Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-04
Record Pace
Of 1955Due
Heavy Buying,
U. S. Spending
Major Factors
Nv L. A. BROPHY

ASSOCIATED FEess 1ehetAi ouSthSSS SN's~A
NEW YORK, Jan. 4.-The
Business boom broke on the
American scene like an arching
lskyrocket in 1855. There seems
little doubt that the massive eco
nomic forces set in motion will
bring the same good times, or
even better. in 1856.
The momentum to achieve
this exists in the economy now.
A few areas Of business may not
quite keep up the tremendous
pace. but it is expected that the
force of the complete economy
will bring the overall record in
1856 up to or beyond that Of
1855.
People remain in a mood to
buy. Business will spend more
this year than last to buy the
new plants to satisfy this de-
mand. Government likely will
increase its outpourings Of money
| for goods and services.
Factors Of Prosperity
Those are the factors that
make for prosperity.
Business entered 1855 on an
upswing from the 1953-54 re-
cession. The forward surge
grew and the year ended with
1.-THE economy on a peak never be-
! fore attained in the history OF
the Nation.
1t is the rhythm Of this con-
tinuous forward movement that
| indicates another great boom
year in 1856. For instance. steel.
basic industry, is working at
maximum capacity and finding
it difficult to meet the demand
for its products. Prospects as
sure the continuation Of such q
pace at least for the first three
months Of the year.
Such is the case In many OF
the other key industries. They
are working at top capacity TO-
fill the present demand.
Indiees Favorable
Here are some OF the factors
that make 1856 look good now:
Sustained consumer spending
Heavier Government foreign
aid OUTLAWS.
Disposable income-what you
have left after taxes-was rising
at the end Of the year and the
indications are 1t will continue
to rise.
Business will spend an estimat-I
ed $33 billion for new plant and
equipment. a good gain over 1855.
Jobs remain plentiful. Gov
eminent figures for October
showed employment at $780,
900. That was three million
more than in the same month
in 1854. Unemployment was a.
il3l 900, lowest point Of the year.
A tax cut. increasing the
amount of spending money. Is
possible.
There may be ripples In the
rhythm. Home building may
falter some, although total con-
lstruction OUTLAWS are expected to-
reach $44 billion, or 81 billion
more than in 1855.
Farm prices are expected to-
continue to fall.
Dealers Gambling
The way dealers are beefing
about inventories Of new auto
mobiles indicates possible
showdown in that field, but sus-I
tanned consumer spending and
increased Government foreign
aid OUTLAWS are expected to take
up the slack so that overall bust
ness is expected to attain new
peaks.
In fact. one set OF private
economists, those Of the Pru-.
dental Insurance Co., predict
that the gross national product
(the value of all goods and
services in 1856 will rise SIS
billion over the record achieved
in 1855.
The pattern of business for
1856 is roughly seen as this:
Better than 1855 for the first
six months. A gradual slacken-
ing in the last six months, but
years end should tally up al
higher score than 1855, due toI
the big gains Of the first six
months.
The year 1865 was a whopper.
Gross National Product at the
end of the year was near $500
billion. It was at q rate Of
$3o2 billionS in the third