The Lexington advertiser. [volume] (Lexington, Miss.) 1904-1985, 1950-12-28
Babson Predicts Highest National income
On Record For 1851; Increasing Government
Controls; No Third World War In 1851

GSoitolAI1 ddNASOIS dfS llIHlly GI1s~
WINGED that radical Invitations %
about to break out next year. But
the brain trusters" are overlook
ing the fact that the boom is All
ready old and that it was creak~
ing badly when the Korean War
broke out. War postponed tac
downturn which would have talk
en- place much sooner. The dz&ee
of the slide has only moved sEseadi.
4. Rushing to catch up On Is
neglected defense program, the
Administration is anxious to-
shrink business volume to am usn~
necessary degree. Efforts at firsC
will be along the line of tighter
credit curbs, such as restrictiosne
on mortgage and installment I0&aAss
and increased bank reserve re
quirements.
S. As 1851 wears on, the effnrt
of credit controls will cause a dc
cline in legitimate business. CT
william production will decfluB
more than armament productEanp
will increase. The public may
then cry, "This is a government
made slump; let's get rid of ttass
controls!"
6. If in 1851 it becomes evident
that business is declining too fast
as a result of government curfss,
the planners at Washington map
rush their patient into an oxyg-as
tent.
Labor Outlook To Continue BrsghH
z. Most labor groups will not he
successful IN getting a sixth rosanaG
of wage, increases. in 1851, Al
though there may be more strikes
in the first part of 1851, there wflH
be fewer for the whole year as
compared with 1850.
8. Tightness in the labor de-
partment will be continued as the
year wears on, particularly nc
highly skilled workers,
9. The Taft Hartley Law wifi
not be repealed during 1851 FNst
may be amended. The Admins
traitors of the law will contirrlas
to wink at some of its clauses
Commodity Prices
viii Remain Firm
TO- Wholesale prices of many
commodities will be marked by
mild decline in 1851 when cUfn-
pared with the price level for De-
cember 81, 1850. In some liraes
the drop may be quite steep frvsna
the high levels of late 1880 Re-
| tail prices for 1851, I do not raow'
| forecast.
II. The year 1851 should PROVE
an excellent time to keep a tight
grip on inventories. Commodity
speculation for the rise will not
/, pay in 1851. Furthermore, eenr
expanding stockpiles of strategic
materials present a real prizes
threat in the event of peare
scare. Such stockpiles could tfH@sa
act strongly as a depressant osa
prices.
IL. The cost of living will remaifs
| high during 1851. This predictions
recognizes that living costs NEXT
year may be above the lower les
wells that existed during the first
half of the year now closing.
Farm Outlook Good
10. Farmers income for 1857
| should average no less than THAI
for 1850. Since the trend in the
first half of 1850 was down, TINS
forecast is not so optomistic as II
might otherwise seem, for there
ie likely to he a weakening of the
] farmers income position during
the latter part of 1851
IA. Barring crop failures. the
! total supply of food available
should be larger in 1851 than for
1850, since the government viii
raise planting Quotas as part OF
its attack on initiation. III tins
weather is extremely favorable.
the government win 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 more plentiful next
year than in 1850. Prices for
meat, however, viii be held up
by continued high national in
come and bv military needs.
Taxes win Be Higher
is. The burden of federal taxes,
both corporate and personal, WIZ
be increased again in 1851. State
and municipal taxes will remain:
high.
J IL Th<~e win be on exces- orc,-
tContynued on Page ~