The Kennewick courier-reporter and the White Bluffs spokesman. [volume] (Kennewick, Wash.) 1938-1939, 1938-09-22
ECONOMIC H1GHI1GHTs

ECONOMIC HIGHL1GHTS
The business outlook, so far as
the domestic picture is concerned.
remains good. If only our own in
ternal problems were involved, it
seems evident that this recovery
movement would continue. at least
for the next six or eight months.
and that security prices would tend
upward accordingly. However,
there is an extremely large fly in
the ointment-the Suropean situa-
ton. That was wildly demonstrate
ed in the week ending September
10. Industrial statistics were en-
couraging, there were no unusual
or unlooked-for political complica-
lions, and the stage was set for a
sustained rise in security prices. But
prices sagged, and the week as a
whole was disappointing on all
counts-principally because Of the
fears Of war.
It seems unlikely that this fear
can be dissipated in the near future.
Even if war does not occur before
the end of this year-and, according
to the experts, the chances are bet
ter than even that it will-the sha-
dow of Mars will still darken the
economic skies. Thus, 1t is to Eur
ope, rather than to this country,
that the student must look princi-
pally for guidance in anticipating
what will happen to industry and to
security values during the remain
der of 1888. ..
Forgetting the war problem for
the moment, the figures indicate
that the recession" is definitely on
the wane. No one looks for even
anything resembling a boom such
as that occurring at the end Of
1886, which ran halfway through
1897 and exploded. The expecta-
ton is for steady, non-dramatic
betterment in practically every line
Of industry and commerce. Here
Is the situation obtaining on num-
Der of basic lines now.
STEEL: Recently touched A per-
cent Of capacity twice the
level obtaining in early July. Dur
ing eight or nine consecutive weeks
for which this column has data,
improvement was registered.
MOTORS: Lately hit its low pro-
duction point Of the year, which is
entirely normal, as it will not be
long until the new models begin
streaming off the assembly lines.
BY the time this is read, produc-
ton should be at good level, and
increasing rapidly. Reports Of what
the new cars will be like are con-
flicting. It has been generally re-
ported that there will be little
change In most makes; more re-
Gently, rumor says that manufac-
tuners are now planning more am
bilious experiments and improve
ments.
CONSTRUCTION: Nonresident
tial building is still down. Residen-
tial building, on the other hand, is
well up, and is rising. In August,
this kind of construction was 10
percent ahead Of last year. Big
factor is the government-insured.
1ong-term loan plan, under which
builder may obtain as much as
80 percent of his house and lots
value and take up to Is years to pay
It off.
ELECTRIC POWER: This reliable
barometer Of industrial affairs in
general shows strength. The sum-
mer decline was not more than sea-
sonal intensity And the fall and
winter outlook Is good.
RAILROADS: Car loadings have
been up a little, but not enough tx
keep scores Of lines out Of the red
The industry is tied up in wage ne.
gotiations, which have been com
plicated by the brotherhoods' ne
fusal to accept federation mediation
Of the arrangements request for ,
general Is percent wage cut. A grea
deal of pressure is being brough
from many quarters to have con
gress take up possible legislation t,
save the industry, as soon as tn
next session opens.
Summing up, sentiment as ,
whole is now bullish. But keep you
eye on Europe happens Their
could change the outlook tremen