Milford chronicle., 1937-06-04
ECONOMIC HIGHLIGHTS
Happenings That Affect The Dinner
Pals, Dividend Checks and Tax
Bills of Every Individual

1t has been generally quiet ON the
business front lately. with the indi-
Gators tending slightly downward.
Activity in the stock market has been
sporadic, with occasional "eorrec-
ticeisetbacks" taking place. and with
profit-taking a moderately disturb
ing influence. Nothing noteworthy
has occurred in the band market.
Reason for the downward trend of
the indicators, says Business Week
can be found in the abnormally high
level recorded toward the close of
1886 and the beginning of 1887, rath-
er than the current level" In other
words, in the immediate past, ac-
tiVity was artifically feverish, due
largely to prospective labor troubles
and prospective price rises. Inven-
tories were built up rapidly-in some
cases, to excessive proportions. Buy
ers thronged sellers market. Now
the situation is a little different.
The problem of labor difficulties
remains-though hopes are held that |
the National Labor Relations Act |
will prove a soothing factor to both |
labor and capital. But the price out
look now is mixed. No longer does |
it appear certain that continuous |
rises will take place this year. Cop
per prices recently dropped more
than two cents. A large steel cor
poration announced that there would
be no increases in the third quarter.
Scrap prices are down, and are weak
ening. This is generally true
throughout the durable goods mar
ket.
In the consumer goods market,
there are also signs of recessions in
prices The average commodity price
level has oOzed downward fractional
ly for number of successive weeks.
And the President is known to be
turning his attention to the price
structure, and tending to the view,
held by most economists, that the
late upward trend was dangerous ,
one. filled with intlatiOnary possl- .
bilities.
Inescapably connected with the
course of prices and the progress OF ,
industry is government fiscal policy /,
The recent budget message was not i
encouraging in that it showed VIDE, l
unfavorable discrepancies between !
actual and contemplated income. II
did stress the need for economy-a !
need which is making itself felt in ,
some leaders having come :
out, strongly for cuts all along the
line in appropriations. Business f
awaits the outcome.
A less tangible, but encouraging ;
factor is the outlook in the legisla- !
tive field. 1t seems doubtful if Con /,
gress will endorse, this session, any
major law inimical to industry. A :
number of such laws have been pro-
posed, such as the thirty-hour week
)ill, and the corporation licensing ::
bill. But those close to the Wash
ngton scene give such laws almost
10 chance of passing, the radical
blocs being definitely
n the minority.
In the meantime, employment is
Using, and so are payrolls. CorpO-
alton earnings statements covering
he first quarter of this year are
mostly better than in the same pc
-iod in 1886. Home building made
advances, though the long antici-
)ated boom i'm this field is still over
he horizon. A few industries, no.
ably electrical manufacturers, have
made extraordinary sales records,
,assing all previous levels by wide
So it looks as if We will be in for L
quiet summer, with paramount S
ssues" at a minimum. save for those Z
Iready in the headlines. The next
iv xueeke or sO in Congress will be II
on floor debate OF the
roposal to increase the membership
the Supreme Court, and there is
good chance that Congress will not II
djourn until September.