The Lexington advertiser. [volume] (Lexington, Miss.) 1904-1985, 1950-12-28
Bobson Predicts
Continued from Front Page

fits tax in 1851. These excess
profits taxes will be milder than
those in force during World War
II: but they will be inflationary
and retard efficiency, economy
and incentive.
10. There will be heavy pressure
for increased federal "sales taxes
TO discourage purchasing Of lux
ury and certain non-essential
goods. Congress will see the val
ue of some such taxes as an IN
flation road block.
10. States and municipalities
will again be under pressure tc
find adequate sources OF revenue
Further increases in such taxes
can be looked for next year with
additional cities andior states
adopting sales taxes.
20. Despite renewed efforts tc
increase the long-term capitol
gains tax above the present %
per cent figure, rates will remain
unchanged.
Domestic Trade Will Be Less
81. Credit curbs will cut into
the demand for automobiles ano
household equipment. Compile
tons of fewer dwellings will also
act as a damper on furniture sales
%. Falling demand for hard
goods should mean stabilizatlor
Of the public's spending for food
and lower-priced soft goods.
%. The trend forecast in No. %
will mean decline in department
! store volume, but I predict rise
in the sales Of variety chains and
of drug chains.
Foreign Trade Outlook Fair
"a. Barring new war develop
n,ents. I look for continued shrink
age in our exports during 1851,
Imports. however, should rise fur
ther. Total foreign trade should
not be much changed, but the ex-
porters will be on the short end
of this business with the import
ers gaining. 80 :.
Is. It will become more difficult
to convince Congress that addi-
tional heavy credits should be
granted abroad except for war
supplies.
26. AS was the case this year,
MANY domestic manufacturers will
feel increasing competition from
foreign merchandise. The cry for
increased tariff protection will be
heard again in the land.
81. Business and financial fore
casts for next year are NOT based
on the thought that World War
III will start in 1851. Russia is
certainly heading for war, but we
do not believe she now wants it
in Europe. She will be satisfied
to have her satellites continue
taking unexpected jabs at us,
while the Politburo boys hand out
the soothing syrup. But we may
see another episode like Korea
in 1851.
More Deficit Financing
After June 80. 1851
27. The first half of 1851 may
actually see budget surplus as
a result of high national income
and increased taxation. Later, If
Congress goes along with the Ad-
ministration's plans for huge re-
armament, federal deficit will
arise during the last half of the
year.
20. AS a result of the preceding
prediction, money supplies should
not begin to rise until after bu-
siness has turned down. Increase:
at such time are not likely tt
/ have much effect on prices.
80. Government bonds will b.
held tightly between the floor O
federal reserve support purchase
and the ceiling of federal reserve
anti-inflation sales. Under sucl
conditions, price changes snoui'
be negligible.
| 81. A great deal will be heard il
1851 about giving the federal re
serve board powerful controls owe
member bank loaning policies
Congress is not likely to pass sue
controls, however, unless commo
dity prices 60 lot higher, @
World War III comes.