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Show i NON'O Dollar In Eye Of Heavy Inflationary Hurricane Ed. Note: Thli is the second final installment of the Babwra report that li carried annually In The Citizen. Here again, however, squeezed by infla t i o n a r y costs and somewhat less boisterous demand, we look for a downdrift in profitability before 1969 had advanced 1968. The dollai Is now In the too far. "eye" of a tremendous nation- al and International inflationIts respite will be but temporary. To bring it through the "other side" in late 1969 or 1970 will be a Herculean task for the new Administration. Indeed, Mr. Nixon and his advisers will have to do a veritable "tight-opact" above the Scylla of inflation on the one side and the Charybdis of disimlation on the other. 1969 will witness the first scenes of the act. MONEY TO STAY COSTLY ary hurricane. e B' SIESS TO SCALE NEW PEAKS IX 1969 The :.ix:ientuni built by ris- ing business volumes and production will surely carry of the usual measurements Gross isational Product and the Federal lieserve Index of e onto new in the year 1363. hig.i But tnat is not the whole story. What you want to know is what the rate of gain will bo and what the shape of the year, businesswise, will look like. ProdLsutioa all-tim- Gross National Product Total dollar value of all goods and services finished 1968 on at nearly a a strong note gain. That is only slightly less than the best 1968 quarter of $22 billion. Prospects now favor a good further boost in the first 1969 quarter . . . perhaps equivaadvance lent to the of the third 1968 stretch. The second quarter of next year may slip a bit from the first; but the upcoming half year will show a climb in dollar values perhaps only below the great bulge of a year earlier. Assuming no dropping of the surtax, we look for a lesser rate of gain in the final 1969 half . . . another big year, but tapering as it wears along. Over ad, expect a .GNP over 1968 of close to 7 (about 160 billion). Phys Physical Volume ical ouput is not expected to match the dollar value of innot sur crease in 1969 half of more as than prising, the looKea-co- r improvement will result from higher prices. Assuming the Federal Reserve Index of Production averages around 165 for 1968, we can project about a climb in the year ahead. But again, we think the best will be seen early in 1969. Capital Outlays Despite a continuing depressed rate of utilization, business managers are projecting increased budgets for new plants and equipment Look for a strong start perhaps as high as an 8 increase--to be followed by a slower rate of gain as the year ages. For all of 1969, a 4 betterment would seem about the best to expect. Total corporate Profits profits in the first half of those of 1969 will the period . . . they may even equal the strong final six months of ... 820-billi- $18-billi- up-thru- st ... plant year-earli- er The first half of 1969 may moderate experience some interest easing in short-terrates. This will be occasioned by lessened federal demand for loans . . . as tnk budget moves from deficit to surplus and the Treasury has iio need to borrow. Most o the easing, however, wiL snow up in the Treasury Long-terbill rate. experience may sjhk .ioney temporary downjiggle . . . but over all Babson's Reports is not expecting any sustained siide-oi- f from the most costly credit of the century. AiSJ, as Uncle Sam comes back into the band r.iarkc. laitr in the year, rates shoulJ again stiffen. No real Mortgage Costs relief is in sight here. Avail ability and rate may b. somewhat more favorable in the first half of 1969 than in the last. No incentive to postpone building or buying plans. If the Business Loans Treasury bill rate declines in the first half as we expect-the- re will be much talk oi lower costs for business loans. Here again, we feel that an easing will be tiny and temporary. ANOTHER HIGH IN COMMON STOCKS m 9j-da- y m buy - The stocks-to-prote-ct "bug" has bitten deeply. Most investors are convinced that a formula is the best antidote for soaring living :osts. New institutions are beformed "a mile a mining ute." Foreign investors are flnpkine back to U.S. securi- ies markets. And corporate Tales ana earnings irenas are supporting the convictions of the multiplying herds of bulls. On nure momentum alone. e we anticipate new uow the in industrials, ughs as well as in the more com prehensive averages, during he forepart of 1969. If such does occur, however, we lave our "fingers crossed" hnnl the course Of Stocks during the time after midyear . . . especially if market "fireworks" become particularly brilliant in the early 1969 days. Under these cautious select ing may pay bigger dividends in 1369 man "piaying tne field." One Farm Equipments group that has hardlv gotten iff the ground in 1968 has been the agricultural machine ery makers. Some good values exist here in issues such as Deere and International Harvester. The big Conglomerates multiple - activity companies have certainly failed to shine in the year now closing. Some issues may hold low risk for investors with patience. Among such are Textron, against-inflatio- n stock-buyin- g common-stock-irient- a - a all-tim- sn-ai- i -- long-rang- Gulf & Western and TRW Inc. rai'tACHE VALLEY Industries, Chemicals This of securities fans has again passed a year in the market doldrums. Some Indications of a are beginning to appear. We feel there is not e contoo much risk in cerns Lke Allied Chemical and Union Carbide at recent levels. Containers Another group that does not seem to nave exhausted its investment potential is the containers . . . thougj they are not as cheap as Uty were a year ago. Our jiioicu in tais held would be Jjn;mcn:ai Can. After a long Feililirs md gainful stretch cf being 'put t'iroug'i the wringer," there are now some signs iat "T!J?.r3ic:v mors proiu-'bl- s dT",n" li !,v"id ,,,r makers. .'ie plant-foo- d VOL. VI t5Sl NO. 38 old-lin- - - In--ni- n'j Che- .. mical with vast potential vfi naivrials resources on nore than one ontincn' an-t- o hn'd little rik at HTrnt lrvpl" far larg-terpurchasers with patience. Hailsd five Lffj itsirn-- c vears ago as "the greatest" m M'e r)T com--"ui- v nvprshot their lvnami; possibilities and were disdained by speculatIn ors for several yea-- s. 1P61, however, life stocks with management bocoming much more aggressive in diversifying again began to stir. The perservering might find opportunity in Life Insurance of Kentucky. Electric Utilities Electric power stocks, one of the soundest growth areas, are showing signs of emerging from the investment pall that has enshrouded them for some time. They offer b?th income and growth. Try Texas Utilities for the latter and Niagara Mohawk for the former. BONDS STILL ON BARGAIN COUNTER shocks sie-culat- or With stocks all the rage, bond buyers among individuals have become "scarcer than hens' teeth." Yet bonis are selling at the lowest prices and the highest income yields of this century . . . yes, in many cases, for a full 100 years. We state If the inflation prospects are as surefire, as pervasive, and as unpreventable as many would have us believe, we doubt that the ownership of coma mon stocks will provide safe "assag through lhf inevitable maelstrom that will follow in inflation's wake. v If the storm comes, bnds may ride it out better than stocks. If it and does not come, even higher incomes from senior securities will furnish food and shelter to those dependent upon savings . . . and afford simpthing left over with which ta "feed" inflation. For Big Income If current A U T V LEWISTON, tPOT UTAH M UTAH THURSDAY, JAN. 2, pjJAlO'! 84T0 H ER 1969 For Assets Of Prudential The Idaho Commissioner of Finance last week announced that a Boise corporation last week has offered to buy all of the assets of the Prudential Savings and Loan Association fm ci m mm which Prudential - Savins, o- -i in had offices Burley and Preston, was closed by tne an Department of Finance Feb. 7, 1967. The offer, if accepted, would bring the total return to the shareholders to slightly over 70 percent. The offer was submitted by the Insurance Investment Corp., of Boise which has ISOl stockholders and a net worth of slightly under In Simon si a I lift, ffctfSWj L. f Tniias ..:.'L. Pf operates Canyon Loan and several outer unanciaiiy oriented subsidiaries, the Commissioner said. Final consumation and pay out to the shareholders wiL depend on three things. The) are the section of one of three commercial banks to handlt the financing of this transaction, the approval of the lAtCAGltOUND FOit WORK The cold winter weathshareholders and the final er doesn't stop the work in the area as Kelley Becks tead approval by the court shovels out feed to the stock on his father's ranch near The commissioner said that ' the three commercial banks have expressed an interest in the project The transaction, according to the commissioners,' been diligently pursued by; the Department of Finance and Gov. Don Samuelson, who have been working to gether for the best possibU recovery on behalf of the shareholders of the defunc savings and loan association. Preston, a typical scene during the winter months. The Citizen Photo -- i5 Stolen Truck Recovered, Slill No Tires A stolen truck, belonghr to Ronnie Keller of Prestor was recovered Friday aftf it was stolen earlier in th week. Some 195 new tires o the truck were not recoverer" According to Mr. Kelle' the truck, loaded with th tires, was stolen from 33r South and Redwood Road week ago Monday about 7:1 p.m. The truck was found by th Salt Lake County Sheriff, 22nd Soutl. high return is yorr major office Monday at need retired or supplement( Continued on page 4) high--"!it- 6, 7, la tne seated, at the officers to the Benson. musical gone from Thursday to Saturday. c..ois were The Citizen Photo Commissioners To Be Sworn In That the annual dinner neeting of Cache Valley! Council, Boy Scouts of Amer-- , :ca, will be held Feb. 6 in! J. William Hyde and Todd TJtah State University union G. Weston, w.io won huilding was announced today in November, will be hv Conley Watts of Logan,1 sworn in as Cache County Council president Commissioners next Tuesday. Guest speaker for the evAt their meeting this weik, Hit, which begins at 7 p.m.,1 the Board of Coinmissioncrs vill be President N. Eldon. Tanner of the First Presidency, Church of Jesus Christ f Latter-daSaints. Presi-leis a memalso Tanner ber of the Region 12 Executive Committee, Boy Scouts of America, and a longtime This year's vehicle license-plat- e Scouter. a sale begins Thursday The meetinc will include and continues followed, through Feb. smorgasbord dinner, 28. It will be different from by election of officers for the ac-- . other years, however, as onensuing year, reports of tivities during the past year, ly about one out of ten veireseirtation of Silver ueaver hicles registered will receive a new license plate. wards recognizing o u Last year a multi-yea- r service to youth plate was put out by the and leadership citations. Derrald L. Watkins, chief state for the first time which executive of Cache Valley should be good for two orj Anyone who cout Council, stated that' more years. tickets for the evening will has a valid 1983 plate on his be available through ward vehicle need only register and and stake leadership, and at receive a small red and yellow decal to be attached to the Council Pioneer Ave. All institutional representa- the rear license plate. This presidencies, will make the owner's license tives, for the 1989 year. bishoprics, pack, troop and legal When board coming for a license post Scouters, executive or to register a vehicle, it is members, and other Scouters! are invited to attend. (Continued on phk Hew Vehicle License Due nt ( SOPHOMORE ROYALTx" were presented to tne studenioiwy Dec. 18. Queen and Kljg Kristy Lewis and Dee Asncroft, assembly Christmas Bob Ellis, Snerry Anderson, Wendy Arave and Jon Miller were attended by the sophomore da.ice, held Dec. 21. Sophomore class Cascade," "Peppermint include Ron Gibson, David Lambert and Marty Hibbard. Faulty Advisors Eldon Schwartz, Mrs. Meredith Bell cod Myron aioup are Vernon Summers, View have included school-wid- e at decorations, Sky features holiday Other end group ativities. dub numerous programs and boys and their leaders ijai 14 ti.ne out from members of the Whitney ward Exa plorer post enjoy the winter weather in their annual Yel- - Annual Scout Meeting Set y v viww E Offer Made -, B r te once-favori- .M.ncrais 'LATINS' stake , I discussed the annual meeting tice the afternoon of Jan. 16, of the Utah Association of to be followed by a reception Counties which will bs held wi.'ii the wives of the Salt Jan. 16, 17 and 18 in Salt Lake Lake Ccunty Commissioners City. as hostesses. Mrs. Gwen Commissioner Weston, who Jones will give a book review! is a membsr of the executive board, will be in charge of the 9:30 a.m. session on Jan. lector Ssais Reelsclsd 17. He will also lead the discussion of the Summer Work-snohe alternoon of Jan. 16. One cf the important issues to be considered at the annu-- ; al meeting is "The Impact of the Omnibus Crime Bill on' Franklin county canal comUtah's Counties." Ken Ham- pany presidents mond, Davis County Sheriff; Lester P. Sears of Clifton to Marian Hazelton, San Juan continue as chairman of the County Commissioner, and Franklin County Water Users Dewey Fillis, Salt Lake City; Association at the annual Chief of Police, will make up meeting of the association the panel. held at the Franklin county Governor Rampton will ad- -' courthouse Saturday, Dec. dress the association at 10 21. Elected to serve with Mr. a.m. Jan. 15. Elder Marion D. Hanks, Assistant to the, Sears on the executive board Twelve of the LDS Church, are Theo Bell, Preston, vice will be the luncheon speaker chairman; Perth Poulsen, Weston; Joe Hedin, Winder; that day. Caihe County Clerk Iverj Lloyd Christenscn, Mink Larscn will be chairman of Creek; Daniel Roberts, Presthe session for clerks and au-- , ton, who will serve as secditors at 12:30 on Jan. 16. retary to the group. Each Ladies attending the con- canal company president in vention will have a tour of Franklin county is a member the Metropolitan Hall of Jus-- , of the board of directors, Mr. in the Salt Lake Library auditorium at 3:30 p.m. Friday the ladies will have luncheon at the Lion House, Musical entertainment will (Continued on I'ajie 4) p j Companies Meet I Sears said. Mr. Sears reported to the group that the first official action of the group was to ask the Idaho Water Resource Board to conduct a study of he soil and water resources jf the Bear River Basin of Idaho. Mr. Sears reports this study nearing completion and ihould be ready for review by cjunty committees in Bear Caribou, Franklin and ike, neida counties. ill", possibility of gravity sprinkler projects for an area SasI and north of Preston and around Franklin are al-so underway by the U. S. Bureau of Reclamation, Mr. Sears said. j j i ; |