The Waterbury Democrat., 1934-06-16
Business Conditions
 Reasonably Sound
Expectation of Rising Prices Has Resulted in Forward Buying in Some Lines-Slight Uncertainty Follows

that have been taken tO expand currency and credit have by no mennr satisfied those who believe that econoHtc salvation iics in the direction of monetary Imitation,
 There is undoubtedly a rnthor prevalent tendency to exaggeraie the immediate dangers inherent .n these conditions. After moro thmn four years or severe depression, It iB not strnngo that many business mon should take an unduly doubt. ful view of tho situation ns n whole. To certain extent, their attitude arises from the unDrece. dentcd nature of tho present eco. homie background, rather than from any domOnstrnble wcnknespeB In it, At the sn nme time, curront de. volOpmeDts nt Washington md elscwhe indicate that the misgIy. inBH' Of business men nro by no means entirely unfOunded, More- over, even Vnguo npprehenHIonH should not Do belittiod aB factors in the outlook. Business hns novor thrIvcd on uncertainty; and, nt n time when confidence iH naturally low after n long period Of severe depression, doHRtiOn, and IIquida. ton, tho effects of unaettIIng in. hucnces are particularly unfOriun. ate,
 The trend Of general buglnonS activity is somewhat uncertain, Tho irregular hdvnnco thnt continued through the first three months Of tho yenr seems 10 have halted, for inc time being at lcDst, and cur. tailmont haH been visible in B0mo directions, although this tendency bns not beaD sufficiently sustained or widespread Co constitute n Eun. crnl recessIOn. The down ward movement hns perhaps boon most noticeable in the automobile in. duBtry whore bOm0 producers hnvQ Peneh0d the conclusion that earlier estimates Of G0nBunlcrB' demand were too high and have reduced their scale of operations RccOrd lngly, ThIs HgtiOn has, in turn, hf. feGted ths outlook for tho steel In- duBtry, RB well aB several other branches Of manufacture thnt do- pend on automobile production for m important section Of their mar kctB. Tho bitumin0uB coal Industry hng alH0 reduced itH output, after bhnrp Hpourt in March duo 10 fenr of IRbOr disturbances and ne. tive buying iD anticipation Of high. or prices,
 In most other lines, Inc tendency thUB for Hooms t0 Do one Of Ioyellng off nt approximately tho rntG reached nl the end of tho nfat quarter Of Inc yenr. Tho Guaranty Trust Gompnny's index Of busincbn activity for April Sinnds nt q pr"' IIminDPy figure of 732 showing Il fractional rccesHIon from ihc March ngrc, due principally iO tho decrcDHe in bItuminOUH coal pr0s dUCiIOn,
 Improvement is visible in sey. orni directions, Corporate dividend notions In pocont weeks have been generally Of h favorable Dnlnrn, Earnings reports for tho first aunf' ter of the yenr show q very pro. nOuDCsd tendency toward better. ment, Business failures In Aprll were, with ono exception, tcWof ibAn in any other month ln f0ur' teen years, ItnIlwGy earnings ln March continued Go reflect the im' prOVcment in operating conditions int had beon shown in preceding months, with net opera Ing Income for tho month nearly twice nB Rre1t ns that in March, lD33. Depart. mont store snIos, with allowance fOp the usual seasonal chnngos, were mniDtnlBed InBt month 1t hD. prOKIm1toIy tho March level hnh showed q gnin of b per cent over the figure for h yenr hg0'