The Daily Alaska empire., 1937-11-08

ing conditions shall be improved throughout the country He is committed to this type of legislation. But, as it demonstrated by its legislative independence at the last session, Congress may not pass the kind of bill he wants.
 With regard to what is now happening to business in the nation Federal experts are pretty much in agreement that the recovery pace last spring was too brisk and that lag was due That inflationary tendencies were sensed by those in high authority was evil denced by the Federal Reserve Boards raising of reserve requirements by $3000 100000 early in the year before the ensuing decline was fully apparent.
 The Reserve Boards action, together with strikes the international situation and talk of unhealthy conditions by high officials, served to accentuate the tight situation which developed AS a result of this reversal of trend the board this fall took anti-deflation- ary measures, notably its desterilization of $500 100000 of gold, which was added to re- serves to meet credit needs.
 Except as it showed in stock market values, the slump this fall has not been serious Federal experts assert. In recent years they declare, there have been several greater re- sessions in production Actually, production has kept at a high level in all but one or two fields and sales have maintained a healthy pace, the experts say.
 While stocks were tumbling to their lows recently, some high government officials whose business it is to follow economic devel- opments, assembled the latest confidential re- ports from certain key industries to check ru- mors current in Wall Street that orders were falling off in major industries It was felt these rumors were partly to blame for the market decline.
 One of the men present at that meeting said there was not an iota of evidence to sup port the rumors. The only weak spot with respect to orders was in steel and rail equip ment and that fact had been known in Wall Street for some time, he said On the whole, these reports showed that, with the excep- tions of steel and rail equipment, orders on hand were greater than for any recent year
 The experts also took note of a Commerce Department report which showed that daily average sales of general merchandise in rural areas in September were higher than for any month since 1929. The advance in these sales from August to September was twice the usual seasonal gain.
 In addition to the present lull in business other factors which may have influenced the market drop were mostly connected with ex- pectations regarding future policies of the New Deal, as reflected in the budget and pend- ing legislation.
 SUOck nldTKeJ ODSefVeIS. says d IllSn lIedS- ury official, must stop regarding the activity of the twenties as normal. Much of the specu- lative activity which artificaly sustained the normal" levels of those years is gone and will not return, he said. The market is destined to become more truly capital market this authority believes, and cannot be expected to perform as it did under the conditions prevail ing before the New Deal.
 While the Administration has taken note of criticisms eveled at the SEC in connection with the stock market break, it has yet to recommend any wide changes.
 To up the answer to the question, How does the President now feel toward buSi- ness? appears to be this: He is not indiffer- ent to danger signals, but instead is watching them; he seems to be disposed to consolidate his reform program rather than to extend it greatly; he tends more toward breathing spell" than toward another vigorous period of experimentation. Such, at least, is the im- pression against by one who talks with his advisers. Season that prediction with the ob- servation that the President has frequently demonstrated his talent for surprises, and it is about as good prediction as can be made at this writing.
 The snow on the mountains doesn't seem