Milford chronicle., 1950-12-29

peace production and high prices
ROGER ". sAssoN prevail
MORE GOVERNMENT CONTROLS COMING
2. The outstanding feature of 1851 will be the
ever-ncreasing interference Of the government in
the lives of businessmen and consumers.
8. The Administration and its economic advisers
are firmly convinced that radical imitation is about
to break out next year. But the "brain trusters are
overlooking the fact that the boom is already old
and that it was creaking badly when the Korean
War broke out. War postponed the downturn which
would have taken place much sooner. The date Of
the slide has only moved ahead
4. Rushing to catch up on it's neglected defense
program, the Administration is anxious to shrink
business volume to an unnecessary degree. Efforts
at first will be along the line of tighter credit curbs
such as restrictions on mortgage and installment
loans and increased bank reserve requirements.
5. AS 1851 wears on, the effect of credit controls
will cause a decline in legitimate business Civilian
production will decline more than armament pro-
duction will increase The public may then cry,
"This is a gOvernment-made slump; let's get rid
of the control"
6. If in 1851 it becomes evident that business is
declining too fast result of government curbs,
the planners at Washington may rush their patient
into an oxygen tent.
LABOR OUTLOOK WILL CONTINUE TIGHT
T. Most labor groups will not be successful in
getting sixth round of wage increases in 1851.
Although there may be more strikes in the first
part of 1851, there will be fewer for the whole year
as compared with 1850.
8. Tightness in the labor supply will be con-
tinued the year on, particularly of highly
skilled workers.
8. The Taft-Hartley Law will not be repealed
/
tors of the law will continue to wink at some of it's
clauses.
COMMODITY PRICES WILL REMAIN FIRM
10. Wholesale prices of many commodities will
be marked by a mild decline in 1861 when compared
with the price level for December 81 1850 In some
lines the drop may be quite steep from the high
levels Of late 1850. Retail prices for 1851 do not
now forecast
! IL. The year 1851 should prove an excellent time
to keep tight grip on inventories. Commodity spec
ulation for the rise will not pay in 1851. Further
more, expanding stockpIes of strategic materials
present real price threat in the event of peace
scare Such stOckples could then act strongly as a
depressant on prices.
12 The cost of living will remain high during
1861. This prediction recognizes that living costs
next year may be above the lower levels that existed
during the first half of the year now closing.
FARM OUTLOOK GOOD
49, Farmers income for 1851 should average no
less than that for 1850 Since the trend in the first
half of 1850 was down, this forecast is not SO
optimistic as it might otherwise seem for there is
likely to be a weakening Of the farmers income
position during the latter part of 1851.
II. Barring crop failures, the total supply OF
food available should be larger in 1851 than for
part Of it's attack imitation If the weather is
extremely favorable the government will be blamed
for farm-price weakness during the latter part OF
1851.
is. With prospects good for a rising supply Of
feed grains, meat should be plentiful next year
than in 1850. Prices for meat however, will be held
up by continued high National Income and by mill.
, tary needs.
TAXES WILL BE HIGHER
, 16 The burden of federal taxes, both corporate
and personal, will be increased again in 1851 Stat,
and municipal taxes will remain high
II. There will be an excess profits tax in 1851
These excess profits taxes will be milder than thos,
in force during World War H. but they will b,
7 inhatiOnary and retard efficiency, economy and in
centive
1S. There will be heavy pressure for increaseC
federal "sales taxes" to discourage purchasing o
luxury and certain nOn-essential goods. Congress
will see the value of some such sales taxes as al
} imitation road block.
10. States and municipalities will again be unde
pressure to find adequate sources of revenue Fur
ther increases in such taxes can be looked for mex
) year with additional cities andIOr states adopting
, sales taxes
r 90 Despite renewed efforts to increase the long
term capital gains tax above the present $50 figure
n rates will remain unchanged
4 DOMESTIC TRADE WILL BE LESS
= 21. Credit curbs will cut into the demand TO
r automobiles and household equipment Completion
of fewer dwellings will also act as damper on fur
q niture sales.
n o. Falling demand for hard goods should mea
stabilizaton Of the publics spending for food an
lower-priced soft goods
%. The trend forecast in No % will mean
-.