Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1939-06-16
Business Has Hit Bottom
For 1889, Babson Thinks
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expected by June, business would
show a slight improvement of the
level of early January. Actually, it
has tapered off since the New Year
is now four per cent below the
January level
Retail Trade Brisk
However, instead of being a pessi-
mistic influence on the second half
outlook, | think this is an optimistic
Indicator. During the past six months
the excess inventories of goods built
up as a result of the very sharp up
swing in business last fall have
largely been used up. Retail trade in
most areas this year has been very
steady. The sale of goods has been
running ahead of the production of
goods Retail trade this month, for
instance, is particularly brisk, the
gain over year ago running from
five to ten per cent
We are entering the second half Of
the year, therefore, with retail trade
satisfactory in most parts of the
country and with inventories low
Figures from pivotal industries in
dictate that business will be better in
the weeks to come. The steel industry
for instance, has taken a sensational
upturn in the past month. Operations
are now at SIS per cent of capacity
against only As per cent a month ago.
Most Industries Picking Up
Other industries, while not moving
ahead SO spectacularly as steel, have
turned up in the last few weeks
The number of freight cars moving
over the country's railroads are prac-
tically at the best figure for 1889.
Electric power consumption is rising
after a two months dip. Automobile
assemblies have been disappointing
SO far, but new model production is
scheduled to get under way in July
a full month earlier than a year ago.
Lumber operations are almost so
per cent ahead Of 1888 at this time,
reflecting the encouraging gain in
home building.
In fact, construction has been the
backbone Of the 1938-39 business i'm
prOvement. Activity is 40 per cent
above year ago and we'll above
June, 1887, when general business
was running close to its ten-year
peak. There is a tremendous trek
Of population from city to suburbs
and to country towns. Remodeling
and new building in some suburbs
is almost Of boom proportions. Com
mercial and industrial building, how
ever, is very quiet with the exception
OF gOvernment-spons projects.
Business Best in North
AT the present time, business is
best in the northern northwestern
states. My map, which shows bust
ness conditions in every city and
every state at all times, has changed
IN recent months. l find that of the
tWenty-three gold, or good, states
this month, all but four are east of
the Mississippi and north of the Ohio
rivers, or on the Pacific Coast. Ger
! tain farm areas in the southeast,
south, and southwest, where business
was booming few months gao, are
now experiencing quite a slowing
down.
do not look for this situation to
continue, however, because farm
prices are now improving. Quota
tons today are equal to, or slightly
higher than year ago. Crops are
not expected to be quite SO large this
year With the governments efforts
to eliminate SURPRISES, plus the ST.
3OO,OOO,000 benefit program, farm
income in the next few months should
top the 1888 level by 10 per cent,
barring any unforeseen weather de-
velopments. So farmers can be add
ed to the city workers as potentially
better retail buyers this summer.
Dollars Must Go to Work
The huge Wads Of cash choking
the treasures Of banks and insurance
companies is another factor which
keeps me. bullish. There is more
money available for investment to-
day than ever before in the history
OF this country. The credit expansion
potentlalities stagger the magma
ton. Americas problem, of course,
is to- put this money to work. It is
Just as necessary to get these dollars
| employed as it is to get our 10000 900