The Waterbury Democrat., 1934-07-28
Business Better The
 First Half OF 1894
Some RecessiOns From Spring Peak Noted But Down.
 ward Movement Not as Marked as Before

default on the June IS war-debt installment and the German mora torium on all foreign indebted ness have their unfavorable impli- cations.
 Against such adverse influences, however, must be weighed numer- ous factors of an encouragirg nature Most important is the ac- cumulating evidence that world- wide economic conditions are slow ly but surely working toward re- coverycovery, despite all the poli- tical unsettlemcnt, the social un- rest, and the trade barriers that tend to restrain normal recupeta- tive forces. Almost equally hearten- ing to American business men is the fact that congress has adjuorn- cd without having enacted some of the proposed legislation most of completed bills that includes feared by business and with a list some of distinctly helpful nature. Under tho modified securities act, in particular, it is hoped that the market for new capital issues will gradually revive during the next few months. The labor situation has improved considerably with the IlN OlidllCt Ut LII NeAlCilNb Sti lAN' i'' the steel and textile industries. while the crop outlook is better than appeared likely a few weeks ago.
 On the whole. it seems reason able to expect further moderate re- cession in general business activ- ity during the summer, in line with seasonal tendencies: but such q development need not be regard ed as constituting permanent setback.
 Various indicators show that business has been very slow in re- spending to the seasonal influences that ordinarily result in curtaii- ment at this time of year. Op- erations in the steel industry have been exceptionally well maintained although this situation is probably due, in part at least, to forward buying in anticipation of possi- ble strike and O! higher prices for ird-quarter contracts. The move ment of railway freight has de- clined only slightly, and the same is true of commercial check pay ments as measured by bank debits to individual accounts outside of New Iory City.
 Electric power production, with allowance for seasonal variation. has risen to a new high level for the year to date. Although compar- isons with last years figures have become increasingly unfavorablc, such comparisons are misleading, inasmuch as the spring and early summer of 1883 was a period Of very rapid expansion. The automo- bile industry has not regained the operating levels of early spring but has shown no further recession in the last few weeks. Activity in the construction industry has receded somewhat but is still considerably higher than year ago. Depart ment-storeS sales reported to the Federal Reserve Board for May showed less than the usual season. al incresae over the April total but were 12 per cent larger than that reported for May. 1883.
 Further slight increases in en- ployment and payrolls are reported by the Department of Labor in it's report for May In the S0,072 establishments covered, it is esti- mated that 6,4O0 workers were re- lUIHSu lO tIIi DlOS lIlCiIl anu 'llttt weekly payrolls totaled $31S,7O0.- GOO, showing a fain of $2 ,463,000 over the April figure. The increase in employment, while small. takes on added significance from the fact that it is contrary to the uusal seasonal movement. Only four times in the last fifteen years has to May. Forty-eight of the ninety employment increased from April industries surveyed reported in creases in employment last month while gains in payrolls occurred in fifty-one industries. A gain of 2.3 per cent in employment in the dur able goods industries is regarded as particularly encouraging.