Milford chronicle., 1954-03-26

the current attitude toward bust
ness conditions it might be the
word watchful. Everybody seems
to be watching to see what the
latest figures show. Because bust
nessmen base their plans for the
future on what has happened in the
recent past, the course cs business
will be influenced strongly by wha
the figures do show.
Retailers, for example, are
watching sales statistics even more
closely than usual in order to de.
eide how much to order from
suppliers. If the figures turn Out
to be unfavOrable, retailers may
cut their orders, and the roper
cussiOns on the economy are like
ly to be unfavorable, too. The same
kind of thing takes place in varying
degrees in other aspects of bust
ness. At the current stage of the
cycle bad news is apt to breed
more bad news.
The reason, of course, it tina
the individual businessman must b,
cautious. The retailer may realizt
that he is tending to aggravate th'
general downtrend when he cuts hi!
orders, but if his sales are declining
it is risky to do otherwise. Much al
he might like TO, he doesn't darl
try to reverse the business declin,
by his own action.
This isn't true of Government
Government has powers which pri
vate business does not have, and i
has a responsibility for maintaining
high levels of employment. Bat
news calls for action to prOmOt,
better business conditions. This i
the setting for the Presidents state
ment that if the unemployment Fl
cures for March fail to show
decline, he will consider more Wig
orous action to stimulate the econ
Omy.
A period like this, when every
one is watching the figures closely
puts a burden on statisticians. The.
must do a particularly good job
1t also places on people who use tn
figures a responsibility to use then
correctly. The recent revision o
statistics on unemployment, there
fore, has it's fortunate aspects. Al
though the revision indicates tina
unemployment is greater than har
been thought, it also shows tha
statisticians are or the job, ant
it reminds those who use statistic
to interpret them carefully. HOV
far the down trend goes and hoy
long it lasts may depend, perhap
to a larger degree than we think
not only on what the figures are bu
on how they are interpreted.
To say that this is a period O
watching, however, does not mea,
that it is a period of waiting. Sev
eral steps have been taken an
recommendations have been mad
to ease the business adjustment
Monetary policy for some time ha
been directed to this end. The mos
recent manifestation has been
reduction in the discount rate forT
to ~ per cent.
; Supply Of Mortgage Money Is
Increasing
Lending institutions that normal
/ ly supply the bulk of funds support
ing one very important sector {
the ecOnomy-residential buildin
have been quick to respond to a
easier monetary policy. CONNER
cial banks, savings institutions, an
life insurance companies have re
spOnded by making funds NOR
readily available to builders an
prospective buyers for home build
ing and home ownership. The in
prOvement in the supply of fund
for home financing has become dis
Cernible at the local as we'll as &
the national level.
Third District Builders Are MOI
Optimistic
Our builders tell us that fund
for temporary and permanent fiji
ahcing are more readily availabl
than they were six months or
year ago. Philadelphia, Reading an
Wilmington are particularly brigf
spots at present. Significantly, theT
are no reports of actual operation
having been held up for want {
adequate financing, although theT
remain scattered areas where fund
still are somewhat tight. Trento
and Harrisburg are two such area
and no doubt there may be other
Mostly, this dearth of mortgag
money reflects a temporary sitl
alton that is expected to ease
the affected areas within the ne1
sixty days.
Thus in this District as a who'll
builders are increasingly Optimi'