The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1937-10-08
ECONOMIC pHICHLICHTS
Happenings That Affect the Dinner Pals, Dividend
Checks and Tax Bills of Every Individual; Ma
tional and International Problems Insep-
arabic From Local Welfare

To put it mildly, the business
outlook today is extremely con-
fused.
On the one hand, it is predicted
that this winters domestic COM
merce will be the best since 1929,
with retail sizes in some lines per-
haps exceeding the boom-time
figure. On the other, business
leaders are seriously disturbed
and many of them are plainly
pessimistic as to the trend of fu-
ture events.
This anomaly is easily explain
ed. For, in the view of execu-
tiSes, tile short-term outlook is
favorable, and the long-term out
look is bad. Purchasing power is
Up, farm income is at a six-year
high, consumer goods are moving
RAPIDLY. Yet the unrest in Eu-
rope, the tangled political sitGa-
ton at home, including the threat
of more government in business,
the apparent certainty of higher
taxes, the prospect of still more
serious labor Disturbances. and
the nervousness of security in
vestors and spectators are re
tarding factors.
As everyone knows, the stock
market took its biggest drop in
years a few weeks ago. Values are
far below their spring and early
summer levels. And while the
stock market is not necessarily
an accurate barometer of actual
business conditions, it does pretty
c'osely reflect the views of finance
on both big and small levels, and
represents credit, capital and re
serve spending power. Explana-
tions of tn drop varied, and dis
closed the opposed schools of
thought now in existence. Stock
market officials ascribed the col
lapse as being the mainly to ex-
cessively strict regulating by the
SEC, which has largely eliminated
speculative operators who in the
past could be trusted to take up
much of the slack in thin mar
kets. Government officials, such
as SEC head James Lands, who
has recently resigned to become
Dean Of Law at Harvard, defend
ed the regulatory policy, intimat-
ed that sill more stringent regula-
ton may be necessary. Whether
the lands point Of view Is right
or wrong, such a policy evidently
has a danapening effect on large
| industry.
So far as the politics. situation
is concerned. all is chaos. Presi-
dent Roosevelt's sweep around the
eiuntry, in the view Of most COM
mentators. is designed to give him
a chance to meet see people, 70
use his personality. and 20 enlist
public support in his campaign
against the conservative wing Of
his party. The President. as he
has said in almost so many words.
is now envisioning a second New
DEAF which involves stilI fur
Their enlarging Federal authority,
new and restrictive eegislafion
dealing with business practices.
notably in the field OF wages and
hours, and 4 iessening Of the pew
er OF the Federal judiciary. There
IS stil tax that a special session
may be called late this fan. And
Il Is known that the Aeministra-
ton VII present an ambitious and
inclusive mus program before
TIE second session Of the 18th
Congress. which eonvenes in Jan
nary, including rsintrodaetion %
Supreme Court packing kiH.
Evidence Is not lacking thai
CIR. ReoseveIt's popular following
hss dlminsShed--the Black KID
Klux klan disclosures are perhaps
the HsoS serious bow Be has 70.