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About Heppner gazette-times. (Heppner, Or.) 1925-current | View Entire Issue (Dec. 29, 1966)
HEPPNER GAZETTE-TIMES. Thundor. Drnmbw 29. 1966 Roger Babson Forecasts Decline In National Economy For 1967 (Continued from page 1) fool that we should particular ly watch General de Gaulle, who is playing closer and clos er to Moscow from month to month. ... 6. Heavily armed with Soviet weapons, the Arabs of the Mid dle East squared off apainst Israel present a grave threat to world peace. Nevertheless, I do not believe ' that Russia or the United States can afford- a direct confrontation at this time; hence my forecast that the smol dering conflagration there "will not erupt into World War III. 7. While all reasonable peo ple are hoping for a genuine peace in Vietnam. I predict that the issue will not be. resolved in l'.Xw. Though the tide of bat tle is swinging in our favor, we may be forced to increase our commitment in order to re tain this upper hand. 8. I predict, therefore, that militarv spending will be raised in 17. This can help soften the impact of any easing in the private sector of the econ omy. 9. Turning now to domestic conditions. I foresee a definite deceleration in business activ ity in 1967. The fantastic boom is in need of a rest. Instead of the strong uptrend of recent years, I look for a high level of industrial production early in the year; but unless some new stimulus is introduced, 1 fear that a cresting-over' pal tern is likely to develop as 1967 progresses. 10. I forecast a continuation Mustangs Squeak By Pilot Rock Tuesday, 57-55 . It was just like the old days t etween Pilot Rock and Hepp ner last Tuesday night when the nip and tuck rivalry provided a cliff hanger on the basketball court. In the end. the Mustangs won. 57-53, but they had to call on all their canny casaba skii! to do it. Giving away height at each position against the lofty Rock ets and playing without their only tall fir, Mac Hoskins. the Mustangs found themselves trailing in early stages of the game. They managed to take an edge in the second half, but the Rockets pulled even at 44 44 by the end of the third per iod. Dominating the boards and using their height to advantage on layin shots, the Rockets, who ranged to 6-5, sank more field goals than Heppner. 22 to 20. but free throws saved the -. ball game for the Mustangs. Towards the end of the game. Steve: Wagenblast his three of four gift tries to give the Mus tangs an edge again after the home five had slipped a point behind. Dave Hall swished six of seven free throws in. the sec ond half, and Jim Doherty, who played a fine game again after a slump in the past.Vtwo or three, hit three for three at cru cial times. Gene Harrison was the big gun for Pilot Rock with 26 points. The 6-4 forward made 10 field goals and six free throws before fouling out late in the contest. Doherty's 16 points were second high in the game, but it didn't tell the whole story of his worth. He play ed an outstanding floor game. Hall got 14 points and Bill Mc Leod made 10. The Mustangs got 17 of 24 free throws while Pilot Rock hit on nine of 13 chances. James O'Brien, 6-5 center, and Duke Chapman, 6-0 forward, each had 10 for the Rockets. Wily coach Mas Watanabe, whose ball club has come a long way since Heppner beat them 66-44 at Pilot Rock in the first game of the season, used very few substitutes in the con test, relying on his big five. He just about turned the -trick. Hoskins was out of the game on account of illness, . PILOT ROCK (55) Chapman, 10, Harrison 26, O'Brien 10, Bond 6, Wright 3. HEPPNER (57) Doherty 16, Hall 14, Jacobs 5, McLeod 10, Pettyjohn 7, Stillman 2, Wag enblast 3. Two from Morrow On BMC Honor Roll Two southern Morrow county students at Blue Mountain Col lege are listed on honor rolls of the college for the fall, term, according to announcement from the college. Eldon Padberg of Lexington received a 3.50 in his mechan ical course to make the top honor roll, and Dale Van Blok land of Heppner received a 3.12 in his civil course to make the Dean's honor roll. HOSPITAL NEWS Patients admitted to Pioneer Memorial hospital during the past week, and still receiving medical care, are the following: Lonnie McCabe, lone; R. G. Wat kins, Heppner; Jerry Brace, Hep pner, and Richard Borman, Hep pner. Those admitted for medical care, and later dismissed were the following: Carolyn Davis, Lonerock; Marvin Albee, Condon and Ann Martin, Heppner. of the tug of war between in flation and deflation in 1967. Tight credit, and increased pro ductive capacity resulting from the flood of business capital ex penditures in recent years, are deflationary. However, I can see no substantial relief from the inflation in labor and other operating costs. In short, we can have "cost -push" inflation co-evisttng with deflation. 11. A key factor in the busi ness and financial outlook for 1967 Is taxes. With defense out lays climbing, I look for a rise in corporate and personal taxes in 1967. Moreover, I forecast that various levies at the state and local levels will continue to increase. 12. The tightening tax squeeze on all fronts will worsen as the year advances. And there will be rising complaints from both business men and employees that social security taxes are becoming unbearable. 13. Results of the recent elec tions indicate that the head long run of the Great Society Program must take a breather along with the economy. Gains scored by the Republicans have altered the balance of power sufficiently to force a more so ber look in public spending. 11. One of the primary reas ons for expecting a decelera tion in the economy is the like lihood that business capital ex penditures may ease. Tight credit, suspension of accelerat ed depreciation guidelines, and suspension of the tax credit on business capital outlays will be tough obstacles to surmount. 15. Except in defense indus tries. I look for an abrupt switch during 1967 from a bus iness policy of inventory accum ulation to one of inventory liquidation. 16. I forecast that scarcity of credit will continue to be a problem with which business must contend in the early. part of 1967. The money managers should keep enough credit avail able for legitimate business needs, bltt I expect no early radical easing of credit. 17. However, ; I . do foresee enough of an easing in credit to permit more orderly monetary conditions. If the economic sit uation falters badly, money rates will of course, move downward sharply. - IS. I predict that commercial and industrial building will trend lower' in 1967, reflecting the tapering off in capital out lays. 19. Mortgage monev should remain , scarce in 1967. Hence, residential building should see another disappointing year. 20. 1967 opens with the build ing of single homes in a state of crisis. Starts are down' over 40 from year-earlier levels. As a result, I forecast that the Ad ministration will leave no stone unturned to stimulate construc tion of houses as soon as pos sible. At best, however, it may be milyeur or after before this important part of our economy can contribute much strength to over-all business. 21. Although new housing starts may remain in the dol drums for most of 1967. I con fidently forecast that the year win , see the beginning ol a great boom in the construction of new, modern nursing homes. . Despite President John son's request for cutbacks. Dub- lie construction should eniov a fairly good year; the emphasis will be on bridges, dams, and water and sewer systems. 23. The expected declines in residential building and in com mercial and industrial building Happy New Year! "Inasmuch as ye have done it unto one of the least of these my brethren ye have done it unto me." We ushered the old year out with T.B. Seals that help support the most atrocious cruelties in thousands of labs all over the U. S. The lat est congressional report says over one quarter of a million biomedical people busy without 'one control law' in any lab to prevent tortures from being repeated over and over. This is more than our share of tax to support such deeds. Now we are ready to start another vicious circle all over again by supporting the "March of Dimes" Drive. As Dr. Virginice Apgar, Na tional Chairman of March of Dimes stated "We need 'people' studies, we wouldn't dare drink coffee or take - an aspirin ; if we believed in Animal Studies." The truth is, animal experiments have mis led science, and the thalidomide tragedy is but one example. The whole question of Vivisection is immoral, wicked, unscientific, useless and cruel. Read "What Christmas 1966 Means" by the Rev. Donald R. Pederson in last week's Gazette-Times for the best prescription for health, happiness, peace and a more bountiful life for 1967. Happy New Year Lois Winchester notwithstanding, I forecast that waterfront property will remain a good Inflation hedge. 24. Labor stands at the cross roads as the new year opens. Things never looked better for nailing down record wage and fringe gains: however, neither the public nor the Congress Is in any mood to tolerate long, costly, and inconvenient shut downs. 1 freely predict that there is more likelihood In 1967 of restrictive labor legislation than at any time since Taft Hartley was put on the books. I'nion chiefs are aware of this, and they may act with more re straint than most people now expect. -5. 1967 promises to be a year in which many managements will be fighting a "rearguard" action to control climbing labor costs The defense building will maintain hiring pressure in some industries; but even more activities will to wielding the paring knife. I forecast that the net result will be a rise in un employment next year. 26. I do not look for price and wage controls in 1967, unless our defense expenditures rise far above what is now contem plated. 27. An encouraging aspect o( the 1967 outlook is the afflu ence of consumers. I forecast a further upward trend in person al incomes, due to higher wage rates. However, if taxes are rais ed, take-home pay may not show a rise commensurate with the gain in gross pav. 28. Retail trade held up well in 1966. but there was a note of lethargy throughout the year. The pattern is not expected to show much change in 1967 . . . with gains in dollar volume largely reflecting price infla tion. Though consumers will have more money to spend, tight credit, high borrowing costs, and higher price levels could cause some tightening of purse strings. 29. Spending for food, appar el, and general merchandise should be greater in 1967. Also, consumers will devote a good ly portion of their spending budget for leisure activities, va cation, and travel. 30. Durable goods may not fare so well. Demand for home appliances, color TV sets, and furniture may be hampered by tight credit and high borrowing costs, plus the lethargy in new home building. 31. I forecast a decline in new auto sales. However, with the increase 1n the population of driving age. and with the record rate of personal income, new car sales could hold within 10 of 1966's. 32. Soaring living costs will hit the headlines more often in 1967. Ire will be directed most strongly at runaway service ex penses especially medical and at advancing red meat prices. 33. Despite new highs in the cost of living, I predict there will be many signs of deflation In the midst of inflation. Chief among these will be sliding profits, rising bankruptcies and foreclosures. 34. Industrial commodity pric es should be firm to slightly higher. Selective price markups will be necessary to offset wage hikes. 35. Profits began to wobble in the final half of 1966. I am con vinced that hesitancy will give way to decline during the year ahead. Big squeeze on margins will come from soaring costs, especially labor. 36. But profits results will al so vary widely from one com pany and one industry to anoth er, as sales volumes sag, hold, or advance. For example, I am willing to "stick my neck out" and say that oil companies will enjoy a sales rise, but that the auto makers will be struggling with a volume slump nil year. 37. The combination of less vigorous business, pinched prof it margins, and stringent credit conditions points to an increase In business failures, shaking out the financially weak and inefficient. 38. Collect tons may bo more difficult in 1967 on business ac counts, consumer Installment and charge accounts, and mort gage debt. 1 forecast a further rise in nonfarm real estate fore closures. 39. Barring crop failures, I forecast another good farm pro duction vear. Farm prices should ruV firmly to slightly higher in 1967, but higher costs may result In a slight drop In net realized farm income, 40. Nevertheless, farm equip ment manufacturers should en ov good business. Sales of fer tilizers and insecticides should post gains. 41. lWT's stock market prom ises to be one of vicious selec tivity. I am expecting the old aristocracy of the blue chips rased on past performance to be replaced by a new aristocra cy of super-able management based upon hopes of good fu ture performance. 42. I forecast, however, that 1967 will still hold many dan gers for the speculator. 1 urge readers not to borrow money to buy stocks, and I urge invest ors to buy for growth and bas ic investment values. 43. The safest kind of long term bonds are available now at prices affording very close to the highest income returns of the century. It Is a good bet that there will not be so many top-grade issues on the bargain counter at the end of 1967. Should the 90th Congress boost Income taxes, tax-exempt bonds will put on the best perform ance. 44. World opinion on the fu ture of gold has blown hot and cold manv times in recent years. Though iately in the shade, I predict that gold will again be in the spotlight before 1967 Is out. 45. I forecast that the dollar will not be devalued in 1967, but the pound will continue shaky. 4b. certainly. Congress win If you haven't been remembering to save lately, this is a good time to firm up your New Year's reso lutions. Open a First National savings account now and start building your savings nest egg for the future. Regular deposits to your account plus the addition of bank interest make savings grow fast. Or, if you are looking for the ultimate in savings convenience, we have a plan where we do all the remembering -all the work. It's called SAVE-O-MATIC, It works like this: become more and more critical of the looting going on under rvoor of the Administration's War on Poverty. The whole pro gram will he subjected to tight er supervision, 47. As 1967 wears along, the high hopes for more construct ive conservative action by the 90th Congress will give way to Increased doubts as a legislat ive stalemate develops. Repub licans will have enough strength to stop the most liberal Admin istration bills, but not enough to launch a program of their own. IS. There will be a lot of talk In l:ti7 about the economy's 'still growing". But I warn readers to examine carefully the advance In Gross National Product which I am forecasting here. Biggest pan of the In crease will Come from higher prices and wages. 19. I foresee that a breathing spell In the economy can prove Tum-A-Lum i :? ) 4 : A message for absent-minded savers DEPOSITS MADE ON OR BEFORE JANUARY 10 EARN INTEREST FROM JANUARY 1 helpful. The prolonged prosper ity hnd bred waste, laxness, and Inefficiency, These can be cor reeled only lv return to fun damentals. Just n the human body requires adequate rest In order to enlov proper health, so too the economy, ami the stock market its well, must undergo periodic resting phases, 50. Ah the economy cools off In 1967, readers should bownre of rcnstturnm-e that our prob lems are only temporary, and will soon be followed by a dec ade of boom conditions. The promised land mav be only across the river, but it Is al ways wise to test the depth of the water before wading In. That Is behind mv font-list that 1967 will be a good year for businessmen and Investors to have strong confidence for the future, but to proceed with cau tion and restraint until the uil cert. Unties Just ahead have been resolved. it . IK m AN Lumber Co. You Bimply decide how much you'd lik to avt regularly-$5, $10, $100-any amount You author ize us to transfer this amount from your First National checking account to your savings account at regular intervals. We'll do it until you say ''stop." Either plan-regular savings or SAVE-O-MATI0 -you earn high bank interest. Sign up for SAVE-0-MATIC at any First National branch and you can forget about remembering to save. FIRST NATIONAL BANK OF OREGON Ig-Sl Mmber Federal Deposit Insurance Corporation Mr. and Mrs. Ralph Scott .pent Chrlstmnn t family gathering at the home of her daughter and family, the Or did NlKhlts, In Waaco. They re turned to Heppner Monday, Tell In the the advert Uor you aw It Uaxette-Tlmea. NEW YEARS EVE D A N C E WITH THE HENCHMEN SATURDAY, DKCKMHKK 31 Fair Pavilion 9:30 p.m. -12:30 a.m. Sl.lS PER PERSON
