The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1937-06-28
ECONOMIC
HIGHLIGHTS
Happenings That Affect the DIM
rer Pails. Dividend Cheeks and
Tax Bills Of Every Individual
National and International
Problems indispensable
From Local Welfare
Observation-Disclosures

issssssssessssssssessssee
i Today the business outlook Is
curiously mixed. On the unfavor-
able side, the strike sitiation grows
steadily more tense, even as in
dividual strikes are growing
! bloody and embittered, and trou-
lbles such as those now being ex-
perienced by the independent
steel companies may be felt in 9TH
err important industries before the
years end. On top of this Con-
gress is considering or about 70
consider a number Of legislative
proposals-ranging ali the way
from a new and more stringent
ssNRA" to creation of a gigantic,
Federally-owned super-power sys-
ten-whieh are anathema to a.
business leaders. And there is .
good chance that taxes viii be
materially increased for 1888.
Even so, the strength of the
recovery acknowledgement in
rising incomes, and an almost in
satiabIe public desire for commo-
dities OF ali kinds-is so great
that practically all of the estab-
lished forecaztng services are
buliish. Thus, in recent weeks,
the Alexander Hamilton servic.
has said, ssThe world is in the
boom phase of the business cycle
Babson believes that 'sgains over
= year ago should continue to be
well maintained" Rro0klnire an
iticipates that renewed recovery
should Tciiow the summer ial. !"
Gibson says, "No major detline 5
in prospect <or the summer
months Poor's foresces "some
recession during the near term,
but nothing severe. Summing up
opinion, United BUSINESS Service
observes that present indications
/ point to a moderate letdown in
activity over the next few asoR:hs,
although business in the aggregate
should hold above year aga
So far as specific elements in
the industrial picture are concern
ed. the commentators agree fair
/ ly well. Most of them think that
bond prices viii be either STABILIZE
ed at current leve,s, or may 60
down slightly due to higher inter
est rates. Stocks are definitely IT.
regular, with the recent trend
downward, but neither material
advances nor reeessions are an
ticipated. There viii be little
variance in commodity prices gen
orally during the next few months,
with a possible rise coming in the
fall. Summer trade in al lines
seasonal factors considered, VII
be good, and better than in 1886.
Foreign trade should start upward
but it viii be a long time before
pre-depression levels are again
reached. A war in Europe would
revolutionize the outlook IN this
field, brit few believe that any OF
the major powers are sufficiently
confident to risk a war as yet
they are simply bluffing and stall
ing.
{ For most industrise, the earnings
outlook is good-though nowhere
near as good as the production
outlook. Some of the largest in.
dustries-of. which the railroads
are a case in point-are doing 3
greatly increased volume of bust
ness with extremely small increas-
es in earnings, due to higher taxes
higher wages, etc. However, prac.
ticaIly all industry has emerged
from the "deficit period" and is a
least back in the black ink.
The impending cleavage of the
Democratic party, discussed sOmt
weeks ago in this column, is be
/ coming an actuality. 1t is tend