Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-08-09
weekly Business Review

New York, Aug. S.-(P)-The ad-
vance of summer business actlVltles
has been maintained at a surprisingly
high level for this season. Despite
predictions that August would see re-
cessions in trade which failed TO de-
yelop as expected in June and July,
no seriously retarding influence mas
crept into industrial operations, while
the first signs of substantial autumn
buying have made their appearance.
Business confidence was further
STRENGTHENED last week when the ad-
ministration took cognizance OF the
| unparalleled prosperity of the past
| three years. Settlement of the repa-
rations question, reductions in taxa
ton, recovery from the postwar de-
fation and substantial decline III
commodity prices without a reduction
in wages, were recited as constructive
achievements of the period. With the
exception of spotty conditions in the
n agricultural and textile industries,
business generally was found to be In
a healthful condition, with no signs or
depression ahead.
Railroad operations in the first half
of the year revealed a record-break-
ing prosperity by the class one car
ing prosperity for this period. Fronts
of nearly a half billion dollars were
accumulated by the class one carriers
in the first six months, indicating that
total income for the year. with the
heaviest traffic still to come. would
exceed 81. 900, 100000 by wide mar
gin. Normally the last half of the
year contributes SIS per cent OF the
annual earnings. Although improve
ment was general throughout the
country, western roads continued to
lag behind other sections of the coun-
try, earning at the rate of S.79 per
cent. on their own property invest
ment, while eastern carriers earned at
an annual rate of 5.71 per cent.
Conditions in the steel industry re-
NAMED promising for another year of
large earnings. Operations during the
first week of August averaged only /
per cent. below the peak of July and
this slight curtailment was attributed
to the unusually hot weather. In
view Of the remarkable July inflow of
orders. the trade reviews predicted
that activities in August would fully
maintain the July record. The U. 5.
Steel Corporation next week is eX-
pected to announce the first fncre"s e
| in untitled tonnage this year. with the
trade estimating that the gain at the
| end Of July will approximate 100000
tons.
Heavy buying Of motor company Sc
curities, some Of which reached record
high prices last week, attested public
| confidence in the prosperity of the au-
| tomobile industry. The initial re-
| sDonse to the introduction of new
models was reported 20 be unusually
| good
Other measures of business activity
were mixed. Conditions in the tex
title industry. continue to improve, with
| prices showing greater firmness.
New York, Aug. S-(P)-Starting
| from a state of extreme sluggish
ness, the bond market during last
week worked up to a maderate in
J crease in the volume and breadth of
| trading.
For the first part of the week the
bond section of the stock exchange
was almost becalmed by the back
wash of the excited trading In
stocks. Public interest apparently
was focused on the bull rampage
there but as the furore In stocks
Quilted bonds came into somewhat
wider scope of trading.
At that there was no indication of
any intense public interest and pri-
| ces generally throughout the week
| fluctuated only within nominal mar
| gins. Seemingly as a reflection of
the general apathy toward bonds, Of
! ferings of new issues dropped sharp
| ly durin gthe week. The total was
only 10,150,S63 compared with $780,
| $4,000 for the previous week and
| $40, l4S,500 in the corresponding week