Henderson daily dispatch., 1940-07-04
Summer Business Outlook
Is Good, Babson Declares
Continued From Page OneJ

off inventories, which are said to be
heavy.
Automobile assembly lines have
turncu out nearly as many cars as
in any halt year since 1929. The loss
Of the export markets for automo-
bllCs in the Low Countries and
Frat. is more than made up by
new but" in other directions. Pro-
duction Vi cars in recent weeks has
been running above retail sales to
stock up SO that plants can make
their model changes. Hence, a de-
cline in automobile production will
now take place.
Steel Industry Active.
Steel operations have smashed
their way forward to the highest
level for this particular period since
1929. The end Of the war might hit
the steel industry harder than most
Cthcrs, but not necessarily. Inven-
tories in consumers hands are said to
be even higher than in 1887. Our own
armament program would take up
the slack later on, but there would
be 4 let-doWn before this happened.
Armament industries are just be-
ginning to feel the effects of the de-
tense program. How much they will
add TO the business total in the next
couple of months is uncertain just
now. Investors, business men, and
workers should, however, keep in
mlnd that this nation is entering up
on the biggest armament program
inIs;sl
any time Therefore, what is now
on the books is mere sampllng. 1t IS
expected that a billion dollars will
be spent to increase present ship
yards, munition, and arsenal cap
acity merely to take care Of the huge
orders which will be placed.
Retail trade is remarkably good.
1t is running 10 per cent or more
| above year ago. Best comparisons
with 1889 levels are coming from the
industrial areas Of the MiddleWeSt,
poorest from the South and Pacific
! Coast. Rising payrolls mean that
these gains should continue.
Record Tourist Season.
Tourist business: Due to the wal
in Europe and the hesitancy OF cruis-
ing even to the West Indies, South
| America Alaska, and other places
all tourist money will be left in this
! country and Canada this year. The
| greater efforts which the railroad anc
bus lines are making in developing
travel and the continuation OF The
two world fairs indicate that thi
summer will see the largest vacation
season on record.
Politics: The general impression i
that the platform and nominees O
the Republican party are very con
structve move. 1t surely shoult
make F. D. r. count ten" before n
runs for a third term. Already the
! market acts as if Willkie and Nc
Nary have real chance.
Security and commodity prices are
steady to stronger. In fact, they have
recovered one-third of their May
break. Dividend payments are gen.
erous, earnings are tremendous. Sc
curities are actually cheaper toda.
in relation to earnings than at any
,.mv III me past twenty years.
The business outlook for the sum-
mer, therefore, is good. There may
be sct-backs due to cancellation Of
orders and psychological reactions
Any setback, however, would bt
from an already high level of ac-
tivity. Hence, believe that business
this summer should be even better
than it was last July and August. l.
the war continues, our armament
program will be added to the cur
rent level of activity, giving us the
second best summers business since
1929-maybe even the best. In say
ing this | am not forgetting the hor-
rors in Europe.
= i: >: =
l have just received a request tc
Join in petitioning President Roose-
welt to appoint a day of prayer in
! connection with the European war
| believe i'll prayer, but | believe in
| doing everything | can first, before
turning things over to God to do fol
me. | also believe in praying that
my will shall be in accordance with
Gods will. l do not believe in ask
ing God to bend His will to suit me-
Furthermore, God says to me: "Only
when the leaders of all the nations
! will unite at one place to pray sin
! Ccrcly for guidance can | answer
their prayers for peace. | wonder
how many readers of this column
| feel I5oWiSc-Or am | wrong?