The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1938-06-30
ECONOMIC H1GH11GHTs

ECONOMIC HIGlLIGHTs
As rule, the adjournment of con
gress produces a lift in business
The adjournment Of the last con
gress was very definitely an excep
ton. The reason for that is foun,
in this quotation from the Unite,
States News: 1.-THE Seventy-Fiftl
Congress, ending its third session IL
two years. leaves record Of spend.
ing more, talking more. anu passing
fewer new laws than almost any re.
cent congress"
Talking and spending naturally
have an adverse effect on bushes.
-inasmuch as most of the talk 4
always directed against industry
and increased spending means new
q higher taxes. On the other hand
business usually finds encourage
ment In q congress that is slow to
pass new laws. But here again the
last congress was an exception to
the rule. Business wanted drastic
tax revisions- and what 1t got was
. very moderate new tax bill, which
does away with some equalities, but,
according to most observers, leaves
the basic tax problem virtually un-
touched. Business wanted legisla-
ton to aid and succor the railroads
and nothing was done by the law
makers. Business wanted congress
that would consider legislation in
the light Of its possible effect on
productive industry-and it didn't
get it.
As q consequence, industrial pro-
duction indices continue to keep to
extreme low levels-and, apparent
y, business sentiment Is q lower
levels still, with great many lead
eEs unable to find any important
favorable signs on the economic
horizon. The last congress was OBJ
viously q political congress that Is,
about q third Of the senator's and
IN Of the representatives, being up
for reelection next November, want
ed to get home to mend their politi-
cal fences. It Is certainly no secret
that the most driving urge felt by
the average congressman Is to keep
IA office, and that he Is very likely
20 place this consideration above the
public welfare. Bruce Barton, who
has completed his first term as
congressman, recently suggested that
Il would be good idea to give every
retiring member Of congress q PEN
sion Of 5000 year In order to
alleviate economic pressure, and to
eliminate the fear that loss Of office
also means Joss Of livelihood.
biggest question before business
now IS: Can the Misunderstanding
program produce any substantial re-
covery? Usual answer Is No-the
average business leader feels that
the adverse effects Of further inflat-
ing the national debt win offset the
beneficial effects Of additional
pump priming. The sudden release
Of several billion dollars may cause
. momentary upturn In the cycle,
hut It Is widely felt that much Of |
this money will 60 for non-produc-
tive activities, that some Of 1t will |
60 for purposes which are definitely |
discouraging to industry, and that
the net gain will be extremely small.
Turning to the statistics, it Is
found that for the last week for /
which this column has information,
business In general continued down.
ward. Some items Of interest fol-
low:
SECURITIES: Market values have
changed little. However, market
turnover has been reduced to ex.
fraordinarily low levels. On June
10. turnover on the New York Ex-
change was slightly over 100000
shares the slowest session since
August 8, 1918. The general tend
ency Of both stock and bond prices
has been downward, despite occas-
ional unimportant upward flurries.
MOTOR CARS: As Business Week
puts 1t, the automobile industry "ac-
customed In the past to leading the
way toward increased production, is |,
now leading In the opposite direc-
tion. May retail sales Of both Ii
cars and trucks were over so per.
cent below the same month last
year. In the first week of June. |,
output touched post-'34 low. Out
PORTRAIT B