The Kennewick courier-reporter and the White Bluffs spokesman. [volume] (Kennewick, Wash.) 1938-1939, 1938-09-01
ECONOMIC H1GHL1GHTs

ECONOMIC HIGHLIGHTS
The business picture has been
marred by some unfavorable factors
lately. But, taking it by and large,
the outlook for steady If slow move
ment seems to remain good.
One bad element has been renew
ed weakening in the commodity
price structure. The values Of wheat
and other farm fixtures have tend
ed to decline, in spite Of efforts to
hold them at stable levels. There
have been no sharp breaks, how
ever, and general opinion believes
that prices will soon strengthen.
Also bad has been the chaotic
situation abroad. Hitler seems to
be playing the old game of bluff
Czechoslovakia" again. Foreign cur
rencies, 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
q general war in the immediate fu-
ture is unlikely, largely due to the
economic weaknesses of the totali-
tartan states, and that matters
abroad will continue about as they
have during the past two or three
years, with "crises" appearing per-
iodically, making the headlines, and
then dropping into 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 apd because Of the
expectation that sharp price re-
auctions must occur. Today, with
consumption Of perishable goods
rising, and with the governments
latest emergency spending program
putting a spark of life into the long
peralyzed durable goods industries.
commerce Is being forced to replen-
ish its stocks. This is proven by the
Federal Reserve Boards index of
industrial production, which made
its first gains 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 q
fair level, and substantial fall Inn
provement Is expected. Future COM
mittments are good.
Motors: As Is always true In mid
sumner, production is now almost nil.
But some makers are planning more
Of q splurge with their 1889 cars
than they thought was wise few
months ago. The general upturn in
business and sentiment has en-
'couraged them.
Electric power: Production, when
seasonal adjustments are made, is
ut q good level. Outlook indicates
that fall consumption will be close
to the 1887 level. On the adverse
dde, sentiment In the industry is at
. low ebb. due to politics.
Agriculture: AS mentioned above,
prices have weakened. On the 9TH
CT hand, the chances are that the
farmers cash income for major
crops will be reasonably satisfactory
this year-though prices will be
lower. yields will be higher. espec-
tally in the case of grains.
Employment: Latest figures
which have any pretense to auth
ority indicate that there has been a
fair amount Of unemployment by in
dustry, and that material gains will
be made after Labor Day. On the
other hand, at least 100000 peo-
pie are still out of work, and there
seems to be small chance of most
of them finding jobs, unless bust
ness revival Of much greater inten-
sity than anyone anticipates occurs
Securities: Turnover on the stock
exchange has slowed somewhat. But
prices have held their gains for the
most part, and bullish sentiment Is
still uppermost. The market has
become less influenced by European
scaresEthere have been so many OF
them In the last few years, and sc
few have amounted to anything.
General Outlook: Most authorities
agree that the recovery movement
win continue into next spring. Few
are willing to gamble an opinion Or
what will happen thereafter. The
political situation Is an unsettline
factor, and will probably remain
50. The governments fiscal policy
remains the worst Of all factors 81
far as the long view Is concerned.
Filings for the legislature closet
on August Is. Citizens could MOI
control the filing but from amonf
those who filed they must selec
their legislators for the 1899 session
Good citizens will vote their choict
on September 13, the day of the pri.