The Farmville herald. (Farmville, Va.) 1957-current, 1961-12-29

The real value Of the dollar
will decline slightly during 1862.
due to the decrease in the pro-
ductivity of labor. The electron-
les industry will temporarily suf-
fer in 1862 if atomic warfare is
0utlawed. But otherwise the cleo
trOnics industry will increase for
some years to come and hold
up the dollar valne. Watch poly
mer chemicals and "epoxy" &C.
mentS.
There will be enough money
for mortgages insured by the
Federal Housing Administration
in 1862. Plenty Of money win be
available for mortgages giaran-
teed by the Veterans Adrninistra-
ton. although this supply varies
with different sections Of the
country. Interest rates on conven-
tionar loans not having any gov
ernment guarantees will be little
higher. Real estate people will
worry about the public's desire
to build. rather than about their
obtaining mortgage money.
The kilOWatt hours of electrici-
~ produced in 1862 will exceed
the total Of-any previous year.
This is favorable to utility prefer
reds.
Steel production in 1862 will ex-
coed this years 100 million tons.
but the increase will come from
producing steel in colors.
Cement production will be
about the same in 1862 as in
1861. but the industry's capacity
to produce is increasing too rap
idly in view Of the demand. The
cement manufacturers must
give more attention to colors.
Capital Expenditures
Expenditures for plant and
equipment in 1862 will increase
supplemented by large approp-
riations for repainting factories
and Offices in many colors.
Newsprint production depends
upon the number Of newspapers
and the amount Of advertising
sold. forecast a decline in the
amount Of newsprint sold during
1862. but advertising receipts may
increase through the better use
OF colors. This may result in the
increase use Of coated paper to
better take color printing-with
a so per cent increase in adj
vertising rates.
Furniture manufacturers are
marking up prices so that young
couples will buy furniture in the
raw and paint same themselves.
There will be some increases
in color TV sales in 1862. In
fact. I think the present TV
market is far from being satu-
rated.
First-class postage rates will
not be increased during 1862.
Hence. more money will be
spent on direct mail selling.
This should help job printers in
1862. as their present margin of
profit is very small. Billboard
advertising will increase during
1862. due to a new kind of
paint.
Lumber will do well to hold
its own in 1862 and much of it
will be sold colored. Wall-to-wall
carpehng will become even more
popular. reducing the price Of
the best hardwood floors.
Fewer scatter rugs" will be
sold in 1862. Rug dealers must go
to brighter colors, even for
"orientals
One Of the greatest develop
ments during 1862 will be the
increase use of color in homes,
offices. stores. and factories.
This should increase both the
demand for and the price of good
paint.
Exports
Exports will probably increase
during 1862. but the surplus Of
trade in favor of the United
States is constantly decreasing.
President Kennedy is encourag-
ed by the recent elections in
New York, New Jersey, and
Texas. This Democratic trend
will continue during 1862 not
withstanding former President
Eisenhower's campaign speech
es.
President Kennedy will be
more favorable to big business"
in 1862 only when he is able to use
big business to increase employ
ment. Profit margins will not inn
prove during 1869. although most
industries viii do better in terms
of gross and volume.
Bond prices will not change
much during 1862. except in the
case of "nontaxables'. Euro
pean investors are buying
stocks and bonds feel
ing that their money is safer
in United States industries and
real estate. Even the first mort
gage bonds Of transcontinental
railroads are being bought by
Europeans. The manufacturers Of