The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1938-09-22
BUSINESS OUTLOOK
/. REMAINS VERY GOOD


The business outlook, 80 far as the
domestic picture is concerned, remains
good. If only our own internal prob
lens were involved, it seems evident
that this recovery movement would
continue, at least for the next six or
eight months, and that security prices
would tend upward accordingly. How
ever, there is an extremely large fly
in the ointment-the European situa-
tion. That was vividly demonstrated
in the week ending September 10. In
dustrial statistics were encouraging,
political complications, and the stage
was set for a sustained rise in Sc
curity prices. But prices sagged, and
the week as a whole was disappointing
on all counts-principally because of
the fears of war.
1t seems unlikely that this fear can
be dissipated in the near future Even
if war does not occur before the end of
this year-and, according to the ex-
perts, the chances are better than even
that it .will-the shadow of Mars will
still darken the economic skies. Thus,
it is to Europe, rather than to this
country, that the student must look
principally for guidance in anticipating
what will happen to industry and to
security values during the remainder
of 1888. f'@t
Forgetting the war problem for the
moment, the figures indicate that the
recession" is definitely on the wane.
No one looks for even anything re-
sembling boom such as that occurring
at the end Of 1886, which ran halfway
through 1887 and exploded. The ex-
pectation is for steady, non-dramatic
betterment in practically every line of
industry and commerce. Here is the
situation obtaining on a number of
basic lines now:
STEEL: Recently touched "a per
cent of capacity-about twice the level
obtained in early July. During eight
Of nine consecutive weeks for which
this column has data, improvement
was registered.
MOTORS: Lately hit its low pro-
duction point of the year, which is en-
tirely normal, as it will not be long un-
til the new models begin streaming off
the assembly lines. By the time this is
read, production should be at a good
level, and increasing rapidly. Reports
of what the new cars will be like are
conflicting. 1t has been generally re-
ported that there will be little change
in most makes; more recently, rumor
says that manufacturers are now
planning more ambitious experiments
and improvements.
CONSTRUCTION: Non-residential
building is still down. Residential
building, on the other hand, is we'll up
and is rising. In August, this kind of
construction was 18 per cent ahead of
last year. Big factor is the govern
ment-insured long-term loan plan
under which builder may obtain as
much as 80 per cent of his house and
lots value and take up to rs years
to pay it off. e,.. r.
ELECTRIC POWER: This reliable
barometer Of industrial affairs in gen.
eral shows strength! The summer de.
cline was not more than seasonal ir
intensity. And the fall and winte,
outlook is9ood. ..f
RAILROADS.: Car loadings have
been up little, but not enough to keeI
scores of lines out of the red. Tht
industry is tied up in wage .negotia
tions, which have been. complicated b.
the brotherhoods' refusal to accept fed
eral mediation of the. managements
request for general Is per cent wag'
cut. A great deal of pressure is be
ing brought from many quarters t,
have Congress take up possible legis
lation to save the industry, as soon a.
the next session opens.
| Summing up, sentiment as a who'll
is now bullish. But keep your eye OF
Europe-what happens there coul'
change the outlook tremendously over
nipht -