davidaulloa/AmericanStories huggingface dataset:
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06

the old ones IN Northern textile
centers and coal mining regions of
a dozen States. New unemployment
is concentrated largely in the farm
equipment and automobile indus
tries where upward of 100, 900 work.
ers have been laid off. Unemploy-
ment could be the deciding election
factor in some localities, but it is
not likely to be matter of national
concern this year.
1t is even likely that those who
have been laid off in the automo-
bile industry, mostly around Detroit,
may be back at work come the first
Tuesday in November. This is
because the auto producers are
planning new model changes early
this year to boost sagging sales and
their factories could be running full
blast by November.
Steel Wages OF Issue
United States Steel and other
basic steel producers are preparing
for new contract negotiations with
the AFL-CIO United Steelworkers.
The present wage agreement, COW
ering a half million workers, expires
June 80.
A deadlock on issues and strike,
such as the one the steel industry
suffered for months in 1852, could
have a marked depressing effect
on the whole American economy.
Most labor experts do not believe
there will be a strike in steel this
year, however. Their predictions
are based, for the most part. on
the unprecedented prosperity of the
industry For example, profits of
United States Steel are running
away over last year, which was an
excellent year itself. The corpora
ton most likely would go far in
meeting the steelWorkers' demands
rather than risk interruption of this
period of prosperity. And United
States Steel usually sets the in
duStry pattern on wages.
Latest Commerce. Labor Depart
ment figures show that 63.1 million
persons were employed in March,
rs million more than in March
last year. when the job upswing
following the 1854 recession had
not gained full momentum. Because
of the seasonal factors there always
are more people employed in Oc-
tober and November than in March.
Last year. for example, November
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06

Suppose our stock morket COL
lopses?
Although we are in the midst OF
the longest bull movement on rec
ord. there has been no wild specu-
lation on credit as there was in the
1920s. A market collapse certainly
could affect the economic attitudes
of many businessmen, investors and
consumers, but the markets direct
influence on the economy is moder-
ate, if not unimportant, many close
observers believe. Rather, the mar
ket'S movements should be watched
for signs of what may be happening
to the economy.
Is there danger in the continuing
climb of wholesale and retail
inventories?
This is an area which is being
closely watched in Washington. AS
long as inventories are increasing
they are boosting the economy.
Conversely, when inventory buying
stops there is depressing effect on
the economy. These build-ups and
run-offs alternate; just when one
Will stop and another begin no one
can predict. Many businessmen
have been anticipating this sum-
mer'S steel wage negotiations and
expected price rises by laying in
supplies for future needs. There is
at least a possibility that a general
switch from inventory building to
inventory run-off could put a
damper on the economy this fall.
Is there q danger in the continuing
rise in consumer credit?
Consumer credit has been one of
the mainstayS of the economy and
the rapid growth of this form of
debt has had observers a little
worried. Despite the reduced pace
of new-car sales, consumer debt has
been growing at an annual rate of
more than 81 billion. 1t would be a
healthful thing for the 1856 econ
omy if this were leveled off. But if
consumers should start marching in
the opposite direction, paying off in
stead of increasing the aggregate
of consumer debt outstanding, it
would be a major step in punctur-
ing the current boom. Consumer
spending plans as reported by the
Federal Reserve Board show no sign
of that happening in the six months
ahead.
To sum up, basically the national
economy is sound. The total gross
national product has climbed to
new record: 1899 billion tannual
rate) in the first quarter of 1856 as
compared with 1915 billion year
earlier. Personal income is well
above year ago. Farm income, it is
true, continues to be tender spot.
Both businessmen and the con-
sumerS display optimism. So far as
can now be foreseen, both these
groups should still be feeling salts
fed come election day.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06

about per cent over year earlier.
To these and other facts, the
Democrats counter with the argu-
ment that a lot Of the Republican
prosperity is statistical rather than
what the individual has and enjoys
himself. Sounding off on a familiar
theme, they say that in the three
years Of the Eisenhower admins
tration corporation profits after
taxes have increased "a per cent
while the average personal income
after taxes has gone UP only per
cent.
Republicans claim they've halted
and held in check imitation and
that, for this reason. real wages are
the highest they have ever been.
The Eisenhower administration in
herited 52-cent dollar. as COM
pared to 1889 purchasing power.
and have held the line at this
figure, while from 1945 to 1855 the
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06

For most farmers prices received
will be down slightly in some
cases, heavily in others. For all
farmers costs will be up.
Except for corn the volume of
production Of controlled crops will
be down, thus cutting the potential
gross income for the crop. In the
case of corn, output may be eX-
panded to the point of depressing
prices of not only that crop, but
hogs also.
AS for weather. many growers,
particularly in the Southwest, al
ready are looking anxiously for
more rain.
Economists Agree
Agriculture experts of both the
Democratic Party and the Depart
ment of Agriculture generally agree
that hard times are the prospect
for farmers. They disagree only on
degree. The department says that
farm prices, farm costs and farm
incomes likely will be maintained
fairly close to current levels"
That, of course, is no comfort to
the farmers, many of whom feel
they're about as bad off as they
can get. The realized net income of
farm operators in the first quarter
of 1856 was down per cent from
the first three months of 1855, but
remained at about the same rates
as the final 1855 quarter.
The Democrats maintain that
prices will get worse and that the
farmer income position will be at
its nadir right around election time.
The picture for the major crops
shapes up this way as of today:
WHEAT-Support prices will
drop from $208 bushel to So. and
the loss can't be made up in vol
ume, for acreage allotments will be
the same A typical middle-in-
come farmer in the wheat country
will plant quarter section, or 100
acres in wheat. His average yield
in an average year will be about
Is bushels to an acre. Last year
wheat supports guaranteed him a
market price of $5.324.80 at the
5000 level. This year, at the 81
level, he can be sure of getting
only $5,12O or $204.80 less than last
years guarantee.
CORN-Last years crop was sup
ported at $1.58 a bushel. The new
level will be $1.50-but only for
corn grown under acreage controls.
Now there is guarantee of SIPS
bushel for uncontrolled corn
grown in the % commercial corn
States. This means that if farmer
doesn't want to accept acreage con-
trolls he can grow an unlimited
amount and still get a $125 guar
antee from the Government.
Democrats reason that most
farmers can gain by blowing up
other crops and putting most of
their land in SIPS corn. They say
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06
THE FARMER
No Bright Spot Is Visible
On Agriculture Horizon

that, on the face of it, this will
increase the SURPRISES President
Eisenhower has lamented. If as a
result corn is cheap. then livestock
also will be down, they say. Re-
publicanS dispute this. They say
that the Government will seal of
all of this SIPS corn in Govern
ment storehouses, which will mean
less corn on the open market, and
therefore higher prices.
But corn now in Government
storage was supported at $1.58, and
with support of SIPS for I'M
controlled corn, buyers will be
inclined to buy up this stored corn
at losing price for the Govern
ment-rather than buy on the open
market the grain which this year
will be guaranteed at $1.50. It
works this way: The stored corn
can be purchased for los per cent
of the support level of SIPS (pluS
carrying charges). which figures
out at a price less than the corn
ally, forces the open market price
down, and cheap corn can be found
in all markets.
LIVESTOCK-Cheap corn inva-
riably means cheap livestock. Poul-
try prices react Immediately to
grain price fluctuations. Hogs re-
act IN six months, and cattle in
year to two years. The next great
movement of hogs to market will
begin during the last two weeks
In October, shortly before election
day. Those hogs are now being
fed cheap grain and, if the rule
holds, Will sell low III the fall. The
only hopeful sign lies in expected
production figures. Many farmers
Swore off hogs after seeing them
go as low as $40 hundred pounds
in January. As a result volume
Will be down some, but the drop.
all agree, will not be enough to
mean any real profits. Most of
the experts believe fall hog prices
Will average only about $14.50. They
say that the highly unlikely figure
OF $l8 is the lowest price that would
cause farmers who have switched
to Democratic sympathieS to switch
back again.
The situation is much the same
with beef that will be going to
market between now and November.
With cattle population up and feed
down over several months. prices
will be at low levels.
DAIRY PRODUCTS-With sup
ports rising on manufacturing milk
and butterfat, the dairy farmers of
Minnesota and Wisconsin will be
better off than last year. Cheaper
iced grains also will improve their
situation.
COTTON-Much of the overall
agricultural income drop will be
suffered by the cotton farmers.
whose gross income may be down
as much as 10 per cent. In addition
10 drop in support levels from 3l.7
cents last year to 1885 cents this
year, acreage allotmentS also are
being cut drastically.
TOBACCO-Here, too. acreage
allotments are being cut sharply.
which will reduce income.
RiCE-Like cotton, the support
price of rice will drop-in this case
10 cents a MISUNDERSTANDING
acreage allotments will be reduced
Is per cent.
On the cost side things aren't
looking up for the farmer. The big
gest rise in costs will be for steel
products-tractors tools and other
implements. Interest rates also
are up. Chemical products, such as
fertilizer, are expected to remain at
current high levels.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06
THE CONSUMER
Confident Public KEEPS
Spending at High Rate

consumers say they will do. but
what they actually have done SO far
this year.
On balance, they have spent q
little more than they did a year
earlier. 1t is true that automobile
sales have Jagged SO badly that
production is running IS per cent
or more below year ago. Housing
starts show 20 per cent decline.
These declines, however. are be-
low the record-breaking figures for
1855. BY almost any other COM
parlSon. the activity this year is
encouraging.
Store Sales Up
Consumers are spending literally
on soft goods. too. For the Nation
as whole, department store
sales SO far this year have been
running about six per cent above
a year ago. In Washington, they
are running closer to 10 per cent.
Most store owners see the trend
continuing.
Debt is mounting. At the end of
February, installment debt - on
such things as automobiles and
other durable goods-totaled SPIT
billion-$5 billion more than year
earlier. Mortgage debt and INSTALL
ment credit are up, too.
This reflects the country's en-
thusiastic confidence in the future.
But it makes the consumers more
sensitive to any changes in the
business outlook. If the consumers
with or without reason-suddenly
lose confidence in the future, they
could cut back their spending so
sharply that the whole economy
would be jolted.
This is danger that causes some
economists to keep their fingers
crossed. But so far, the consumer
las buoyant and well-heeled as
ever in the history of the United
States-Seems intent on spending
freely and confidently.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06
The POLITICAL CAMPAIGN
Real Prosperity? The Parties Prepare to Disagree

has been checked. Only on the
farm does there seem to be reason
for G. o. P. concern.
While conceding that employ
ment is high and national output
is increasing, Democrats do not adj
init that the economic factors cited
by their opponents add UP to real.
lasting prosperity. They say they
see many danger signs indicating
economic troubles ahead. What
prosperity there is, they say, is lop-
sided, weighted for big business by
what they call the Republican
"trickle down" economic approach.
Here are some of the economic
arguments the voter can expect to
hear in the coming campaign:
Republicans will cite the hard
fact that in April employment
reached the all-time high OF 3d.
100000. Net spendable incomes Of
workers were UP in March $2.70 or
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06

warning that the American house
wife-the No. | consumers an
extremely volatile person and that
her responses. however whimsical,
to events can change the outlook
completely.
But putting aside the intangibles,
the economists find several reasons
for expecting high spending for
food, clothing. housing, automobiles,
entertainment and the other con-
sumner items.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06
GOVERNMENTS
Public Spending Is Seen
As Bolster for Economy

icies. designed to hold down ex-
pansion financed by loans.
Local and State governments
have seen an annual rise of about
So billion in their combined spend
ing in recent years and there has
been no sign Of an imminent drop
in this trend.
These governments, which ac-
count for 40 per cent of all public
spending, are under heavy pres
sure to pour out more and more
money in increased teacher pay
and provision for more teachers,
increased salaries for other public
employees. construction of more
schools, roads. water and sewage
systems, and other OUTLAWS.
Although some communities are
hard pressed to raise the needed
money, most have no choice but
to expand Their budgets to meet
ing expanding needs.
Federal Rote Rising
On the Federal level, spending is
also on the rise, although the rate
OF increase is not so spectacular
as on the local-State level.
The recent climb in industrial
prices is likely to cause an increase
in defense spending over the next
six months, even though the actual
military programs are not expanded
materially.
Also. President Eisenhower has
asked Congress to appropriate for
the fiscal year beginning July
about So billion more than it pro-
vided for the current year. Knowl-
edge that the Treasury will show
stable surplus at the end Of the
flsial year--solne say it will be more
than So billion--seems likely TO
prompt an election-minded Con-
greSs to go even beyond the Presi-
dents requests for funds.
More for Farmers
Mr.. Eisenhower's promises OF
more income for the farmer through
price supports also will increase the
total Federal outlay and congress
sional decision to make advance
payments now on next years soil
bank program may cause additional
expansion in the agricultural field.
All these factors add up TO con-
siderable increase in public SPEND
ing over last year And even in to-
days boom economy, when pro-
grams are expanded to the tune Of
billions Of dollars year, the effect
can't be anything but invigorating.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06

on the Federal
level and school,
road and salary
n DIS on the
State and local
level all combine
to assure there
will be no cut
back in this field.
Since one dol
lar out of every
five spent on
pnnIc aud cat.yy-
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06

have made 1t q
part Of their tri-
ple-plated cam
paign sloga n:
Peace, Prosper
ity. Progress.
Economic facts,
as set forth on
this page. would
seem to bear out
the Republican
expectation that
econ 0 mica lily
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06

ices comes from Federal, State and
local treasures. the influence of
government spending on the general
economic health is important.
1t may be even more important in
the months ahead when tighter
credit policies imposed by the Fed
eral Reserve Board may put a
damper on some business activity.
Most government spending pro-
grams are unaffected by these pol
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06

Z i / y COItle eleC-
ton day. Their
spending may be
slightly a bow e
that of last fall.
T h a t is the
o p inion of a
number of econ
omists who study
consumer habits.
They hasten to
qualify it, how
ever, with the
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06
GOVERNMENTS
BY TAFT TRUSSELL

Government spending. an essen
tial factor in maintaining the ma
tional economy at high level. can
be expected to continue strong
through election day and beyond.
Defense and farm requirements
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06

paclty. Among
w a S h i n g tons
Government and
business econo-
mists peSSimism
and concern are
scarce today.
Busine S S m e n
show their con-
fidence by going
- l. -
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06

WI hCI y NI1lAICA
pail, ever the
concern of those
seeking political
office. should be
trimming over.
The ov rail
outlook is good
both for jobs and
W a G e. through
next fall. There
are some pools of
unemployment
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06
By HERBERT BRATTER

The Nations business prospect
for the next six months appears
excellent. In virtually all segments
the economy is operating at ca
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06

happy voters will go to the polls.
Industrial output. employment and
wages are all soaring. The dollar,
say the Republicans. has been sta
bilized and the inflationary spiral
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06
THE WAGE GARNER
Plentiful Jobs, Good Pay
Are in Prospect for Fall

employment totaled 64.8 million.
It is expected the total for the
month this year will be higher. per-
haps topping the all-time employ
ment high of 65.5 million reached
last August.
Despite the auto industry lay
offs, unemployment in March was
2.8 million, about $4,000 less than
In the same month of 1855.
On wages the Bureau of Labor
Statistics reported that take-home
pay of factory workers and the
amount of goods and services it
could buy reached new peaks for
March.
Net spendable earnings of
worker with three dependents were
$72.10 in March, while those of
worker with no dependents were
$64.77. This was gain of 80 cents
over February, and an increase of
more than $2.70 or about per cent
over last March.
The March figures were exceeded
only in the last few months Of 1855
when the auto industry was going
full-tilt making new 1856 models
and factory hours were consequent
ly somewhat higher.
BIS said the stability of con-
sumner prices over the year has
meant that virtually all gains in
factory take-home pay have re-
suited in increased buying power for
the worker. Compared to March
a year ago, buying power was up
almost per cent.
These happy conditions for the
worker are expected to carry
through election time.
A survey conducted by the Fed
eral Reserve Bulletin illustrated
dramatically the improved eco
nomic lot of the worker over what
it was before the 1852 election.
In the past five years hourly and
weekly earnings in manufacturing
have increased IS per cent Since
consumer prices have been rela-
lively stable, increases in dollar
earnings have represented almost
equivalent gains in real earnings
that is, in terms of buying power of
the dollar.
Other Benefits Added
Changes in wages have not fully
represented growth in workers
compensation over the five-year
period" the Federal Reserve points
out. Through collective bargain
ing, private security and welfare
programS-Such as pensions and
health and other insurance-have
been extended rapidly, and last year
supplementary unemployment ben
ef1ts were introduced. Growth of
these deferred benefits has added
to the security of the worker and
has further increased his stake in
a stable purchasing power for the
dollar"
Wage settlements this year, not
reflected in the Federal Reserve
earnings figures, have tended to be
on the liberal side. So from the
standpoint of pay, at least, the
worker should be in a happy frame
OF mind come election day.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06
BY CECIL HOLLAND

Republican leaders believe they
have in the Nations booming econ
omy guarantee of success at the
polls in November. In fact, they
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06

in the depressed
year of 1855. 1t
may W ell g e t
worse before it
gets any better.
The generally
dismal outlook is
determ / IN e d by
four rather basic
variableS: Pro-
duction volume.
costs. price S
re civ e d. and
xr,AA 4laAo
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06
THE FARMER
BY DAVID KOONCE

The farm situation. certainly the
most sensitive economic factor in
this election year. is not likely to be
any brighter this fall than 1t was
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06
BY JAMES E. ROPER

Consumers, their confidence in
the future strong. will be pouring
dollars-their own and borrowed
into the economy at a brisk
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06
BY JAMES Y. NEWTON

Election day, 1856, should find a
near-record number of people en-
ployed and bringing home pay
checks of near-record size. The
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06
The Consumers ToIk

The consumers own expression
Of what they intend to do is re-
Elected in survey conducted by
the Federal Reserve Board in CO.
operation with the University of
Michigan.
The survey, made early this year,
found that consumers view their
current financial situation favor
ably. are optimistic about their
own income prospects. and are very
optimistic about prospects for bust
ness generally.
Compared with survey a year
earlier, the Reserve Board said,
about the same proportions of con-
sumers reported plans to buy new
and used automobiles, other dur
able goods. and new and used
houses, and to undertake home i'm
provement and maintenance.
The Federal Reserve Board found
that two-fifths of the consumers
felt they were better off early this
year than at the beginning of last
year, and less than one-fourth felt
they were worse off.
As for the future, nearly two
Sifths of the consumers interviewed
said they expected to be making
more year from now. Less than
one-tenth said they expected to be
making less.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-05-06
Words Of coution

Having said all Of this, however,
the Federal Reserve Board cautions:
Consumer plans to buy, ex-
pressed early in the year, should
not be taken as a forecast of what
consumers actually will buy during
the year. Many factors, some of
them impossible for consumers to
know in advance---such as changes
in prices and credit availability,
attractiveneSs Of new products and
models. and changes in general
business conditionS--will influence
consumer buying during the year"
In examining the probable out
look for this fall, therefore, It is
advisable to examine not only what
Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-02-05
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