Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1929-01-01

the cost OF financing ney works, and
lower rentals in many cities, also
are adverse factors in the building
federal government building pro-
gram, particularly the Mississippi
river reclamation project, the Boul-
der canyon development, the large
construction projects incidental to
the expansion in public utilities and
the big scale operations planned for
metropolitan centers, will keep build
ing activity ct a high rate next year.
Commodity markets are believed
to be free Of speculative price in
flation. and. with few exceptions,
there is . marked absence Of restric-
tions or artificial control. Prompt
railroad deliveries are reported to
have released billions Of dollars in
credit formerly tied up in inven-
tories.
The National Industrial Confer
eEce Board reports that wages are at
the highest levels since 1920. Con-
tinuance Of the high level in the face
Of lower commodity prices reflects
the increased efficiency of industry
which has made possible the lower
ing of production costs have increas-
ed the surplus and savings OF the
average man and helped to improve
his standard Of living. This IN turn
has created n demand for new and
better things.
Insurance Bcoms
Some time during 1929 the life in
surance business is expected tn pass
the epochal figure Of 500, 900 ,000. 00C
Of life insurance in force. New bus
mess next year is exnected to run
close to $4,000, Zoo, o00.
The tendency towards mergers.
with the object o. reducing overhead
and other expenses and lowering
sales costs was particularly marked
during 1928. Several new combina-
tons were reported in the oil. auto
motive, chemical, public utility and
mining industries, n well as the
amusement, merchandising and chain
store fields.
Large production or sales with
small unit profit has tended toward
decreasing the cost of most manu-
featured commodities nd many lines
Of merchandise, making it increas-
ingly difficult for small factories
and stories to compete with mass
production and chsin store sales. In.
stallment selling continues to be q
big factor in many lines OF business
but the risks appear to have been
reduced through careful investiga-
tion and effective accounting
methods.
Every known trading record WAS
broken by the stock market this year
making the "war bride" boom OF
1867 and the ~"inflation" boom oil
1890 insignificant in comparison
Only two breaks marred the mp
swing in prices. one in June and the
Their in early December, the latter be.
ing one Of the shortest and most vic.
lent on record. Business apparently
withstood successfully both resc,
tions. which had the good effect
of releasing speculative funds fol
commercial purposes.
Several reasons have been ad,
vanced for the wild advance in Sc,
curities prices. A succession o.
prosperous years enabled many in,
dividuals and corporations to pay
up theid debts and to set aside sub.
stantisl reserve funds which have
been invested in securities. Organ
izatiton Of hundreds OF investment
trusts has taken billions of dollar,
in securities out of the market, re
ducing the floating supply Of the
high grade issues and making them
easier to manipulate by professional
pools"
Other Factors
Other factors include the grow,
ing tendency toward the substitu
ton, in whole or in part. Of higf
grade comon stocks instead of bond
as long term Investments; the in
crease plans and customer ownership
campaigns, which also have helpe,
to create a new army Of investors
extension 70 practically ell the lead