Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1950-12-28

total Business volume in 1881 viii
he less than that Tor 1850, How,
ever. National Income in 1881 viii
he thu highest ever recorded, as
war orders take the place OF peace
prohibition aud high prices prevail,
Mere Government
Ceatrels oomhss
=. The outstanding feature Of
1851 Mil be the craftsmanship
Interference II the government in
the lives Of businessmen and con-
s0mcN>
Z. The Administration and its
econ0elc advisors are firmly con,
WINGED that radical MAatIen is
about 80 hycak out next year. But
the ~hram uNSterSH are overlook,
ina the fact that the eoom is al
ready old and that L was ereaklNg
badly when the Korean War broke
out. War postponed the downturn
which would have taken place
much sooner The date III the
slide has only moved ahead,
I. Rushing 10 catch up on its
neglected defense program, the
Administration Is anxious to
shrink business volume 60 an Wn,
necessary degree, ENertS at first
will be along the line Of tighter
credit cNrhS. such as restrictions
ON mortgage and inStallment leans
and Increased hank reserve W.
QNlrcments,
s. As 1881 wears an, the effect
Of credit CONTROLS Will cause n 1e.
cline in lexltimass ASsSlNSSS, q,
william production viii dcelme mege
than armApaenf NgNdNeOonsNvln IN,
crease. Tktsn0NlIc1m may then cry,
~ThiS is a gOVernment,maae
sl0nSps let's yet hid ~ the con-
trNlS~
&. IL in 1881 il becomes evl.
dent that business is declining too
fast as n result of government
c0rhs. the planners at Washington
may rush their patient into an
eSygen tent.
Labor Outlook WIN Continue Tight
:, Nest labor groups viii net
he successful in getting a sixth
round III wage Increases in 1881,
Although there may be more
strikes in the first part Of 1881,
thes~ will he fewer Cor the whole
year rs compared with 1850,
:, TightneSs in the labor supply
viii be continued as the year
wears On, particularly Of hlghhNi
skilled workers.
.. The Taft,nartlcy law viii rot
be rcpeSled during 1851 but may
he amended. The Administrators
% the law viii continue 10 wink
al some Of its clauses,
Commodity Prices
10 Wholesale prices Of many
commodities will be marked Ny =
mild decline in 1881 when com.
pared with the price level Tor ne-
cemeer 81, 1880, In some lines
the dG0a may be quite steep from
the high levels of late 1889, Re-
tail prices Tor 1881, l do not now
forecast.
IL. The year 1851 should prove
an excellent time u keep \ tigh,
grip on Inventories, Commodity
speculation for the rise viii no,
pay in 1851. Furthermore. our eN'
banding stockpileS of strategic
materials present a real price
threat in the event Of a peace
scare. Such StockplleS could then
act strongly as denseSSaNt ou
prices.
II. The cost ~ living will NJ
main high during 1881, THIS Nre'
Siction recognizes that living costs
next year may he above the lower
levels that existed during the fms,
half of the year now closing,
FArm Outlook Good
Is Farmers income for 1881
\sh0ald average no less than that
Npr 1859. Since the trend in the
\St half Of 1850 was down. this
n caSt IS not 50 optimistic as /,
at otherwise seem, for there is
likely to Dc a weakening ~ the
farmers income position d0ring
the latter part Of 1881,
Il. Barring crop failures, the
total supply of food available
should be larger in 1881 than fol
1850. since the government will
raise planting quotas as part Of
its attack on imitation, II the
weather Is extremely favorable
the government win be blamed 70,
farm.priee weakness during the
latter part Of 1881.
i6. With prospects good for a