The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1938-07-07
ECONOMIC HIGHLIGHTS

AS rule, the adjournment Of con-
gress produces lift in business. The
adjournment of the last congress was
very definitely an exception. The
reason for that is found in this quo
tation from the United States News:
"The Seventy-Fifth Congress, ending
it's third session in two years, leaves
a record of spending more, talking
more, and passing fewer new laws
than almost any recent congress-"
Talking and spending naturally
have an adverse effect on business
inasmuch as most of the talk is al
ways directed against industry, and
increased spending means new or
higher taxes. On the other hand, busi-
ness usually finds encouragement in a
congress that is slow to pass new laws.
But here again the last congress was
an exception to the rule. Business
wanted drastic tax revision-and what
it got was a very moderate new tax
bill, which does away with some in
equalities, but, according to most OBJ
servers, leaves the basic tax problem
virtually untouched. Business wanted
legislation to aid and succor the rail
roads-and nothing was done by the
lawmakers. Business wanted a con-
gress that would consider legislation
in the light Of it's possible effect on
productive industry-and it didn't get
it.
AS a consequence, industrial pro-
duction indexes continue to keep to
extremely low levels-and, apparently,
business sentiment is at lower levels
still, with great many leaders un-
able to find any important favorable
signs on the economic horizon. The
last congress was obviously political
congressional is,, about third of the
senator's and all of the representatives,
being up for reelection next November,
wanted to get home to mend their po-
litical fences. 1t is certainly no secret
that the most driving urge felt by
the average congressman is to keep in
office, and that he is very likely to
place this consideration above the pub
lie welfare. Bruce Barton, who has
completed his first term as congress
man, recently suggested that it would
be a good idea to give every retiring
member of congress a pension OF
$4,000 a year-in order to alleviate
economic pressure, and eliminate the
fear that loss of office also means
loss of livelihood.
Biggest question before business
now is, Can the lending-spending pro-
gram produce any substantial recov-
cry? Usual answer is No-the aver
age business leader feels that the ad-
verse effects of further initiating the
national debt will offset the beneficial
effects of additional pump-priming
The sudden release of several billion
dollars may cause momentary up
turn in the cycle-but it is widely felt
that much of this money will go for
productive activities, that some of
it will go for purposes which are
definitely discouraging to industry
and that the net gain will be extreme
ly small.
Turning to the statistics, it is found
that for the last week for which this
column has information, business in
general continued downward. Some
items of interest follow:
SECURITIES: Market values have
changed little. However, market turn
over has been reduced to extraordin-
arily low levels. On June Is, turn
over on the New York Stock Ex-
change was slightly over 100000
shares-the slowest session since
August 3, 1918. The general tendency
of both stock and bond prices has
been downward, despite occasional un-
important upward flurries.
MOTOR CARS: AS Business Week
puts it, the automobile industry "ac-
customed in the past to leading the
way toward increased production, is
now leading in the opposite direction. y
May retail sales of both cars and
trucks were over SO per cent below
the same month last year. In the first
week of June, output touched post
"a low. Outlook is bad
STEEL: Bad business for the auto
mobile and railroad industry means
bad business for steel. Latest avail
able figures show operations at rs per
cent of capacity, with the outlook in
dicating that still lower levels will
soon be reached.
LIGHT AND POWER: Kilowatt
output is relatively good, on a season
ally adjusted basis. But the industry
is still pursuing very cautious line
and is spending very little for expan-
sion and development, dut to fears
Of additional government competition.
To sum up, it is next to impossible
to find any really bright signs so far
as ma ior lines of industry are con-