Up Again

After looking over the prospects for the second half of 1948, the Federal Reserve Board last week felt bullish enough to risk a prediction. This year's profits, said its June Bulletin, would be even larger than 1947's record $17 billion; dividends, too, would be higher.

Profits and dividends were not the only things that were headed up. Last week the economy's price structure began to feel the impact of the third round wage hike. General Electric Co., which had already boosted home appliances, raised the prices of industrial motors 5% and industrial control equipment 10%. Chrysler joined the automobile price-boosting parade with a 3% to 6 1/2% increase.

The rubber industry, which a year ago cut tire prices 10% but later raised them, was getting ready to raise them again. Up went roller bearings, cable products, plastics, furs. Two-for-15-c- cigars (Bayuk) were boosted to 9-c- apiece. The Aluminum Co. of America last week granted a 10% wage increase, promptly raised the basic price of aluminum 1-c- a Ib. (to 15-c-), the first price increase in eleven years.

General Motors, which started the third round on May 25, had agreed to raise wages again if the cost of living went up. Last week the Bureau of Labor Statistics reported that the consumers' price index rose seven-tenths of 1%. Meat prices, said the B.L.S., had shot up 5.4%.

Some budgets were stretching thin. Life insurance companies reported a 25% increase since last year in the surrender of policies for cash. The nation was finding it hard to keep up with its prosperity.

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