Show I 1 AUTHENTIC i i STATEMENT special to TIIE THE fit moo W galss discusses tell fall outlook DADSON PARIC MASS what is really effusing causing the inflation buildup and how can it be arrested among causes suspected are the unchecked wage demands of labor and the governa governments ants earlier mistake in P pressing tor for easy poney money policies business enthusiasm declining the way to check the entla to tian spiral many say is through credit restriction certainly without the willingness of business mind and consumers to assume debt there could not have teave been the kind of spending which h has led to the expansion expanse on and production wen meen in recent years without these tonics neither production nor pilles pi ices could have risen as they have gradual inflation may continue to the point where the turnover of money will have finally reached its limit should too many businesses or consumers become suddenly pessimistic with regard to conditions an about face occur rather quickly my personal poll of businessmen gives indications of waning confidence labors share shar increasing Inc doth both businessmen and con sumers should understand that unbridled spending cannot help but intensify the inflation threat Is it possible that the only so lution Is tighter direct government controls control for all but even if both the businessman and the consumer should become frightened by the inflationary spiral I 1 bellevo the full effects need not be feltnor felt for several months to como come despite the current business sentiment production in june and july about equaled the alv al r all 11 and may levels amplo employment y ment Is s up retail sales are ahead of totals tot last year at time the factory work week though slightly longer at latest report f falls alls short of that for the same period in 1956 the increased number of hours worked pushed weekly earnings in manufacturing up about boc in june over may to an average of 82 59 resulting in a year to year gain of more than 3 per week construction st activity which had been logging lagging earlier in the year to 3 picking up chemicals rubber and are on the gross national product has passed the billion mark carlt even with due allowance tor for higher prices k all the foregoing suggests continued heavy spending important statistics statistics to X let us its not forget certain basic ingredients of out oc economy onomy today we see about one million new family formations per year adar with all the resulting wants and needs this compare a figure of in id 1940 the longer life sport of our oldsters is adding a large producing non segment to our population at one end while the high birth rates following world war II 11 are creating another big group of dependents at the other end continued on page 12 ba babson continual from page 0 in h the middle aro tile the workers shrunken ih abnormally in numbers by the low birth rate of the depressed upon tilts this relatively small worker force falls tile the burden of pro production diction the solution to the problem lies iri in a vastly increased rate of output per worker or in a decline of total demand stepped dup up automation may be e the like real answer but this change will come came slowly I 1 therefore conclude that labor leaders held tile the reins they must be responsible for the re rei i suits they and ilie the politic politicians lahs who fear them wilt will surely cause a smash up gilless they stop demanding constant wage increases i 1 I t 4 I 1 4 SA L 1 57 4 ao months th s bonds aro are felling lowet lower than aban io for r over 20 years tills Is not h good sign stocks are not howl ing up many malty commodities are slipping in prices investment and depot reported led earnings shavo up well so for far in july jl 1 ll however oeVer believe that hat readers will do well to take profits and deposit depoll flit he money in harilas cherel they can get 3 percent to 4 percent a good break in tile the stock should gradually get out of debt mid prepare tait ar ve very JY bevere end lin unprofitable profitable cointe competition t on i during t ling the me remaining months of 1807 1037 F either ather A assured lured peace or 4 another war could atari it a corpse I 1 feel in my bottesi bones that tomeil something ng un expected may h sit at any time happen I 1 especially llave have in mind the lite tear of either fallout or at dig lussos alws luss ls i bett tie de felese at the it present preheat time alsus Is Us ing 14 tile the threat of fallout in ir irk ing to 0 o force disarmament t 1 I 1 t i |