The Omaha guide., 1937-09-22
Economic Review

us maximum since ~oepLeHlpSf,
1920. The figure reached was 1909,
100 equalling a theoretical normal.
OF the many items contributing to
the index, al rose but one-car-
loadings.
The other standard business bar
ometers show a similar trend. The
recovery movement has been
steady and persistent even in the
face of many disquieting faeto-
An example of this is provided by
electric output. As a rule, power
use decreases in the summer mon
tbs, due to longer days and re-
cession in industrial operations.
Yet shis year power sales in reesed
The adjournment of Congress
had little effect either on the bust
ness indexes or the sentiment of
business leaders. Several reasons
are responsible for this. For one
thing, it had been widely forecas
for several weeks THAT Congre s
would call it a day at about the
time it did, SO adjournment was no
surprise. For another, the tendency
Of Congress during the last half
at least, was to resist experimental
legislation and to either vote il
down or to defer it until next ses-
sion. So business had a breathing
spell. lastly, the resurgence of
congressional independence, and
its refusal to accept dictation from
the executive branch, is viewed
with strong approval by industrial
leaders.
The nomination of Senator Black
one of the strongest New Deal so
Ions, to the Supreme Court, like
wise had practically no effect on
business. 1t was anticipated that
the President would appoint some
one 100 per cent in accord with his
views. And there is placed in a
position of great trust and res
possibility where he no longer is de
pendent on pleasing the voters to
hold office, his attitude toward le-
/ gal and public questions ~undergoes
considerable change.
Business briefs of interest fol
low;
Cost of Living: In July, says the
National Industrial Conference
Board, the long and steady rise in
co t Of living stopped. Principal
item registering a decline was food.
which now costs 10 per cent less
than in 1929.
Automobiles; July sales were
greater than June, and August
sales held to high levels, proving
that the publicis desire for new
cars is far from satiated. There
will be a decline in production soon,
due to manufacturers preparing
for the 1888 models to be intro
duced this fall. Next years cars
will cost more. Major producers
have already upped prices, will
doubtless increase them again, and
Independents are following suit.
Construction: Public construc-
ton Is declining; private contruc-
ton rising. Building materials rise
in price. In this connection a survey
made by Purdue university is of
nterest--it indicates that the all
wood house is the cheapest to tuild
of all types.
Steel; Production recently drop
ped fractionally, but it is forecast
that il will soon rise again. Expan-
sion of heavy industry e vast
steel orders.
Railroads: Are now embroiled in
labor difficulties, due to demand
for substantial wage increases by
operating employees. Business con-
%tinues at a good level, when sea
sonal considerations are taken into
account. Heavy buying of new
equipment by many lines is anti
cipated for fall and winter.
Securities: Stock market activ-
ity has been relatively slight. Bond
prices recently dropped seriously.
The Federal Reserve has reduced
discount rates TO spur bond values.
Foreign Trade: Under the new
neutrality act, the President can
cut off trade with any foreign po-
wer involved in war. But today
wars, such as the Sino-Japanese
conflict, r undeclared, and rs a
result our trade with belligerents
continue. Japan, one of the heaviest
buyers of u, S. scrap iron in re-
cent years, is now buying new