The Kennewick courier-reporter and the White Bluffs spokesman. [volume] (Kennewick, Wash.) 1938-1939, 1938-12-29
ECONOMIC HIGHLIGHTS

ECONOMIC HIGHLIGHTS
The decline of industrial activity
during the nine months following
August, 1897, was the sharpest on
record for any comparable period,
reports the United States News. The
recovery movement that set in six
months ago, according to the same
source, has no precedent in. rapid
ity of improvement, with the ex-
ception of the brief pre-NRA boom.
These comparisons are based upon
the Federal Reserve Boards index
of industrial production, which is
a generally accepted barometer OF
industrial illness or health. This
index uses the 1923-25 average as a
normal" with rating of 100. In
August, 1897, the reading was III
almost as high as in 1929. In the
subsequent May, it had dropped to
the abysmal low of 76-a drop of
over 80 percent in less than a year.
Since May, 1888, the index has
risen "a points, which is close to
half as much as it gained, on the
average, in the four preceding
years. We thus have rtgained
something more than half the
ground we lost in the 1887 "reces-
sion."
Big question is, when can we ex-
pect to regain the rest of the
ground? In answering that, most
economists are playing wary game.
There is no lacking Of good signs
on the economic horizon. At the
same time, there are a number Of
puzzling unfavorable factors. The
Annalist puts the case accurately,
when it says: There would be more
assurance of continuation of the
present recovery movement if there
were not so many individual indica-
tors that by this time should be re-
flecting the recovery movement, but
thus far have done so either not at
all or to a limited extent"
Many experts think that in the
near future the rate of recovery
may tend to slow-but that the
movement will go ahead, even tho
it is in second or low gear. It is an
important fact that most business
leaders are not greatly worried
about what the next Congress will
do-they feel that our lawmakers,
after earnest analysis Of the last
election returns, will veer steadily
to the right.
A few business briefs of inter-
est follow:
PRICES Commodity prices re-
Gently took fairly sharp drop,
though they were well supported
and there was no danger of a crash
in values. The whole price situa-
ton is confused and rather chaotic,
and is one of the least bright spots
in the business picture.
CREDIT-Bank deposits are at
almost an all-time high-which
means there is an abundant credit
basis for business expansion. It will
remain to be seen whether business
loans will increase accordingly. Sc
far, they haven't.
STEEI-Index Of production is al
only fair level. The trend is up
ward, but no great betterment i:
expected for the next month or two
FIFE INSURANCE-This indus
try,s sales are often a good index O.
purchasing power. Recently the.
have shown substantial improve
ment. But this Improvement is
most think, due largely to the fac
that the companies, because of in
vestment conditions, have beel
forced to reduce their guarantee
dividends" Prospective buyer
have rushed to purchase policies un
der the old, more favorable terms.
MOTORS booming along i
fine shape. The American public
appetite for cars is apparently in
satiable-and it also appears tina
many families will sacrifice almos
anything else in order to obtain
new model.
CONSTRUCTION = Is steadil
improving, especially in the res
DENTAL field, when adjustment fl
seasonal trends is made. This is or
Of the best phases of the entire RI
covery movement. ....