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Show Utah Banker Sees Business Balance Business conditions are getting into balance rather than headed for sharp and continuing declines, de-clines, in the opinion of national banking and industrial leaders. That was the report of George S. Eccles, president of the First Security Bank system, following his return from conferences in the east with some of the nation's top business leaders. "Spectacular business gains in recent years have begun to ebb, but business generally should continue at high levels,' Mr. Eccles said. The bank leader added add-ed that the current dip in the stock market has resulted from a stabilization in business rather than from any indiciations of a major decline. "Stocks had been priced on a basis of over optimism opti-mism in regards to profits and they are now adjusting to more realistic levels, he said. Mr. Eccles noted that housing starts across the country have been lower than last years and car sales are no better. He added that the output of major consumer con-sumer durables is somewhat lower low-er than at the turn of the year. "However, despite the slackening slacken-ing trends, our economy continues con-tinues with virtually full employment," em-ployment," he said. "Demands for goods and services generally remain strong, particularly in retail trade. Personal income has also risen unbrokenly through the summer just past." Mr. Eccles said that a recent survey of the nation's 1000 largest larg-est manufacturers shows a sharp cutback in capital appropriations. appropria-tions. "This does not mean that capital spending can no longer be counted upon to give a further fur-ther boost to the economy at the year end and in early 1958," he said. "It means that the present shrinking of profits is causing industrialists to proceed with more caution." He added that "while there is a downward tilt in manufacturers' manufactur-ers' capital spending, other sectors sec-tors of the nation's business, particularly par-ticularly public utilities, shows signs of continuing boosts in capital outlays. There continues to be a large backlog in government govern-ment spending, both on the local and state levels as well as nationally. na-tionally. As to federal expenditures, expendi-tures, there has been more of a deferment than any substantial cutback." "Corporation profits have been put into a squeeze in recent months. Labor costs have continued con-tinued to rise while sales are stabilizing. Business is now finding find-ing that increased labor costs can not be absorbed as easily through stepped up sales." Studies show that personal savings are continuing to rise,-putting rise,-putting them into a more favorable favor-able balance with expenditures. "This situation, however, has not been reflected in a reversal in the money market," he'd. "Interest rates remain, higBd.-ut seem to have reached a plateau." "In summary, our economic indicators in-dicators show that there is suf- ; ficient economic pressure to con- I tinue present high levels into the first half of 1958. But at the same J time, there is evidence there is a slackening of momentum, re- j ; suiting in a tempering of opti- mism." I |