selling 29% or mora above thair
price of ? year age. Another thing
that laraafcjrs should remember
when buylns Canadian gold stocks
U that a number of Canadian geld
mining companies an now reeeiv
| lug a subsidy from the Canadian
government to keep them from
being ahut down hjr high labor
coats This subeidy would com
off aa the price of gold riaea.
n 8TOCKS AND BONDS
It ia unpopular for me to take
a bearish position hi my Annual
Forecast. Most of the newapapeta
and my readera like optimistic
forecasts. In all the years I have
Si been making these forecasts, last
December was the first time that
I refused to take a definite posi
tion. At that time the Dow-Jones
Induatrial Average was 870 and
today it is fluctuating around 000.
Corporation earnings reports
now coming out are not good. In
many cases the gross Is kept up
or perhaps increased, but the net
is off. Many companies will show
a decline for 1M0 compared with
1090. Prosperity has continued so
long that most manufacturers, re
tailers, and conaumers are assum
ing it will last at leaat another
year. I cannot honestly agree with
thia. Therefore, I feel that 1061
will aee lower prices for the Dow
Jones Industrial Averages. I hope
that many readers with small bus
inesses are showing a profit. Those
who are not should begin to re
duce their loans and "trim their
sails."
In many ca*e* good bondt now
yield more than good ftock*. This
it unfavorable to the itock market
and favorable to the bond market.
Therefore, I believe that bond*
will continue around their present
levels in 1M1. Many reader* will
be wise in shifting now from cer
tain stocks to bonds. There will be
reductions In itock dividend*;
hence it would be much better to
hold bonds with flxed-interett pay
ment* rather than ri*k a reduction
in the dividend payment* of itock*.
I especially call reader*' attention
to "tax-exempt general obligation
municipal bond*." These are the
fixed-interest municipal* of citie*
with a direct lien on all the taxable
property in the city. I would ad
vi*e against holding bonds of such
large cities as might be vulnerable
to bombing in case of World War
III.
My favorite municipals are those
of the capital cities in the Interior
of the country; in fact any grow
ing interior city should be a high
grade investment. These bond*
mu*t pay their intereat irre*pec
tive of business conditions. The
capital cities are especially helped
by having the payroll of the state
governments.
LIVING COSTS AND INFLATION
Living costs may rise somewhat
during 1961 due to the increase in
population and the desire for more
comforts and convenience. A per
son like myself, who has had chil
dren and grandchildren, know*
how each succeeding generation
considers as necessities what the
parents considered luxuries. This,
together with the higher cost of
labor, is the primary reason for
today's record-high (127.3) cost of
living.
As there is. only so much land
available, rents will increase slow
ly. There, however, need not be
a higher cost for food. The farm
er* are constantly raising greater
crops which are being processed
in more economical ways. The
only reason for the cost of food to
increase is the dependence of so
many housewives on package "mix
e*." Ultimately all vegetables will
be wholly or partly cooked and pur
chasable in containers.
Wage* will hold up although
tfcere will be men unemployment
la Ittl. nil omh Uut take
hoicw pay will be lose (or moat
families
Inflation Is not to be (eared dur
ing mi. With his small popular
vote plurality. Kr. lBNuu <i> will M
very slow to do anything to hurt
the p'jrchasing power of the dol
lar. Barring World War UI. 1 be
lieve that the d<*lar will be tint
aa sound a year from now as it is
today. Our U. S. dollar m looked
upm by the world as a standard
FARM INCOME AND PRICES
Good craps sad Moderate prices
indicate a (air year in 1M1 (or
farmers 1, therefore, look (or a
reasonably heavy volume Of the
things fsrrfiers buy during 1M1,
including equipment (or getting
on with leu help. Th* farmer*
cannot expect any boom, but pro
fits, on average, should be at sat
ls(actory levels. My forecast, in
detail, is:
Larger volume o( marketings
should more than o((set any reduc
tion In farm prices. Therefore,
1981 cssh receipts (or farmers
should be slightly higher than
IMO's $11,300,000,000 net. I (ur
thermore lea.n that the intelligent
(armer is reducing his indebted
ness, which is always sn optimistic
sign. As I dictate this (orecast, I
am told that growing conditions are
(avorable in most sections, with
su((icient moisture in the ground
and other seasonsl optimistic (ac
tors. The prices which farmers will
receive in 1981 lor crops will, of
couse, depend upon weather; but,
each year, agricultural science Is
helping the (armers to avoid early
(rost losses and to secure needed
moisture, ffi* : ? ;
EMPLOYMENT, WAGES, AND
TAXE8
Strike activity may well be at a
poatwar minimum during 1961,
with any dislocation* limited to In
dependent separate companies.
First important industrywide ne
gotiations will come In the auto
industry, but not until September
1M1. Railroad workers cannot
strike until November 1, 1961 at
the earliest. Most steel contracts
hold until June 30, 1962.
The average employment In 1960
was about 67,000,000 workers. I
forecast that 1961 will average a
million fewer wageworkers. Coun
trywide, unemployment reached as
high as 4% million in 1900, and
for IM1 nay kit 8* million The
basic difficult/ is thai while u>
duttrjr U cutting back, the labor
foree la becoaung larger. This
means that it will be more diffi
cult for tbaaa getting through
schools and colleges to get poni
tiooa in 1961 unlet* they an wall
trained in builneu. mechanic*, or
electronic*. Certainly, the demand
far executives will be leas in 1961
than it baa been for lome years
Those executive* who now have po
sitions should *trive to do better
work, a at aak for increase*, and
do everything possible to hold onto
tbeir jobs.
Labw leaders hope to nave a
key to tl* White House with Mr.
' Kennedy as President Thla may
, apply to the settling of ?trike?
I and contract diaputes. The AFL
CIO will influence more votea in
Congress during 1961-62 than in
1030-60 The conservative South
ern Democrats, however, will unite
with Republicans to block radical
labor legislation. Congress certain*
ly will not outlaw the "right-to
work" legislation which has been
passed in certain conservative
states, nor will labor get a re
vision of the Taft-Hartley Act. Con
greas will not compel industry to
collect dues from union members,
but may temper the recent Court
decisions ruling against excess un
ion spending.
All the above means that labor
will be able to hold its own during
1061 and aecure some small In
creases in wages, pensions, and im
proved working conditions; but this
may not be what labor expected to
get from the election of President
Kennedy.
The Federal Government will not
increaae income taxes during 1061;
but may close some loopholes and
increaae certain exciae taxes.
BUILDING AND REAL ESTATE
Looking back over the years that
I have been making these Annual
Forecasts, It seems that building
and real estate have been the last
to profit from a boom, and the last
to suffer from the following re
action. Readers all know that from
Its World War II low point new
building, especially of homes, grad
ually rose to an all-time high in
1050. Part of this growth has been
due to increased population and
higher incomes.
In addition to the natural growth
to which new building was entitled,
it was greatly encouraged by loans
to veterans without any down pay
ment, the acceptance of twenty
Happy
Yaar
"Mo?t Wanted by Mont Women "
Modem Appliance Co.
W. King St. Boone, N. C
yatr mortgages by banks in place
of a Maximum mortgage of Ave
years, and by subsidies of various
kind* Like all stimulants, how
ever, thane have gradually become
I cm effective Hence, a decline In
naur buildm* and new home con
tfruction la only natural to expect
| in 1981.
I do, however, forecast that a
move for urban renewal will be
urted and leeured by the new Pres
ident Thla meant pulling down
the slums of large cities and sub
stituting brick apartment houses
with playgrounds. When any new
building is built, it increases the
value of the adjoining land and
increases real estate taxes.
Therefore, 1991 may see real es
tate prices hold their own and even
rise in certain sections. Small
farms near cities will continue to
increase in price, and this will be
true of most well-drained suburban
property. Every family is justified
in mortgaging to buy a home in
1961, but I doubt if 1961 will be
a good year to speculate in real
estate. The bloom is surely off in
Florida, where the supply of new
houses temporarily exceeds the de
mand.
WORLD OUTLOOK
I cannot conscientiously close
thii Forecast (or 1961 without call
ing readers' attention to the un
satisfacory situation that we find
the world in today. I do not need
to comment on Russia or China, as
readers are well acquainted with
conditions there. I, however, must
add that Mr. Kennedy is agreeable
to a Summit Conference as he is
itching for a talk with Mr. Khrus
chev; Kennedy has already stated
that he is willing to put Formosa
under the United Nations.
Readers should note the head
way which the Communists are
making in other parts of the world.
Southeast Asia, for instance, ia a
very rich area. It is envied by
both China and Russia. We may
expect continued revolts in South
Vietnam, Cambodia, and Laos.
I am especially troubled about
the way the Communists are work
ing into Central and South Amer
ica. I know South America very
well. It has virtually no "middle
class." There are a few rich,
but millioM of vary poor, The
i.ommunutl IN organising great
ttrikes m Latin America. As th?*e
strikes accomplish something (or
the wageworkero, they wive the
Comnwaieu good ammunition for
further progress. This situation
ha* been intensified by the agents
of Castro.
Another very sore spot is Africa,
which I visited two years ago.
South Africa will blow up of itself,
without any help or hindrance
from Russia. The Congo, however,
which the United Nationa is now
trying to straighten out, Is a ser
ious problem; and the Congolese
feel that their condition would be
improved by Russia's help. The
great African question, however,
will be concerned with the new
countries which hsve been given
their independence from the colon
ial system they have been under
for 190 years. Here, Russia, Bel
gium, and Prance are playing a
waiting game to see if the new
nations can make good by them
selves.
I cannot imagine the Ruasians
now going to war over Berlin I
am more diiturbed about the gaina
in the Communist vote in Euro
pean countries For instance, the
Communists in Italy received only
18% of the vote In 1M0, but 38%
in 1960. Even in France, the Com
munist vote is again increaaing.
The money interests of France
want the Algerian rebela stamped
out for good, while the farmers and
small businessmen want DeGaulle
to give Algeria its freedom. When
I was in France a few weeks ago.
it was generally conceded that if
DeGaulle should suddenly drop
dead, chaos might reign. 1 dislike
to end this forecast with these
pessimistic comments; but even if
our country is going along on an
even keel, some occurrence in
some other part of the world could
upset all our plans. HENCE, BE
SURE YOU HAVE MADE A
WILL!
Tobacco imports by the U. S.
amounted to 157 million pounds,
valued at $115 million, in fiscal
1959-60. They consisted mainly of
oriental types for blending, cigar
filler and scrap.
A VARIETY OF ROUS
For Your Best Meals
AT YOUR FAVORITE GROCERY
Christmas Is
Quiet In City
Qurictmat week-end pasted
quietly in the community, sad for
tunately there are no reports of
serious accidents having occurred.
The end of the week showed
brisk shopping activity in the busi
ness district and merchants re
port splendid sales of holiday
merchandise.
Practically all the places of
business were closed Monday and
so few were the automobiles along
the street that the community re
sembled a ghost town.
ASTC Chosen
(Continued from page one)
when feaaible ? in class, on the
campus, at meali, on trip* and in
the dormitory. Classes in general
will be conducted In the languages.
A faculty of eleven teachers,
mostly College professors who are
apecialists in their fields, and four
native-speaking conversational as
sistants will conduct the classes
and the institute affairs.
Participants may receive $75.00
per week for the eight weeks of
the institute and $15.00 per week
for each dependent. High school
teachers interested in the possi
bily of attending should w^te the
director, Dr. J. Roy Prince, at Ap
palachian for a brochure describ
ing the institute program.
About Your Home
If your house it beginning to
look old, shabby and drab, It to
time to paint it Whether or not
you give it a full baaement-to-roof
Job or just touch-up work, you
will find you can give your home
a complete new peraonality.
Knowing what paint and equip
ment to buy la half the battle. The
first, and moat important step, la
preparation of the surface to take
and hold the paint. For this you
will need rough sandpaper, steel
wool, or a wire brush or a scraper.
You'll want ladders and cross
planking for the upper reaches of
the house.
In addition to the paint, you will
need extra cans for mixing, pad
dles for stirring, strainers, for re
moving lumps, and cloths for wip
ping up spatters If possible, have
some drop cloths for protecting
your shrubbery and porch roof.
McClung,
(Continued from page one)
carried, in the event nearby prop
erty appeared to be in danger.
Fortunately, the wind carried the
flames away from other property,
to that only Mr. McClung's home
wai damaged.
The house and all its furnishings
were considered a loss. Mr. Mc
Clung indicated the loss was par
tially covered by insurance, and
said be intends to rebuild.
Buy only food brushes. A brush
foursnd-one-half to ftve inches
across is best for painting large
areas. A sash brush is needed (or
narrow strips and a brush one
and-one-half to two inches wide is
best for the trim.
Vmi will need some paint thin
ner to clean your brushes, and
some linseed oil to break them in.
Surfaces to be painted must be
absolutely dry.
Check to see if sny wood re
placements are needed under the
eaves, around window heads, and
sills on posts or steps, etc.
Find out about the many kinds
of paint and choose one thst is
made to meet your needs.
DESIRES SPACE FLIGHT
Edward* Air Force Base, Calif.
? Teat pilot Scott Crosafield is out
of work, having made hia final
flight in the X-19. He hope* that
hia next trip in a rocket ship will
be aboard a similar craft booated
into space by an Atlas missile.
His company. North American
Aviation, Inc., haa previously sug
gested sending men into space A,
advanced versions of the X-loT
which would be placed like a sec
ond stage atop an intercontinental
missile. ???:. . "...
U. S. youths lags in physical
tests.
REWARD!
The ~ . 1,1 CASH PRICE
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"/ nu/fonro" 0,,er, the ?eP?ration ot |ivin* *Dd keeping *777 j
LUVTl Cl/LC areas combined with contemporary ityling. ? " M
EASY FINANCING! There's no down payment required on any MORRIS HOME, and low, low
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we'll build from them.
SAVE THOUSANDS OF DOLLARS! ALL MORRIS HOMES are planned so that even an amateur
can finish them quickly and easily ? save 50% in construction cosU.
Reward! 10,000 Top Value Stamps
For Information Leading to the Sale of a MORRIS HOME
DO YOU KNOW SOMEONE that needs a home and owns a lot? If you do, 10,000 Top Value
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HERE'S HOW EASY IT IS ? Simply give us the name of a prospective MORRIS HOMES buyer ?
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HURRY! Bring, mail or phone the name to the MORRIS HOMES office below.
MORRIS SHELL HOMES
? Clip Out ? Mail Today
MORRIS HOMES CORP. 1*9
Send representative (bo obligation) ( )
Send Free Brochure . ( )
Name .'.
Address
City State ........
Tel. or Neighbor"! TeL
Do you own your lot? Ye* < ) No ( )
Print directions to your home ? for rep
resentative
Kingsport Highway
Call Collect
WA 8-3169
Johnson City, Tenn.
Bring Your?Burley In Now ? Our Warehouses Are
? ____
en Daily To Receive Tobacco
Highest Sales Always at
Mountain Burley Warehouse Company
JOE E. COLEMAN - 1 BOONE, N. C. i - HARRIET L. SIKES