Milford chronicle., 1954-12-31
Babson Discusses Business and
Financial Forecast for 1855
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levels.
17. FOOD PRICES. Food prices
may drm later in 1856. The strong
move into Government crop loans
this year has made free supplies Of
most agricultural items less burden
some. i forecast that new .adver-
tising programs by Gamers and
ether great food distributors win
help farmers, stock raisers, and
fruit growers.
IS. CONSUMER INCOME. Con-
sumner income viii hold at satisfac-
tory levels. Most goods should move
readily into consuming channels.
19. LIVING COSTS. / forecast
that during 1855 living costs will
show little overall change from
present levels. There may be some
frming during the first half, but the
late months may again witness a
minor softening.
90. RENTS, ETC. I forecast rem
tai expenses mlay edge somewhat
higher: clothing costs should be
steady to moderately higher. There
Is small chance that food expenses
can be greatly reduced
2l. MONEY SUPPLIES. / fore
cast that money supplies will be
ample for all legitimate business
needs during 1855. With little likeli-
hood of business getting out Of hand
on the inside, credit easing is more
likely than credit curtailment in
1855.
%. IMITATION. Fears, or per-
haps hopes, of an inflationary boom
should be buried. Barring outbreak
Of war, our productive capacity is
sufficiently large to meet all de-
mands for goods. I forecast that no
runaway imitation is probable, even
if the money managers increase the
supply of money or ease credit.
%. INTEREST RATES. Until the
Treasury finds a way to balance the
budget, hold business at high levels
and unemployment at a minimum,
4 forecast little likelihood Of higher
interest rates.
"a. BOND PRICES. With the
possible exception Of tax-free bonds,
Il see no reason for increased bond
prices in 1855. I forecast an in
crease in the issuance Of tax-free
revenue bonds.
25. STOCK PRICES. After so
sharp a rise, the market could have
a reaction; but I am forecasting no
crash in 1855 such as we had in
1929 In fact. the situation changed
for the better October Ii, 1854.
26. WAGES. / forecast that the
wage trend in organized industry
viii continue to move higher at
least in the first half Of 1856 During
the first half year, when business
will be improving. the labor chief
taius will also be quick to resort
to the strike weapon.
q. OTHER LABOR GAINS. ]
forecast that the heavy guns Of the
labor bigwigs will be trained on
the guaranteed annual wage, short
er work week, and more pensions
With a better congressional control
Of appointments to the National
Labor Relations Board, the deci.
siOns Of that body will swing more
toward labor than toward manage
ment.
%. NEW INVENTIONS. These
viii mostly be a labor-saving type
j forecast a. marked increase il
autOmation and cybernatics, ano
other marvellous changes in pro.
duction methods.
%. EMPLOYMENT. Unemploy-
ment outlook is brighter, since
business will be on the upgrade
during the first half. i forecast thai
local and seasonal unemployment
win still prove a knotty problem.
80. FAILURES. The salient busi
ness characteristic Of 1855 will b,
bitter competition. Many companies
already weakened by competitive
conditions wiz no longer be aDlt
to keep aloat i forecast a rise II
both the number and the total valui
Of failures during 1855.
81. MERGERS. I forecast tha
mergers and consultations will b.
encouraged by federal officials, i
by merging, a weak company can b.
saved. But while every EFFORT vii
be made to prevent bankruptcies
Washington win frOWn on larg
mergers and consultations.
80. GENERAL REAL ESTATl
SALES. The time is already pas
due when real estate prices shOul
have been falling Only fear 0
World War III and easy credi
have prevented this. Therefore,
forecast that a downturn in price
cannot long be postponed.
SO. URANIUM CRAZE. The great
est speculation viii take place i
the seeking and trading Of Ian
with uranium prospects This
now centered ia Colorado, Utai
and vicinity. but forecast it vii
spread I'm a limited way to man
other states and over to sofshOre
property. Ii could exceed the gOl
rush Of 1849. Another demand vii
be for woodlands which can
bought for a few dollars per acre.
81. COMMERCIAL FARMS. Thea
have suffered a decline ia priC
as a result Of the slump IN agri
cultural prices and farm incomes
Unless more viii be done POLITICAL
for the formers next year. il forecaf
that the recent decline in con
mercial farm prices may cOntinu
during 1855. Subsistence farms o
the fringes Of larger cities shoul
hold up well in price as migratio
toward the suburbs continues.
35. VACANT LAND IN CIT
AREAS. With the exceptionof parl
RADAR IS EFFECTIVE