Historical Newspapers of South Carolina

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i BABSON: BY BABSON-S REPORTS, INC. WELLESLEY HILLS, MASS.- The debut of a new decade has not been a particularly pleasant experience for this nation in the memory of the vast majority of its present populace. In four of the past five such historical intervals, the econo my was subjected to varying stresses for at least a p^rt of the first year of each decade. 1920 was a bad year for both busi ness and the stock market; 1930 was an even more terrifying ex perience on both fronts; 1940 witnessed a sharp slump in the stock market during the spring, with business suffering a mild easing in the forepart of the year before embarking upon the up surge of World War II; 1950 was a change of pace, as the post- World War n boom provided a fertile environment for both the stock market and general busi ness; but the “jinx* returned in 1960 when -- despite the much- heralded promises of the “surg ing ’sixties’--a year-long down- slide in business occurred, and the stock market was in a reac tionary phase for most of the year before rallying in late summer. As we enter the decade of the 1970’s, once again the initial year seems destined to be hampered by the “freshman jinx* which tripped four out of five of the years which ushered in the past five decades. The year which is now unfolding has many favorable factors, but there are also many major problems and impond erables which lie in ambush and threaten the economy. INTERNATIONAL PROSPECTS CRUCIAL Domestic social, labor, and monetary problems all must be met head-on during the coming year. But in many respects, the manner in which these problems are attacked will depend upon equally pressing world problems which have military significance. At this juncture, the staff of Bab- son’s Reports is of the opinion that the cauldron of world prob lems will continue to boil, but that the many festering wounds can be kept localised to a suf ficient degree to avert a world wide conflagration. INFLATION-PUBLIC ENEMY NUMBER ONE Presuming, therefore, that A- men—a mUitary aonatmtapaat m Vietnam can gradually be toned down, and that none of the other smoldering trouble spots en*)t into full-scale fighting, the pri mary task in 1970 once again will be to curb inflationary pressures. With its tremendous momentum, there is little hope that the in flationary spiral can be brought to a standstill in 1970. Less Feverish Inflationary Pressures - Once strongly en trenched, inflation is hard to con tain. The task is rendered all the more difficult by the social problems which must be tackled at the same time. The Adminis tration and the monetary authori ties, thus, must tr.iad a narrow path, lest over-xealous anti-in flation measures create an eco nomic ‘overkill.* Nevertheless, with the over-heated economy already becoming more tem perate, inflationary pressures are likely to rise at a slower pace relative to 1969. Still Higher Prices - Although inflationary pressures should subside as 1970 progresses, it would be well not to expect over all price deflation. Indeed, in dexes of wholesale commodity prices and retail and consumer prices in general are more likely to trend higher in 1970, reflect ing the tendency of price changes to lag changes in the economic climate. Moreover, because of the squeeze on business profits compensatory price increases are likely. Cost Push - Perhaps the most crucial factor in the outlook for higher prices is the full calen dar of labor negotiations slated for 1970. On the basis of gen erous contract settlements dur ing the past year, new labor pacts will undoubtedly carry hefty wage increments. Money Supply - One of the signs pointing to the ease of in flationary pressures is the mo ney-supply curve. Reflecting the restrictive credit policies ad hered to by the Federal Reserve in 1969, the nation’s money sup ply (bank deposits and currency in circulation) in recent months has leveled off, blunting one of the most potent sources of in flationary pressures. The staff of Babsori’s Reports does not fore see a renewed upturn in the money supply in the early months of the year now underway, since the na tion’s leaders will still be pre- occupied with price increases. Thereafter, however, if the anti cipated down-turn in general business and the consequent un employment ups lent become sen sitive anas, the Federal Reserve may be expected to ease credit LABOR RULES 1970PROSPECTS An allusion had been made ear lier in this column to the in fluence of labor conditions upon business in 1970. Indeed, if in ternational conditions maintain a relative status guo, what happens on the labor scene could deter mine 1970 business. Many major and secondary labor contracts expire within the next 12 months. The most crucial are the labor talks involving the Teamsters and the Auto Workers. If the trucking industry is paralyzed by a na tionwide strike next spring, raw materials and finished goods can not be transported. Lay-offs and curtailed work weeks in many industrial lines would then result. To the extent that the automo bile industry directly and indi rectly (thru the automotive equip ment suppliers) employs many workers and consumes a consid erable amount of raw materials, a prolonged tle-up--either in dustrywide or in a succession of strikes against each of the “Big Three* auto producers--couldbe very damaging to the economy which at that time might be either in the initial stage of a recov ery or on the verge of regain ing its vitality. Whether or not labor tie-ups of varying length do occur, the outlook is for costly wage set tlements. With the profits squeeze now being experienced by most businesses, management can be expected to bargain hard er in order to keep the lid on cost increases. Thus, in 1970 la bor and management will lock horns in perhaps the most de termined stand on the part of both parties in many years. Labor leaders are expected to push hard for direct wage in creases during 1970. Fringe be nefits, with the exception of me dical programs, will take a back seat to increments in take-home pay. Management, on the other hand, may concede large pay boosts, but in exchange the ten dency wiU be to seek one-year contracts rather than the multi year pacts, hoping that an econo mic breathing spell during 1970 will take the pressure off labor demands. 1970 BUSINESS PROFILE The latter part of 1969 saw industrial activity turn down ward. Even before that develop ment, corporate profits after taxes had already crested over "(StafTIng'Th'TRe second quarter of 1969). The Babson Staff anti cipates a further slowdown in bu siness in 1970. There is no anti cipation of a serious recession, although we cannot rule out such a possibility if prolonged labor tie-ups upset supply-demand ra tios. However, if there are no radical disrigitioos on the labor front or on the international scene, the general expectation is that business will experience a gradual slippage during the first six to nine months of 1970. If the automobile industry can come to terms with the United Auto Workers without too much trouble, a noticeable pick-up in general business could emerge in the closing months of 1970. Gross National Product - The Babson Staff forecasts a 4% to 5% rise in the total dollar value of goods and services which will be produced in 1970 compared with 1969. However, this is in terms of current dollar value, which will reflect the further in flationary rise in price tags ex pected in the next 12 months. But on a physical volume basis (adjusted for price changes) Gross National Product is not likely to show much change com pared with the deflated 1969 GNP. The components of the Gross National Product figure should be generally firm. The most import ant segment is personal-con sumption expenditures, which should continue the upward trend. This reflects not only the in crease in price structures but also the natural growth of de mand from the shift in the na tion’s population profile, plus the higher levels of personal Income and income per famfly. However, the sizable increases of recent years in personal consumption expenditures will not occur in 1970. The next important segment of the GNP is private domestic in vestment Here, also, 1970 should see only a small increase over 1969. High borrowing costs, tight credit uxl the pinch on cor porate profit margins are likely to dampen capital investment State and local spending will be one of the stronger elements of the Gross National Product in 1970. The fight to cure major social ills most be waged at the state and municipal levels, with help from the Federal Govern ment Factors which should lift state and local spending include the need for more public hous ing, urban redevelopment, im proved mass transportation fa cilities, and highway betterment Prospects Mixed New Year to prevent traffic strangulation of urban centers. In addition, op erating costs of standard muni cipal facilities for public pro tection, education, and sanitation are all up sharply. Federal spending will be the soft spot in the GNP structure. In all probability, Federal spend ing in 1970 will be little changed to a shade lower because of cut backs in military spending and stretch-outs in large dollar vol ume federal projects. However, any savings in military outlays will be absorbed by higher ex penditures in the civilian seg ment of the economy. Industrial Production - As in dicated in the introductory part of this section of the forecast, we currently expect the down turn in industrial production which began last September to persist through at least the next six months, with a possibility that it might extend through the sum mer. Industrial production is generally measured on a physi cal-volume basis and does not reflect price changes. At this point, the Babson’s Reports staff does not foresee a deep recession. Instead, the ex pectation is that factory output will trace a gradual downward path in the first half, and a leveling off or the start of a re vival in the third quarter, at a seasonally adjusted rate. In the final 1970 quarter, industrial activity sh >uld show definite up side progress. Overall, the Bab son’s Reports staff projects a possible slippage of about 5$ to the low point of factory op erations, with the subsequent re vival narrowing the net decline for full year 1970 versus 1969 to around 3%. Building and Construction - The building and construction field will not show much vigor until the monetary authorities shift to a less restrictive cre dit policy. Thereafter, this sec tor of the economy should pick up momentum and end the year on a strong note. Activity in the home-building field is expected to pace the smart resurgence of new construction outlays. But unless the ease in credit occurs early in 1970, new housing starts for the full year will do weU to equal the number of units start ed in 1969. Business Profits - To the ex tent that businesses are unable to lift prices and cut costs suf ficiently to offset increases in labor and other operating costs, corporate profits after taxes in 1970 may slip below the rate of earnings for 1969 as a whole. Barring an industry-wide tie-up of auto producers by the UAW, or a protracted series of strikes against each of the ‘Big Three* auto manufacturers in the fall of 1970, the anticipated upturn in business sometime after mid year, plus the probable expira tion of the surtax, should help to stem the erosion of corporate profits in the last six months. Employment - It now appears that the downslide in business is not likely to be of sufficient magnitued and duration to create sharp cut-backs in employment during 1970. Management is par ticularly aware of the difficulty of acquiring skilled, competent, and conscientious help and hence the tendency will be to keep ex isting crews intact wherever pos sible. But the average length of work weeks will be trimmed fur ther during the winter and spring weeks of 1970, which will au tomatically curtail additionally the amount of overtime. Unemployment - The ranks of the jobseekers, nevertheless, will show a definite increase in 1970 over that of 1969. Slowing business will take the greatest toll upon unskilled and marginal workers. The jobless rate may rise to 5% of the civilian labor force before business can ‘turn the corner* in 1970. CONSUMERS TO THE RESUCE Prospects for consumer spending in 1970 seem none too promising, particularly for dur able goods. The Babson’s Re ports staffprojects a slight down ward bias in physical volume of retail trade until industrial acti vity perks up. Total dollar volume of retail sales, however, again will be bolstered by higher prices. However, the growth and struc ture of the nation’s population, demographic changes, and wage hikes, will augment consumer buying power--the corrosive ef fects of inflation upon the pur chasing power of the dollar not withstanding. Thus, having al ready trimmed their sails in 1969, consumers may evidence buying interest sooner than seems justi fied right now. MONEY RATES There is little doubt that the most onerous phase of the rise in interest rates which has pla gued us for the past five years has reached a crest. Although corporate bond offerings in the closing weeks of 1969 still car ried generous coupons and yields, the outlook favors some easing in money rates in 1970. Per- h: ?s the most significant reduc tion will occur in the cost of short-term loans. The cost of long-term money should also ease some, but not to any sig nificant degree. There simply is fax too much demand for long term capital for projects which have been postponed by the ex cruciating credit squeeze, and for upcoming social programs. Mortgage Rates - Mortgage borrowings are in the long-term category. Therefore, while mod est reductions in mortgage bor rowing rates are very likely to occur in 1970, pent-up demand for housing (both single family units and apartments) pretty well assures brisk demand for mort gage money once interest rates start to slip. Business Loans - Because of Legal Notice FINAL SETTLEMENT Take notice that on the 6th day of January, 1970, I will render a final account of my acts and do ings as Executor of the estate of Martha Phillips Greenwood in the office of the Judge of Pro bate of Laurens County, at 10 o’clock A.M., and on the same day will apply for a final dis charge from n# trust as Execu tor. Any person indebted to said es tate is notified and required to make payment on or before that date, and all persons having claims against said estate will present them on or before said date, duly proven or be forever barred. Arthur Morcombe Greenwood Executor 317 S. Broad St Clinton, S. C. present them on or before said date, duly proven or be for ever barred. Sarah Eugenia Jacks and Dillard Dennis Neighbors P. O. Box 194, Laurens, S. C. Dec. 15, 1969 Dec. 2,1969 DU-4C-J1 D25-4C-J8 CREDITOR’S NOTICE All persons having claims a- gainst the estate of Clarence E. Galloway, deceased, are hereby notified to file the same duly verified, with the undersigned, and those indebted to said estate will please make payment like wise. Sara Barnes Galloway, Executrix 305 Walnut St Clinton, S. C. Dec. U, 1969 D18-3c-Jl FINAL SETTLEMENT Take notice that on the 19th day of January, 1970, we will render a final account of my acts and doings as Executors of the estate of Albert L. Neighbors in the office of the Judge of Pro bate of Laurens County, at K) o’clock A.M., and on the same day will apply for a Anal dis charge from our trust as Execu tors. Any person Indebted to said estate Is notified and required to make payment on or before that date, and all persons haring claims against said estate will Dec. 12th, 1969 the anticipated further slowdown in industrial activity, demand for business loans for the greater proportion of 1970 should moder ate relative to 1969. Inventory ac cumulation will naturally be con siderably diminished, if not actu ally temporarily replaced by in ventory liquidation programs. For these reasons, short-term money rates -- including the prime rate, yields on Treasury bills, commercial paper, and oth er short-term debt instruments --will decline until business perks up again. As we enter 1970 prices of bonds and preferred stocks are well depressed, and yields are the most generous in over a cen tury. Therefore, these two types of securities provide very at tractive investments for those who are in need of a high cur rent income, but the prospect of an upward adjustment in market prices for bonds and preferred stocks as money rates decline clearly indicates that there is also the opportunity for capital appreciation. Maximum Income - Where the highest possible yield is neces sary (in the case of investors who are entirely dependent upon investment income) and for cer tain institutional accounts, there are many high-quality bonds and preferred stocks which can be purchased to tie down the gen erous yields now available. Income Plus Appreciation - Many investors are not complete ly dependent upon current in come. For i^ese investors, bonds or preferreds which carry a re latively low coupon rate or divi dend rate can provide both gen erous current yield plus capital appreciation potential. Investors who are interested in a reasonable investment in come plus some capital apprecia tion beyond the immediate future (the latter factor representing an inflation hedge) should not over look good convertible bonds and preferreds. The stock market de cline has pulled most converti ble securities down to where their current quite attractive. Tlx trading close to, or rlgfafcfnt, their conversion value stan$tt» best chance of moving upward In price when their respective ehnn mon shares stage a rebound. Accident Tolls •',!) NEW YORK—Accident; of various kinds injured I3.4.'piil- lion persons in the Ufilted States in 1968, says the IftAir- ance Information Institute^The economic loss, including that from highway accidents ,j*nd fires, was estimated at a record S25.98 billion. m zim ARP ASSOCIATE REFORMED Rev. Edward D. Pierce 301 Magnolia St, Joanna Lutheran Pentecostal CHURCH FRIENDS HIP BAPTIST ST. JOHN’S EVANGELICAL FIRST PENTECOSTAL Rev. Zeb Williams 701 South Broad Street Assembly of God ASSEMBLY OF GOD BETHEL TEMPLE Rev. T. L. Gray 114 North Owens S.t JOANNA ASSEMBLY OF GOD Rev. Ray Prosser 440 N. Main St., Joanna Baptist BELLVIEW BAPTIST CHURCH Rev. J. B. Abercrombie Rt. 1, Laurens CALVARY BAPTIST CHURCH Re. J. W. SpiHers North Sloan Street DAVIDSON STREET BAPTIST CHURCH Rev. M. Floyd Hellams Davidson Street CHURCH Rev. Jesse D. Stephens North Broad Street HURRICANE BAPTIST CHURCH Rev. J. C. Conoly RFD No. 2, CUnton Catholic ST. BONIFACE' Father Peter K. Berberich 401 N. Main St., Joanna Church of Christ CHURCH OF CHRIST Evangelist M. S. Parker" 603 North Broad Street Church of God ELIZABETH STREET CHURCH OF GOD Rev. James W. Wiley Elizabeth Street LYDIA MILL CHURCH OF GOD Rev. Fred E. Eason FIRST BAPTIST CHURCH MILAM ROAD Rev. J. H. 301 South Dan- Broad Street HEBRON BAPTIST CHURCH Rev. W. D. Coker 700 North Broad Street CHURCH OF GOD Rev. Herman Anderson JOANNA CHURCH OF GOD Rev. Harry R. Kemp 122 South Main Street LYDIA BAPTIST CHURCH Rev. M. J. Sanders Poplar St., Lydia Mill Episcopal FIRST BAPTIST CHURCH OF JOANNA ALL SAINTS EPISCOPAL CHURCH Rev. Peter Outz Calvert Avenue LUTHERAN CHURCH Rev. John Setzler Greenwood Highway Adventist SEVENTH DAY ADVENTIST CHURCH Hampton Avenue Methodist BROAD ST. UNITED METHODIST CHURCH Rev. E. W. Rogers North Broad Street SANDY SPRINGS METHODIST CHURCH RFD, Laurens LYDIA METHODIST CHURCH Pine Street BAILEY MEMORIAL METHODIST CHURCH Rev. Thomas Miller Bailey Street EPWORTH METHODIST CHURCH Rev. Leland Rhinehart Magnolia St., Joanna KINARDS UNITED METHODIST CHURCH Rev. James McAllister Kinards - HOPEWELL UNITED METHODIST CHURCH Her. * « Hopewell Road HOLINESS CHURCH •; Rev. Furman Entreldn ... Jackson Street LYDIA PENTECOSTAL HOLINESS CHURCH Rev. J. R. Bryan Poplar St., Lydia Mill PENTECOSTAL HOLINESS CHURCH Rev. Floyd Brewer Whitmire Road, Joanna Presbyterian DUNCAN’S CREEK PRES BYTERIAN CHURCH • Student Ministers ■< Billy Bryant, Carson Rhyne THORNWELL MEMORIAL PRESBYTERIAN CHURCH Dr. M. A. Macdonald Thorn well Campus FIRST PRESBYTERIAN CHURCH Rev. A. L. Bixler 410 E. Carolina Ave. JOANNA FIRST PRESBYTERIAN CHURCH Rev. Leon M. Jeffords Milton Road, Joanna LYDIA PRESBYTERIAN CHURCH Rev. Sidney Ayer Pine St.. Lydia Mill R{ LEESVILLB SOUTHERN METHODIST CHURCH R I.. Wood. Supply PastorBon^^Crcww’Roade Greenwood Highway SHADY GROVE PRESBYTERIAN CHURCH Laubach To Honored BY DR,HERBERTSPAUGH What a wonderful world this would be if everyone accepted his responsibility towards God and his fellowman. Dr. FrankC. Lau bach who was 85 in Septem ber will have completed 40 years of literacy work in 1970. Plans are underway to honor him and his famed “Each One TeachOne* literacy teaching method. This cooperation method which he started is credited with teaching more than 60 million people to read and write. This reading includes parts of the Bible. Dr. Robert S. Laubach, his son, Executive Director of Laubach Literacy, Inc., tells of a simple illustration of cooperation in the building of a road. “When I was in Africa last year I saw a remarkable example of human cooperation on a road building project. To create a level bed for the road, a deep valley had to be filled Hundreds of men and women were carrying earth from a nearby hill to fill the valley. Each person had a basket full of earth. Men and women worked together, each balancing his basket on his head. “As each one approached the side of the valley, he dumped his load into the seemingly bottomless valley. Just a basket ful of earth! I couldn’t see that it made a bit of difference as a tiny stream of earth cascaded into the valley. Yet when I re turned that way a couple of weeks later, the valley was filled level for the new roadbed. “Recently scientific studies have shown that the most import ant element in a successful lit eracy program is the human ele ment - the empathy or rapport between teacher and student. They are fancy terms for what my father, and the Moros in the Phillippines discovered 40 years ago: ‘Love your student as you teach, and threads of friendship wind about his heart and yours. In this bond of love, learning thrives.’ ” Dr. Frank Laubach, during his 40 years’ of literacy work, has used this method of cooperation and has achieved fantastic re sults. Since 1930 he has travel ed to 103 countries developing literacy primers in 312 languages and dialects. The author of 35 books, Dr. Frank is presently working on a book to be entitl ed, “Forty Years With the Sifont Billion.’ You can have part in this Wotld Literacy and Evangelism Pro gram. Consider sending a month ly contribution to Laubach Lit eracy, Inc., Box 131, SyracUte, New York 132K). I am a contri butor and heartily recommeqt) it to my readers. THIS FEATURE SPONSORED BY THE FOLLOWING FIRMS * * * CREDITOR’S NOTICE t All persons having claims a- gainst the estate of Hugh Allman Williams, deceased, are hereby notified to file the same duly verified, with the undersigned, and those indebted to said es tate will please make payment likewise. \ Sarah Timmons Williams Sunset Blvd. Clinton, S. C. McGEES Drug Store Prescription Specialists • Cosmetics • Sick Room Supplies We Deliver — 883-0020 JOE'S ESSO SERVICE 833-0227 ROAD SERVICE Compliments of CRAY FUNERAL HOME Dignified and Sympathetic 888-1720 RALPH PATTERSON Owner and Manager WHITEF0RDS DRIVE-IN 801 South Broad Street 838-0198 JOANNA OIL COMPANY 100 North Main Street Joanna, S. C. 697-961(1 NEUBURGER & CO. 106 West Pitts Street v ’ 888*2061 *; ^ Jl-3c-J15 CUNTON CAFE IaImkjmi Bros. 4 Bring Your Family To Dinner Supermarket 1 After Church “Sunday Is For WonUp” 102 Muagrove St — 888-2878 800 S Broad Bit 188 / \ ‘MW