Milford chronicle., 1936-08-28
ECONOMIC HICHLICHTS
Happenings That Alfect Dinner Pals.
Dividend Checks and Tax Bills
Of Every individual

"All the dire predictions Of
! slump in business activity thil
I summer have gone BY the boards.
= Backlogs in most industries are suf.
I fciently large to insure a good pace
} right through the third quarter, nor
L mally the quiet months Of the year
Most producers are more concerned
about getting out business already
booked than about any lag in new
orders. This is particularly true in
steel. machine tolls, and rayon."
So reports authoritative Business
Week, whose business Indicator is
now about twelve points higher than
II was a year ago. The rest of the
business magazines are pretty gem
orally in agreement, though some
seem to feel that trouble is brewing,
and that in the next year or two a
major slump is going to take place.
Irrespective of that, 1t appears that
past seasonal experience means
nothing under current conditions. In
mid-August, when this is written.
industries that should be going tenn
pOrarily backward, even III normal
times, are forging ahead-and in
dustries that should be holding their
own or making a little progress. are.
by comparison with the years since
1880, booming.
A brief survey of current business
follows:
RAILROADS: This long-depressed
industry's experience for the first
half Of the year was the best for
any comparable period since 1881.
though 1t sustained a net loss. Last
half experience, according to all
forecasts, will be betteT-the indus
try will at least break even, and
may show a small net profit after
payment of fixed charges.
POWER: Consumption has held to
very high level during the sum-
mer. Best guessers say that new all
Time records will be established this
Iall and winter, and that the indus
ry will be forced to adopt ambitious
expansion plans in order to cope
With new demand. The Governments
lower program is naturally wOrri-
ome TO the private industry, and, !
according to utility spokesmen. is !
folding back development.
COTTON: This industry faces a U
lajor questiOn-mark-the new crop,
which started to market in August.
J free from governmental control
Dr. the first time in many years. u !
rices are no longer arbitrarily fix :!
d. In general, the outlook for the u
rOp is relatively good, though any v
ling may happen. u q
AGRICULTURE: It seems to be a .,
lct that the 1886 drought was one -
the worst in history-and was far =,
ore destructive to most crops than =, =,
zen the great drought of 1884. Far -
ers in the afflicted section will ma III
rally face great hardship, and ~
any of them have been wiped out. ~
armers in sections free from ~,
ought will prosper. The total cash mr.
rm income will undoubtedly be IN,
CHER this year than il was in 1885. 40
RETAIL TRADE: Is holding up An
sll during the summer, and is look m,
g forward TO the best fall business br
ice depression set in. st,
CONSTRUCTION: Is gradually inn ba
owing. Commercial construction is ms
the best level in several years.
sidential construction is still at a 4
ebb, but builders are more or
is optimistic concerning fall pros
cts.
AUTOMOBILE: This indefatigable
Iustry seems to have no saturation
mt. is now busy with 1887 models.
eresting angle is reported by
siness Week, which says that mo-
companies are watching the de-
opment of the house-trailer in
;try with considerable interest.
ere is an unprecedented demand
these trailers, which are built by
all companies, no big industry
ing yet entered the field. Some
tors executives feel that this pre-
is a great opportunity to their
lstry, and in the future the show
ms of the big car markets may Of
trailers to go along with the au-
obiles.
TEEL: This extremely important
lstry is at high production lev
with fall outlook gOOd-barring
1r trouble. The effort Of Presi-
I Lewis of the United Mine
rkeTs to uniOnize traditionally
n-shop steel will naturally have
tal effect on the industry. u
nd so it goes, throughout the
mess picture. Commentators are -
'ulating frenziedly on what eff
industrial conditions will have
he Presidential race. They point
that no President has ever been
ated in a time of strong indus
Improvement. And they also
It out that no President has ever
elected in the face of practi-
unanimous opposition of busi-
leaders-a position President
sevelt is now in. One precedent
ping to be violated this Novem-
business improves, the work.
pay envelope grows fatter.
long list Of companies have in
rated pay raises so far this