\ / / >1 + — -J " 10 THE CLINTON CHRONICLE Thursday, December 29, I960 3ARSON’S FORECAST FOR 1961 (Continued from page 1) interior of the country; in fact in England. France. Switzerland, any growing interior city should Germany, anil other important be a high-grade investrrj,ent. countries I advise investors now These bonds must pay their in- (to forget this question of gold de terest irrespective of business 'valuation and not speculate in conditions The capital cities are gold stocks at this time Leading especially helped by having the gold stocks are now selling 25% payroll of the state governments. sonal optimistic factors., The prices which farmers will receive in 1961 for crops will, of course, depend upon weather; but, each year, agricultural science is help- Bullding and Real Estale Looking back over the years that 1 have been making these Annual Forecasts, it seems that building and real estate have or more above their price of a year ago Another thing that in vestors should remember when buying Canadian gold stocks is that a number of Canadian gold ruining companies are now re ceiving a subsidy from the Ca nadian government to keep them from being shut down by high labor cost' This subsidy would-vys come off as the price of gold ris es Stocks and Bonds It is unpopular for me to take a bearish position in my Annual Forecast. Most of the newspn- (H-rs and my readers like opti mistic forecast- In all the ye.ar.- I hav e been making these fore- a-ts. la.-t December was the i hrst time that I relused to take . a definite iHisition At that time the Dow-.lone- Industrial Aver age Was 670 and today it is tluc- tuating around 600 . Corporation earnings reports now coming out are not good In many cases the gross is kept up or perhaps increased, but the net off Many companies will show a dec line lor 1960 compared with 1959 Prosperity has continued so long that most manufacturers, retailers, and oan-wners are as- -uming it will last at least an other year 1 cannot honestly agree with tin- Therefore. I feel that 1961 will -ee lower prices for tfie Dow-Jones Industrial Aver ages 1 hope that many readers with csmali businesses are show ing a protit Those who are not should begin t > reduce their loan- and trim their sail- In many cases good bomls now- yield more than good stocks This is unfavorable to the stock market and favorable to the bond market Therefore I believe that bonds will continue around ’their present levels in 1961 Many read ers will be wise in shifting now from certain stocks to bonds There will be reduction.- in stock dividends; .hence it .would ' h- much better to hold bonds with fixed interest payments rather than risk a reduction in the divi dend payments of stocks I es pecially call readers' attention to “tax-exempt general obliga tion municipal bonds “ These are the fixed-interest municipals of cities with a direct lien on all the taxable property in the city. I 4 would advise against holding i bonds of such large cities as Living; Costs and Inflation Living costs may rise some what during 1961 due to the in crease in population and the desire for more comforts and convenience A person like my self. who has had children atid grandchildren, knows how each succeeding generation considers necessities what the parents considered luxuries This, togeth er, w ith the higher cost ot labor, s the primary - reason for to day.s record-high (127 3) cost of In ing As there i- only so much land availah^. rents will incr^dse ing the farmers to avoid early been the last to profit from a frost losses and to secure needed boom, and the last to suffer from moisturer— t - the following reaction. Readers Employment. Wages,'and Taxes all know that from its World War Strike activity may well be at H h ,w point new building, espec- a post-war minimum during inH>' of homes, gradually rose to 1961, with any dislocation limit ed to independent separate com panies. First important indus try-wide negotiations will come in the auto industry, but not until September. 1961 Railroad workers cannot strike until No vember 1. 1961. at the earliest. Most st-eel contracts hold until .lune 30. 1962 » The average employment m likjfl w as about 67.000,000, work ers 1 forecast that 1961 will average a million (ewer wage- workers Country-wide, unem- plov ment reached as high as four and one tiu'f million in 1960. and for 1961 may hit five nftd the way the Communists are working into Central and South America. I know South America very well. It has virtually no “middle class.” There are a few rich, but millions of very poor. The Communists are organizing great strikes in Latin America. As these strikes accomplish something fqr the wage-workers, they give the Communists good an all-time high in 1959 Part of ammunition for further progress, this growth has been due to in-1 This situation has beien intensi- creased population and higher in- fied by the agents of Castro, comes Another very sore spot is Af- In addition to the natural I'ica. which I visited two years, .. growth to which new building a k’o. South Africa will blow-upg ni was entitled, it was greatjy en- of itself, without any help or hin-j couraged by loans to veterans drance from Russia The Congo, without any down payment, the however, which the United Na- acceptance of twenty-year mort- tions is now trying to straighten j gages by banks in place of a ollt - is a serious problem; and maximum mortgage of five the Congolese feel that their con- suddenly drop dead, chaos might reign. I dislike to end this fore cast with these^pessimistic com ments; but even if our country is going along on an even keel, some other part of the world could upset all our plans. HENCE. BE SURE YOU HAVE MADE A WILL! Lesfer E. Madden a—*- Y ’• Waterloo—Lester Eugene Mad den-, 52, was killed in an antomo- bile accident in Greenwood Tues day afternoon r. Madden was a native of Laurens County, a son of/NJrs. Lyda Madden of,Ware Shoals and the late Jim Madden. He was a farrfter * Surviving are a daughter, Mrs. Jerry Brown of Greenville; four sons, Bobby Eugen^^Madden and Billy Madden of Jacksonville, Fla.; Terryi,Madden of Ocala, Tla.; and Jimmy Madden of Fayetteville, Ark.; three sisters, Mrs. Jessie Mae Sims and Mrs. Gertrude Weathers of Ware Shoals; and Mrs. Marie Ezell of Waterloo; five brothers, Kelly Madden of Waterloo; J. T. Mad den, Roy Madden, W. C. Mad den, and Elvin Madden of Ware Shoals. , Funeral services were conduct ed Thursday at 4:00 p. mr at Reedy Groge Pentecostal Holi ness Church by Rev. George Da venport, Rev. A. W. Dennis and ReV. Frank Jones Burial in the church cemetery. was OFFICE SUPPLIES CHRONICLE PUB. CO. years, and by subsidies of va- riou- kinds. Like all stimulants, however, these have gradually become less effective. Hence, a decline in new building and new home construction is only nat- one-hali million. The basic diffi- ura l to expect in 1961 culty is that while industry is 1 do. however, forecast that a < utting hack, the labor force is move for urban renewal w ill be becoming larger. This means urged and secured by the new that it will be mpre difficult President This means pulling mi' those getimy through schools down the slums of large cities slowly There, however need, not he a higher cost for foodVThe tarm «• .v, con-tar" l\ raising greater crops which are being processed in more economical wav- The only reason for the cost ol food to increase is the dependence ol so many house- v.iw - on package mixes '' 11- and colleges to get positions in and substituting brick apartment timate.v all vegetables will he 1961 unless they are well trained houses with playgroun'ds. When '.'•!ioll\ oi partly cooked and pur- in business mechanics, or elec- any new building is built, it in- liasable m containers. ironies Certainly, the demand creases the value of the adjoin- " age- will hold up although lor executives will he less in 1961 ing land and increases real es- theie will he more unemploy- than it has been for some years late taxes . —. - “•er.i m 1961 Ibis means that 1 hose executiw- who tow have Therefore 1961 may see real es- ■ i.-ie ’.i>ilit n on, will he le-s for po-:tions shoim^ strive to do bet- tale prices hold theiV own and :o>: lamiiit - ter work, not nslT’for - increases.«teven rise in certain sections ration is not to he feared and do everything possible to LSmall farms near cities will con- n- 1 'A itii his small popu- hold onto their jobs tinue to increase in price, and c \ot, pkira'ity. Mr Kennedy Labor leaders hope to have a this will be true of most well- \er> slow to do am thing key to the White House with Mr. drained suburban property. Ev- puivha-ing power ot Kennedy as President. This may ery family is justified in mort- W'orld War apply to the settling of strikes gaging to buy a home in 1961, but do.iar will and contract disputes. The AFL- 1 doubt if 1961 will be a good year year from UlO will influence more votes in to speculate in real estate The Our LSI ongres.- during 1961-62 than in bloom is surely off in Florida. b\ the 1959-60 ,J he conservative South- where the supply of new houses ern Democrats, however, will temporarily exceeds the demand unite with Republicans to block World Outlook will he to hurt the the dollar Barrinj III 1 believe that the l e uist' as sound a v—^ - it i- toda\ ‘ollar i- looked upon world a- a standard " Farni Inc ome and Prices Good crops and moderate prre- radical e- indicate a fair year in 1961 tor farmer- I. therefore, look for a reasonable heavy volume of the thing- farmers buy during 1961. including equipment for get ting on w ith le-s help The farm- c annot expect any b .om. but . t-. on average, should lx* at from un,on members, hut may -atisfactory levels M\ forecast temper the recent Court decisions m detail, is ruling against excess union Larger volume of marketings spending, should more than offset any re- All the qbove means that labor duction in farm prices There- will he able to hold its own dur- fore. 1961 cash receipts for farm- ing 1961 and secure some small ers should be slightly higher than increases in wages, pensions, and 1960's $11,300,000,000 net I fur- improved working conditions; thermore learn that the intelli- hut this may not be what labor gent farmer is reducing his in- exacted to get from the election dehtedness. which is always an of President Kennedy optimistic sign As I dictate this The Federal Government will dition would be improved by Russia's help. The *great African question, however; will he con cerned w ith the new countries i which have been given their in- 1 dependence* from the colonial sys tem they have been under for 150 years Here, Russia. Belgium, and France are playing a waiting game to see it the new* nations can make good by themselves. I cannot imagine the Russians now going to war over Berlin. I am more disturbed about the gains in the Communist vote in European countries For in stance. the Communists in Italy received only 19 per. cent of the vote in 1946. hut 2f> per cent in 1960 Even in France, the Com munist vote is again increasing. The money interests of France want the Algerian rebels stamp ed out for good, while the farmers and small businessmen want DeGaulle to give Algeria its free dom. When I was in France ai few weeks ago. it was generally- conceded that if DeGaulle should HIM /v- p 9 > ft’--)) r ‘-J* ^ 'iV X v ;,