Evening star., 1927-10-01
OUTLOOK IS BRIGHT
FOR REST OF YEAR
Majority of industries Now
Given Rating of "Fair to
Fine" in Most Sections.

Special Dispatch to The Star.

NEW YORK, October 1.-Even the
confirmed pessimists admit that the
prospects for five-sixths Of the basic
industries Of the country are bright
for the remainder Of the year, ranging
as to rating from fair to fine. Those
industries which have poor outlook
are the ones which have failed in
essential particulars to adjust them
selves to present-day conditions, and
even in those there are many units
which have every prospect of doing
well in the next three months.
The banks have money to loan for
legitimate business purposes. The in
vestors have money to place in sound.
seasoned business securities, and the
public has money to buy as great a
volume Of goods as at any time in
years. Money, after all, is the main
factor in the present situation. 1t is
easy and interest rates are compare
lively low.
Purchasing power is normally the
deciding factor in periods of pros
perity. The situation Of the agricul
tural yields of the country today in
dicates that the farmers, the largest
single customer bloc in the affairs of
the Nation, will have more money to
spend than a year ago. This, Of course
does not obtain as to every crop or
every section.
Utilities Doing Well.
AS to the industrial situation, the
expansion Of the electric light and
power industry offers conclusive evi
dence as to conditions. The recent ex'
pansion has fully paralleled that OF
recent years and the sale of power in
1927 seems sure to exceed by 10 per
cent the amount of current required in
1926. There hive been some rate re-
ductions, but the total gross income of
the utility companies will compare
favorably with last year, while net
owing to reductions of costs, will show
a gain. The gas companies are doing
equally we'll, owing largely to the
growth in the industrial use Of gas as
q fuel.
The recent improvement in steel has
been more one Of sentiment than of
production. but the industry has main
tained stability which is most graft
flying. Agricultural implement com.
panies, large consumers of steel, are
having a splendid season both in
domestic and in export trade.
The electrical equipment makers are
having a Fall period fully measuring
up W IudL VI 1oSV' AhAo 10 dANAAiS5 tAOAA-
ferrous metals, although the outlook
for copper, lead and zinc remains only
fair.
Fall Crops Aid Railroads.
The railroads are at the top Of their
Fall movement. The gain is coming
not so much from volume of ship
ments as from efficiency and cutting
of costs in handling what they carry.
The automobile trade still Is spotty
and ii cannot be denied that the
factor Of the new Ford is one which
Is hampering operations by some
concerns. However, nothing SEEM
ingly Is hampering the five or six
leading manufacturers. Radio and
refrigeration are two Industries
which also show a sharp division be-
tween the sheep and the goats. Some
companies are fighting to fill the
orders they have and some are fight
ing for enough orders to keep them
running.
Consumption Of cotton continues
unusually large and the cotton cloth
manufacturers are doing better in
general despite some big units which
are tagging owing to ancient equip
ment. There is a better demand for
wool, especially of the cheaper
grades, but the woolen and silk cloth
makers are not enthusiastic over
their outlook. owing to the vogue for
furs. The fur trade is booming.
tCopyright. 1927