Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-08-05
Frightening Business Prospects.

Engineering BUSINESS FToSpectS'
Six or eight months ago feeling OF
pessirnism prevailed In this country re-
garding the business outlook for 1928.
When the stock market, after a pro-
longed period of advanced prices be-
gan to fiutter, with a downward tend
ency, predictions we're freely made that
season of slack trade was in prospect.
There was, in fact, some sign Of less
ening business affecting manufactures
and merchandising Wholesale and re-
tail traders moved cautiously. Manu-
facturers began to curtail production as
an insurance against overstocking. But
as the months passed these signs failed
to develop into tangible proof that bust
ness. after long maintenance on a pros
perity basis, was due for slump. The
precautionary contractions possibly had
good effect in reimbursement
Now with the presidential campaign,
which in the past has been regarded as
a bad time for business, well advanced
in the first stage. there are positive
signs that trade in the United States is
by no means slack and that while I'M
employment still prevails to a certain
extent 1t is by no means abnormal and
that the buying power of the people is
undiminished. With the elections only
three months away there would appear
to be no reason to look for deterrent
effect of politics upon industry and
trade, which usually revive in September
from the warm seasons slackness.
Recently reports of car loadings in
the United states have shown whole
some condition. This is standard and
dependable index of industrial health.
There is no car shortage, but there is
no glut of "empties" in the railroad
yards. The rolling stock of the railway
lines is being kept normally busy, NOV
ing products and already to some ex-
tent in transporting crops TO market.
The prospect is that the years record
in this respect win be high.
All present indications are that the
country's agricultural crops will exceed
in volume those of 1927, This has been
q good year for the farmers in the mat
ter of production. Whether it will be
a good year in terms of net earnings is
a matter yet to be determined. There Is
is no present method Of price fixing and
none In prospect. and the fundamental
economic law viii continue TO govern
farm product rates as heretofore.
Bumper crops. however, are generally
regarded as tokens of prosperity and in
this matter the country is now facing a
happy prospect.
The Bradstreet report of trade con-
ditions shows an increasing number of
reports Of sales in FAN lines exceeding
a year ago. The latest report Of weekly
bank clearingS shows an increase Of
40 per cent over 1927. Nevertheless. the
Dun reports of commercial failures dur
ing the past week show sixty-eight more
than the preceding week and thirty-eight
more than year ago. These failures,
however, are not necessarily indicative
OF unsound conditions, being due mostly
TO local circumstances.
Taken altogether it would seem that
the pessimisrn of last Winter regarding
the country's industrial and mercantile
conditions was wholly unjustified and,
short of some spasmodic happening due
in no wise to the political campaign,
the presidential year" Of 1928 will pass
without a recession in trade or an APP
preciable slowing up Of business activity,