Douglas daily dispatch., 1928-01-29

ing. InlS is TO De regarded as a
phase of the movement back to the
gold standard, which made great prog
reSS in 1927, several countries having
re-established it in some form during
the year. With the restoration of the
gold standard in Italy, France is the
only country of the first order of
1 commercial Importance with this step
! yet to take.
''The United States is now the
worlds cheapest source Of credit and
a consequence is the attainment by
this country of position of steadily
increasing Importance in the interna
tional market for short-term money
and for capital.
'"The total of new domestic and for
eign securities, exclusive of refunding
issues, offered in the United States
during the year was a new high rec
| ord. States and municipalities and
! public utilities provided the leading
domestic demand Tor capital.
CONSTRUCTION has played a large
part in our prosperity ever since the
recovery following 1920, the aggregate
for 1927 in dollar values, according to
| the generally accepted statistical COM
1926, which constituted new high
record and its probable course in 1928
| is of fundamental Importance in ap-
praising the outlook. Contracts let
during the winter months do not sug-
i gest any abatement of activity
Agriculture Improves Position
''While total expenditures for build
! ing and other construction promise to
continue in large volume, examination
of the distribution of contracts by
character of enterprise diScloSes that
| residential and commercial building is
falling off, the aggregate being main-
tanned by public building, engineering
enterprises and other classes of con-
struction.
| Gains made by agriculture during
! the past year have gone far toward
eliminating the one conspicuously
weak spot which has persisted IN the
! general situation since 1920. The great
est improvement has occurred in the
corn belt west of the Mississippi river
and IN the spring wheat states east
of the Rocky mountains, where good
crops at fair prices are enabling farm
ers to liquidate old debts and to in
crease their purchases for their pusl-
ness and for family use. The result
| is the gradual growth OF a more
/ cheerful outlook in place OF the pessl-
miSln which had prevailed since 1871.
TN the south the effects OF only a
I medium sized cotton crop on large
acreage have been offset by good
prices. High prices for beef cattle and
continued firmneSs Of wool and lambs
at profitable levels are restoring the
range country to prosperity.
"It is important, however, to recog-
nize that insofar as the gains mace
by farmers originate in good yields or
better prices, they are more or less
fortuitous in character. Back OF Unem
is discernible more real progress
marked by the throwing out OF culCl-
i walton of marginal land, the increased
use of power machinery and OF I'M
proved methods generally, and the
! downward movement of other prices
to meet those of agricultural prod
ucts. The major adjustment OF agrl-
culture to postwar conditions seems
lnow to have been made.
i Condition Healthy One
."This Improvement in the agrlcul-
tural situation has occurred just When
it would be most helpful to general
business, for there are some 1nolca-
tions chat for the present, at least,
urban purchasing power is no more
!. than holding its own. 1t is probable
that this condition is in part a result
of the tendency of installment creolG
to stabilize. It afforded a great stlm-
ulant to important industries during
the period of it's rapid expansion Tor
| it opened up new demand. A1Ver ~
f reaches certain point, however, II IS
hound to take on the character OF a
revolving credit, the total volume out-
standing increasing from year TO year
| onlv with the growth of populatlon
!, and general purchasing power OF tne
{ country.
r consumption of industries producGs
t was practically stationary in 1927, ana
$ manufacturing output for the country
l / as q. whole was probably g. little less
!, than for the year preceding. Compe-
, tition was more severe than at any
! ! time since postwar recovery began,
{ This is 9, situation long foreseen ana
S, of gradual development, and present
i indications point to its continuallce
1 in 1928. Despite its unsatisIacIoay
: asnects, this is healthy condlVlon aS
/ it calls for efficiency.
Foreign Trade Trend UP
3 "Most of. the countries OF western
+ EUROPE are now steadily increasing
+ their industrial efficiency. A marked
e expansion of agriculture is taxing
: Mace in areas where there is mucn
: virgin land, notably Argentina ana Ine
wheat regions of Canada. In Ger.
= many and elsewhere in we I gods II
a Europe, agricultural improvement goes ts
g on. the chief gains being approach W
f normal conditions in the animal m
s dl1stries. A wave of mineral eXpiolta-
5 tion is in progress in many. places
e partly the result of improved tecn-
S niuue in methods of location OF MN
: eral bodies and in their utilization :.
s "Our foreign trade continues ~
n large volume, exports for 1927 oellg
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