The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-11-03
BUSINESS SEEN
STILL ON RISE;
LEADERS CHARY
Executives Want Further
ReaSSuranceS on
Policies.
BY JULES BACKMAN AND
Al JACKSON

~
yies-Presidsnts. Economic Statistics. ins
An analysis Of the position Of in
dividuaI industries indicate that the
following are in a position which is
favorable-steel. automobiles, rub
Der. tires and tubes. silk. wool, news
print and coal. The industries OF
building. nonferrous metals, lumber
and cotton are in an uniavoraole
position. Such industries as hides
and leather and petroleum are IN
an uncertain position.
Most OF the factors outlined above
and IN the previous two articles
indicate that the situation is ia
vorable for business expansion.
What. then. warrants a cautious
attitude rather than one Of outright
optimism?
Some Factors Uncertain
Although the statistical position
Of industry is very favorable, num-
Der OF the intangible factors are
either urfavorable or uncertain.
Such factors are. The labor situa-
ton. including the problems OF hours
and the wages Of labor; the outlook
for MIRA price fixing provisions; the
outlook for the various production
control schemes Of the AAA; the
large number of miscellaneous acts
which are already on the statute
books and which may be used. such
as the Thomas amendment with its
tremendous base for imitation and
numerous other factors Of a similar
nature.
These factors are tending TO or
set the favorable picture outlined
above. In addition, the unsettle-
ment in Central Europe. the chaotic
condition Of Germany. the dlsrup-
ton in foreign exchanges (e. g, fur
Their depreciation Of the yen), the
precarious status of the gold bloc,
and international trade restrictions
~. T., tariffs. clearing systems.
quotas. etc). are all tending to i'm
pede an increase in our interna-
tional trade.
MaEadjustment Corrected
Summary-The maladjustment in
the price structure which existed
during the depression has been
largely corrected. Retail sales (con-
sumption goods continue to hold
ND relatively well and the increases
In purchasing power. plus govern
ment spending activities, indicate
that demand for consumers goods
will continue to be sustained. How
ever. the capital goods industries
continue to be unduly depressed.
Since a large number Of the I'M
employed are located in these IN
dustries. il seems evident that the
unemployment situation can not be
solved in the immediate future and
that as a result. relief expenditures
will have TO be continued. These
expenditures viii neceSSitate the
continuation of the unbalanced
budget.
With the exception of the I'M
balanced budget. the financial stu
alton is beginning to line up favor
ably and the conservatism expressed
By the President and his advisers in
recent talks is very encouraging.
Recall Shifts in Policy
However. the memories Of bust
ness men still recall the shifts in
policy which have characterized the
administration. and they will prob
3 bly, want further reaSSurances that
policies Will not again be shifted to
the left" A period during which
no important shifts in policy take
place will give business the encour-
agement to go ahead. Thus. al
though most of the statistical sig
nails are green" and say go
ahead" business men will continue
to be cautious.
We feel that in spite Of these fac
tors. business can continue 10 have
an upturn in the immediate future.
However, a complete and sustained
recovery can not take place until
the many problems which We have
mentioned in this series have been
solved.