Milford chronicle., 1938-02-11
ECONOMIC HICEELICHTS
HAPPENlScs THAT AFFECT THE DINNER
PAMs, DIVIDEND CHECKS AND TAX
Bills OF EVERY INbRDUAL
National and IHfefsdfiohal PSobieHs
IH5ebarabie from Locai WeifaSs

Of the present slump In business
Now those efforts seems to have
been abandoned. The White House
no less than Congress, is giving al
most all its attention to the causes
of the abrupt reverse Of the recov-
cry movement.
A telling sign is the series Of con-
ferenees Mr.. Roosevelt has been
holding with business leader. So
far, these talks have apparently pro-
dneed little or nothing, but they are
important as an example of the
trend. The President is giving much
more attention to the opinions Of
business than he did during the
days when his Administration had
clear sailing under Frightening eco
nOmic skies. This does not mean
that he is necessarily going to adopt
business views Of the situation, or
that he Is going to do what business
wants. IL does mean, so far as any
one can see. that he and his official
advisors are worried and. wonder
ing. .ae '-'s. III
AZ first, the Presidential confer
ences were naturally held with men
representing the biggest kind of
business-sueh as Sloan Of General
Motors, Young Of General Electric.
Weir of the Weirton Steel Company.
Now, according to an announcement
of January 21. small business men.
at their own lnsistence. are to par
ticipate in the talks on economic
problems. White House aides eX-
plain that there has been a Veritable
food of letters from little business
men asking that representatives Of
their group be consulted, and the
President has issued Instructions
that smaller corporation officials be
selected at random from the letters
and invited to the White House.
All OF these conferences are ap-
pafentIy a prelude TO an idea which
the President, according TO HIS sec
retafies, has been working on for
some time. The plan he has In mind
calls for the creation OF a national
economic council. made up OF rep
resentatiVes Of all gronps and all
shades of opinion, who Will be ask
ed TO prepare reports designed to
Guide Presidential action and poll
cies. This council would include
men from big business, little busi-
ness, agriculture. labor investor
consumers. transportation
and all other important elements in
our national life.
In theory, such council is an ad-
concept, and In accord with |
the basic tenet of democratic gov
would provide an Oppor-
tunity for meeting OF minds. where
fact would be pitted against fact. !
and differences would be recOnciled
through logical compromise. But in
actual practice, as hard-headed OBJ
servers have pointed out, the chance
Of such a eouncff getting anywhere
IS very dubious. There are points OF
view so completely opposed that it
would obviously be a miracle for the |
Interested parties to adjust them be-
.ween themselves. However, the
council Is still in the planning stage,
md what it produces will only be
Iecided If, as and when 1t is Great
ID.
The main thing Is that the Execu-
i've it az last definitely concerned
With business conditions. 1t is ap-
parent that he is not sure Of what
.Ourse to take, which accounts for
lcts and statements which circum-
-ent each other. Mr.. Roosevelt is
llsO taking a much gentler hand
With Congress, which is no longer
IociIe to White House control. No
me knows what will come Of all this
1t does seem certain that the next
tx or twelve Inenths will be OF
.reat moment to the course of Am
rican history.
600
In 1886, new industrial financing
xceeded $1,000, ,0O0.O for the first
ime since stellar 1929. Early in
937, It looked as II this figure might
e again reached or even exceeded.
he October stock crash massacred Z
lese hopes.
Two companies attempted to foat a
ig issues in the face of adverse :
onditions. Pure Oil offered $44.0OO,-
DO worth of stock--and the issue
ad to be lmpOunded because the i
ubIle wouldn't buy. Bethlehem !
teel offered $4S.00G000 IN deben-
lres-they had to he sold below
ar. and the underwriters of the is y
le took a $1,725.O00 loss on the s
eal. Since then, according TO Time. :
ia. .OO0, 900 in new financing has )
cen held back In the hope Of bet- d
n market. Today companies are n
gain planning TO try TO sell issues,
Electric Power will Z
lortIy offer $67, 100000 In bonds Z
I'd Consumers Power Company will v
fer $9,O0O,OO in first mortgage
,nds. q
Outlook for such financing is more :
judged by the success
the Consolidated Edison Company
issuing $S0.000,O60 in debentures
10 weeks ago. These securities Z
ere issued at 1O1%. were immedi-
ely sold, and promptly rose on the
arket to 1925. If the deadlock In
~, f;nancino IL nj last hreakfng, Ii