The Farmville herald and farmer-leader. (Farmville, Va.) 1934-1957, 1954-06-25
THE FARMvILLE Cva) HERALD FRIDAY, JUNE 25 1854

TIL
OF that area from falling into
Communist hands Most arms
and military knoW-how needed by
such an alliance Of anti-Commu-
mist nations In the Far East Will
be furnished by Uncle Sam. This
means that cuts in arm eXpendi-
lures already scheduled for the
last half of 1854 by the Admins
tration, may not be put into eff
feet. The Korean situation will re-
main about as is much talk G.
no shootie" but China will
constantly become greater
threat
III Do not forget Europe and
the Middle East France is torn
by internal dissenSion and a blow
of could come there any time
West Germany is growing more
impatient with French pickering
over the Saar and over the form
ulation of a Western E uropean
army including German partici-
patton Russia will strive might
~ to widen the split betws en-
France and Western Germany by
holding out the bait" of reunion
between East and West Germany,
4 Friction between the Jews
and Arabs in the Middle East is
being encouraged by Communist
agents The smouldering fires
there could break into flame at
any time requiring a hurry up
call for Uncle Sans fire depart
ment.
Stock Market Outlook
613) OF course. some day the
market especially the Dow Jones
IndustrialS) will get a bad wallop
with very much lower prices On
the other hand. this may not
come during the next few months.
Up to this time the high yield of
stocks have not appealed so much
to investors, owing to the personal
tax on both dividends and on in
come in general Although stock
yields compared with those of 20
years ago are higher if personal
taxes are not considered yet when
these personal taxes are deducted
today's yields have not been at
tractive.
IA The new Tax Bill and the
increased buying for pension funds
and investment trusts, however.
increased the demand for COM
mon stocks and could hold the
market up for some months TO
come l forecast that it will be
very important to make careful
selections Of stocks. Don't buy
stocks just because they have
cone OIL heavily IN price and APP
pear cheap
Is Unfortunately many small
conc viii find it more and
more difficult to compete with
their bic competitors Not only
can these big corporations make
Goods cheaper and have better
means Of distribution. but they
can 50 nd huge sums on advertise
inc which a small concern cannot
do. TINS viii be especially evil
dent during the next six months
The companies which will pros
per most are those which have
inaugurated effective labor saving
programs Manufacturers viii WIN
only as they purchase new labor
saving machinery. spend more
money on research and on we'll
directed advertising.
ZIG Auotomobilas Will continue
10 be hard to sell and easier to
buy during the last half of 1854
Both the automobile stocks and
the cars viii be in less demand.
There VIII be more bargains in
used cars. discounts on new cars
especially cars of the "independ-
ent' manufacturers
l7) Canada will continue to
com during the second half Of
1854 but this may be a good time
to take profits on Canadian in
vestments.
Money Initiation and Interest
10 When Mr.. Eisenhower as
Sumed the Presidency with his
cabinet Of 20 milhonaires' they
proclaimed a new monetary policy
which would increase the value
Of the dollar and raise interest
rates Either fortunately or unfor-
tunatcly the economic situation
caused a reversal of this policy
The value of the dollar shows no
increase over January l and this
has been hailed by Wall Street as
q sien Of further initiation Wall