The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1939-09-07

years we nave DeeH dCCuSCOIHcU CO
rapid fluctuations in the industrial
cycle, with a bewildering succession
of ups and downs holding the stage
for their little hour. Now it seems
that dramatic period is at least tenn
porarily over. We have apparently
settled down, and the prospect is that
there will be lengthy period of calm
on the commercial front. No one an
ticipates major upturn in business
and no one anticipates major
drop.
! AS Business Week observes, there
has been an interesting recent change
in "the character of the recovery" J"
Activity is today most marked in the
durable goods industries, where yes
terday it was the most marked in the
field of non-durable, or consumers
goods. Steel, for instance, recently
touched it's highest rate of production
in almost year. Production of the
basic metals, copper, lead and zinc,
has tended upward, and prices have
held firm. Main reason for this, of
course, is the armament race, both
here and abroad. Nations which are
Engaged in war or are preparing for
war have Unsuitable appetites. And
that has been a stimulating factor to
our long dormant heavy industries.
On top of that, there is a consider
able amount of industrial expansion
going on in many lines, and this
means heavier orders for machines,
tools, supplies of all kinds. 1t is be-
lieved that this expansion will con-
tinue, and that the index of industry
this fall will reach a level materially
better than was touched last year.
Some business briefs of interest
follow:
MOTORS: Makers think that sales
of new models will be slightly better
than last years. Production is low
now, as the new models are destined
to flow off the assembly lines in a
few months, but will be sharply in
creased soon.
ELECTRIC POWER: Output is at
excellent levels. The industry has
been doing considerable purchasing of
new equipment, and expansion plans
are far more ambitious than in the
recent past. Action Of Congress in
limiting, to certain extent, federal
competition with the private industry
has had stimulating effect on morale.
EMPLOYMENT: Is steadily in
creasing, especially in the heavy in
dustries. 1t is probable that the un-
employed total is lower now than at
any time since 1888.
CONSTRUCTION: Is still we'll up.
Home building continues to dominate
the picture, though prospects hold
that there will be slackening in this
type of building soon. There is sig
nificant amount Of new industrial con-
struction.
AGRICULTURE: The picture here
is spotty. Looking at the country as
whole, income for the farmer will
be relatively good this year.
Summing up, there is every justifi-
cation for feeling that. business will
keep to slow and gradual recovery
trend 1t should be pointed out, how
ever, that general war could change
the outlook over night, and make the
future completely unpredictable.
X X X
In their public utterances, French
and British statesmen said that they
were amazed" and "astounded" by
the suddenly announced German Rus
sian peace pact, which followed hard
on the heels of a Soviet -Nazi trade
treaty. However, the fact seems to
be that the more hard-headed officials
of the world democracies were much
less surprised than they say. For it
has long been forecast by realistic
commentators that a German-Russian
alliance was not only possible, but in
evitable.
There are several reasons for this.
Russia was Germany's most danger
Gus potential enemy, and if Russia
could be pledged to neutrality, Hit
Ter knew it would make the ambitious
imperialist program laid down in
Mein Kampf infinitely easier to
achieve. And Russia has long been
eager to assure peace in Europe, so
far as she was concerned, in order
that she might give undivided atten-
tion to protecting and advancing her
vital interests in Asia.
Furthermore, it is obvious that in
method and deology, the Communists
and the Nazis have been coming
constantly closer together. In both
nations all private liberties have been
destroyed-one man government rules
supreme-"enemies" within the state
have been eXiled, imprisoned and ex-
ecuted-and the state dominates all
economic activities.
There is another side to the picture,
however, which is far from favorable
to Germany. Hitler's action has
definitely alienated Japan from the
Axis, and the Tokyo cabinet which
favored close cooperation with the
Reich has been forced to resign.
More important, the opinion grows
that German Russian Cooperation"
must drive a wedge between Berlin
and Rome-and that there is at least
a possibility that in time Mussolini
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