Milford chronicle., 1949-12-30

20. Fear OF war with Russian will continue dur
ing 1860. World War III win come sometime: but
1t will not start during 1850. Those in large yulner
able cities should use these years of peace to get
some small farm or country home to which they
can go in case of war. Such places will be almost
unObtainable when war actually comes.
Deficit Financing
q. The supply of money will be increased dur
ing 1850 but the price Of Government bonds will not
change much one way or the other during 1850
2S In addition to the anticipated Federal deficit
the $SOOOOOO,OOO being distributed as insurance re-
funds to veterans will be mostly spent.
29 Congress will not change the price of gold
during 1885,
Stock Market
30. Most stocks will work up and down in about
the same range during 1850 as during 1s49
81 Stocks of companies with assets mostly in
natural resources, known as imitation stocks should
have the greatest demand.
81. There will be more investment buying for
income during 1850 and utilities and companies
making labor-saving machinery may be more popu-
lar than other industrials or railroads.
80. The wisest investors will keen fair amount
of their funds liquid throughout 1850 pending the
great break in stock prices which will come some
day.
"a. High-grade taxable corporate bonds bearing
low coupon rates should continue at about the same
prices during 1860, but of course they will sell for
much lower prices when money rates increase
3d. 1850 will see further fading off in certain
tax-exempt bonds due to the new Housing Authority
Obligations to be issued during 1860.
S6 The Federal Reserve will continue during
1850 the same general policy which it followed in
1949
81. The Importance of diversihcation will be
given more attention in 1850 and wise investors will
watch their bond maturities to see that they are
either short or systematically staggered
Real Estate
49, The city real estate outlook is uncertain. II
should continue to hold firm throughout 1850 due tn
less available rental space caused by pulling down
old structures to taxes and to provide parking
spaces. Owing to- high costs and the fear of World
War III, there will be little inclination to build new
city property. On the other hand, the continual
movement out of our large citiesin the interest of
decentralization-ma cause prices to soften
80. There will continue to be a fair demand dur
ing 1850 for suburban real estate with a shading of
prices for large places but the residential construc
tion boom should continue we'll into 1880
40 The demand for large commercial farm acre
age will be less during 1850; but small sustenance
farms, especially those located close to established
communities, will hold up and perhaps increase in
price.
Al. There will be some decrease during 1850 in
industrial and private building. The cost of such
building will decline little and the quality of work.
manship will improve. There should be an increase
during 1850 in publicly financed building
AZ. There will not be much change in business
rentals during 1885, but residential rents will aver
age higher in 1850. Only as property owners are
granted higher rentals will there be more houses
built for rental purposes.
49, Mortgage interest rates during 1850 will
continue about the same as during 1949.
A. The growth in industrial pensions should
help real estate sales in Florida, California New
Mexico and Arizona.
General Business
45 Many business concerns find their opera
tOns sliding down toward the breaking point There
VIII not be as much margin between costs and SELL
ing prices during 1850 as during 1949. Unemploy-
ment will gradually increase due to the installation
OF labor saving machinery and other causes
49, Military preparedness will continue to bols-
ter general business and employment during 1850.
but this is not healthy development.
A. Excluding Government owned commodities.
the physical stock piles of manufacturers will re-
main about the same during 1850 as during 194S
Politics
49, 1850 will be election year The Republi-
can Party will remain in the doghouse The Admin
isration will continue to talk radically against Wall
Street and the so-called Selfish Interests" but at
heart the Administration will be fairly conservative
It's bark will be far worse than its bite
49, The Administration will continue to be sym-
pathetic to organized labor unless someone like
John L. Lewis goes too far. In that event. such a
man will be made the whipping boy, but with the
consent of other prominent labor leaders
So The Congressional Elections of 1850 will not
change the political status of Congress to any great
extent