The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1938-07-21

The Couries, est. March "a, 19(
Entered as Second Class matter
ECONOMIC HIGHLIGHTS
According to some Of the experts,
the upturn In the stock market was
the result Of a heavy, sudden influx
Of foreign money into American Sc
curities. Foreign capital, so the
story goes, took the view that values
were at extremely low levels, and
that the market was q real bargain
counter. The foreign financial In
vasion gave a surge Of confidence to
American investors, who began buy
ing. Then the investment trusts,
which had generally been out Of the
market for some time, waiting for
what seemed the low point, stepped
in and the major rise resulted. The
gains have been generally held, with
only minor reactions, on the basis Of
the latest quotations at the time
this column Is written.
Irrespective Of the cause Of the
stock rise, there are some welcome
signs on the business horizon to in
dictate that it is justified by the po-
sition of commerce and industry.
The barometers have not gone far
ahead Of their spring laws as yet
But the tangible and intangible
factors affecting the late summer
and fall outlook are definitely i'm
proving. There are sound grounds
for arguing that, ever though moth.
ing like q boom can be anticipated,
the bottom has been passed, and ths
last half Of the year will be sub
stantially better than the first. The
upward trend, in the view Of most
authorities, Is due to start In August,
after the traditional July shutdown
In various industries, notably the
automobile, and to continue at q
slowly accelerating pace.
Biggest late industrial news was
the price cut In steel, initiated by
q. 8. Steel. This has resulted In
some new orders, and much heavier
orders are anticipated. It Is known
that some industries have been
holding off buying because they be-
ueve that q price slash was an Inn
minent possibility. Now that the
price slash has occurred these In
dustries are surveying their low In
ventories and again coming into the
market. The cut. on finished steel
according to Iron Age, amounts to
about 5h percent.
Car-loadings remain at poor lev
els-but there Is even an element Of
encouragement her. In that ever
since the third week in April, says
Business Week. the rate Of loss az
compared with the year before has
In steadily declined. Best Improve
ment In car-loadings has been IL
the field Of merchandise shipments
Electric power output Is also
tending upward again, In spite Of
the fact that household load de-
clines In summer, which indicates q
renewal Of business activity In some
quarters. Output Is running sub
stantially under last year, but Is
coming gradually closer to that
level.
The inventory situation remains
favorable, especially In consumers
goods lines. Most experts think that
inventories have just about touch
ed their lowest possible point, and
that buying will steadily improve.
The outlook for buying In the heavy
Industry field. on the other hand, Is
far less favorable.
Also Of great significance Is what
seems to be q material Improvement
In the state Of mind of some bus
iness leaders who are gaining the
opinion that the cycle IS due to
start upward again for how long,
no one knows. And q considerable
amount Of capital is coming out Of
hiding.
Summing up, best guess Is that
actlv,-s viii slowly improve, but that
there VII. y Nc sharp upturns In
the production a. hoes No one be-
ieves we are on the vels. u > boom
as we were in 1886. Many peneve
that progress will be consistently
made-but that it will be hard, slow
going, and that there Is no immed-
late prospect for regaining 1897
levels. Many feel that security val
ues have come up about as far as
they will for some time, and that
they will hold to about the current
level.
WATCH THIS Law .l. .1
Newspapers throughout the coun-
try recently carried the story from
q neighboring state of a young man
who invited his mother for an auto
ride and suffered an accident In