The Washington times., 1936-12-28
1896 BEST YEAR
FOR BUSINESS
SINCE BOOM

SINCE BOOM
NEW YORK, Dec. 28.-Consid-
cred as a whole, the year 1896 has
been the most encouraging to
business since the advent of the
depression; and it closes with the
general prospect more favorable
than it has been at the end Of any
other recent year, states the Guar
anty Trust Company of New York
in the current issue Of the Guar
anty Survey, its monthly review
of business and finance, published
today.
The principal economic problem
that faces the country as it enters
1887 is that of possible over-eXpan'
sion in the field of money and
credit, the survey continues. If
the public finances can be promptly
placed on a sound basis, if the
problem Of credit control can be
satisfactorily solved and if eff.
fective cooperation can be main
tanned between Government and
business, the bank says that there
is ground for the confidence with
which business in general appar.
emily views the outlook for con-
tinued recovery.
It is pointed out that not only
has the general level of activity
during 1886 been the highest in
six years, but for the first time
since the begenning of the de.
preston the trend has been
strongly upward throughout the
year, with only minor interrup.
tionS.
Confidence Increased
Tangible increases in industrial
output and in trade volumes have
been accompanied by an equally
pronounced gain in business con-
fidence. Commodity prices have
increasing buoyancy. The survey
adds:
Zone of the striking and en-
cOuraging features of the years
business record has been the
progress shown by the durable
goods industries. This not only
has Swelled the total volume of
industrial output and employ
ment but has also contributed to
q better balance in the cOuntry'S
general economic structure. Par
ticularly favorable is the expan-
sion that has been reported in
recent months in residential
building, a branch of industry
that has been very severely af-
fected by the depression, has
been comparatively slow in re-
covering, and is believed to rep
resent, in greater degree than
any other single factor, the key
to a definite and satisfactory So
luton Of the unemployment
problem.
Unemployment, as far as can
be judged from the rather
meager statistical evidence, re-
mains at the end of the year, as
it was at the beginning, the
most crucial question facing the
country. This is true despite the
progress that has been made
during the year in increasing
employment"
COMMERCIAL" LOANS RISE
The principal developments in
the financial situation during the
year have been the large inflow of
gold, the continued expansion of
the public debt, and the increase
IN new security issues, the review
asserts. The commercial banks
have reported the same sort Of
changes in their condition as has
been the rule in recent years, with
one important difference. For the
first time since 1929, there has
been a substantial increase in
commercial" loans.
The government has continued
to play an important role in shap-
ing business and financial condi-
tions, it is obs rived. Large
amounts of public funds have
flowed into business channels as a
result of relief expenditures and
the payment of the veterans
bonus. Commenting on the in,
crease IN imports, the review adds
Foreign trade is among the
branches of business in which
recovery has been relatively slow.
This is not surprising in view of
the fact that political rather
than economic, con- ions
throughout the world have come
to constitute the main obstacle
to the restoration of normal in
ternatiOnal trade c h a nnelS.
Nevertheless, the foreign trade
Of the United States has shown
moderate expansion during the
year, particularly import trade.
The greater increase in imports
than in exports has brought the
cOuntry's merchandise trade
more closely into balance than
it has been in many years; in
fact, imports exceeded exports
in six Of the first 10 months of
1886. Although this development
has been viewed with some con-
Germ by those who fear the eff.
fects of increasing imports on
markets for the products of do
mestic industry, it is generally
recognized as a natural and, in
deed, inevitable feature of the
economic position Of a creditor
nation"
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Buffalo Livestock