
vestors are sound asleep in the
United States. Even the utilities
begin to look better in spite of
coming initiation.
The most important question
for the investor during 1943 will
be, Shall I buy peace stocks or
war stocks?" Of course, the safest
thing is to buy peace stocks. The
war stocks include airplane man.
ufacturers, the steels, coppers and
other metals and machine tools;
while the peace stocks include
building supplies, motors, rub
bers, household appliances and the
stocks of most other companies
which are now suffering from
lack of business. One sure bet is
that companies which are now
prospecting most during the War
will suffer most after the War;
while companies which suffer
most during the War will prosper
most after the War. There are
some concerns of course, such as
the merchandising companies,
which should do we'll both during
and after the War: The railroads
will do we'll during the War-but
afterwards, look out!
BUILDING AND REAL ESTATE
New building during 1943 will
fall off. Government building,
both of factories and environments
will decline while residential
building will continue to be held
down. This means that not only
will the manufacturers of building
supplies and contractors have a
poor year in 1913 but there is
liable to be more or less unem-
ployment among carpenters, ma