Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-16
VITAL BUSINESS
FACTORS LISTED
Chief Elements in Present
Situation Summed Up by
Market Observers.

Special Dispatch to The Star.
NEW YORK, September 16.-Unfa.
vorable and favorable factors in this
business situation are summed up ir
the current bulletin of the Brookmirt
Economic Service. Although def1nite
signs Of general improvement are lack
ing, it is said. there is ground for be-
lief that the major portion OF depres-
sion both In the extent of the decline
and in the amount of time covered is
over. While the unfsvorable factors
are more impressive than the favorable
factors, Brcokmire feels that it is well
to note that the unfavorable situations
are more easily seen at the present
time. Just as the favorable factors OBJ
scured the bad at the top OF the busi-
ness boom two years ago.
UnfavorabIe Factors.
settlement of European affairs Is
needed to restore complete confidence.
Further liquidation of real estate
values, rents and labor is expected.
Horticultural purchasing power Is
low and is expected to continue so until
the 1892 harvest at best.
4-.Unemployment will probably be
AMY help the railroads may re-
reive from a possible increase in rates
will be moderate and the probability
that agitation to reduce wages will de-
yelop later is an unsettling factor.
reconstruction has not been thor
ourhly debated. This is particularly
true of the engineering types, includ-
Ing public works
THE immediate outlook for the
l. - acTlT
tn an expected continuance OF q low
rate of construction, reduced railway
bIvina. low volume of automobile OUT
nut the distressed state OF the farm
implement industry, etc.
Awhile inventories of manufactured
goods are low, raw material inventories
are burdensome and in many cases still
increasing.
9~Further bank failures may be ex-
pected. though the worst in this re-
spect is probably over.
Favorable Factors.
THE textile and shoe industries
have shown several months of improve
ment. although profits are stu small.
Improvement in these industries has
given considerable buying power to
great number of employees.
2--The rubber industry has improved
through next year.
3-The banking situation in general
is in an extraordinarily strong position.
4 Farmers of the South and South
west are not going hungry ana though
their cash crops are selling at low prices,
thew will enter 1882 with great deal
more hopefulneSs than they entered
this year This plays an important
part in their spending propensities, par
ticulsrly with slight improvement IN
actual buying power. Farmers. in gen
eral, are learning considerable in the
economies of farm operation.
S. Railway traffic is expected to con-
tinue small well into 1882, but the
various railroad arrangements have
learned a lot about economy, and once
the tide In trafic turns for the better
n1anv of the roads will show consider
able advantages from the experience OF
the depression.
6: we are Nation Of spenders and
cannot be quickly changed from this
habit, so that the increases in spending
in the initial Stages or recovery II past
experiences are any criterion, may be
expected to exceed the increases IN IN
come.
4. Deficits of manufactured products
are being built up. Evidences of i'm
provement In replacement demand have
already appeared In shoes, automobile
tires and textiles. A similar demand for
automobiles and other more expensive
products will eventually make an APP
pearance, with a widespread effect on
general business.