The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1938-02-24
ECONOMIC HIGHLIGHTs

ECONOMIC HIGHLIGHTS
"Stagnant" is the most descriptive
word that can be applied to the
present industrial situation. Last
year ended on an extreme low, and
during January there was moder-
ate rise, with the favorable factors
outnumbering the unfavorable. The
first part of February brought a
leveling-off in improvement, and the
last week for which statistics are
available shows small decline in
the business indicators, largely caus-
ed by another sharp drop in steel
production. Few industries have
shown better production records,
and great many are unchanged,
operating on or close to the levels
obtaining at the end of January.
The price situation continues to
be one of the most disturbing fac
tors. President Roosevelt has said,
in press conference, that he believes
industry should reduce prices and
at the same time keep wages at
present levels; few industrialists or
economists think that is possible. In
some fields, the public is showing a
Discrimination to pay current prices,
and appears to believe that the price
structure should adapt itself to the
drop in business On the other hand,
the bulk of business leaders are ex-
tremely afraid of major price drops,
feeling that in the long run this
would make the problems of recov-
cry still more difficult. They are
confident that cheaper goods would
have to be swiftly reflected in lower
wage rates, and it is a certainty that
widespread pay-cuts would be the
cause of an immense amount of UNI
rest at this time. The Administra-
TONS anti monopoly campaign,
which is apparently designed to
break prices in certain lines by the
elimination of alleged conspiracies
In restraint of trade, coming so soon
on the heels of the MIRA which
made price-fixing and planned
economy legally obligatory, has add
ed to the general confusion. In
brief, it is demanded that business
pay higher wages and at the same
time sell its products for less how
to achieve this is one Of today's
apparently insoluble problems
Some business briefs Of interest
follow:
MOTORS: Production Is staying
as comparatively low level. Typ
ical experience is that of General
Motors, which sold $1,000 units in
January as against $4,000 in the
same month last year. There Is
q reported easing Of the used-car
problem in some areas.
Electric Power: Following general
business, this industry's output has
been running materially under 1887
levels, when an all-time high pro-
duction was reached. However, in
late weeks consumption has tended
to improve slightly.
Retail Trade: Is holding up bet
ter than was anticipated, and is OPP
Grating, on a comparative basis,
substantially above manufacturing
industry. But it is expected that
February figures will show de-
cline.
Inventories: Were excessively
heavy in some fields at the end of
last year. The situation is improv-
ing and it is estimated that at the
end Of January inventories in gem
eral were almost down to the early
1886 level. Inventories of consumers
goods, of course, are declining much
more rapidly than inventories Of
durable goods.
Employment: Still dropping, as
the growing demand in Congress for
more relief spending testifies. Fur
ther, many thousands of workers are
now on part-time basis in industries
which are operating but two or three
days a week. These workers are not
included in the unemployment to-
tails, but their purchasing power has
q heavy reduction.
Credit: Bank loans and demand
deposits have been steadily declin-
ing Business Week says, There is
q strong feeling in banking circles
that restoration of the former
volume of bank credit and deposits
Is a necessary part of any recovery"
Securities: Have been following a
gently up-and-down curve, with
the general tendency downward.
The turnover has been extraordin-
arily small, on recent day touch
ing a four-year low. This is a re-
Election of the general uneasiness of
both investors and SPECTATORS.
Outlook: Gist of most of the bust
ness magazine forecasts is that there
will be resumption of slow better
ment in about three weeks. When
1t comes to the long-term outlook,
you can find almost as many opin-
ions as there are spokesman in the
heavily populated business Of prog
nostication.
PAST FAD STAGE
It won't be long until residents Of
southern states have occasion to
count up their winter tourist dol
lars. and when they do they are 60