The Durant news. (Durant, Miss.) 1882-1985, 1952-01-03
Total Business Volume For 81 ExcIudino
Defense Orders Will Be Down Babson;:
Nations Income Expected To Remain Hiqh
Controls. High Prices, increased Toxes
Will Take Toll OF Business In 1852
BY Roger w. Babson

1851, sinces the government wFr'
raise planting quotas as pars &C
its attack on initiation. H xs,s
weather is extremely tavoxsas~
the government will be aske4 se
give away surplus crops.
10. With prospects good for 8 ?
rising supply of feed grains, Roosy
meat should be more plenxs-uy
next year than in 1851. prEss
for beef, however, will b. ac3e
up by high wages and miiies.yy
needs.
Local Tales Will Be Hiqhsr
l6. The burden of Federal Taz
es, both corporate and persona
will not be increased again ds.sr-
inv 1852 above the advance Zsss
in 1851. State and Municipal Lar
es, however, will 60 higher agsSa.
II. The above forecast is hSx:e
upon the assumption that umssss
Stain starts World War III dzrr-
ing the early months Of 1852, I.es
has made up his mind to fcr.gss
World War III until The Ura-sr
States and our All 9~ain e
to Sleep" which - ssx- =
years hence. We e-V- til aat&
mite prediction as to the, 1ist ts.,
for World War I'LL
18. There are three ways Il
preventing imitation: Cd inereAs-
led production; 81 wleuyUuaSS,
spending; and 90 as a last ssscyx>
increased taxes. / forecast asaos
the current exploitation and AZ
companying fear of inflatiou 0e
not yet at their peaks fog IA:
business cycle.
10. States and Municipalities
will again be under pressure &c
find adequate sources of reveg12e
Further increases in sales taxa
by States and Municipalities car
be looked for next year
20. There will be nc increase
in luxury taxes" during 1852,
Domestic Trade Uncezta;m
q. Credit curbs VIII contir1xs
to hold down the Ccmar.d1 sSgS
automobiles and certain, hetssa-
hold equipment. Compilations %
fewer dwellings will also act as a.
damper on furniture sales.
%. Falling demand for hare
goods should stimulate the pub
lies spending for food and lower
priced soft goods.
49, The above trend fo~ecsss
will mean a decline in dpoNs :
ment store volume. l predieA -
rise in the sales of variety asx-S
drug chains.
Foreign Trade Outlook =
"a. I believe that, ar1nanaesA ~
to become new and perrnauGue
industry, at least for many yenuH
to come. Airplanes, tanks, ay0~
lery, guns and munitions ~1s
constantly be replaced as try"
become obsolete. his new actisleS'
will operate much as the aszau~-
mobile industry has operated T.
forecast that this will be nsnx@
and more recognized throu&
out 1852.
Is. Barring new war devel4sa
ments, look for contiEzc6
shrinkage in our civilian expesasS
during 1852. Imports, however,.
may rise further. Exports Is
South America will be off. TOskS
foreign trade should not be
changed much, but the exporters
will be on the short end of THIS
business with the importers
gaining.
26. Except for war suprliszsr II
will become more difficult s
convince Congress that additIczs
heavy credits should be grant,,
81. Many domestic mannfs
turers will feel increasing comct =
tition from foreign merchandise.
A cry for increased tariff proaec~
ton will be heard; but no radical
tariff legislation will result
More Deficit Financing
%. The first quarter of 1862
may actually see budget SURPLUS
as result of high National In
come and increased taxation. But
a Federal deficit will surely arise
during the balance of the year.
20. Government loans will
increase during 1850
and there will be some strength
ening of basic interest rates.
80. Government bonds VIII
continue to be held tightly be-
tween the floor of Federal BE-
serve support purchases and tiax
ceiling of Federal Reserve anti
initiation sales. Under such conl
ditions, price changes should be-
during 1852.
81. While Canada and SohtG ?
Africa have permitted free mar.
Sets" or revaluation of gold, be-
cause of increases in cocfc of 49, -