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Evening star. [volume] (Washington, D.C.) 1854-1972, March 31, 1959, Image 18

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Wa thing ton, D C., Tuatdoy, March 11, 1959
£2 ' '
Business Spending Aids Prosperity
The third of the three great,
forces which decide whether
w economy is heading toward
boom or bust is at last flicker
ing Into its place in the eco
nomic pattern.
The force Is business spend
ing on new plants and new
And It Is a relief to be able
to report that It finally Is Join
ing the other two in pointing
toward prosperity. §
Consumer spending, the first
great force, has been on the
upbeat for many months.
Government spending, thet
second great force, also has
been on the upbeat for many
But since early 1957, busi
ness spending has been con
spicuously absent as a prop
under the economy.
Situation Changing
' ]
Conspicuously absent, that is,;
until now—for now the situa
tion is changing. All the major
studies of industry's plans to (
spend on new plants and equip- ,
ment in 1959 are in—the sur- .
vey for the Government by the j
Securities St Exchange Commis
sion and the Commerce De
partment, the survey for News- ,
week magazine by the National ,
Industrial Conference Board,
the preliminary McGraw-Hill
survey of capital spending this ,
year over 1958.
It isn't much of an upswing.
The Government’s figures indi- ■
cate a rise of only 4 per cent. I
from $30.5 billion in 1958 to
only $31.8 billion in 1959. And'
the moderate extent of the
dlimb has disappointed many!
experts, convinced them busi- :
ness spending won’t help uur
economy much.
; This interpretation, though.!
igpores some mighty vital
• For instance, the very fact;
that corporations no longer are
cutting down their spending is
a major factor on the plus side.
The precise statistics aren’t as
Important as the trend they are
A Matter
of Some Concern
We are concerned about the number of people who have been
buying stocks in recent months for wrhat we believe are the wrong
reasons—wrong at least for them. These are the people, mainly unso
phisticated about securities and often victimized by the tips and rumors
that flood the market today, who have been buying stocks in the hope
of making a big. quick profit. In a word these people are speculating
What do we mean by imprudent speculation? Just this: There is
nothing morally or economically wrong with speculation, hut there can
he everything wrong with who does the speculating.
Speculation serves a highly useful purpose in helping to keep the
market both liquid and orderly; it provides a cushion on the down side,
a brake on the up side. To use the words of the late Justice Holmes,
“Speculation is the self-adjustment of society to the probable,” and in
the stock market, that process of self-adjustment is a vital one.
But, although speculation may be good, it does not follow that it is
good for everybody to speculate. Quite the contrary.
Speculation involves the taking of risks. And when men take risks
they can’t afford to carry, when they put at stake money that they
can't afford to lose, they speculate imprudently. They court trouble.
They become a matter of concern to us and to every other broker
who has labored over the years to interest more and more people in
becoming shareowners in American business.
For make no mistake about it: We still believe in that goal. We still
believe it is desirable for every man to have an ownership interest in
American business who can afford such an investment.
We still believe that the risks a man runs in not investing his surplus
funds can be greater than the risk inherent in buying good common
stocks. But we never want to minimize the factor of risk that is an
inevitable part of any investment.
That’s why we want to repeat here a piece of advice that has been
a basic and widely advertised policy of this firm since the day of its
No man should buy stocks unless he can cover his living expenses
comfortably, unless he has adequate insurance to protect his family,
and unless he has set aside funds to meet emergencies.
To the man who can meet those qualifications —the man who is or
wants to be an investor —we have one other piece of basic advice:
“Investigate—Then Invest.”
Our help in building a prudent investment program, one that
squares with your own objectives and with the market conditions of
the times is yours for the asking.
Merrill Lynch, Pierce, Fenner & Smith Inc.
Members New York Stock Exchange and all other Principal Exchanges
815 Fifteenth Street N.W. 1628 K Street N.W.
Washington 5 Washington 6
EXeeulive 3-2121 EXecutive 3-5760
Baltimore Office:
Equitable Building MUlberry 5-3200
flashing. The cutbacks have
; ended: the direction of spend
ing is now up. not down; the
drag has been wiped out
A second key point is that
history emphasizes corporations
usually underestimate their ex
pansion spending in the early
stages of an economic advance
and tend to increase their out
lays as their profits climb This
was the record following the
recession of 1948-49 and 1953-
54, and there are valid reasons
to believe this will be the record
again. That 4 per cent rise
could become a lot fatter as
1959 rolls on.
Cycle Building Lp
And a third significant point
is that this upswing in spend
ing after a fairly long down
trend signals a new cycle of ex
pansion is in the making. These
cycles don’t start or end over
Four times since World War
II it has happened.
First came the Wave of in
dustrial expansion at war’s end.
and the aim was to build any
plant that could turn out goods
for vou and me.
Then came the wave of ex
pansion coinciding with the
Korean war, and the aim was
to build factories to meet war
needs and our demands, too.
Then came the wave follow
ing the 1953-54 recession, and
the aim was to construct facill-
Vou Won't See Me at the
Only the Finest People Meet There
|jrfw Sterling 1-5770
Home Economists
Organize Trade
Group Here
Home economists in business
have grown in the Washington
area to the point that the
i group now has an official mem
bership of 70 in its own organ
ization. Some conduct busi
nesses of their own here. Some
are employed by large enter
> prises.
Officials pointed out that,
’ many Washington restaurants
t and food services have home
. economists as managers and
• executives. The official organ
ization is called Home Econo
mists in Business, a section of
s the American Home Economics!
; j Association.
On Thursday at the Ken
twood Country Club, it will have
I its Bosses' Night Dinner, with
! Mrs. Helen Hallbert, director
> of General Mills’ Betty Crocker
Kitchens, as the main speaker.
Chairman of the Home Econ
omists in Business this year is
Mrs. Eleanor Haney, director of j
menu planning for Hot Shoppes.
The social chairman in charge
of planning Bosses’ Night is Miss
Caroline Holste, executive food
supervisor of Hot Shoppes.
The chairman-elect of the
group is Miss Gloria Hansen,
one of a staff of four home
economists of the National
Canners Association here.
ties to turn out more goods at
lower cost.
And now a fourth wave is
starting to build up. It’s a
modest beginning, a slow one—
but it’s a beginning.
(Distributed 1959 by
The Hall Syndicate. Inc.
All Rights Reserved i
! aia TOM. Mm. N (AO). —Nat,till ASM- cittlM SaaeriMet Otsltn, Ik.
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Lvcominq’s forecast for business aviation: Celling Unlimited
More as are finding that “caking the company plane” saves «
time, saves ione As a result, the business aviation industry has doubled its £
out ,n jusi cvvo years. For rugged and dependable engines for their planes,
these aitcra.i; manui'accu l ers Icok to Avco’s l. v co ling Divis ; on...ro. a .enng J
3 out of every 4 twin-engined executive aircraft made in the United States. §
i ( ♦
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| NEW YORK, Mar 31 <AP).—Spot
nonferrous metal prices today: Copper
:tm-34 cents a pound. Connocticut
Valley. Lead UVa cents a pound, New
York. Zinc 11 cents a pound. East
Bt. Louis. Tin 1.02*4 a pound. New
York. Foreign silver 91H cents per
troy ounce. New York. At Pittsburgh,
scrap steel No. 1 heavy was quoted:
at 43.00-44.00.
NEW YORK, Mar. 11 <AP> —Ynter
day’, clnain* oaw4he«aaßter U. S. Gov
rmmrnt Treuanr boeda:
Bid AiM Ch«. YM.
it —Bfu i
'»5»« KaSl'-W!
!w EiLPBeB
!3taSS- S:U it
jub« :ris Is -1 a
line 1-H 8:«rl £B’
W . |8 8h=:1 ilj
i *31.1 43-71 S 49.* 3.04
*fH* H * H.M 09 —.4 3.92
j -3V4* 90 9004 91 4.01
*s* M 91.24 K -A 3.71
Prices quoted la doUar* and thirty
j ’"•Sub'Hrt to Federal lues bet not to
State income taxes.
We will be pleased to send
you our booklet "Increase
Your Net Income With Tax
Exempt Municipal Bonds"
olong with our current list
ot available bonds ot no
Call Municipal Department
725 15th St. N.W.
Starting 3-5252
Wuh melon lutlnea on over-the
counter marketa furalahed by the No
tlonnl Aanoelntten of Pocomiot Dealer,
m of 1 in. Tsoaday. March 31, l»AP:
Bid Aaked
Amer Inveat ..... 4 41*
Amar Security .Vl'* git*
i Automation ... 1*35 H.M
Consume™ Inveat 4.77 A.lB
Or«* Fair 14>* lea*
lOtant Food Froo .. :t 31*
■Clovt employers Inaur.. 113 12J
Oovt Empl Life Inaur .. 113 134
;Qovt Bmploreea Corp .. *7 54
Hot Shoopea Inc •;«
; laU Bank of Waah 3N 43
|Kay Jeweler* . _ So 1 * jst*
(Metropolitan Bruadcaat HH ITS
Penal Cola of Waah 4t* 44*
Peoples Life Inaur 51 55^
State Loan 24'4 jgt*
Suburban Truat 15
| '
printing and graphic
arts services
is included in our
letterpress and lithographic -
printing plant to give our
clients a complete service.
Your inquiries solicited.
24th and DOUGLAS STS. NE
WASHINGTON 11, DC DEutur 2-6565
Pillsbury Stock Split
CAP).—Stockholders of Pills
bury Co. yesterday approved a
two- for- one common stock
split. They voted to Increase
the outstanding shares to S
million from 1.6 million and
to issue two shares without par
value for each present share of
$25 par value. The changes art
effective April 7,
FUND investing in
bond* and preferred stocks
•elected for coneervstioe of
principal and current in
come and in common stocks
•elected for income and
profit possibilities.
FuiuL , t
• uaaas mvaeting pn
msrily in common stocks
selected lor possible long
term growth of capita! and
future income.
Atk y9ur txaMfvMnf dealer for
proeperfue or vriU Id
" The Wellington Company
Philadelphia S, Pa.
Cheek «m

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