The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1944-04-08

In the past two years instalment
purchase obligations. home mort
cages. doctors bills and other
personal debts have been nearly
cut in half. This means indirect
savings OF some S5,000.000, 900. L.
5. white citizens are becoming
systematic savers and are well-for-
tilted with liquid capital. While
receiving wages, they are satisfied
with low yields from government
bonds. However, as living costs
expand, people must either spend
their savings or invest them in
high yielding securities. Hence.
an ultimate mass return 90 the
stock market-first, as a source OF
income and second, as a means OF
maintaining capital in the face OF
decline in the value of dollars.
Dividends and Interest
High-grade industrial bonds now
yield an average OF about 2.5Oeo.
Most banks, aside from the coop
eratives and mutuals, pay only 10
to &c interest. For income and
protection. investors are better of
in War Bonds. The average yield
from higherade stocks will run
about Also. In individual inst
ances. yields OF 7oc-10ec in good
companies now may be secured.
Investors desiring such returns
should act now. They may not be
available long.
Market Uncertainties and
Possibilities
Typical market action during re.
cent months has been due TO I'M
certainties over the holding OF our
wa: prosperity; TO fear that the
postwar era may not bring the eX-
pected demand for consumers
p, rate and. personal tax situation;
and TO confusion over domestic or
foreign politics. This uncertainty
may continue for some time. With
maintaining a profit
level averaging only that of re-
cent prewar years. security prices
may rise substantially When the
present psychological uncertain
til are over. good-grade industrial
stocks could easily sell 500 higher
than they are today. give FIVE ad-
ditional reasons therefor
|. \ few blue chip" stocks are
high. but most stocks look cheap
to me. For nearly ten years,
everything except stocks and real
es ate has gone UP. We are paying
more today for labor, high-Zrade
bonds. insurance. and all sorts OF
commodities. Similarly, We will
paw more for stocks.
.. The supply of stocks IS dry
in up. Few new issues have come
on the market in recent years.
Hence, demand may exceed the
supply.
8. We forget the great foreign
market that has always existed for
American stocks. When present
blocked currencies are released,
a good many Europeans will scram-
bic for our stocks.
The deferred demand for con-
sumers goods should keep our pro-
ductiye capacities busy and take
up much slack occasioned by the
lessening Of war business. Do
nestle markets will be large. We
should also enjoy a good export
business. European countries. our
Latin-American neiehbors and Az
RIGA have plenty of gold reserves.
They will provide cash markets
for our merchandise. Russia should
continue a good customer,
> Excess profits taxes will GER
tainly be reduced II not eliminated.
Corporate taxes are at their peak.
In a few years the tax trend may
be reversed. further believe that
business controls from now on
will be handled intelligently. Some
thing will also be done 10 ease
the capital gains tax and to elm
mate the double taxation OF stock.
holders.
Conclusion
7 do not fear initiation I, we can
industrial production on
a large scale. ] do not look for
bank credit liquidation. | see no
important decline in commodities.
Most Of our excess employed. mum.
bering about 100000 people. will