The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1938-03-17
ECONOMIC H1GHL1GHTs

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ECONOMIC HIGHLIGHTS
The condition of industry and of
investor psychology has been accur-
ately reflected by the stock market
during the past ten or twelve weeks.
During the first four of those weeks,
the market level tended to advance
slightly, with each Saturdays clos
ing figures showing consistent net
gains. This was caused by the ex-
pectation of a marked early spring
upturn in general business. How
ever, the upturn was so slight as to
be almost nonresident, with the
result that for the six weeks, March
5, each week saw small net loss
In prices. There were no important
breaks-values simply oozed gently
downward, for lack Of anything to
sustain them. Volume of turnover
was extraordinarily low-in one
week totaling but 2, 678,875 shares,
the smallest in more than three
years. 1
Current stock prices, as compared
to 1897 levels, likewise provide a
fairly accurate comparison of bus
mess activity now and then. On
March S, the AP index of 60 stocks
stood at 44.5-the 1887 high was 1873
and the low, Alt.
On the other hand, in spite Of
the lethargy of business, and the
growing belief that there will not
be any significant Improvement UNI
til fall, the feeling of most of the
financial journals has not been pes
simistic. Thus, Business Week re-
ports that although no important
changes have occurred in the level
Of industrial activity II. sentiment
has been somewhat better" The
Annalist, dealing with more tangible
factors, says that there are signs
of improvement in some consumer
goods industries and in commodities
affected by speculative demands.
The labor situation has shown
marked improvement in recent
months. The Presidents price
analysis was commercially obscure"
No reputable authority is actually
bullish-but it is worth recording
that a considerable degree Of opti-
mism obtains in spite of the con-
slant appearance Of new current
statistics which are largely unfav-
orable.
Some brief items relating to the
state Of business follow:
Railroads - Carloadings are SER
iously down, with railroad revenues
showing grave decline. The ICES
decision on the Is percent rate In
crease is expected this month. Rail-
road heads are talking Of plans for
consolidating lines.
Automobile: The outlook has def
initely improved, with production
rising after bad experience In jan
uary when new passenger-car reg
istrations amounted to only $4,000
units, as against 100000 in Janu-
airy, 1897. The sales Of typical
car, the Dodge, for the first three
weeks in February were almost 85
percent above the same weeks In the
preceding month.
Safeguarding at around 81 per-
cent Of capacity. A more or less
substantial increase in structural
steel bookings is expected soon, In
asmuch as these bookings have
been declining in spite Of good
volume of engineering contracts
awarded.
War Materials Here Is a really
booming business, and every factor
indicates that the year ahead will
see still bigger sales. Almost every
country in the world, large and
small, not excepting the U. s., Is
spending record sums in prepara-
ton for Der Tag.
Prices Here is the great question
mark at present. It is likewise one
| Of the administrations principal
I headaches. The President believes
In price parity policy-that is. that
some prices are too high and some
I too low, and that balance must be
reached. A revolutionary" trend
now seems to be underway and it is
believed that the gold sterilization
policy will be modified, so that some
4 Of the yellow metal which now has
no securities or currency out against
4 It will be used to enlarge the credit
base. A large business and bank
ing bloc has long favored this, tho
such policy is somewhat initiation
ary in nature. a>
Unemployment - No one knows
how many employables are out Of
work-everyone knows the figure Il
still growing. In all probability, the
total is not far from the 1882 1913:
high. A few corporations, Of which
General Motors is the largest, have
started to cut salaries, but this tend.
ency has not become widespread q:
yet.
To sum up, we are today In
4 static period. There is no reason t.
expect either sharp upturns Of
downturns in the business cycle o.
security values for some time t.
Ssovv1o