The Chronicle-star combined with the Moss Point advertiser., 1947-01-03
Asset ed Press
Predit 3 rs For
Year Ga Mt
BY NEWS s ALrsTs OF
THE ASSOC 30 D PRESS

IGOVefSy over I SSlDlllty o.
a depression. Mucn will lepenc
on whether economists predict.
ing a recession prove right OF
wrong.
The outlook in fields Other
than business is hazy, because
it depends on the economic fu.
ture.
Here is the likely genera
shape of the year to come:
BUSINESS AND INDUSTRY
"A depression in 1947 is a pos.
sibility, but neither a certainty
nor a necessity. The year can bt
a boom year of unprecedented
proportions if labor strife can bt
averted so as to keep industry
in full production, and if price:
can be kept in a range where
people can buy.
There are two other worry
spots, however. Manufacturers
inventories are now the highes'
in history, and although consum'
er credit is still plentiful, con
sumner borrowing has already
passed all previous records.
Two key industries r held il
the balance of labor-managemen'
relations. Experts say steel, king.
pin of industry, given industrial
peace could produce well above
1000, 900 tons in 1947. Thi:
would run something like 10000,
900 tons above 1916.
The automobile industry, with
a demand for 100000 cars
against a 1916 production of g.
000, 900 depends on the same eff
plus "if" it can get steel.
LABOR - Another wave Of
strikes is feared. With labor anc
management squaring off after
their stormiest year in history
the outlook is discouragingly
parallel to what it was a yeal
ago: uncertain, emotional ano
explosive.
There are three new develop
ments:
/. The public. White House and
Congress are fed up with labor
management deadlocks. President
Truman is almost certain to rec.
ommend new labor legislation
The Republican Congress may &C
further. Whether changes in the
laws will prevent strikes is an
other matter.
2. A business slump may come
Depressions usually mean unfav'
orable atmosphere for labor's de
mands.
3. The government has less OPP
portunity to intervene when col
lective bargaining breaks down
since price and wage controls are
off. This means wage increases
can be passed on to the public
in higher prices.
AGRICULTURE - A seventh
consecutive year of bumper pro-
duction (weather permitting is
being encouraged by the govern
ment. Farmers again are being
asked to produce abuntantly to
meet continued world shortages
of food.
But l947 may be the last year
for some time that such planting
will be favored. There are signs
that by the new years end fore
ign demand for American food
may drop sharply.
Farm income and prices, which
reached new peaks in 1916, are
expected to ease off in 1947-
providing production turns out
f%avorablv.
On the other hand, an indus
trial recession might bring about
a farm price slump requiring
governmental emergency action
to check it. !.
FOREIGN AFFAIRS = A
"peace conference i've Ger
many, similar to the 1916 Paris
conference, may be seen in 1947
with similar results. with Russia
continuing delaying tacti'c
against removal of Soviet troops
from central Europe.
Regarding disarmament, atom
ic control and the U.N. military
security force, something less
than satisfactory agreements
are likely. These compromises
will leave the situation little
changed. The race for develop
ment of new weapons will be on
in earnest.
Russia and the u. S. may at
tain greater civility on the sur
face with fundamental cleavages
continuing.
Submerged" peoples will make
gains in their fight for a place
in the sun.
POLITICS = The Republicans
will face difficulties in bringing
about the economy, tax reduc-
tons and continued abolition OF
wartime controls on which they
hope to build a 1947 congress
sional record to bolster the fol-
lowing years presidential cam
paign.
More or less open warfare be-
tween Congress and the White
House can be expected in a few
months. despite President Tru-
mans hope to- 60 along as the
new Congress opens. The Presl-
dent NAV find il difficult to swal-
low some Republican proposals.
Bipartisan handling of foreign
affairs is likely to continue, but
some Conversational overSeas IN