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

rising supply OF feed grams, meat
should be mere plentlfVl next year
than in 1850, Prices for meat, how
ever will be held up by continued
high National Income and by
military needs,
Taxes Win lie Higher
l6 The burden of federal taxes,
both corporate and personal, will
he Increased again in l9Sl, State
aud municipal taxes will remain
high
IL, There will be an excess pro-
fits tax in 1891, These excess pro-
fits taxes will be milder than those
in force during World War IL;
hat they will be mAationary and
retagd efficiency, economy and in
eentive,
rs, There win he heavy press
sure for Increased federal ~Sales
taxes 10 discourage purchasing of
luxury and certain noN,eSSential
goods, Congress viii see the value
Of some such sales taxes as an
imitation read hleek,
~, States and municipalities viii
agaln he under pressure to find
adequate sources 0f revenue, Fur
Their Increases in such taxes can
be looked for next year with add,
0enal cities and or states adopt
iNg sales taxes,
20, Despite renewed efforts u
Increase the loNg,term capital
gains tax above the present sSft
figure, rates viii remain nm
. changed,
Domestic Trade Win he Less
si,XIeSM eNrhS will cut into the
demand Cor Automobiles and house
hold eQUSaMent, Compilations OF
Fewer dwellings, viii also act as q
6aMner on furniture sales,
~, Falling demand for hard
goods should mean y Stahilization
Of the pNNlie'S spending fer food
and loweT-prieed soft goods,
~, The trend forecast in No, sS
will mean n decline in department
stone volume, hut | predict y rise
in the sales Of variety chains and
Of drug chains,
Foreign Trade Outlook Fair
-, Barring new war develop
men,S, look for continued shrink
age in eur exports during 1881,
Imports, however, should rise fur
Their Total foreign trade should
not he much changed. but the eN-
p0yterS will be on the short end
NJ this business with the import
ems xainlng,
\ Is, II viii become more dIfFicult
I to convince Congress that adj
dltionalS heavy credits should be
'granted abroad except fOr war
( supplies,
I 20, AS was the case this year,
many domestic manufacturers will
feel Increasing competition fI0m
foreign merchandise, The cry for
iNeyc@Sed tariff protection will be
heard again in the land,
~, Business and financial fore
casts Zen next year are NOT based
On the thought that World War
Ill viii start in 1881, Russia is
certainly heading for war, but We
do not believe she now wants il
in Europe, She Will Do satisfied to
have her satellites continue taking
unexpected labs at MS, while the
NolithOrN NOyS hand out the SO0th,
lNg SYRUP But We may see
another episode like "Koreas in
1851,
More Deficit Financing
At,er June 50. 1881
1 ~, The first half OF 1851 may
actually see n AOdget surplus as
= result Of high National Income
and lNcCcaSed taxation, Later, II
Congress gOeS along with the Ad,
mlNiStratl0N'S plans for huge n.
armament, n federal deficit will
arise during the last half Of the
YEAR
~, As y result of the preceding
prediction, money supplies should
not begin 70 rise until after bust.
ness has turned down, Increases
at such time are not likely to
have much effect on prices.
SO, Government bonds will be
held tightly between the AoOr Of
Federal Reserve support Nur.
ehaSeS and the ceiling Of Federal
Reserve naturalization sales. Under
such conditions, price changes
should be negligible,
81, A great deal will be heard
in 1881 about giving the Federal
Reserve Board powerful controls
over member bank lOaning pol.
lcieS, Congress Is not likely 10
pass such contOlS. however, un.
less commodity prices 40 a lot