The Omaha guide., 1937-08-14
Economic Review

commercial picture today. Durlnl
recent weeks, there have been n
marked changes either upward o
downward. The high level attained
during the spring has been main
tanned this summer, when seasona
adjustments are made.
To quote Business Week, "Busi
ness sentiment is obviously improv
ed now. The Presidents court bill
has taken a trimming. Though al
IA not exactly quiet on the labor
front, it is definitely better than
it was" Another encouraging fac
tor, in the view of business men,
is Congress- apparent reluctance
to okay major Experimental" le-
gislation. It now gems probable
that adjournment will take place
within two weeks.
AS this column tas remarked be-
fore, the noticeable upturn in OPP
timism on the part of business men
is one of the most important of re
cent developments. Last year, for
instance, and early this year, many
leaders were frankly skeptical of
the basic soundness of TIE recovery
movement-they regarded it as a
boom bubble that might burst at
any time. They still don't feel that
the underlying structure is as solid
as it might be-but they are de-
finitely more hopeful that needed
corrections will take place.
Here are some business briefs of
interest:
Agriculture: Big crops are being
harvested and prices are good.
There is an acute shortage of farm
labor in many states, even though
wages have risen materially. On
July LIST, the farm labor supply de-
mand ratio was the lowest since
1928.
Automobiles: This June passen-
ger car registrations 'totaled 1885,
OOO, as against 100000 in June,
1886, and $50 900 in June, 1885.
Thus sales are tending to slacken.
This is to be expected, in the light
of the remarkable demand for new
cars the public has shown for two
years. 1t S possible that a temper
airy 'saturation point" is beng
reached. However, sales of higher
priced Ears are going up.
Railroads: Will benefit from in
creased farm production this fall.
The industry is now carrying on
wage negotions with it's unions and
is expected that compromise will
be reached, with wage somewhat
increased. Management-union re
%lations have reached a high stand
ard in this industry and no one an
ticipates strikes or other disturb
ances.
Advertising: Is up in all branch
ss, with biggest gains registered
by magazines, whose Image is now
at its highest point since June
1890. Farm papers ran second in
percentage increases, and newspa.
pers third.
Utilities: 1t is forecast that tele.
phones in service will reach re.
cord proportions early next year
first-half installations totalet
$4,000. Light and power compan
les are doing well 80 far as pro.
lduction ana sales are concerned
Their big problem Is still legisla
tive. The Supreme Courts decision
lOn the holding company act will b
Iof vital 9inportanse to this industry
The decision viii probably be hand
ed down in the early fall.
Construction: Two well know
economists, writing In Fortune
forecast q home building boom tina
will start soon and continue unti
about 1e43. Builders are working
on the problem Of furnishing at
tractive, efficient, low-cost houses
for families in the $25-$30 a weel
income group. Not much is ex
pected from government efforts il
this field.
Foreign Trade: Is getting bet
ter slowly great hapes r held 70
the new gold agreement just eff
feeted with Brazil, which is sup
Irosed to greatly widen our marke
there. European and Oriental trad,
prospects are unpredictable in view
Of wars and war scares.
Stocks and Bonds: Are stable
with the general tendency upwart
Practically everyone anticipates
higher values for securities thi
fall and winter.
Steel: With labor difficultie.
over for the time being, steel mill
have recently been operating a