The Durant news. (Durant, Miss.) 1882-1985, 1948-12-30


this time. Both employers and
wageworkers will some day unite
in during a program which will
give steady work throughout the
year. This is the best hope for
lower building costs. Bricklayers
painter and carpenters are criti-
cized today for doing such a
small amount of work, but we
must remember the many days
when they are unable to work
due to weather and other condi-
tons.
Imitation
/ 30. Initiation (high prices)
comes when consumption exceeds
production. This means that in
flation can be checked only by
increasing production or by re-
ducing the money supply. The
job of getting prices down today
depends, therefore, upon what
management and labor produce
per hour. We believe that wage in
creases during 1949 will be accom-
panied by a corresponding in
crease in the per hour production
Of the wageworkers.
Some object to the large pro-
fits that their employers are get
ting today compared with the
l930's. 1t, however, should be re-
membered that during these de-
preston years most employers
had no profits whatsoever We
forecast that profits will continue
to be regulated automatically by
the law of supply and demand,
rather than by the government.
80. At some time during 1949
we forecast that the point will be
reached where the nations in
flated money supply will have
become fully employed. Hence,
emphasis may shift from efforts
to stop initiation to efforts to halt
deflation.
Stock Mmkef
33. 1949 may not be a better
year stock market wise than l948
Investors will especially get out
of stocks of companies which
have most of their assets in big,
Vulnerable in case of war" cities,
reinvesting in companies whose
assets are well distributed and
safe from attack
"a. The Administration will not
want the Dow-Jones Industrial
Average to go too high on ac-
count of the consequent effect
upon labor's demands. Commodi-
ty speculation will continue to
be curbed.
35. The wisest will not try to
pick any special winner" in
l949; but will diversity broadly.
Those who have too many stocks
will gradually build up good re-
serves, in cash or Governments
for the big break which will come
some day. Careful buyers of
stocks will insist on making full
payment and avoid borrowing
during 1949.
36. Safe dividend playing stocks
will be in greatest demand, es-
pecially if double taxation on
dividends should be eliminated.
Ror,dS
81. We are definitely bearish
| on low-coupon-rate, long-term
bonds as money rates will gra-
dually increase.
38. If Congress should exempt
dividends from double federal
taxation, l949 will see a further
falling off in the prices of certain
tax-eXempt bonds.
80. We forecast no change in
the nations monetary policy re-
lating to credit control and in
terest rates during 1949.
40. Investors will give much
more attention to diversification
in 1949 and will try to have their
| bond maturities either fairly
short or staggered.
Reul Esfute
Al. City real estate will continue
to hold firm through 1949, due to
less available rental space caused
by pulling down structures to
save taxes, provide parking
spaces, etc. There also is a disin-
clination to build new city pro-
perty in view Of the present high
costs.
AZ. Suburban real estate will
continue in fair demand during
1949 although there will be some
shading of prices.
43. Big commercial farm acre.
age will sell for less during 1919;
but subsistence farms, located
close to established communities
will hold up in price
"A. General building will de
crease during 1949 although the
| cost Of building may decline q