Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-21
BUSINESS SIGNS Ia
|. CALLED BRIGHTER
Chicago Bank Officials Say
Gloom Has Been Carried
Considerably Too Far.
Special Dispatch to The star.

SpeClaA OlSpalCn 70 Inc star.
CHICAGO, october 2i-Despite the
fact that 1t Is clearly seen that business.
recovery viii be slow, business senti-
ment is more depressed than actual
conditions warrant. in the opinion Of
the Business Observer, monthly review
Of the Foreman-State National Bank.
The Business Observer points out
many hopeful signs in the present sit
uation. 1t makes a comparison between
the present depression and that Of
1921, taking nine indiceS as a guide.
and expresses the belief that the pro-
nounced upswing in the business curve
cannot be expected before the first /,
quarter of 1881.
Some Better Signs. e.
Regarding the present situation the
publication says:
october statistics make somewhat
better reading than October sentiment.
This has been the case now for two
consecutive months. In September the
figures on commodity prices revealed
firmneSS that had not been present for
over year. and yet business sentiment
turned downward with the stock mar
ket. This month we have additional as
surance because commodities have
maintained comparative flrmness for
another 30 days. Also, a clear ma iority
OF our business indices registered sea-
sonal improvement, or better between
August and September
Business sentiment, nevertheless Is
more depressed now than when the bot
tom was not In sight Stock market
prices have broken the lows of last
November. The best explanation seems
TO be that business has heretofore re-
IuSeo 70 believe we we're in q major
depression and SPECTATORS until now
have secuted the idea OF q slow re-
covery
'The Streets habit Of accepting steel
operations and automobile production
as the truest gauges Of business condi-
tons has been unfortunate this Fall for
the morale OF business. Steel is now
So per cent and auto production 90 per
cent below the average of the last five
years for this season, with each Of them
registering definitely lower than q
weighted composite index of production,
which should certainly reflect present
levels Of activity better than either Of
them.
Employment Improves.
Employment figures for September
showed slightly more than the usual
seasonal rise for August--an improve
ment Of about per cent. This gain was
recorded in New York and for the
country as whole, in spite of regret
table reductions by large-scale employ
ers at numerous points"
The Business Observer looks with sat-
isfaction upon the banding together Of
business agencies, leading industrialistS
and bankers with social welfare organi-
cations for the purpose of getting UNI
employment in hand and in order to
strengthen purchasing power along con-
structlve economic rather than philan-
thropic lines wherever possible.
Stocks of manufactured goods are
being reduced, and the Business OBJ
server notes: Consumption has been
exceeding production by a significant
margin for at least six months. Short
ages have been developing, and we are
beginning to sense some OF them in cur
rent figures"
Among the, other hopeful signs noted
are the Improvement In residence con-
struction, better than seasonal gain
IN cotton and silk industries In the East
and fairly good showing made by flour
milling. Business failures are the most
distressing factor, although they evil
dence q reduced resistance to- liuuida.
tion," the review says -