Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1927-10-05

American prosperity, instead Of decreasing, as was
predicted during the closing months Of 1926, Is show
Ing a steady upward trend. according to the National
Industrial Conference Board Of New York City, which
states that industrial expansion indicates greater con-
fidence in the stability Of the present era Of prosperity.
The element of confidence, in the view Of the Con-
ference Board, is to be derived from the fact that IN
spite of various outside influences that might be ex-
pected TO act unfavorably on business-such as the
approach of a presidential election, disturbances in
foreign affairs, q season Of floods and generally IN
favorable weather-industrial activity in the United
States has shown an increase instead of 4 decrease,
and there has geen no noticeable setbaeks even in the
branches Of industry which made such unprecedented
records in the past two years.
While employment and the total number Of hours
worked in manufacturing plants have decreased slightly
since March, and in July this year were somewhat
lower than in the corresponding month q year ago, all
such fluctuations recorded in the last twelve months
averaged less than five per cent, according to the data
collected by the Conference Board among about 1000
representative establishments in rs industries. Aver
age weekly earnings for each wage Garner, while show
ing a seasonal decline in July. were at the same level
as the corresponding month q year ago.
Average hourly earnings, which are considered a
very sensitive indicator of wage rates paid, were !
per cent higher than in the same month last year, and
since last April have been as high or higher than at any
time in 1926.
One Of the most interesting features Of the report
Is the fact that practically all fluctuations are very
minute, which is interpreted by the Conference Board
as indicating the stability Of the prosperity that has
marked American commercial and industrial life the
past five years, in great contrast to business conditions
in Europe. where in that period political agitation and
uncertainty. widespread labor unrest and fiscal COM
plications, have caused frequent and often violent in
terruptions Of business activities in most Of the import
ant industrial countries.
When variations In employment, wage earnings and
wage rates are Of such trivial nature as they have been
n 1.-THE United States in the last two years, the barome-
ter OF business activity. as a whole, may be said to
register "no change" in fundamental conditions. This
condition Is more desirable than any sudden expansion,
as the latter would have a tendency to create condi-
tions in the consuming field which might react adj
versely to the entire structure upon which American
prosperity is founded.
One handicap which is gradually disappearing is
the lack of confidence in the stability of prosperity.
Confidence, the report states, is fundamental, and after
five years Of prosperity the American people are be-
ginning to recognize the fact that the commercial and
industrial interests Of the nation are being ably d.
rected. and that there is virtually no indication that
the country will ever again feel the effects Of q serious
business depression.