The Abilene Reporter-News (Abilene, Tex.), Vol. 75, No. 191, Ed. 1 Sunday, January 1, 1956 Page: 58 of 70
This newspaper is part of the collection entitled: The Abilene Reporter and was provided to The Portal to Texas History by the Abilene Public Library.
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Will the New Year bring continued prosperity? is the stock market safe?
by Roger Ward
Eighty years young and one
of America’s foremost econo-
mists, Roger Ward Baboon hat
been described at a Yankee
genius who confettet having
“made more money out of
statistics than anyone elte in
the United States." He pio-
neered the field of investment
guidance, accurately predicted
“ the 1929 stock-market crash,
and became a millionaire tev-
eral timet over.
Even at the young but am-
bitious son of a prosperous
merchant in Gloucester, Matt.,
he preferred peddling vegeta-
bles to playing. When tubercu-
losis struck Babson at a young
man, he moved hit budding
business into a frame lean-to,
kept all the windows open, and
worked in a woolen coverall,
striking the typewriter kept
—with rubber mallets.
Babson -______-______
With his wife, the indomita-
ble Yankee went on to found
Babton't Reportt and the non-
profit Babton Institute in
Welletley, Matt. Thete orgeni-
zations preach their founders’
view that prosperity inevitably
givet way to depretsion, that
patience it the key in both
financial and family affairs,
and that there it no substitute
for thrift. Indeed, one of Bab-
son’s books is titled “Twenty
Ways to Save Money."
The accompanying article
presents Babson's outlook on
America’s economic situation;
but he maintains extraordinary
interests in other subjects, too.
For example, he founded the
Gravity Research Foundation
at New Boston, N. H., in the
belief that gravity can be over-
come and its power harnessed
in public utilities.
N or ONLY America, but
the whole world, stands on the
brink of a glorious new era. I
believe we are entering a third
great Renaissance comparable
with that of the 15th Century,
which was brought about by
printing, and, that of the 18th
Century, brought about by the
harnessing of steam and an
industrial revolution.
Now we are entering a third
great industrial revolution. This
revolution could be based on
the harnessing of atomic en-
ergy, the development of labor
unions, and aviation. For that
matter, the years ahead may'
make the last century look like
a sort of Dark Ages!
But this is a long-range out-
look. As for the years immedi-
ately ahead, I still believe in
Isaac Newton’s law of action
and reaction, the law by which
I have been making economic
analyses and forecasts for more
than half a century.
This means that America has
a normal line of growth and
that any artificial prosperity,
by inflation or otherwise, must
sometime be compensated for.
I see no economic crash on the
horizon today, however, as I
did in 1929.
In forecasting the stock mar-
ket, it is a mistake to attempt
to-pick winners. The future
course of different industries
may be foretold with reason-
able accuracy, but it is difficult
to determine in advance just
which companies of that in-
dustry will be the most suc-
cessful. It is wise, -rather, to
diversify funds over a broad
list of good stocks.
Foresees a balanced budget
I believe defense spending
will remain stable and the Fed-
eral budget will balance this
year. Both incomes and sav-
ings will increase due to higher
wages, greater consumer
spending, and higher exports
The price level will continue
much as it is; in fact, the dollar
may even get cheaper. “Good
times” should continue as long
as we avoid World War III.
although I believe that war is
coming—if not in five years,
then certainly in 25 or 50.
During World War II, com-
paratively few babies were
born in the United States This
means that there are not a
normal number of teen-agers
purchasing goods at present
Over the next five years, how-
ever, this situation should
change with a real bulge in
our purchasing power by 1960
It seems to me that both
Republicans and Democrats are
determined to keep business
Family Weekly Magazine January 1. 1956
4
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The Abilene Reporter-News (Abilene, Tex.), Vol. 75, No. 191, Ed. 1 Sunday, January 1, 1956, newspaper, January 1, 1956; Abilene, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1653963/m1/58/?q=%22~1~1~1%22~1: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Abilene Public Library.