THURSDAY, DECEMBER 29, 1949 BI.YTIIEVrU.E (AUK.) COUTCIEn Business Forecasters Optimistic Income in 19501 ?AGK SEVt ' f End-of-Ycar Survey Finds Washington Experts in Accord Hy Sterling F. Green WASHINGTON — (dV~ The fifth lull year of peace, 1950. may pour a -.lew record htijh income hi to the pockets of Americans. A spurt of price rises may siphon some of the Income-dollars right out again. But most of Washington's official economists discount the danger of serious inflation i.ext year, despite federal deficit spending and the steel price boost. A year-end survey finds unusual apreenicnt among the official ex perls—mostly on a not-for-quotation basis—on a forecast something like tlii"' Personal income <»t peak exceeding the $212,OQO,OQO.CGO of booming 1EM8. Jobs nnd prol'tu- tinti about as gooci ns 1949, perhnp 1 better. Building activity UUh. Cre dil fairly easy. In the year now ending the c?jn KKSTJNG EASY—A 'flying" coupe hinds upside down astride sU- fottf ^I\ ( ''TL*L ^tod^Hrst 3 '^ U ° n wagon and SL ' dRn aftor failure to make a curve in road, at National six-month "business sag and, second, j City ' Cal> Vcnic 'e plunged down five-foot bank into used car lot, and frorn strikes which paralyzed thej £01 " e «°w rolled ami slid onto hoods of adjoining autos after first hitting basic steel and coal injuries. . delivery truck. Pour Marinas crawled out without a scratch. (AP Wire- Lntcrlue 1050 on the upgrade,. Dllolo) business may run a twelve-month course !ike this across the econo- mints' charts, in the opinion of some tojj-rnnkiiif; officials: Vir&t six uinntLiH: A auinn of i strong demand and output, v.'ith ft liberal doEni;e of fericral (Eollsrs supplying part of the push. Km- plo\juc-nt will lagc at first, then jn ; .'i the upcinve. Second six months: A gentle down-slope, not a roller-coaster dip, but a "disinflation" for some industries 'which hnven't had their full postwar adjustment. The Bureau ol Agricultural Economies, sole agency to make its forecast public, sees in 1050 a "slight reduction" in economic activity and a "iclatively slow" price decline. Li But. In general, a good year. Tf the nation's industries, like sfeeJ, decide (hey must raise prices to meet the cost, of pension funds and hostma]i?,afinn re.ic'rves. 194!Ts "fourth round" of contract ff-.',!e- mcnts \viJ! be delivering .ts inflfi- tiinary kick well into 1&50. Govcrnmcnl Cnntrols Discournirrd Though 1950 fs a political year— and almost e\ r cryboriy in Washington ngrec-s that politics influences economics — the political omens should not read too hatily lo the businessman who dislikes controli, higher taxe? ,«nd deficit Congress has proved ite dislike foi drastic: economic coain*s and President Truman reported 1 *' will not seek them. The budget, now splashed with red ink. will run at be hi the making. Employment will clip in January *uid February, sa>'s the Bureau of Labor StatistLcrs. but this is a icasonal trend resulting from the iiost-hollday layoffs and some ciustries bccoinine wciiiherboutu "need not be cause for alarm, the bureau's opinion. In fact, BLS reported lhe KO- vember job sittiation "more eu- counigin»" thiiti at any lime in the past year. The number of idle NSLI Dividend Mailing Date I lm^*~-l~l~. L//1CG/Tt/f/? will be spread among veterans, starting In the next 30 days, in the form of Gl life insurance refunds. Most of it probably will be spent qulukly. The rest of the $5,000,000,000 is simply deficit financing — the amount by which the government's outgo will exceed its income between now and June 30, end of the fiscal year. It all adds to the public's buying power. Building Outlook is Omul I Construction. Another $19,000,000,000 year in construction— equal- ling the 1949 record—is forecast officially. At the season's peak, the building industries will nave jobs for 2,-iOO,000 workers. In residential building, ".arly-ycar activity is assured by the almost unprecedented number of houses and apartments started late in I* They will reach completion in the spring. Summer \vili bring the biggest postwar boom in public construction—city and county, state and federal. It will employ cniu- third of all construction workers, offsetting an expected drop in factory and commercial building. 3, Industry's Plnnt and Equipment Outlays. They \\i\\ be taper- iny off. Outlays for first-quarter 1950 are planned at a rate about H per cent below ji year ago, continues the a proximate rate of de- a smaller deficit after July 1, by att j dine observed over the last, year indications. As for taxc.s: Few member* of Congress seem ready to take action on Mr. Truman's assertion that raising taxes is the only way to achieve a balanced budget. On the contrary, there is sentiment—even in the administration—for rechic- „ ing the wartime excises on tran-spor- | tatiou and "luxuries." The opinion is expressed private]y, in sonic official quarters, that, the administration will be content- to hold out for a boast in corporation taxes equal to the revenue loss in cutting excises. It might mean a oue-potnt or two-point boost In the corporation rate of 38 per cent. But many legislators opEXxe higher business taxes. Three measurable factors count. heavily in (he economists' size-up j of the year ahead. They are: j 1. Federal Spending. In the coming six months the government will pay out to the public ueltcr than $5.00[),COO,000 more than It takes in. j About 52,800,000,000 of that total PIANOS fTcn year factory guaranlcc 1 TUNING With the world famous SlrobofOini — II tiikes lhe guesswork oul of liming. REPAIR j Every job absolutely gunr- janleed by a bonding com- jpany. Music Instruments [And supplies of all kinds from guitar picks (o bass violins. Recordings S We make records of your; voice and music on porma-j ncnl records. Everything in Music BROOKS Music Store when such capital investment totaled 317,900,000.000. Tiie economist;, say tne projected decline is no cau.se for alarm—unless the rate speeds up. Business lia.s been investing in new plant and machinery at an abnormal rale since the war. Now, with output catching up to consumer demand, a return to normal is in the cards. Whereas industrial output faded linost 15 per cent in the early-1949 dip, consumer buying dipped only ive per cent. As as icsuit, some actories had to speed up and replace depleted stocks; and business generally regained confidence in the iUle man who didn't lose confidence—the consumer. Economists see little reason to think demand will fall off apprec- ably in 1950. Personal income hns been bolstered by new wage agreements. Despite the publicity about nensions, most, ot the 1949 contracts called for modest wage Increases and skipped the pension issue. Personal Income will be boostcc again if Congress expands socia security benefits. This already has been approved by the House. The prediction of n new record in personal income therefore look fairly safe. 1850 Coulrt Set Record If the normal sources of famil; Income — wages, salaries, illcomi from rentals nnd investments—holi clo.se to the level reached in 19-IS ami held during the first ten months of 1949—slightly less thai $212,000,000,000 a year— the mer addition of the veterans' life in .surance refund would send the 1951 total to a new record. Some economists go farther. They say it is "possible, but not likely that a neu- record in total pro- f duction may be set. TUe "gross nMional product"— meaning the dollar value of all goods and services produced in the country—was S2B2.400.000.OOn in the best year, 1948. when the figures are in, 1943 may be found to have totaled about $260.000.000,000 — the second best year. If the predicted dip in the second-half 1D50 is not too severe, another record may WASHINGTON. Dec. 29—lil'i- The Veterans Administration suic yestcrdiiy it .still docs not knou when the Ilrst of 000 • •" j siirancc dividend checks for World „,. . .. . War Two veterans will be mailed. Other economic nnlr.stcmes of k , . r . 1049 and signposts for 1950 may be : rhc ta ' 1 sc.':<l;«te of some , '""<> summarized ,,s follows: ' » Ci . lr lhc mld , rtlc of •»«>«"«•>•." •« Prices: The cost of living has last ««"»""•. ll(ls "ot been ctiaimci varied only one or two per cent dcsl>lte widespread reports to tin from month to month tlirougliout colllnlr - v ' » VA oltlcml si>1(i 1549. It now stands about three T' lc same official said that 1 per cent below the 1048 ]itak. lhc present rale of divident ap Clothing and food prices have gone plications remains constant, It wil down; rent and fuel have gone up. un more limn three years until al Centals may be expected to rise the veterans have applied for the! as celling decontrol continues. share of the S'2,800.000.000 dividem Farm Triers to Go Lower kitty. At least 1,175.000 veteran Farming: Farm income will drop I'"*'" '">' V'-' 1 ' applied, out of at erhaps ten per cent in 1050, the estimated IC.OOO.OOO eligible. Appli \Rriciilturo Depiirtment jux'dicls. cations are coining into VA's Wash prices in November were al 1»S 'on headquarters at the vale o tie 19-19 low point and IG per cent • 1.500 a day. elow the 1948 average. I Dividends not applied for will no Strikes: Time lost because of accumulate Interest for the vctorni ibor disputes soared in Ocloucr to If u veteran waits three years he 9.000,000 man-days — the highest fore askinc; VA for his dividend eve! since the great shutdowns of check, he will get exactly what he '946—because of the coal and steel i Irikes. quarter of 1949. This compared with Industry: Production bounced. 821.200,000.000 In 1948. lack three per cent in November J Consumers: They svere spending j regaining most of October's five per throughout 1949 a t a rate of better ent loss as a result of the basic than $178,500.000.000 a year despite Industry strikes. "Soft goods" pro- j tlle business slump. The rate was duction — textiles, shoes and the' virtually the .same ns In record- .ike—reached the highest rate In breaking 1048. But as the year wore , :hose two months since the peak on ' consumers were saving less. !n 1948. I Credit: Year's end found con- old Rats Gnaw Fingers "Vom 3-Months-Old Girl ABILENE, Tex.. Deo. 29—«>y— lats gnawed sill 10 lingers and hinnbs from Hie hands of a thrce- lonlhs-old Abilene child, it was flioited hero yesterday. The incident occurred last Sat irrtny when Mrs, Hito Martluc: fit her daughter, Carmen Martln- '2, In her small apartment while he visited another apartment. When .she returned she found the ittle girl's hitnds were bleeding .iroJuscly and a small mongrel dot;, the family's pet, was llckiiiR the wounds. Mrs. Mar tine?, snid she believes the dog frightened the rats away. The father of the child Inter found two large rats In the house. The child was rushed to a hospital. Her condition later was reported good. Doctors Hold Little Hope | for Infant's Recovery JONESEORO, Dec. 23. (AP) - Kleven-inonths-old Grace Hardjn, who has spent the last four months ol her life asleep, has been rnw!-:l from a hospital here to her homo. The boljy, daughter of Mr. ir.d Mrs. Henry S. llartun. was ad.iU- ted to the hospital Septembu 4. Though doctors gave the par :its little hope that the infant w^nlct live long, her condition nas cna. :ed very liUlc during the tour moi *.hs period. Our Store Will Be CLOSED until should get It ho hud been Uic first to apply. Any Interest, earned on his dividend will go Into the Insurance fund ns profits. There is no deadline on applying. The average dividend payment, will I* $175. MON., JAN. 2 the NEW YORK STORE AT RENNETS; Profits: Corporation profits, after 'sinner credit asain climbing to new i taxes, had declined to an annual : record highs. It will 'dip again In I rate of 515,600,000,000 in the thiid J a"uary and February, with the holiday buying spree over. 'You've got o late model car, aintcha? Then of course you're a good risk tor an auto loan from GENERAL CONTRACT PURCHASE CORPORATION." CIAL WHERE YOU REAP SAVINGS AT OUR YEAR END CLEAN-UP ON SALE TOMORROW MORNING AT 9 A.M. BE ON HAND EARLY ONE GROUP WOMENS COATS Q OO BE ON HAND EARLY FOR THIS ONE. QUANTITIES ARE LIMITED. 1 New 1949 GE mode! with 121 in. picture tube 1 Brand new Motorola wilh 10 in. picture tube • *=a 1 Brand new Motorola with 7 in. picture tube 1 slightly used 1949 Majestic with 7 in. picJubT ONE GROUP BOYS WOOL JACKETS 200 Broken Sizes — Odd I.ols — A real Value ONE GROUP WOMENS BETTER COATS 2 Some Fur Trimmed Fine All Wool Fabrics 1 slightly used '49 Hallicrafter, 7 in. pic. hi! ALL PRICES INCLUDE INSTALLATION AND 90 DAYS FREE SERVICE! PAY ON EASY TERMS 107 R. Main Tel. 811 ytheville Sales TWO GROUPS WOMENS DRESSES $000 $/ioo jgn fcji Mostly casual style that you can wear riglrf on into Spring. Most all sizes. Hurry, quantities are limited. ONE BARGAIN TABLE Odds and ends greatly reduced. Underwear, gowns, shirts, pajamas—a little of everything. ONE GROUP REDUCED Odds and ends at give-away prices. Men's, women's and children's. T38 East Main Felix Carney, Mgr. Phone 3616 These are just a few of the many bargains you'H find at Penney's year end cleanup.
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