Echo by default outputs a newline character at the end of what you input. According to the
man page, you can use the -n option to prevent this. Try changing your second statement to "do echo -n $i;". Note however that spaces are removed when doing a for, so you will have to re-add them.
My solution which is likely against every bash coding guideline in existance:
for i in $(cat cat_file_1); do echo -n $i; echo -n ' '; done; echo
The last echo is to add a newline to the end.