The Abilene Reporter-News (Abilene, Tex.), Vol. 71, No. 184, Ed. 2 Monday, December 24, 1951 Page: 32 of 48
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erican Production Records Boom
6, THE ABILENE REPORTER-NEWS
0’v Abi-ne Texas, Monday Evening, Dec. 24, 1931
musical effects. He said a piapo
tumbled off a pickup truck ahead
By L. A. BROPHY
Associated Press Business Editor
America’s economic produc-
tion in 1951 surpassed all
. records in dollar value
And leading economists pre-
diet even this tremendous out-
pouring will be exceeded in
Iin the first full year of produc-
ton since the start of the Korean
War the nation turned out guns
and more butter in some instances
men people were able or disposed
tomhey Federal Reserve production
index (based on the 1935-39 aver-
age physical volume or unit pro-
duction) in 1951 however, did not
teach the all time record of the
war year of 1943 It was 239.3
then. In November this year, the
index, was about 219. Some econo-
mists expect it to go to 230 in
1952.
But in 1951. more people worked
Run ever before. They had more
• dollars in their pay envelopes
Business continued to expand at
g record clip. Stocks of goods in
factories and on store shelves
reached record proportions.
TROUBLE SPOTS
However, there were trouble
ASSOCIATED PRESS AVERAGE of 60 STOCKS
All in all, 1952 will be a chal-
lenging year for business and
likely for you.
Crashing Chords _______.
KENDALLVILLE, Ind., Dec. 24. of him and rolled into his truck
• — Trucker Clyde MeEntarfer The damages—$100 on the truck.
reported a highway eeilision with 32S on the piano__
UISTMAS
95
We owe it to you-
ETINGS
Our faithfulness we renew.
spots.
Mounting inflation, in spite of
price freezes, and rising taxes
made it harder for people to buy.
Corporate profits, after taxes,
declined. For the year, they
were running at a rate some 84
billion under the record of $22.8
billion reached in 1950. Higher
taxes and lower profits cut down
the range and made business un-
easy. The stock market reflect-
ed that by going down after reach- billion,
ing a 21 - year high in October.
What’s ahead for 1952?
"infiabon
ETBLS CONSUMERS PRICE INDE)=
' Our thanks are sincere
We wish you many a cheer.
MARY KATE WHITTEKIN
...owner.
Jan. 1
Feb. 5 March 5 April 2 May 7 June 4 July 2
Aug. 6 Sept. 3 Oct.1 Nov.5 Dec. 3 11
The finest you made ua
A group of leading economists
predicted the gross national
product (total goods and services)
would be 3348 billion in 1952 It
now is running at a rate of $328
One inescapable reason for that
is government spending For the
INSURED
SAFETY
PLUS ATTRACTIVE EARNINGS
Safety of Your Savings Insured Up to $10,000.
Open an insured savings account with any amount,
in person or by mail
We have never paid less than 2% % per annum.
ABILENE SAVINGS
ASSOCIATION
Home Owned — Serving Abilene and Vicinity
for 30 years.
190 Cypress
Phone 4-4309
PITTSBURGH
SUN
Inotocto
and becuti ino
HOUSE PAINT
Pits®
GM PAINTS
CILiIL
SUN PR
SWINNEY GLASS
& PAINT CO.
GLASS a PICTURE FRAMING ( WALLPAPER
fiscal year ending June 30, 1952,
the budget bureau forecasts
spending sround $70 billion. That
compares to $44,663,000,000 in
the preceding fiscal year. Defense
expenditures, now running at an
annual rate of about 338 billion,
should reach 357 billion by the
eno of this fiscal year.
NO SLOW DOWN
A cease - fire in Korea is not
expected to slow down the boom-
ing economy, in the absence of
any drastic changes in the rolling
defense effort.
Government crystal ball gazers
foresee shortages in some con-
sumer goods in 1952, due to ma-
terials shortages. The National
Production Authority has an-
nounced drastic cutbacks of all
types of consumer durable goods
in the first quarter of 1952. In
fact, there will be a cut of at
least 50 per cent of pre - Korean
production in strictly civilian-type
products because of reduced ma-
terials allotments.
However, you will still find
some businessmen who believe
the goods will be there. They cite
present record-breaking invento-
ries and a public tendency to go
slow in buying things as reasons.
Whether goods will sell at a rate
business would like to see is a
question.
• SCARCE - BUYING ENDS
This is one of the reasons:
along about mid-1951, Mr. Average
Consumer began to stop buying at
the rate he had been. The scare
buying Korean war days were ov-
er. He began to save more. Infla-
tion and higher taxes made him
keep his hand more tightly on hia
pocketbook.
The result was that retail busi-
ness began slashing prices and
putting on spectacular sales to
move out big stocks of goods.
Bargains brought buyers and goods
did move off the shelves.
So, if this trend continues, busi-
ness will have to continue to
scramble in 1952 to sell what it
thinks it should and make the
profits it would like to.
But the golden flood of dollars
from Washington that turns into
tanks, guns and bullets in the
nation’s factories will provide a
stimulus to keep the economy
zooming
1951 FIGURES
Here is the way the figures show
1951’8 all-time record:
Gross national product (total
value of goods and services, in-
eluding business taxes, deprecia-
tion charges and other business
reserves) —
1951 — running at a rate of 3323
billion compared to 3282 billion
In 1950 and the previous high
record of $259 billion in 1948.
National income (total earnings
of labor and capital from current
production) —
1951 — running at a rate of 3280
billion compared to $239 billion
in 1950
Personal income —
1951 — running at a rate of 8253
billion compared to 8224 7 billion
in 1950
Employment —
1951 — 62,630,000 in August 1951
set a new high record. The pre-
vious high mark waa 62,526,900 in
July. In 1950, the all-time high
up to that point was 62,367,000
hi August of that year.
DECLINING PROFITS
Corporate profits after taxes —
1951 — Running at a rate of 819
billion, compared to the record
high of $22.8 billion in 1950.
* Profits began to decline in the
second quarter of this year. They
were up in the first quarter as
compared to 1950, then dropped
off reflecting high taxes and, in
some instances, lower profits due
to slackening consumer demand
and materials scarcities.
In the third quarter of this
year, they were running at a rate
of $17 billion, compared to $18.4
billion in the second quarter and
$20.7 billion in the first quarter.
In 1950, the first quarter was $17.5
billion: the second $20.6 billion:
the third, 325 2 billion and the
fourth, $27.8 billion.
Steel — 1951 production is likely
to reach 105 million tons, far and
away a new record. Last year’s
output was 96,836,075 tons.
Agriculture-farmers should net
about SIS billion this year as
compared to $12.7 billion in 1950.
The high was $17 billion in 1947.
Wage and price controls went
into effect tn January, but wages
and prices did not stand still by
any means.
HIGHER TAXES
New and higher taxes became
effective November 1, with an
average increase of slightly less
than 11% per cent for individuals
and boosts along the line of
excise taxes.
For business, corporate, tax
rates increased from 25 to 30 per
cent on the first $25,000 of cor-
porate income and from 47 to 52
per cent on all over $25,000, with
three-fourths of the increases ap-
plying to a company's entire 1951
income. *
Income closed as excess prof-
its is taxed an extra 30 per cent,
so the effective tax rate on that
portion of a company’s income
will be 82 per cent. It was 77 per
With patronage and trust!
Our wish, both students and owner
is a New Year without a boner!
ABILENE BEAUTY COLLEGE
. West Texas’ Finest
South First at Oak.
Phone 2-0563
PRESS’
School,
til Nov
of 385
lard Ed
Ingalsb
ius; Cai
daughti
sponsor
1166 N. 2nd
Phone 4-9129
Dr. Raymond Wray
CHIROPRACTOR
X-ray Spinel
Analysis
1435 N. 4th. Phone 4-9556
Farm Machinery
Supplies Short
RALEIGH, N. C. Dec 24 n -
The advice of H. M. Ellis, agri-
cultural engineer for the North
Carolina State College Extension
Service, is for farmers to take good
care of their present farm machin-
ery because short supplies of equip-
ment are in prospect.
Machinery should be housed
when not In use because it deterio-
rates very rapidly from rust and
other weathering processes, he
said. An implement shed will pay
dividends in prolonging the life of
farm implements. A tractor not in
use for 30 days should be housed.
Ellis said
Nazi Radioman Now
U. S.-Style Ad Man
COLOGNE, Dec. 24.M — Hans
Fritzsche, once one of the smooth-
est Nazi radio propagandists, is
now a smoothie in the advertising
business — employing American
methods, Including the comic book
style.
Fritzsche was one of the lucky
three top Nazis who won acquittal
on war crimes charges before the
International Military Tribunal at
Nuernberg in 1945-46. The others
were diplomat Franz von Papen
and financial wizard Hjalmar
Schacht.
But Fritzsche was locked up lat-
er by a German denazification
court. He didn't waste time in work
camp but studied American adver-
tising styles in U. S. newspapers
in his spare hours. Upon bis re-
lease he went to work in a firm
founded by his wife and then
branched out to do work for larger
agencies.
10...
Seasons
Greetings
Dr. Pepper Bottling Co.
Here’s Special Specs
For Television Fans
Australian Penny
Is a Real Bargain
SYDNEY, Dec 24. Un—A Penny
costs more than a penny to make
In Australia The Royal Mint has
been making pennies and halfpen-
nies at a loss for two years, mint
officials disclosed. The main reas-
on is the rising cost of copper.
One mint official said: “The cop-
per in a penny is worth a fraction
more than the currency value of
the coin."
But don’t think the mint is about
to go out of business. It can still
make a one pound note (worth 240
pennies) for less than one penny.
ROCHESTER, N. Y., Dec. 34. — ---------: "
Those peaty-faced TV cowboy he- Old Dobbin
roes should look a lot better now- Did Dobbin wets
through special TV eyeglasses Sweet Revenge
which are supposed to minimize
glare and provide softer, more hu-
man pictures for the viewer.
Produced by Bausch A Lomb Op- cester, at the machine which has
tical Co. here, the glasses are pre- been chasing him from the high-
cision ground and polished Scien- ways.
lists worked a year to perfect the A hit-run home damaged six
glass. Research specialists said, automobiles in a two-mile dash,
however, that the glasses are not Excited but unhurt, be was retired
intended to remedy visual defects to his stable for the rest of the
such as nearsightedness. day.
WORCHESTER, Masa.. Dec 24. (
Old Dobbin struck back, in Wor-
J. M Cooper
L. L Fulks
L. D. Boyd
Ray Anderson
MAY YOU ACHIEVE THE ULTIMATE
IN HAPPINESS ON THIS GLORIOUS
OCCASION.
282 Pine.
Geo Parsons
“Pop" Wooldridge
ooper Furniture Co.
525 Butternut
*
★
Divid
Fan
318
*
*
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The Abilene Reporter-News (Abilene, Tex.), Vol. 71, No. 184, Ed. 2 Monday, December 24, 1951, newspaper, December 24, 1951; Abilene, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1648763/m1/32/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Abilene Public Library.