The Omaha guide., 1938-07-23
ECONOMIC HIGHLIGHTS

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of Every Individual. National and
international Problems Inseparable
from Local Welfare.
According to one dispatch, "Wall
Street has ON of the quickest and most
complete changes of heart within men,
Dry of oldest veterans" The week end
ing July 2 saw another steady advance
with the shares of industrial corpora
tons reaching their best level since
October. On July 2, the volume of
trading was the largest for any Satu-
rday in eight months, and the "tradi-
ton" that buyers are always wary be-
fore a holiday week end was shattered.
In two weeks, quoted bond and stock
values increased some $10,000,0O0.
The big question now is will busi-
ness-which so far has gained but lit
tie above the exterme depression lows
follows the appreciation in security
prices? Precedent holds that the stock
market senses major changes in the
state of business, weeks or even months
before they occur. And it is a fact
that the sentiment of business leaders
while far from wholly optimistic, is
getting better. Even some of the most
cautious commentators are now COM
ing out of their shells and ~forecasting
that a strong upturn will be underway
by Labor Day, and that the fall will be
active. At the same time Il must be
pointed out that the country is still
confronted with a number of exceed
ingly grave problems which must be at
least partially solved before any real
measure of recovery can be gained.
Unemployment is one of these
problems. There has been a certain a.
mount of unemployment lately, parti-
cularly in those industries which are
directly benefited by the new pump
printing program. However, on the ba-
sis of the best figures available, it ap-
pears that about 100000 people are
out of work, with several millions more
on part-time.
The railroad problem grows worse
not better, and is easily the most i'm
portant specific industrial problem we
have on our hands today. Railroad net
operating income is running far below
last year-in April the decline was
526 per cent. It is regarded as inevi-
table that unless a miracle occurs a
cconsideraI number of lines will go in
to- ~receivership this year. fIhe odds
seem to be at least even that a special
session of Congress will be called in
September or October for the purpose
of doing something for or about the
railroads. There is congressional talk
of plans for scaling down capital stru-
ctures, for effecting consolidation of
lines, and for making loans to the in
dustry for buying ney equipment and
other purposes. The industry Itself
favors these measures, but insists
that its main need is higher rates and
that until it is allowed greater leeWay
i'll changing its rate base to meet con-
ditions the basic problem will remain
unsolved.
National income will be material
~ lower this year than last, when it
reached its post 1880 peak of $70,000,-
600. The President recently offered
the hope that 1898 income will not drop
below $60,O00,000,00 Some experts
believe the total will be less than that.
However, it will be well above its 1892
low of $38, 900, 100000.
The national debt, of course, will
show another stiff rise this year, and
that is always a disturbing factor.
There is a very strong sentiment in
favor of complete overhaul of the tax
system, to eliminate inequalities,
broaden the tax base, and increase re-
venue.
To sum up, the outlook is improv-
ing, but remains to be seen whether
tangible betterment will follow the up
turn IN sentiment. Watch the heavy