The beginning of the sixties brought with it a mild recession, despite the fact that the economy was reaching new heights.
The forces that characterized the post-war period were largely exhausted: shortages no longer existed; accumulated consumer wants and needs were largely satisfied; domestic and foreign competition was more intense; inflationary pressures subsided; and the business community was cautious. Even though the prices of common stocks fell in 1960, the goal of Tri-Continental's management was to continue the tradition of carefully managed, thoroughly researched investments that would produce good capital and income results. For the next five years, Tri-Continental's strategy proved rewarding as business activity was strong, and the stock market, though subject to periodic corrections, continued its upward march. At the same time, income taxes were staggering, the Cold War was getting colder, and the fight for civil rights was dividing the nation. If ever there was a time for prudent, active management, this was certainly one of them.
Part of the Corporation's effort to keep up with the times was the establishment of a new company to provide up-to-date electronic data processing and shareholder services. In 1966, Tri-Continental and its associated companies formed Union Data Service Center, known today as Seligman Data Corp. At the time, Tri-Continental was believed to be the first diversified, publicly traded investment company to undertake the role of having its own electronic data processing organization.
Seligman Data Corp. remains Tri-Continental's Stockholder Service agent today.
By 1967, the country reached the seventh year in the longest period of sustained economic expansion since the end of World War II. Tri-Continental's net asset value hit a new high of $37.55, dividend distributions had increased for four consecutive years, and the net unrealized and realized gains were the largest to date.
This large amount of net realized capital gain was paid to Stockholders in 1967 — the first time Tri-Continental Corporation made a capital gain distribution to Stockholders. Previously, the policy had been to retain net realized capital gains to build net assets. With this change in policy came the strong caution that capital gain distributions must be taken in additional shares if a Stockholder wished to keep the full amount of an investment at work to produce future income and growth of capital value. It was also in 1967 that Tri-Continental's Annual Meetings began to be held around the country in order to give as many Stockholders as possible the opportunity to meet the managers of their investment. This tradition continues today.
Despite the nation's prosperity, the decade ended on a slower note as investors took a wait-and-see attitude, influenced by economic uncertainty, an escalating war in Southeast Asia, and the first hints that the international monetary system, with the US dollar at its core, was in danger of collapsing. Amid mounting social and environmental concerns, and rising inflation and interest rates, the prices of common stocks declined substantially.
