The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-09-08
Member Of Audit Bureau OF
Circulation
(Official City, State and County
Newspaper
Business Trends


Business Trends
Students of economics are analyz-
ing business conditions carefully IN
hopes that lurking around the corner
is Fall revival. They point to sew
eral factors that should induce bust
ness squirt. Among them are the fol-
lowing:
Seasonable influences which nor
mally tend to stimulate business;
trend of commodity prices; depleted
stocks; the gold situation and revival
in some European quarters.
The seasonal influences throughout
the Northwest have been affected ma
terially by tendency on the part OF
the farmers to hold their crops for
rise in the market. This has been
reflected in car loadings which are
below what can be reasonably ex-
pected at this season of the year.
AS for commodity prices, the fed
eral Labor Bureau indicates that for
764 commodities there was slight
advance which seems to be main
tanned for the most part. These COM
modities demand the highest price
since April.
Merchants have been buying con-
servatively, because consumers have
been reluctant to purchase on nor
NAL scale. Railroads, usually in the
market at midsummer for great
quantities of supplies, have purchased
very closely. It is believed that the
railroads will be in the market before
long with larger equipment orders.
Commodity stocks therefore are at
the lowest point in the period Of the
depression which began in 1929. Sea-
sonable buying, 1t is anticipated, will
be greater than in past years because
Of depleted inventories.
Another factor in the business pic
ture, of course, is the movement of
gold. Flow of gold to Europe from
the United States at the time Of the
depression in 1929 started currency
boarding. People feared the stability
Of the nations financial structure. It
was heard on all sides that this coun-
try would be forced off the gold stand
ard. These fears have not been JUS
titled. Some of the millions boarded
have returned to circulation again.
The run on gold has ceased and there
has been flow back to this country.
european investors, realizing that our
stocks and bonds were far lower in
price than was justified, have begun
purchasing them for investment. The
transactions have not been numerous
enough to start a furry OF great pro-
portions but the trend is hopeful, any
way.
Since June IS, 1892, there has been
net gain in the inflow Of gold of
some lit millions.
AS lar as Europe is concerned, Ger
many's success in reducing her repair
ations obligations SO that she now
owes about one cent on the dollar
compared to what was assessed against
her originally, has been helpful. BY
application Of shrewd diplomacy she
is making drive against other ar
ttcles In the Versailles treaty. Eco
nomic revival Of Germany viii mean
much to this nation as well as to
Europe.
England has been able to convert
her national debt so that there is an
annual interest saving OF many mil
lions. It indicates two things. credit
available and q confidence in Great
Britain's ability to weather the finan-
cial storm.
What still darkens the world COM
mercial picture are the competitive
tariffs Of this and other nations. II
is a highly complicated situation and
one with which 1t Is difficult to cope
Tariff restrictions prevent marketing
Of surpluses and that Of course i'm.
pedes payment Of foreign debts.
Also into the picture comes eight
million Of unemployed in this nation
Some place it as high as ten million
Add to that the millions on the dol,
IN Europe and It Is not hard to est
mate the sharp curtailment in tn,
worlds purchasing power.
There has been sllght bettermen
IN the unemployment situation an,
efforts are being made for bette
distribution Of jobs through the adop
ton Of = shorter work day and week
! This should have been done at tn
outset Of the unemployment period
Many industries have done It withou
political pressure. The practice shoult
- more general. Most fair minded