It has long been our annual custom to take a thorough look at the U.S. economy--its performance in the past year and what it is likely to do in the year ahead. In our shop phrase we call it "the year-end business review." This week it takes the form of a cover story, written by Marshall Loeb and edited by Champ Clark, on one of the most astute money managers of our day.

Reviewing TIME'S own experience in the past twelve months, we are happy to be able to say that it was an excellent year. Early in 1966, our editorial staff gathered for a dinner at New York's Plaza Hotel, largely to socialize but also to hear a progress report on TIME. "The recognition for what we do individually goes to the magazine as a whole, with its great success and impact," said Managing Editor Otto Fuerbringer. So, without smugness, we take some satisfaction from the fact that financially this was our best in 44 years of publishing.

During 1966 TIME attracted 250,000 new buyers, bringing our worldwide circulation to 4,600,000. Advertising sales for the U.S. edition topped $86 million, which places TIME second only to LIFE among all magazines in advertising revenue. To speed production and distribution, a sixth U.S. printing plant was added, in Atlanta, and in our New York offices we installed the first of two 360/30 IBM computer systems to accelerate the flow of copy.

What really matters, of course, is the contents of that copy. To this, our readers seemed to respond with gusto. The "Is God Dead?" cover story drew a record-breaking 3,500 letters, and the vast majority answered the rhetorical question in a vigorous negative. We continued our broad coverage of the Vietnamese war, beginning with the Man of the Year cover story on General William Westmoreland. Also memorable, we feel, were our report on the South African situation, which featured Prime Minister Hendrik Verwoerd on the cover shortly before his assassination; our tour of swinging London; and the introduction of several new leaders on the world scene, including Germany's new chancellor, Kurt Kiesinger.

Among other stories during the year that provoked especially heavy reader response were our selection of America's best teachers; the story and psychological analysis of the Texas mass murderer, Charles Whitman; the cover story on Danny Escobedo and the drastic changes taking place in U.S. criminal law; and the ode to middle age, starring Lauren Bacall. Essay moved into its second year with its usual catholicity of concern, ranging from today's philosophers to suicide. This week the section salutes a new year by attempting a new device: an essay in play form, written by Stefan Kanfer.

So much for the past. We hope to make 1967 equally successful for TIME--and equally interesting for our readers.

This file is automatically generated by a robot program, so reader's discretion is required.