OUTLOOK FOR THE LONG-TERM CAPITAL MARKET.

The article presents the author's outlook for long-term capital markets in the U.S. from the perspective of mid-1955. he sees strong economic growth continuing into 1956, with a likely consequence being additional expansion of bank credit. The volume of residential mortgage lending should increase during 1956, with mortgage rates either remaining firm or rising some. Although yields on corporate bonds will remain essentially steady, those on bonds sold directly to investors may see some growth. The volume of state and local borrowing will enjoy moderate growth.