Milford chronicle., 1937-07-23
ECONOMIC HIGHLIGHTs
Happenings That Affect the Dlnnes
Pals, Dividend Checks and Tax ella
of Every individual; National and
international Problems lnseparable
from Local Welfare

from Local Welfare
July 1 is the day on which the
business journalists start making up
their half-year summaries. They ta-
BILE, chart and interpret the facts.
This year, most of them are agreed
that the first six months of 1897 pre-
sented about as mixed and confusing
a set of trends as anyone could i'm
agine.
For example: During that stormy
period, industrial production either
increased or held its own In almost
all lines-yet stocks generally went
down in value, and activity in the
markets was abnormally small, es-
pecially in the last two months. The
national income continued its climb
toward pre-depression peaks-yet, in
the words of Business Week, "pessi-
mism has been riding high of late"
Unemployment has showed a graft
flying decline-yet the industrial re-
lations outlook grows steadily more
grave, and no real truce Is In sight.
According to an Associated Press
graph, industrial activity in this
country reached its all-time peak
early in 1929. when ii touched 1lS
200 equals the 1929-30 average). 1t
reached low of 4S in the summer !
of 1892. and went almost as low !,
again in the spring of 1888 when !
the Bank Holiday stopped gold pay
ments. Thereafter the trend has
been consistently upward, with min
OF booms and recessions distorting
the curve A post-'29 high of 10S
was touched this spring, and at last I
reports the average was still at
about 1903.
In other words. we are very close
to the record 1929 peak, when all
was optimism and the few seers who
a severe depression were
lucky if the big papers gave them
len lines near the want ads. Yet to-
iay, in spite of the figures, 1t is a
rare businessman who believes that
conditions are sound and stable, and
A vast number of experts, here and
abroad, are anticipating another ma
or depression within from two to ,
i've years.
The specific items that are worry {
ng business and investors are cas-
" detailed. At the moment, strikes
must be put foremost. For the first 1
ime in our history, labor has be-
ome aggressively involved in poll I
les. and is making the 100 per cent :
losed shop its paramount issue. 1t s
GEMS inevitable that a long period !
f industrial strife with brief inter- +
udes of uneasy peace, is ahead Of
q n% r
Government fiscal policy, In the +
Dng view, may be more important h
han the labor difficulty. We are still
lcreasing the national debt and 1t 6
GEMS certain that higher taxes on v
lcomes in all brackets are essen h
al. AS a consequence. industrial a
reduction is no longer a measure
+ profits, due to taxes and new reg r.
lations and legislation. This is ma I,
lrally a dampening influence on in
estors and spectators, and is :
Irgely responsible for the near-par-
ysis that has recently struck the
,curity markets.
The outlook in foreign affairs is
l important, though less tangible
ctor. II is no secret that a major
ar is expected in Europe, and per-
IDS the Far East, as soon as one CT
e big powers becomes convinced
at it has the resources to win. But .
e question of "Will there be
arr" has been replaced by When o
Ill war start?', in the view of
all of the experts in the .
Id.
as to the public's at 3
ude on current issues is a head Q
he to both industry and govern y
entail officials. For instance, no one Q
lows whether the great masses Of
ople whose views are least heard, Q
It who determine long run policies.
e for or against militant union la .
r. or for or against heavy Federal
ending, etc.
Potential legislation affecting in Q
stry is another large fly in the =
ltment II is known that the Ad-
favors more govern
ent in business-as witness the .
White House
cked bill to create seven more reg
lal electric authorities of the TVA 9
ler-and is planning a new and .
ner NRA. Until Congress adopts
refuses such measures as these,
! situation is bound to be chaotic.
Il this short survey is confused,
is because the whole pOlitieal-in- Q
strial situation is confused. The
standards on which forecasts
ID to be based, such as production 90