Milford chronicle., 1937-11-12
ECONOMIC HICHLICHTS
happenings That Areet the Dinner
PsIis, Dividend Checks and Tax BILLS
Of Every Individual; National and
international Problems InsepsrsbIe
from Local Welfare

II A short time ago the New Yorl
Times index of business activel,
reached new recovery high, ans
stood at its maximum since Septem
Der. 1929. The figure reached wal
110.9, 100 equalling a Theoretical
normal. OF the many items contri
buting to the index, all rose but on,
-carloadings.
The other standard business bar
ometers show similar trend. The
recovery movement has been steady
and persistent, even in the face ol
many disquietIng factors. An ex-
ample of this is provided by electric
power output. AS rule, power use
decreases In the summer months
due TO longer days and recession
In Industrial operations. Yet this
year power sales increased.
The adjournment of Congress had
little effect either on the business
indexes or the sentiment Of business
leaders. Several reasons are re-
sponsible for this. For one thing, II
had been widely forecast for several
weeks that Congress would call 1t a
day at about the time 1t did, so ad-
journment was no surprise. For an
other, the tendency of Congress, dur
ing the last half at least, was to re-
sist experimental legislation and to
either vote 1t down or to defer 1t un-
til next session. So business had a
breathing spell. Lastly, the resur-
gence of congressional independence
and it's 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, likewise
had practically no effect on business.
II was anticipated that the President
would appoint someone 100 per cent
in accord with hi sviews. And there
is a belief. pointed out recently by
most<of the Washington columnists,
that once a man is placed in a po-
sition of great trust and responsible
ity where he no longer is dependent
on pleasing the voters to hold office,
his attitude toward legal and public
questions often undergoes consider
able change.
Business briefs Of interest follow:
Cost of Living: In July, says the
National Industrial Conference
Board, the long and steady rise In
cost 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
public's desire for new cars Is far
from satiated. There will be a de-
cline in production soon, due to
manufacturers preparing for the
1898 models to be introduced this
fall. Next years cars will cost more.
Major producers have already upped
prices, will doubtless increase them
again, and independents are follow
ing suit.
CONSTRUCTION: Public con- !
struction is declining; private con-
struction rising. Building materials !
rise in price. In this connection a
survey made by Purdue University is
of interest-it indicates that the all
wood house is the cheapest to build
of all types.
STEEL: Production recently drop
ped fractionally, but II is forecast
that 1t will soon rise again. Expan-
sion of heavy industry means vast
steel orders.
RAILROADS.: Are now embroiled
in labor difficulties. due to demands
Tor substantial wage increases by
operating employees. Business con-
tinues at good level, when seasonal
are taken into ac-
count. Heavy buying OF new equip
nent by many lines is anticipated
or fall and winter.
SECURITIES: Stock market ac-
ivity has been relatively slight.
Bond prices recently dropped seri-
,usly. The Federal Reserve has re-
Iuced discount rates to spur bond
alues.
FOREIGN TRADE: Under the new
act, the President can cut
If trade with any foreign power in
olved in war. But today wars, such
s the Sino-Japanese conflict, are
and as a result our trade
nth belligerents continue. Japan,
ne of the heaviest buyers of u. S.
crap iron in recent years. Is now
uying new steel on a big scale, as
can be more rapidly made into war
China is likewise major
ustomer of materials that are di-
pctly and indirectly essential to
'ar. Foreign trade in general tends
, rise slowly.
The United States News has COM
lied the record of the last three G
Dngresses in enacting major laws. I
/ shows that the legislators are no J
there near as eager as they used to !
e to put new laws on the books.
The 73rd Congress (1933-34) pass 1
d 27 new major laws, including the 7
IRA. AAA, iva, SEC, and A impor-
ant monetary acts. The 74th Con- I
ress (1935-36) passed 10 major
avs, including the social security y
ct, a revision of banking legislation
the National Labor Relations Act
nd farm aid acts.
The last session passed but 6 ma 8
Or laws. And some of these-such e
5 the law to plug loopholes in the
icome tax-were' practically uni
ersally supported. =
j.
ss PER CENT SOLVENT