The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1944-06-30
BY Roger w. eabaon

Babson Park. Mass. June 80
While have built my business on
the long-pull outlook. | ordinarily
contne my newspaper predictions
10 periods of not more than a year
in advance. However, in view OF
the very broad changes which are
taking place in L. S. business and
political economy, | now feel II
advisable TO look much further
ahead.
General Business Outlook
Transportation in most instances
is not the wolf that most war pro.
ducers thought it would be. Re
conversion to peacetime operations
is, likewise. well IA hand. While
this may temporarily disrupt labor
and interfere with profits, the
change-over will be gradual and is
already under way. 1t should not
adversely affect business or the
stock market. Hence. for the first
few years after the formal ending
Of World War II. good business in
most lines should be in order.
Industrial activity and produc.
tior during the postwar period
should n about so per cent above
pre-war figures but will, OF course,
show a decrease from the peak OF
war production. This drop, how
ever, is already being absorbed in
many lines without fuss for the
peak in war production was reach
ed almost year ago. National in
come, represented by wages. rents
interest, dividends, etc. will prob,
ably average around $ll2,000,000.'
600 per year. This will support a
large volume OF business. Living
costs may rise 25 per cent but II
so those who now purchase well
selected securities may perhaps
get enough capital gains to offset
increased living costs.
New Building
With : high level OF national IN
come. plus accumulated savings,
cannot see anything except a very
large volume Of retail sales. Such
sales have expanded greatly dur
ing the war. but believe in the
| postwar years that they may ex
| coed in dollars their wartime peak
/ Plans for the renewal OF automo
bile production are being carefully
worked out. A year or two after
/ the war, production may approach
100000 cars a year for two OF
three years. In addition, all sorts
OF household appliances. home fur
| nishings, automobile accessories
and other hard goods, along with
an abundance Of soft goods, will be
available. These all will be in
| great demand.
fully expect. in the decade after
the war. to see close to 100000
new homes built. This will natural
ly be a great thing for both skilled
and unskilled labor and should
do much to keep up activity in the
cement industries, which last VII
also benefit from our new road
building program. Homes are cur
rently in great demand and prices
particularly in suburban communi
ties-are expanding rapidly. II
looks very much as though we
would experience a real buildinE
boom. This is likewise true o.
productive real estate in general
cannot now say that the entire
country will participate in a lant
boom, but Florida. the Southwes'
and California now seem headed
in that direction.
Our Best Bet
After the immediate and Inc
vltable readjustments VIII c \
the end of the war viii
bring, businessmen should no
be too much concerned with worry
ing over the following four years
Our real problem and task viii
be TO determine how our cominl
prosperity can be extended aftel
1850 In the early 1865 we will
begin to see signs Of distress. i