Show w I 1 f 1 I NS AUTHENTIC STATEMENT NT to EXPRESS W mobiles DISCUSSES HEDGES meation PARK MASS beal ause of the increased int reused gov cinnic nt expenditures for mis titled etc lc alicie la is i much uch t talk a 11 C about inflation coming if Con congress gregs would accept the of the ll LI there would beno need fox increasing the budget we W could save enough on it unnecessary and wasteful wending spending to offset any increase in defense outlays however as all the congressmen art arc up tip for election reelection re electro tills this acor aca r there is little chance chalice of their making these recommended iti savings stocks an a a hodge hedge the general feeling is that stocks are the best hedge against inflation let us its look at the record this talk about inflation started in 1951 1051 here Is what has happened to eight stocks since then but many readers will say that these are arc hand picked 0 K but let me follow this list with a more recent one covering twelve other popular stocks with an average 1857 1057 drop of 65 70 in fact the entire stock market declined about 20 surely none of the stocks below would hav been good hedges against inflation declines in various well weil known stocks stock 1951 1957 high date low date decline new jersey zinc WA oct 1951 17 dee dec 1957 79 mason lie corpa 50 mar alar 1956 1950 dec 1957 nairn 28 june 1951 6 dec 1957 77 commercial solvents jan 13 dec 1957 72 f amerlan american motors 2534 25 feb 54 jan 1957 1937 00 texas gull gulf sulphur 44 june 1955 14 vi dec 1957 68 united fruit 73 feb 1951 1051 33 dec 1957 54 united air lines 49 july 1955 18 oct ct 1957 63 declines 11 in other stocks during 1937 only admiral corps 14 17 1 7 0 12 1230 3 0 50 56 briggs mfg mag 13 1 14 4 aa 12 1230 30 63 65 chi no wn hy by 34 ya 42 4 29 11 1230 1230 60 del lackawanna it R 2514 17 fla 12 ah 71 Jeffirs jef oll lake sulphur 1 10 1149 1110 62 mo kun tex tl it it 1214 1 10 11 4 at 1 1022 10 22 07 67 1 oliver corp 1376 1 11 7 1230 00 60 stude balter packard pa 4 11 2 1230 12 30 68 60 united dye chemical 0 19 1 aa 12 1227 27 croot V U S huffman melly lavt 1 17 7 64 5 4 1022 10 22 60 66 van norman industries 13 19 1 9 4 1220 06 66 chiti MIM sewing machine 13 1 10 4 ah va 12 1223 23 65 0 land A As a hodge A careful study of different forms of investment teacher rne me that raw land on dry ground ten miles or less from EA a small city or town has the best record as an inflation hedge to secure such at the right price it should be purchased before it Is thought of tor for lots tor for development however even then with roads electricity water and sewage it gives one real security this may be more important than profit such land or small farms just outside a town limit should pe be excellent hedges if you do not want to be bothered with the taxes and care of such land which you do not expect to occupy but are to hold for speculation your broker will name some land companies whose stocks are listed on a stock exchange in fact some railroads are worth more as land companies than as railroads some canadians mining comp companies ariles with valuable underground deposits of ore should also be good hedges against inflation if bought at low depreciated prices they are off now about 80 50 suffering from the big boom of a few yeary ago cash in the bank personally X like best now putting my savings in the bank baal at 3 interest of course your broker may tell you such bank deposits are poor hedges against inflation it li la true that the pure purchasing basIng power of a bank account for food clothing and shelter will decline as the cost of continued on page 10 16 babson continued from page 9 living increases therefore Ilie I 1 would not want to leave my funds in a hank bank account too long dut but such a loss of inter est or decline in purchasing power over a few sears ears 1 Is not notable compared with the possible decline in stock block during said period when people usk ask me the best fertilizer for an orange grove I 1 always say the foot prints of the owner hence I 1 believe that the best of all possible land purchases for art an inflation hedge Is land nd ad loining joining what you now own tills this you can watch arid and make more valuable of course you would not buy land anywhere that you lid did not first see there is much land out doors arid and no leader will see anyone get a monopoly of it in short I 1 Is slowly lorning coming as it always lias has aten but it Is nothing to ga panicky about |