Milford chronicle., 1937-11-19
ECONOMIC HIGHLICHTS
Happenings That Afreet the Dinner
Pals, Dividend Checks and Tax Ellis
of Every Individual; National and
international Problems inseparable
from Local Welfare

international Problems lnseparable
. from Local Welfare
The clyclonic disturbance in tbs
stock market has detracted atten.
ton from business production an6
activity indices. A security collapse
that, at the bottom, wiped out values
: to the tune of some $25,000,0 100000
has been far and away the major do
mestic occurrence of 1887. At this
writing, a majority of economists
seem convinced that the worst of the
debacle is over. A very large pro-
portion of margin dealers were wiped
out in the break. AS Business Week
puts it, There is a limit to every
downward spiral, and that limit
seems to have been approached in
the present situation"
So far as industrial production is
concerned, there has been a sub
stantial drop-but the drop was no.
where near as severe as the drop in
stocks. In two months, shares as a
whole went down 3S per cent, de-
clining to the late 1885 level, though
not to the lows of 1882. In the same
period, business activity dropped a
little over per cent.
A few ndustries-notably steel
will not, in all probability, recover
much of their recent losses in pro-
duction for a considerable length or
time. Most industries, however, hope
for a good winter and spring busi-
ness. The prediction is that this
years Christmas buying will hold
up we'll.
Some specific business information
of interest follows:
COMMODITIES: Dropped in value
along with securities, but to a much
lesser extent. Belief is that the trend
in the future will be slowly upward.
POWER AND LIGHT: America is
constantly becoming more complete
ly electrified with the utility indus
trys output holding to high level.
New power production records have
been constantly recorded. The in
dustrys net earnings. however, re-
main at practically the 1882 level.
due to greatly increased taxes and
higher fuel and material costs. Its
political troubles, such as Federal
competition. have not been abated,
and retard its normal development.
RETAIL TRADE: Has held to a
high level throughout the country.
substantially SURPRISING the same
period in 1886. Slightest improve
ment-3 per cent-has occurred in
New York. Agricultural buying is
heavy.
CONSTRUCTION: The rise in
costs has at least temporar-
lily stopped. AS result, contracts
let have been rising.
COTTON: This seasons exports |
have been about 10 per cent ahead !
of last seasons. Domestic consump- |
ton has been satisfactory. though |
not startling. Raw cotton prices have |
been firm.
AGRICULTURE: The farmers |
cash income this year will be the
largest in many years, and may |
touch 0,000,O00,000. The special
session of Congress has been called
to consider additional farm-aid laws
of a permanent rather than an emer-
gency nature. Thus, farmers as
whole are in an unusually happy po-
sition.
LABOR: The peace negotiations
between the A. F. of l.. and the c. l.
D. have, as was anticipated, apparent
" broken down completely. Further
nter-labor warfare thus seems in
Also inevitable seems more
abor demands for higher wages and
,r shorter hours. to be supported by
strikes if employers refuse.
AUTOMOBILES: 1t is impossible
% exaggerate the Importance OF this
which accounts for nearly
Is per cent of the national income.
The 1888 cars are out, and are little
from last years, with the
exception of one or two makes. Many
minor. but few major improvements
AVE been made. Prices are higher.
'he prediction is for a 1888 sales re-
ord which will equal or surpass
937. Unit profits may also be larger
nasmuch as increases in the retail
elling prices of most cars are a tri-
e greater than the increases in man
featuring costs. Independents" I
lay make some inroads into the big
hree" but they will be Insignificant.
ccording to observers, and General
Iotors, Chrysler and Ford will be
ne big sellers.
PRICES: Recent deflatationary
vents have caused a downward trend
1 retail prices. especially foods.
increased consumption is the result.
his is especially noticeable in the 9
leat field - zooming prices had s
rought about consumer strikes in :
lany areas.
A short time ago this column COM