Newspapers / The Transylvania Times (Brevard, … / Dec. 30, 1971, edition 1 / Page 17
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BABSON’S (CmL free» Pa*, Twelve) Absorbing new entries into the labor market will be difficult. BUSINESS PROFITS AND DIVIDENDS ... A : naosou • Koporti forecasts a gain in af ter - tu profits approximating 10% oeer *U^pU* «* * price hikes ia the initial rulngs of the Wage Board and the Price Commission, we probab hr would hare projected a larger increase— *?T, soeaowftat in excess of 18%. While pro ri* margita will be controlled, there is still room for net corporate profits to show pro ****** This is because a rise in business vol mne and the benefits of some rather stringent cost-reduction programs enacted over the past •wo years will permit many corporations to pull down seme of the increment in revenues to the Profit figure. Also, those companies which had suffered poor earnings in one or two of the past three years can raise prices in order to allow depressed profit margins to as ***“•* healthier status without violating the guidelines. The ceiling on dividend increases imposed upon corporations which had been disbursing a higher-than-normal rate of cash dividends will, naturally, limit the progress of income for in vestors. This is another area in which 1972 and its anticipated economic improvement will dif fer from other years of business rebound. The limitation on dividend increases will not act en tirely to the deteriment of investors because many corporations will have no alternative but to plow back more earnings into the business. This will augment their liquidity, further shore up working capital, and enchance capabilities for acquisition, expansion and modernization pro grams. TAXES Taxpayers should experience at least a small degree of relief at the Federal level on income taxes during 1972. However, part of this advantage will undoubtedly be negated at the state and municipal levels, where new or higher levies seem unavoidable for taxation of incomes, personal property, and sales on products and services. But it will be nip and tuck even at the Federal level, unless the im provement in business brings a sudden expan sion of revenues from taxes, and unless Fed eral expenditures can be reduced from cur rently projected lofty rates. The odds are that, in view of election-year considerations, the danger of a Federal income tax boost will be greater in 1973 than in 1972. For corpora tions, restoration of the investment tax credit will yield some tax advantage at the Federal level. In summary, we expect recently enacted tax relief measures to provide some benefit for both individual and corporate taxpayers. BOND MARKET OUTLOOK The decline during 1971 was abrupt for short-term money rates, but more gradual at the longer end of the maturity scale. Inasmuch as the economic profile for 1972 is viewed by the Babson staff as one in which the ascent is iikely to be solid but gradual, it is not likely that the demand for money and credit will be voracious. But we look for short-term money rates to remain near current levels initially and then exhibit firm-to-higher moves as 1972 progresses. Longer term interest rates will reflect continuing heavy capital needs at the Federal, state, and local government levels. Bond prices, therefore, should show some further firming.es 1972 unfolds, but any addi tional increase is likely to be quite limited. Indeed, possibly after midyear, there will be signs of a tightening in credit supplies. There after, the bond market may anticipate a turn back upward in interest rates. Just how much ground bond prices will give up depends upon the degree of inflationary psychology and the vigor in business capital spending in the second half of 1972. Therefore, while yields on bonds and preferred stocks are con siderably lower than at the height of the credit crunch of 1999-70, investors will have a generally favorable climate for making in vestments in good-quality fixed-income securi ties. However, because inflation is likely to per sist in 1972, albeit at a restrained pace, those in vertors who are not obliged to seek the highest ' deld possible (safety of principal and deluded) may be better off to place * funds in convertible securities. As ut, there is still a of bonds and preferred stocks lie conversion privilege and which than _ y not As___ _ i greater value, , the percent available to investors CROSSWORD. 3. City on «m* UHl 8. Kick, aa a football ••Wicked 10. Fencing 11. Unclogs 12. Soft, wooJea fabric 14. Existed IB. Pin IT. Cooling drrtn It. Half as It. Walk alowly SI-Projecting and of a church H. AIHgator SB. Sen. Martin* atata ST. Singularity 30. Kx clam*, tlon SLMisaCWte 33. Tibetan 33. Actor David— and family 36. Sharp Uow (dial) 37. Files aloft 38. Kentucky MllP mmmmmrn 3#.Egyptlaa dan cine rli 401 Have 41. Tidy 42. Pismires l.Ted refret X Bustle, checking 3. Excavate 4. Overhead trains 5. Nut 6. Java tree 7. Bird’s home S. Titters lLXa obligated aa. English l&HawJu Ala urn ■ sick. 20. Eggs (bioL) 21. Affix 22. Moving 24. Cart's asms '23. Klee, trifled nnonw t ■ nciCQ wi: t vm; OKW K(M) II; >; unuaarc crj - n aauRKcri fc'RFin KHEnnri kjc.F1 CJKf'RfjFj h^r: niu-r/K niiHrr-. nnr:F! hirr/n nmmn F’cei' particle* 34. Taft, ex 31.Insert 94. Valter (poet) 35. Girl'* M. Coin of 38. Love (Anflo-Sr. vance began just after Thanksgiving Day 1971 should be extended in the year ahead, al though correction phases are to be expected. Barring some unforeseen major development, such as a redical degeneration of interna tional conditions, the Dow Jones Industrial Average can mount yet another challenge to the previous all-time high near the 1,000 mark. Indeed, chances are that the previous top can be pierced as the stock market marches toward its high for the year, with the peak coming sometime in either the latter part of the summer or the fore-portion of the fall season. Right now, the bargain counter is still laden with attractive buys in common stocks of all vareties. On© can find an array of good quality growth stocks, rebound situations for capital appreciation, and speculative situations at varying prices. Naturally, as previously men tioned, with the favorable prospects for building, stocks of companies which stand to benefit from the home building boom are among the attrac tive buys for 1972. Nor should investors over look the companies which stand to benefit from the investment tax credit. These include manu facturers and purchasers of trucks and truck transportation equipment. The farm equipment companies can also benefit from this “tax break”, and considering the excellent farm year of 1971, demand for agricultural equipment should be turning upward after a long down trend. Other groups of stocks which should re flect better sales and profits in 1972 include chemicals, containers, pollution and^waste con trol. and those which have pipr-tieipation in the medical equipment lines. Remember also that the role of consumer spending looms important over the coming year. Therefore, many retail, food, and apparel stocks represent good condi dates for capital appreciation. To Replace Old Pumper Rosman Chamber Of Commerce Donates $500 For New Fire Truck The Keanu Chamber of Commerce met at a called meeting December 17th aad donated $M9 to put the Roe men Volunteer Fire Depart men ever the top in a long standing goal of purchasing a new fire truck chassis to re place the present 22-year old equipment. The Chamber’s gift added to a contribution by the American Thread Company’s Sylvan Plant at Rosman, some $3,000 raised by the Rosman Fire Depart ment Ladies Auxiliary, and money raised through auctions by the volunteer firemen them selves. The total paid for a new Chevrolet chassis which is valued at approximately $8,000. Remaining to be raised is nearly $2,000 which will be required to take the tank and pumper equipment off the present 1949 model truck and put it on the new vehicle. This is expected to be raised in a continuing drive of bake sales, auctions and by contri butions from upper county residents. Said Donald Lee Butler, Ros man Volunteer Fire Chief, “We are very grateful for the Cham ber of Commerce’s special inter est and generosity in this very worthwhile community project. “We are still trying for the state 9 AA Rural District rating,” continues Fire Chief Butler. “The new truck will be our number one pumper and will help a lot toward qualifying for the rating. There is still a lot to do, but with this kind of cooperation, we’re sure to make it.” When the state rating is achieved, it will be a big help to Rosman area residents by sharply reducing fire insurance premiums, according to Butler. A very active volunteer fire department, the Rosman unit is presently conducting a fire training class that will last 14 weeks of 3-hour meetings once a week. “These are fine, enthusiastic men who are learning rapidly,” says Capt. Gordon Byrd of Bre vard, Senior Training Officer of the Brevard Volunteer Fire •Department!, who is conducting the Rosman training. Deputy Chief of the Rosman Fire Department is Charles Moore. Robert T. Powell is presi dent of the Rosman Chamber of Commerce, Chester Kil patrick is secretary, and Harry Morgan is treasurer. 1-imvK iTTTijiT 4 11i\fJ ] ’ [f4 •vr NEW YEAR'S EVE DANCE FRIDAY, DEC 31 9P.M. Til 1 A. M. At The AMERICAN LEGION BUILDING In Brevard Music By The Rhythm Kings OLD ROSMAN FIRE TRUCK —The 1949 model truck shown here is to be replaced by a new chassis recently purchased by the Rosman Volunteer Fire Department. The tank and pumper on this vehicle will be removed and put on the new chassis. The end of a long-standing goal, purchase of the new fire truck chassis will help toward a state rating for the Rosman unit and a de crease in fire insurance premiums in the Rosman community. (Times Staff Photo) LETTERS to the EDITOR December 22, 1971 Mr. John I. Anderson Editor, The Transylvania Times Brevard, N. C. 28712 . Dear Mr. Anderson: Please allow me this opportunity to ex press my thanks and appreciation for your excellent cooperation with my office during the past year. I especially 'want to thank you for the very good coverage of my installation cere mony on Nov. 23 and also the story of our Christmas decorations. If possible for you to do so, I will be grateful to you if you can include in your next issue of The Times a note of appreci ation to the customers of this office express ing my thanks for their fine cooperation during the heavy mailing season we have just experienced. Let me also take this opportunity to wish for you and yours a very merry Christ mas and a happy and prosperous New Year. Sincerely, H. E. Hicks Postmaster Pisgah Forest, N. C. 28768 United States Post Office December 31 is the time when all Brevar Savers will again share another whopping cash dividend. Our savers share dividends every three months. Their savings are safe, insured and readily avail* able. Best of all, their savings earn at the highest rates allowed by law. Save today for your share. You have 4 of the best plans offered anywhere. With savings certificates that pay up to 2 years maturity Minimum $10,000 3 Save, too, on all types of home loans. See Brevard Federal for all year ISO S. Caldwell St. Brevard, N. C.
The Transylvania Times (Brevard, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Dec. 30, 1971, edition 1
17
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