Milford chronicle., 1940-05-03
ECONOMIC iiICHLicHfS
Happenings That Affect The Dlnmer
Pals, Dividend Checks and Tax
Bills Of Every Individual; National
.sud international Problems InBep.
arabic from Local Welfare.

L.
Of business activity may establish
itself on a reasonable normal, ans
follow a more or less horizonta
course. But that day has certainl,
mot arrived. Business graphs still
present a cTazy-quilt appearance
land the trends either for better Oi
worse are astonishingly vertical.
The improvement in industrial
production that set IN late last sum
liner was one Of the sharpest in all
Jour history And the downward re-
action that has taken place this
winter has followed the same pat
tern. Within a very few months the
industrial production index dropped
|! from over 100 TO less than 100. That
was not completely surprising-a
substantial drop was anticipated by
lall the forecasters But the decline
was sharper than was expected II
was led by steel. which went from
inear 100 per cent of capacity to un-
del 40.
At the moment of writing, the
downward trend has just about stop
ped, which leads to the belief that
the bottom may have been reached
and that the anticipated spring up
turn will soon be in evidence. And
If that upturn follows the anticipated
pattern, it will be like that of last
extraordinarily strong, culmi-
mating, in the opinion of some eco
nOmists, in a production index as
high as 14O by the end of the year.
One bright spot in the business
picture is, of course, foreign trade.
January export business was $685.
900 900, almost exactly the same
amount we sold in December And
that figure is 20 per cent above the
January, 1899, level. EuTOpe's ap-
petite for American airplanes. met
ais, raw cotton. chemicals and ma
chinery is iargantuan.
Brightest purely domestic spot in
the picture is retail trade. January
business was 10 per cent over the
opening month of last year. Biggest
jump was shown in the rural field
up II per cent. Indications are that
chain and Independent stores shared
about equally IN the improvement.
There is a good chance that total re-
tail trade will hit 1000, 900 900
this year-las: time that figure was
reached was in 1897. Low of $685.
600, 900, 900 was hit in abysmal 1888.
and the 1882 figure was only Sl,000,-
O0O, 900 better. Last years total was
{ bout $3S 900 100000. Biggest year in
history was 1929, when retailers
cash registers jingled merrily to the
tune of $49, 100000, 600 1t is felt that
biggest jump in retail selling this
year as a whole will be in urban
areas. Reason: farm benefit pay
ments will probably be lower this
) ear than last. and factory employ
ment and payrOlls higher.
One sign is found in mounting au-
tOmObile production and demand.
That has a salubriOus effect on many
other industries, including the big
gcst business of them all-steel.
900
The first reports of what Herr
Hitler said to MIR. Welles have fll-
tered in. And, if you take them as a
fixed declaration of German policy.
they certainly do not seem cOndu-
Give to peace. Instead, they seem to
make war to the death inevitable.
According to reports, the Fuehrer
insisted that German political dOmi- !
na tiOn of CZechOslOyakia. German
occupied Poland and Hungary be
the Allies keep
their hands of Scandinavia and the 4
Balkans-that Germany's pre-war /
colonies, bulk of which were taken /
by England, be returned-that Brit |
ain lead the way in disarmament by
doing away with such Notifications
as Gibraltar-and that Britain's
'stranglehOld on the world ecOnom-
c structure be broken. II is signili-
SAINT that Hitler said little about
Trance-it is an Oft-repeated Nazi
doctrine that Germany has no quar-
'ei with France, that the two cOun-
ries as now constituted can live
brewer in peace. and that John Bull
5 the trOublemaker.
1t is naturally unthinkable that
England would make these tremend-
,us concessions. unless she were fac
ng certain defeat at arms. They are
to destroying the British
Empire, and leaving the Isles remote
md helpless.
However, that does not mean that
III hope for an early peace is gone.
FOR Hitler undoubtedly demanded a
,reat deal mora than he could expect
o receive. A good bargainer often
isks the impossible as a starting
lOint, and makes concessions from
here. And certainly great pressure
will be brought on Hitler, as well as
he Allies. to consider ending the
var. Italy , is extremely eager that
.Ostilities stop--her own neutrality
,rows more difficult to maintain
Iaily. The smaller neutrals, espe-
tally Belgium, Holland, Scandinavia,
lumania and Greece, will do every
hing in their power to promote
'eace. And it is felt that even Rus
ia, Hitler avowed friend" will
ing a similar tune. Russia is in no
,Osition to fight a major war, and if
matters go on as they are now, there
8 a strong possibility that the Allies
sill declare war against her in Or
Ter to open a new flank. and make
ighting in the vulnerable Baltic pos
ible.
1t is significant that the German
eception to Mr.. Welles was cordial
n the extreme-hOnOrs were given
lin that are usuallyreserved for the
lin that are usually reserved for the
Tnment is apparently desirous of
b, n,proVing German-American rela-
ions. and it. WIS intimated that Ber-
in would welcome an American am
,assador.
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