Milford chronicle., 1961-01-06
Babson's Business And Financial Forecast For 1861

cess union spending.
All the above means that labor
will be able to hold its own during
1861 and secure some small in
creases in wages, pensions, and
this may not be what labor expect
ed to get from the election of Pres
ident Kennedy.
The Federal Government will not
increase income taxes during 1861;
but may close some loopholes and
increase certain excise taxes.
BUILDING AND REAL ESTATE
Looking back over the years
that | have been making these An
nual Forecasts, it seems that build
ing and real estate have been the
last to profit from boom, and the
last to suffer from the following
reaction. Readers all know that
from its World War II low point
new building, especially of homes,
gradually rose to an all-time high
n 1859. Part of this growth has
)een due to increased population
and higher incomes.
growth to which new building was
entitled, it was greatly encourag-
ed by loans to veterans without
my down payment, the acceptance
If twenty-year mortgages by banks
n place of a maximum mortgage
of five years, and by subsidies of
| yariOus kinds Like all stimulants,
however, these have gradually be-
| come less effective. Hence, de-
cline in new building and new
lome construction is only natural
o expect in 1861.
l do, however, forecast that a
move for urban renewal will be
Urged and secured by the new
President This means pulling
lown the slums of large cities and
substituting brick apart m n
louses with Fairgrounds. When
my new building is built, it in
creases the value of the adjoining
and and increases real estate
axes.
Therefore, 1861 may see real es-
sate prices hold their own and even
rise in certain sections. Small
farms near cities will continue to
Increase in price, and this will be
true of most well-drained suburb
an property. Every family is JUS
ified in mortgaging to buy home
n 1861, but l doubt if 1861 will be
4 good year to speculate in real
estate. The boom is surely off in
Florida, where the supply of new
houses. temporarily exceeds the de-
mand.
WORLD OUTLOOK
| l cannot conscientiously close
| this Forecast for 1861 without call
| ing readers attention to the un-
satisfactory situation that we find
the world in today. | do not need
to comment on Russia or China, as
readers are well acquainted with
conditions there. |, however, must
add that Mr. Kennedy is agreeable
to a Summit Conference as he is
itching for a talk with Mr.. Khru-
shchev; Kennedy has already stat
ed that he is willing to put For
mosa under the United Nations.
Readers should note the head
way which the Communists are
making in other parts of the world
Southeast Asia, for instance, is g
| very rich area 1t is enview by
both China and Russia. We may
expect continued revolts in South
Vietnam, Cambodia, and Laos.
l am especially troubled abou
the way the Communists are work
ing into Central and South Amer
ica. l know South America yer!
we'll. 1t has virtually no middle
class. There are a few rich, bu
millions of very poor. The Com
munists are organizing grea
strikes in Latin America AS thes,
strikes accomplish something TO
the wage workers, they give th
Communists good ammunition fo
} further progress. This situation
: has been intensified by the agent
of Castro.
Another very sore spot is Africa
! which / visited two years ago
South Africa will blow up of it
self, without any help or hindranc
from Russia. The Congo, however
| which the United Nations is nov
trying to straighten out, is ser
ious problem; and the Congoles
feel that their condition would b.
, improved by Russia's help. TIL
great African question, however
: will be concerned with the nev
J countries which have been givel
their independence from the colon
J ial system they have been unde
! for 150 unarC Horo Russia Rel
GUM, and France are playing ;
waiting game to see if the neV
: nations can make good by them
/ selves.
, l cannot imagine the Russian
J now going to war over Berlin.
am more disturbed about thu
gains in the Communist vote il
: European countries. For instance
the Communists in Italy received
| only 1879 of the vote in 1916, bu
289o in 1860 Even in France, th'
: Communist vote is again increas
ing. The money interests o
France want the Algerian rebels
stamped out for good, while tn,
: farmers and small businessmen
| want DeGaulle to give Algeria it
, freedom. When / was in France
few weeks ago, it was general.
: conceded that if DeGaulle shOul'
: suddenly drop dead, chaos nigh
J reign. | dislike to end this fore
cast with these pessimistic com
ments; but even if our country
going along on an even keel, som
occurrence in Soma other mart n