The Waterbury Democrat., 1938-07-26

Vi UuSlIleSS upIuIl, LlOuSIl
cause alarm.
The number Of men returning
TO work, and the increased out
put of factories are greater than
was expected. and Justify a slow,
steady stock market upturn.
The market, however, has
jumped ahead Of the actual con-
dition of business, and spectators
are discounting the recovery ex-
pected In the future.
This illustrates what always
happens with the stock market.
It is always a month or two ahead
of actual business developments
Thus, even before the business re-
cession had set In, the stock mar
ket had taken a calamitou8 drop.
And now, before actual recovery
has set in, the market has taken
q sudden rise.
Last autumn the drop Of the
stock market contributed TO the re-
ccssion, and now the rice OF the
market is contributing TO recovery.
1t is a psychological factor.
The big mail-order houses have
reported TO government officials
that in recent years this stock
market influence has affected
their business as it never did ten
or fifteen years ago. Reason is
that the radio carried news OF
stock market trading 10 almost
every home in the nation.
Ten years ago nobody outside a
few big cities knew what the stock
market had done that day, and
nobody cared. Stock market slumps
had 10 be really bad before they
affected the life of the nation 1t
took days, or even weeks, for
stoc maret news 10 trickle into
small towns.
Now, however, 1t Is a different
matter. When there Is panic SELL
ing ON the New York exchange,
the news Is broadcast via every
radio in the land, and the nation
knows 1t that night. IT has an
instantaneous and tremendous
and tremendous psychological ef-
feet.
The reverse il true when the
market has big day.
Neither may reflect the actual
business condition of the country.
But because everyone is influ-
cnced by the stock market. even
tually the market reports create
better or worse business.
ROOseveIt's Ambition
One Of the most interesting press
conferences ever held by Roosc-
welt was in the spring OF 1888,
when he outlined his economic
aims.
He had on his desk stack OF
charts, one OF which showed the
recent economic history OF the
United States, the peaks of pros
perity and the valleys of depres-
sion.
Roosevelt told his press confer
ence that 1t was his ambition to
iron out those peaks and valleys
with their attendant human suf-
fcring, SO that the economic chart
one straight line-slightly up per-
haps, but as level as possible.
Instead, the economic chart Of
the New Deal has been as Jagged
as tigers jaw.
And for the reasons outlined
observation-disclosures radio reports
on the stock market--it may be
that Roosevelt will never reach
his Cherished goal
New Issue
A new issue has popped up in
the rcd-hot Kentucky battle be-
tween Senator Alben Barley and
Governor Happy" Chandlcr--thc
fine-tooth comb versus the har-
row
In one Of his speeches Barley
remarked: my opponent says
there are many shortcomings in
record. | don't doubt that If my
record was gone over with fine
tooth comb, failings would show
up in It. am not infallible;
everybody makes mistakes"
The next day Chandler re-
piled: senator Barley admits
that II his record was gone
over with fine tooth comb,
shortcomings would be found In
IL. Friends, ] say he flatters
himself. I could find plenty of
them with a harrow.
British Business
State Department career boys
approve OF Prime Minister Cham
berlains' nock-up with Mussolini
against Loyalist Spain, but the
President infercntially disagrees
with them.
Talking TO a friend at dinner
not long ago, the President said:
"Thc trouble with the British is
that they haven't one statesman
who can make speech on a
moral issue" "a
NOTE-Prime Minister Cham
bcrlain boasts that he is running
business mans government; that
he has to deal with Franco be-