Douglas daily dispatch., 1928-01-01
BY STANLEY w. pRENos1L

Dy STANLEY w. PRENOSlL
(AssOciated Press Financial Editor)
NEW YORK, Dec. %, P)-BuSiness
men and bankers view the outlook
for 1928 with conservative optimism.
There is feeling in many quar-
ters that political uncertainties in
variably arising during Presidential
years are likely to have a retarding
effect upon some lines of business,
but it is pointed out that other fac
tors are decidedly favorable.
Credit supplies are ample, inven-
tories low, transportation systems eff
ficient, labor plentiful and relations
between capital and labor generally
pleasant. Most concerns are able to
finance themselves without extensive
recourse to bank credit. The Stupen-
douS floatation of new securities dur
ing 1927 has created demand for
labor and materials Increasing COM
petition from Europe has been off
set to certain extent by higher ex-
change rates.
Wall Street faces the future with
confidence.
Easy money rates resulting from
tremendous capital and moder-
ate recession in commercial demands
formed the basis for virtually an
unchecked rise in stock prices to new
high levels during 1927. Business
generally, however as reflected in
freight car loadings, automobile and
steel production and corporation
earnings, fell slightly below the 1926
figures.
From an economic standpoint one
of the most significant developments
of 1927, was the return of farm pros
perity, due to a gradual correction
OF the disparity between agricultural
and agricultural prices. The
Northwest, which produced the larg-
est Spring wheat crop since 1915, is
reported to be in the best condition
since the war
Crops Business
Crops were off to a bad start in
1927. Unreasonable weather in mid
summer aroused fears of a poor
wheat harvest, a disastrous short
age Of cotton and the smallest corn
crop in 25 years. So warm was the
weather in September and October,
however, that substantial part Of
the wheat and cotton crops, which
had been given up as lost blos-
somed into maturity. The Govern
ment estimate of the corn crop was
E raised 500,0OO,0OO bushels in Novem-
ber and the years corn output in
stead of being the smallest since
1908, surpassed that of 1925.
Several disturbances affected the
business. Disastrous floods last spring
wiped out millions of dollars in pro-
perty in the mississippi and Missouri
river valleys. Similar damage, was
caused in New England in the fall.
The soft coal industry suffered FROM
a miners strike, still in effect as
the year closed, although mediation
efforts were under way. Several in
dustries, particularly in the outomo-
tive field, were hard hit by the six
months shut down of the Ford plants.
Exchange
Europe's economic progress was RE-
flected in the return of sterling and
several continental currencieS to par
ity and the beginning Of arrange
ments for the stabilization Of the
French and italian currencieS, which
probably will be effected in 1928.
One difficult problem will be trans
fer of German reparation payments,
which reach their maximum under
the Dawes plan next fall. This prob
ably involves drastic changes in
Germany's financial policies, as
pointed out in the recent warming of
Agent General of Preparations Gilbert,
who urged restriction of foreign
loans to productive purposes and cur
tailment of unproductive domestic
expenditures.
AS 1927 closed, large exports of
gold went to Europe, India and
South America. They represented
only a small part of the supply in
this country, which roughly was es-
timated during the summer as about
one half the worlds total stock, but
nevertheless aroused considerable
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