Milford chronicle., 1959-01-02
BUSINESS And FINANCIAL FORECAST FOR 1859

1. Not too good and not too bad.
Both the boom and the recent re-
cession will be awaiting develop
ments following the recent Novem-
Der elections.
2. 1859 will be a do nothing
year for Congress. Both parties will
hold their cards close to their
chests until 1960,-when the Re-
publicans will want good business.
Most Democrats will vote for most
of the inflationery legislation; but
only a few of these congressman
will vote for such legislation over
the Presidents veto. The Demo-
Gratis will be in dilemma. In their
hearts they will not want good
business in 1860; but they must be
very careful not to do anything
which could be held against them
in 1860.
Every act of Rockefeller's and
of other leading Presidential can
didates of both parties will be care
fully scrutinized to analyze their
vote-getting possibilities for 1860.
We will comment on these possi-
bilities in our Forecast for 1860 a
year from now.
8. So long as Russia is fearful of
China's loyalty, she will not in
tentiOnally start shooting war.
/ hope that Chang Kai-shek will
come to his senses so that China
will become an ally of the United
States. Marshall surely bet on the
wrong horse" when he made his
report to Truman.
4. Our national budget will show
& heavy deficit in 1859. This and
other factors should cause con-
tinued gradual, although not dam
gerous. imitation.
5. Serious competition will con-
tinue at all levels in 1859. Manu-
facturers, merchants, and others
who reduce advertising and other
selling appropriations will surely
suffer.
6. Despite competition, the profits
squeeze will be eased for many
concerns by strenuous cost-cutting
programs and improving business.
T. More foreign goods will enter
the United State during 1859. This
especially applies to German,
Italian, Japanese, and Russian
goods.
s. New cargo ships, built in Japan,
England, Germany, Norway, Swe-
den, and Italy, will be launched in
1859. This should result in most
American-built and American-regi
tered ships operating at a loss.
More subsidies will be demanded.
9. Failures may not increase DUR
ing 1859. Some big corporation, now
listed in the Dow-Jones Averages,
may get in financial difficulties.
10. Federal cost-of-living figures
will be disputed in 1859. Labor
rates and wages which have been
tied to the Federal Tables will be
disputed by both Labor and Man
agement
H. On the basis of the above
statements, I forecast, on the av-
erage, no wide change in 1853 for
commodity prices. The recent re-
cession is not over. Russia is still
fighting us with an economic war.
II. There will be more strikes
and labor troubles in 1859 than in
1858. Due to fear of unfavOrable
labor legislation and poor business
conditions, labor leaders were on
their good behavior in 1858.
13. 1t is now difficult to forecast
the unemployment situation for
1859 Owing TO the increase of auto
nation. working forces will con-
tinue to be cut Looking ahead to
the elections of 1860, manufacttr-
ers. who are mostly Republicans,
will want no more serious unem-
ployment to occur.
IA. Many plans for expansion of
plants were postponed during 1858
for fear of a real depression. Some
of these plans will be executed in
1859. although on a more moderate
scale.
There will be a need for con-
timed economic reimbursement in
1889; but the playing of politics by
both parties may temporarily post
pone it.
Is. 1859 will not see anv marked
change in monev rates. However.
borrowers who have not establish
ed good credit will continue to find