The Wilmington morning star., 1947-01-02

Pile missed, he blamed the crisis
on 1.-THE reckless group of selfish
men" who had encouraged meat
sellers to gamble on the end of
price controls. He also signified a
speedy end to other OPA controls,
and put this into effect soon after
the Republican sweep in the No
vember elections.
In any event meat began to re-
appear almost overnight. The stock
yards were inundated, but on the
very first day of decontrol live
stock prices took their biggest me
day jump in history and either i'm
mediately or within a day or so
rose to all-time peaks. Soon, how
ever, many consumers refused to
buy at sky-high prices and they
began to come down, slowly. but
surely.
Just about the time meat was de-
controlled, the cotton market start
ed to act up. For three straight
days, cotton for future delivery
dropped the permissible limit of
80 a bale. On Saturday, October
10, the cotton exchanges in New
York, New Orleans and Chicago
suddenly were slammed shut. 1t
became necessary to close them
twice more in less than two weeks
and during this period prices drop
ped by as much as $50 a bale.
! FrLN @ff:1 1yo,,e rx,on fn, %hN
original break was that a New
Orleans trader, who had made a
quick fortune in cotton, was sud-
denly forced to liquidate tens of
thousands of bales of his 'long'
holdings. He lost millions in the
dropping market, but so did other
brokers and farmers.
By the year-end, however, the
outlook in the cotton market ap-
!peared to be better and most quo
tations for future delivery were
around or above 80 cents a pound,
against more than 80 cents before
the break.
The September 3 break in the
stock market came just as sudden
ly and with as little warning. Sud-
denly, on the first trading day af-
ter the Labor Day holiday, success
sive waves of selling swept over
the New York exchange. By the
days end, prices had plunged
downward more ~sharpely than at
any other time in 16 years, and
there had been a shrinkage of more
than 81, 500, 600, 900 in the value of
securities listed on the "big board"
alone.
ALI in all, it was not too happy a
year for the stock market. After
a general upward movement, tx
cept for a slump in February, a IS
year peak was reached on May 20.
Then the slump began, and with
few Interruptions continued until
late November. Many regarded it
as a good omen for the future when
December proved to be a win
ning'' month. Nevertheless, the
shrinkage in values of stocks list
ed on the New York stock exchange
ran around &c. 600, o00, 900 for the
full year.
Many significant statements
about the economic future emanat-
ed from official sources during the
year, but two attracted particular
attention.
One came after mid-December
from the presidents council of
economic advisers, predicting a
''more than ordinarily favorable
outlook for jobs and production for
''some years ahead" but assert
ing that a temporary dip was
due in 1947. The report said it
could be held to moderate proper
tons or even averted if handled
properly.
Another came during October
from the now-extinct office of war
mobilization and reconversion. Di-
rector John r. Steelman and
President Truman, in a full-dress
review entitled "the second year
of peace" saw the nation as in a
position of great promise and of
great danger"
Inc promise was a prospect OF a
continuing high level of real in
come. The danger was that "a
further price rise might choke off
demand" said Steelman:
1--WE do face an acute threat =
the danger that we will be unable
o shift from the present situation
where demand exceeds supply to
one where demand and supply are
in appropriate balance, without
to a point of equilibrium on
a far lower level of income and
than we have now"