IMMEDIATE STOCK MARKET
OUTLOOK UNCERTAIN
Babson Bullish
For Long Pull
By Roger W. Babson
Babson Park, Mass., April 7. ? |
The stock market is ruled1 partly
by emotion. Rei
cent activity has
given investors
new life; but
most investors
continue hesi
tant or seek spe
cial situations.
Last Summer
they were opti
mistic. They
looked for great
new develop
ments in hous
ing, electronics
and other indus
BAB80N
tries. Then they became worried
over taxes, national debt and re
conversion. Now they worry
about politics and the "Invasion."
SAVINGS ARE RISING
More than 50,000,000 individ
uals and corporations own War
Bonds totalling in valne about
.|27,000,000,000. The longer the
War lasts the more such funds
?will pile up. By December 31,
1944, this may rise to moi'e than
$40,000,000,000. Money in circu
lation has increased rapidly for
nearly four years. This is now
about $20,000,000,000. It includ
es all cash not represented by
bank deposits. A great deal is
hoarded currency.
BANK DEPOSITS
Bank deposits now total nearly
149,000,000.000. About 7% or
some $3,400,000,000 belongs to
Individuals. A large part of this
could find fts way into the mar
ket. Recent talk of providing
Ex-Service Men with a bonus of
$3,500 to $5,000 each is indica
tive of the cheapness with which
money is regarded in some quar
ters. It seems as if more indi
viduals will decide to exchange
their dollars for stock market
equities as inflation creeps upon
us.
PERSONAL AND
OTHER DEBTS
In the past two years, instal
ment purchase obligations, home
mortgages, doctors' bills and oth
er personal debts have been near
ly cut in half. This means indi
rect savings of some $5,000,000,
000. U. S. WHITE citizens are
becoming systematic savers and ]
are well-fortifled with liquid cap
ital. While receiving wages,
they are satisfied with low yields
from Government bonds. How
ever, as living costs expand, peo
ple must either spend their sav
ings or invest them in higher
yielding securities. Hence, an ul
timate mass return to the stock
market ? first, as a source of in
come and second, as a means of
maintaining capital in the face of
a decline in the value of dollars.
DIVIDENDS AND INTEREST
High-grade industrial bonds
now yield an average of about
2.50%. Most banks, aside from
the co-operatives and mutuals,
pay only 1% to 2% interest. For
income and protection. Investors
are better ofT in War Bonds. The
AVERAGE yield from high-grade
stocks will run about 475%. In
individual instances, yields of
7% - 10 in good companies now
may be secured. Investors desir
ing such returns should act now.
They may not be available long.
MARKET UNCERTAINTIES
AND POSSIBILITIES
Typical market action during
recent months has been due to
uncertainties over the holding of
our war prosperity; to fear that
the postwar era may not bring
the expected demand for consum
ers goods; to discussions oyer the
corporate and personal tax situa
tion; and to confusion over do
mestic or foreign politics. This
uncertainty may continue for
some time. With corporations:
maintaining a profit level averag-j
ing only that of recent prewar
years, security prices may rise
substantially. When the present ;
psychological uncertainties are
over, good-grade industrial stocks '
could easily sell 50% higher than
they are today! I give five ad- 1
ditional reasons therefor: ?
1. A few "blue chip" stocks
are high, but most stocks look
cheap to me. For nearly ten
years, everything except stocks
and1 real estate has gone up. We
are paying more today for labor,
high-grade bonds, insurance, and
all sorts of commodities. Similar
ly, we will pay more for stocks.
2. The supply of stocks is dry
ing up. Few new issues have
come on the market in recent
years. Hence, demand may ex
ceed the supply.
3. We forget the great foreign
market that has always existed
for American stocks. When pres
ent blocked currencies are releas
ed. a good many Europeans will
scramble for our stocks.
HAVE YOU FORGOTTEN
? TO ?
REMEMBER
APRIL 9th
M201
FLOWERS
a* i
? FROM ?
CHESSON'S
INCLUDING a lovely assortment of potted
plants, cut flowers and corsages designed
to fit your own personal need and taste.
THERE'S NO NEED TO FORGET
THE FRIENDS AWAY FROM
HOME.
LET US EXPRESS YOUR LOVE
WITH
"Flowers by Wire."
Member Florists Telegraph Delivery
Association.
CALL or COME BY
CHESSON'S FLORIST
SIS Sunset Avenue Dial 337-1
4. The deferred demand for
consumers goods should keep our*
productive capacities busy and|
take up much slack occasioned by
the lessening of war business. Do
mestic markets will be large.
We should also enjoy a good ex
port business. European coun
tries, our Latin-American neigh
bors and Africa have plenty of
gold reserves. They will provide
cash markets for our merchan
dise. Russia should continue a
good customer.
5. Excess profits taxes will
certainly be reduced if not elimi
nated. Corporate taxes are at
their peak. In a few years the
tax trend may be reversed. I
further believe that business con
trols from now on will be bandied
intelligently. Something will al
so be done to ease the capital
gains tax and to eliminate the
double taxation of stockholders.
CONCLUSION
I do not fear inflation if we
can continue industrial produc
tion on a large scale. I do not
look for bank credit liquidation.
I see no important decline in
commodities. Most of our ex
cess employed, numbering about
6,000,000 people, will go back
to their homes, their schools,
their farmsr or Into permanent
retirement after the W^r. Hence,
this wage-earning group will be
off the payrolls. They will leave
room for the regularly employed
and for many demobilized service
men. NOW IS THE TIME FOR
BUSINESSMEN AND INVEST
ORS TO QUIT WORRYING AND
TO HAVE CONFIDENCE IN
THE MONTHS AHEAD!
ESTIMATED TAX FILING
Farmers may file their declar
ations of estimated tax April 15
or may wait until December 15,
Joseph D. Nunan. Jr., Commis
sioner of Internal Revenue, said
today.
Farmers are defined by the tax
laws as those who receive 80 per
cent or more of their income from
agriculture. They are the only
taxpayers who have this choice of
filing dates. _
"Before you make your decis
ion, however," Commissioner Nu
nan advised farmers, "you ought
to realize that if you file April 15
you can make your Income tax
?? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
NOTICE!
i.
We will sell for repair charges
approximately 30 tires which have
been left at our place from four to
eight months, if they are not call
ed for, on or before April 15th.
Bring us your Certificates. If we don't have
your tire we will get it. We most always have
a good sized stock.
"Come If You Can, Call If You Can't"
/
Fuller's ESSO Service
O. P. A. Inspection Station No. 1
Opposite Post Office Tel. 357-1 Louisbnrg, N. C.
DRESS UP FOR
EASTER
The Coats, Dress
es and Suits de
signed for the
1944 Easter holi
days and entire
season are espec
ially1 unique and
attractive. We
have a full show
i insr of these and
1 all the necessary
accessories. Come
, in and see them
s and wonder at the
very low prices.
Men and Boys
have not been for
gotten by the fash
ion designers and
the showings for
this season are
very interesting
and appealing. See
these and the won
d e r f u 1 1 y low
prices.
You owe it to
yourself to see our
displays before
you buy. Quality
and prices can't
be beaten.
STERLING STORE CO.
"Fr&nklinton'a Shopping Center"
Franklinton, N. C.
payments In (our quarterly in
stallments, but If you wait until
December 15 you will have to pay
tbe whole year's estimated tax in
one lump sum."
The commissioner explained
that, when the pay-as-you-go sys
tem was adopted last year, it was
realized that because of the sea
sonal nature and weather hazards
of farming it might be difficult
for some farmers to estimate their
Income and calculate ttyfeir esti
mated1 tax early in the year. For
that reason, they were ygiveij the
option of waiting untly December
15. However, many ty^es of farm
ing result in fairly even Income
through the yeqr, and it may be
to the advantage of some farmers
to file early and qualify for in
stallment payments.
Farmers who want to file in
April may calculate their tax by
either estimating their prospec
tive income for 1944 or by assum
ing it will be the same as last
year. If the tax is based on last
year's Income and this year's rates
and exemptions, and the payments
are made on time, there can be
no penalty if the estimate falls
short. Otherwise, a farmer's esti
mate will not result in a penalty
unless It ia more than 33 1-3 per
cent short. In any case, April esti
mates may be amended on June
16, September 16, or December
16.
. The law requires farmers to
(tie declarations If they expect
their income this year to be $600
or more in the case of a single
person or more than $624 in the
case of a married person.
? On Pay Day, Buy War Bonds ?
-JrtVB
Ox 6)56
I ttt TAtim HOSE PROW
Just unloaded a Car of the Best Broke Mules
we have shipped this season, another shipment
will arrive Friday the 31st.
Have on hand over 100 head to select from
consisting of all grades and prices.
Extra Nice, Medium and plug Mules.
Have extra fine, Medium price and cheap
work horses.
The season for selling work stock is nearly
over, we have the price on a horse or mule to
fit the rich or poor man's purse.
CREEDM00R SUPPLY CO.
C. E. LYON and C.J.MANGUM
What Your Bank Means To You:
YOUR
CHILD'S
EDDCATION!
Don't wait till your son or daughter graduates from
high school to start saving for his college education.
Putting away a moderate amount regularly all through
the years will relieve you of the strain of sudden ex
penses. Teach the children to save with you in a sav
ings account.
FIRST - CITIZENS BANK & TRUST COMPANY
Member Federal Deposit Insurance Corporation
Corner Main A Nash Sts. Louisburg, N. Carolina
Banking Hoars: ?:00 A. M. to 2:00 P. M.