Evening star., 1928-10-26
DISCOUNT ELECTION
BLOW TO BUSINESS.
Leaders of Trade Feel Only
Temporary Lapse WIN
Follow Vote.
By J. G. ROYLE.
Special Dispatch to Ths Star.

Special Dispatch to The Star.
NEW YORK, October 26.-The period
of post-election storms Is due along
the business coast In about 10 days.
This period is much like the period
of the equinox except that it comes
only every four years.
There may be no storms at all, but
past records indicate that some dis
turbance is due no matter which candi-
date is elected. The trend of business
already is so strong that any change
would seem likely to be toward recess
Sions.
Even If these recessions come, their
continuation will scarcely be longer
than the regulation equinoctial period.
For the favorable elements in the busi-
ness situation far outnumber those un-
favorable. The possibility of storms
therefore, Is mentioned not to alarm
the business public, but to reassure the
business world against taking them too
seriously.
Sign Of Prosperity.
The favorable factors are unmistak-
able. There is ample money to finance
legitimate business and commercial
needs despite the flow Of capital into
the cau-money market. The crops
have been abundant and moved without
stress or credit difficulty. The car
loadings of leading railroads have been
and continue at q high level. and every
car loaded with grain which comes to
terminal market points is going back
loaded with manufactured goods for the
Fall and holiday trade.
On the other hand, there are some
weak spots in the arguments of the
optimiStS. Not all industries are on
satisfactory footing. This is scarcely to
be expected. But the danger seems to
lie in the speculative stock, grain and
cotton markets, in some of which pros
poets have been discounted many times
over. Profits in many concerns will not
live up to present price levels. A drop
IN the stock market might have a.
momentary effect derogatory to BUSH
ness, but this would not continue for
long.
The larger individual industries are
IN strong positions. Steel production is
hoverlng around 80 per cent. That means
at figure which can be estimated at
betwene ITO and 100 per cent of post
war capacity. The railroads are buying
fairly well, the automobile industry is
sound mainstay, the building activity
OF the country is being hampered only
oy the exploitation of ignorant workers
and the oil industry is taking materials
almost as fast as produced.
The building laborerS are being mis-
treated in some instances. The writer
recently interviewed crowd of foreign
born workmen hired as lathers. They
said they paid $40 down to the en-
ployment agent, SIS more on getting a
job and SO cents for every bunch of
lathes placed.
Automobile production is now more
than 20 per cent higher than it was a
year ago, and the industry is entering
last squirt of production before fac
tories are busted with production of
new models for the January shows.
Employment in Detroit is SO per cent
heavier than year ago. The only
danger in the situation which shows
is the extremely high trade-in value
given used cars by dealers who handle
some OF the less prosperous makes.
Copper Sales Above Normal.
Sales of copper are well above normal,
even at the present high level of prices,
and the demand and price levels of
lead and zinc are steady. The way in
which copper was bought indicates that