The border vidette., 1933-08-19
ECONOMIC HlGHLiGHTS
August Ia, 1888

! August IA. 1888
Profits! Industry has been 60.
ing along for three and one half
years practically without them.
This month there has been a
turn. Companies which have
been running constantly in the
red are furnishing q market for
black ink. Investors who have
become used to going without
dividends are looking forward to
the temperance of quarterly or
semi-annual checks.
Here is how improved business
is reflected in the balance sheets
of some specific large companies:
Chrysler Corporation-In the
June quarter, net equaled 81 80
q share. totaling So. 80, 900. This
is within % per cent of the CON
pany's record, achieved in the
booming third quarter of 1923.
U. S. Steel-Twelve months
ago it reported an operating loss
of more than So, 100000. 10 the
last three months ago it had .
profit of 81, $50, 900.
General Motors-Last year it
bad second quarter profits of z
cents q share; this year is report
ed a net OF 80 cents q share.
u. S. Industrial Aicohol-Pro-
Cts in first half of 1882 came to
$4,000: same period in 1888,
1929, 900.
All businesses haven't had an
equally happy quarter or half
year. But the general trend of
profits is definitely upward. Most
important of all is sharp impro
vement in the earnings of small
businesses whose fortunes don't
constitute headline news. They
represent the bulk of American
capital investment. and their
position is great deal more
solid than it was even q month
OF two ago.
| There is. q black spot in the in
|dustrial outlook - retail trade.
which is still in an extremely de
pressed state. Best fact of all is
that the upturn has been in pro
gress, for four months without q
setback. The most stable baro
meters carloadings, electric
power, steel output - indicate
continued Improvement. During
June there was an 18 per cent
increase in man hours worked
in manufacturing plants, as com
pared with May. Wage totals
showed ten per cent jump.
while cost of living went up less
than one per cent. So far. pur
chasing power is advancing
much more rapidly than prices.
Welfare agencies ia most cities
reported that request for relief
are we'll below former levels. A
remarkable feature of recovery
is that Improvement has been
largely apparent in heavy indus
tries. According to the Federal
Reserve Board, this is the first
time that pickup has not been
almost wholly confined to indus
tries producing non durable
goods.
The administration has one
major worry now-the poor re
suits of the farm bill. The mort
gage situation is more tense than
it was, and it is apparent that
present legislation is either mis-
directed or in adequate. All OBJ
servers forecast that the act will
be given q through overhaling
when Congress meets again.
A few months ago the most
talked about subject Of them
all was Initiation. Then it
practically dropped out of the
days news. The President had
been given the powers wanted,
and nothing drastic happened
1t looked as il they wouldn't be
used after all.
Now imitation is preparing to
take its place in the headlines
again. The Aministration's de
sire for a managed dollar" has
not abated; it was simply shelv
ed for q time while other and
more pressing matters were be
ing handled. A managed dollar
is one which. in terms of buying
power, does not deviate in value;
it will buy as many eggs, auto
mobiles, suits of clothes and
what not one year as the next
Our present kind of dollar is con