New Britain herald., 1930-04-14
Dull Business Season Is Held To Be But Normal Reaction of
 Vigorous Speculative Imitation
Motor Industry Proves Re- sourceful Despite Over- Expansion Experienced During Past Year.
BY w. H. MOOREHOUSE

New York, April IA (UP)-Will the period of recuperation be a long drawn out affair? To this question the pessimistic observer would quick ly answer Yes" The optimistic en- thusiast would readily respond with an emphatic No" It would be far more expedient therefore to offer this compromise-it all depends upon the many inter-related factors of which construction, the automo- tive industry, money and credit, and the stock market are the more im- portant.
 In view of what has happened during the past few months let us see how far we have gone and what business prospects really are.
 After such vigorous speculation and lnfatlon as was experienced throughout 1929. a resting period was not only natural but decidedly essential. 1t was to be expected that there would be many months when business activity would con- tinue below the normal trend. Tow ever, the chayacteristic which i'm presses me most is that the read justment in business has been pro- ceeding in an orderly way.
 Plan For Future
 These periods of resting are the times when business leaders get back to their own tasks, when exc cutives do more sober and real thinking, and when the basis is laid for further sound developments.
 At present, public bodies are talk ing the initiative in launching inn portant building and highway con- struction projects, Cheap money is stimulating these plans. The easing in money and the public undertak- ings, in turn. will encourage private business to expand operations.
 The motor industry presents many complex problems. Notwith- standing over-expansion in 1920, which is undergoing most severe readjustment, this industry has proven itself to be one of the most resourceful
 For the immediate present, a y the sincere effort now being made to eliminate wasteful over -produc- ton. The current reduction in in vcntories also is a long step in the right direction. While the automo- tive operations so far this year are considerably below the volume Of the comparable period of a year hN ir,l, et, !, I, stantial recovery.
 Market Has Recovered
 The decline in the stock mark ct last fall brought a wave of uncer- tainty which has since existed. IL also temporarily impaired buying power. To some extent. these con- dtions have been rectified by the strong recovery in the market.
 During the first quarter of 1aS0 the action of the stock market has been most encouraging to investors who did not add to the hysteria Of last fall by sacrificing their soun ] securities, One of the favora ble signs of the present financial con- dition is that out of about 2no0 securities less than S per cent fail ed in dividend obligations while in- Nestor- partners in over 1 1 per cent of these received extra or increase l dividend.
 Today, two questions confront business and industry. Will there be a. further recession? Or will business and industry experience an extended "zigzag" movement con- tinuing through the summer? Either is possible. But it is safe 10 assume that before the close of the year. which will be a sub-normal one. business and industry will again be moving upward.