Milford chronicle., 1938-09-09
Economic HighliOhts
Happenings That Affect the Dinner
Pals, Dividend Checks and Tax
Bills Of Every Individual; National
and International Problems Insep.
arabic from Local Welfare.


arabic from Local Welfare.
The business picture has been
marred by some unfavorable factors
lately. But, taking it by and large,
the outlook for steady II slow Inn
I proyement seems 10 remain good.
One bad element has been renew
ed weakening in the commodity
price structure. The values OF
wheat and other farm futures have
tended to decline, in spite of efforts
to hold them at stable levels. There
have been no sharp breaks, however.
and general opinion believes that
prices will soon strengthen.
! Also bad has been the chaotic sit
uation abroad. Hitler seems to be
playing the old game of "blun Czech
oslovakia' again. Foreign eurren-
eies, notably the franc and the
pound, have lost ground in their re-
lation to the dollar. But most au-
thorities regard all this as being of
little importance They think gem
eral war in the immediate future Is
unlikely, largely due to the economic
weaknesses of the totalitarian states
and that matters abroad will eontin-
ue about as they have during the
past two or three years, with "eris-
es" appearing periodically, making
the headlines, and then dropping in
to obscurity.
So far as the figures are concern
ed, the domestic situation Is good.
Everything seems to be present that
is needed for a stable recovery
movement. The 1887 recession re-
suited in production falling behind
consumption. Merchants large and
small reduced their inventories to
the minimum. Buying was on a
hand-to-mouth basis, both because
of hard times and because of the ex-
peetation that sharp price reduc-
tions must occur. Today. with con-
sumption of perishable goods rising.
and with the governments latest
emergency spending program put
ting a spark Of life into the long
paralyzed durable goods industries,
commerce is being forced to resplen-
ish its stocks. This is proven by the
Federal Reserve Boards index of in
dustrial production, which made its
first gain of the year in June, and
which is now five or six points above
that level.
Some briefs of interest follow:
STEEL: Operations have held to a
fair level, and substantial fall i'm
is expected. Future COM
mittments are good.
MOTORS: As is always true in
production is now al
most nil. But some makers are
planning more of a splurge with
heir 1889 cars than they thought
was wise a few months ago. The
general upturn in business and sem
.iment has encouraged them.
ELECTRIC POWER. Production,
when seasonal adjustments are
made, is at a good level. Outlook in
licates that fall consumption will be
lose to the 1887 level. On the ad-
Terse side, sentiment in. the indus
ry is at a low ebb, due to politics.
AGRICULTURE: AS mentioned
bove. prices have weakened. On
he other hand, the chances are that
he farmers cash income for major
rops will be reasonably satisfac-
Dry this year-though prices will be
over, yields will be higher, espe-
tally in the case of grains.
EMPLOYMENT: Latest figures
-hich have any pretense to author
y indicate that there has been a
iir amount of unemployment by in
ustry, and that material gains will
e made after Labor Day On the
Their hand, at least 100000 people
re still out Of work. and there
GEMS to be small chance of most of
lem finding jobs, unless a business
svival of much greater intensity
ian anyone anticipates occurs.
SECURITIES: Turnover on the
ock exchange has slowed some
hat. But prices have held their
Tins for the most part, and bullish
is still uppermest. The
arket has become less influenced
: European scares-there have
zen so many of them in the last
W years, and so few have amount
to anything
GENERAL OUTLOOK: Most au-
critics agree that the recovery
ovement will continue into next
ring. Few are willing to gamble
opinion on what will happen
The political situation
an unsettling factor. and will
obably remain so. The govern
snts fiscal policy remains the
,rst OF all factors so far as the
lg view is concerned.
600
Mr.. Roosevelt may succeed in, de-
lting Senators George and Tyd-
IS, and Representative O'ConnOr
J three Congressman who head the
purge list" But
en- IL he does, his troubles will not
over by any means.
That is the gist of political opin-
on the Presidents recent tour.
ason: II these and other more or
s anti-New Deal Democrats are
item it will be credited to White
use intervention. Their thousands
followers will be bitter at the
oseVelt leadership. They will be
,er to change the control Of their
ty.
there is growing
ling of restiveness among Con-
ssmen. including some OF those