The Clinton chronicle. (Clinton, S.C.) 1901-current, December 28, 1967, Image 3
i
Babson's Forecast
- - - --
1968: Year of Decisions
The coming year threatens
to be one of varied and re
curring crises. Virtually no
area of human activity will
be spared . . . social, econo
mic, political, or internation
al. After years of progress
and prosperity, the Ameri*
can people will be faced in
1983 with many decisions that
will prove difficult to make
and evert tougher to carry
out.
Don’t expect the final solu
tion to 1968’s many problems
to be worked out during the
year ahead. But the manner
in which our nation tackles
its predicament will deter
mine whether the U. S. will
be able to strengthen its poSi-’
tion as -world leader ... or be
toppled during succeeding
years and reduced to an in
ferior standing.
To be without hope is to sin.
And we do have hope that our
citizens and their govern
ment will rise to defeat the
many antagonists — infla
tion, social corruption, greed,
crime, fear, and despair —
that are pressing upon us as
the new year begins. It is
said that the Oriental concept
of crisis is opportunity. In
that sense, we predict with
out reservation that 1968 will
hold opportunities unlimited
for our country.
THE CHRONICLE, Clinton, S. C., Dec. 28, 1967—3
01 NT
OF 4
VIEW-
ECONOMY ,
1. Now that the pound has
been devalued, perhaps our
greatest opportunity fdr the
year ahead is to prepare a
strong defehse for the dbllar.
We forecast that after some
early fumbling both the
Congress and the Federal Re
serve will move with deter
mination to protect our dol
lar.
2. The effects of the battle
to save the dollar promise to
be unpleasant. After an early-
year surge to new highs for
dollar values and'Production,
business will find the going
rougher as the months un
fold. Scarcer and more costly
money will take its toll of
growth.
3. Major stimulation to the
economy in the early part of
1968 will come from a scram
ble by auto and allied lines to
make up for production lost
in 1967, combined with a
stockpiling of steel and al-
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these activities.
4. Some additional escala
tion of the Viet war will oc
cur next year. But we have
already experienced the ma
jor impact on business of the
massive buildup in arms out
lays; whatever additional
procurement comes will not
be a determining factor on
the course of 1968’s business.
VIETNAM
5. President Johnson is torn
between a desire to “pour it
on’’ in Vietnam and bring
home victory before voting
time next autumn and his
sincere wish to go down in
history as a peacemaker. If
recent and prospective tight
ening of the military vise on
North Vietnam fails to bring
results by late spring . . .
look for spectacular moves
toward negotiations. Under
these circumstances we feel
the chances are 60-40 that
1968 will mark the phase-out
of our military operations in
Vietnam.
6. But the most decisive
conflict next year will not be
fought on the battlefields of
Southeast Asia. It will be here
at home against the one en
emy that has the power to
destroy the U. S. ... IN
FLATION.
7. Contrary to the bid adage
that Congressmen won’t com
mit political suicide by vot
ing a tax hike in an election
year, we do expect a revenue
act in 1968. It may include
excise imposts as well as in
come levies.
8. The Administration will
be forced to reduce total ex
penditures for the coming
year by $6-to-$10 billion.
While the war continues,
most of this will have to he
lopped off nomdefense areas.
9. Congress will remove
the 25'J gold backing for
Federal Reserve notes early
in the year.
10. The amount of goods
^ | perhaps sharply — in the first
half of 1968 . . . taper off la-
. ter.
23. Business capital expen
ditures should start the year
on a strong note, but as the
year advances, prospects for
further gains will become
dimmer.
LABOR
tourists will be permitted to 2 4. With wage guidelines
bring into the country duty- nuw ( i e finitely junked, there
free will be reduced to zero in will be a stampede by labor
1966 generally to bring contract
11. Further restrictions will gains in line with the huge
be put on foreign investments advances made by the United
by U. S. corporations in the'Auto Workers; the annual
coming year; our govern- salary concept for production
ment will encourage Ameri- workers will gain further ac-
can companies to increase di- ceptance in 1968 by a number
vidend payments by foreign of American indutsries.
subsidiaries. 25. A labor feature for the
12. Rationing of credit by!coming ye«jr will be wide-
the Administration and the spread stoppages by state,
city, and loejal public employ-
Federal Reserve is a distinct
possibility in the months ces; the
ahead.
13. U. ». outlays lor foreign
aid will be slashed in 1988.
14. Our money managers
will slow down the current
high rate of money-supply
increase as soon as Congress
takes action to curb inflation.
15. But the tremendous out
pouring of money during the
whole of 1967 will continue,
for some months, to exert, „ .. .
upward pressures on interest con °
rates and the general price
level. It will also have
an energizing effect on bus
iness. Hence, as money flow
is cut back next year, there ^
depressing
battle on this front
will surely He long and bit
ter.
26. With elections coming
in the autumn, Corigress will
not vote any restrictive labor
legiplation in 1968. Although
we anticipate that credit con
trols may possibly be invoked
in the Administratioh’s strug
gle with inflation, there is rto
chance that any serious at
tempts will be made to im-
will be a delayed
effect on interest rates, pric
es, and business . . . probably
after midyear.
raids on the dollar; but it
will not be devalued in 1968.
17. There will, however, be
many discussions between fi
nancial experts here and
abroad to develop a long-
range plan for revaluing in
terms of gold—on a more re
alistic basis—the currencies
of all of the Free World.
18. The early—1968 uptilt
in business volume will give
a lift to corporate profits; the
fanning out of wage boosts,
however, along with rising
costs and taxes will later
have a squeezing effect on
profits.
19. Short-term interest rat
es will rise faster than long
term in the months ahead.
20. This will have a res
trictive impact on the avail
ability and cost of mortgage
funds.
21. In turn, the recovery
now under way in home
buildihg will be restrained
and perhaps reversed as 1968
moves along ... but apart
ment construction should re
main in an uptrend.
22. Inventories will rise —
27. Upward pressures on
the cost of livihg will be inten
sified during the first half of
the new year, with advances
as autumn ap
proaches. Over-all, we look
for another increase in living
expenses of over 3%. . . and
it would not surprise us if the
16 There will be reoeated should rise to the
r nere ^win. be repeated ^vei The .. ba d boys’’ will
continue to be soaring serv
ice costs — especially medi
cal — and upspirals in trans
portation and finished—goods
tags. Food may inch up a lit
tle more as processing costs
mount further; but prospect
ive plentiful supplies will act
as a controlling factor.
28. Total cash receipts from
farm rhafketings should ad-
Vandb modefateljr 6V*r fig-1
ulres fob 1067; however, the
Felehtless up-pUsh of costs j
will take it toll, and far
mers’ het income will do
well to improve-even slightly
. . . notwithstanding some re
lief firom higher government;
payouts. Large marketings
promise to restrain cattle
quotes and hold this source of
farm income in its recent low
profitability groove. Meat
prices, however, propped by
bulgihg expenses, will be
well maintained to firmer for
the year, the consumer with
storage facilities may benefit
from time to time by watch
ing carefully for sales and
taking advantage of any buy
ing opportunities provided by
occasional runs of cattle fed
to extra-heavy weights. Ap
parent determination by
growers to cut babk oh poul
try output thretens to edprive
the housewife of one of her
most prolific sources fef rea-
sohably priced meat.
29. Real estate will be a
many-sided market in 1968.
Prices for single - family
homes will continue to ad
vance as construction fails to
satisfy risitig demands and
as all building costs move
higher. . . particularly during
the first half. Demand for
rentals in the middle and
lower brackets will gain
steadily:' however, ability to
satisfy these needs will be
severely hamstrung by even
more costly and scarcer
mortgage money. Speculative
purchases and the salability
of vacant property—especial
ly that irt less desirable areas
— will suffer from the dry
ing-up of fuhds to carry such
parcels. Broadly, the better
ment that set in during the
final six months of 1967 will
probably not be maintained
long in 1968.
(Continued On Page 8)
Consult
ALVIN
W.
HUEBLE
About this question:
4< Fire insurance can
never replace the
treasured and unique
personal belongings
lost in a fire—such as
photographs, k e e p-
B kes, family jewelry,
irlooms and collec
tor's items. Is ‘Tire
prevention” the an
swer, by removing
newspapers, flamma
ble rubbish and by
insulating all heaters
and hot pipes from
wood partitions?
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LIBBY’S 20-OZ.
Tomato CATSUP 27c
DEL MONTE CRUSHER NO. 2 CAN
PINEAPPLE 27c
DELTA 4 ROLLS
TOILET TISSUE 25c
SUPER FINE 303 CAN
Blackeye PEAS 10c
Rags Dog FOOD .... 4 cans 29c
Jim Dandy GRITS. 5-lb bag 47c
A-G 2 LARGE BOXES
Washing POWDER 49c
CLOROX y 2 -gal. 37c
TALL BOY 19-oz. Can—2 FOR
Tomato SOUP 39c
DRINKS
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Saltine CRACKERS 35c
LONG GRAIN 14-OZ.
Comet RICE 21c
CHEF CHOICE FRENCH 2-LBS.
FRIED POTATOES 31c
MORTON—Ail Except Ham EACH
TV DINNERS 39c
Yellow ONIONS 2-Ibs. 19c
FRESH GREEN BUNCH
COLLARDS 29c
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HOG JOWL. 29c
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