Show 1 1920 2 SN SEEN AS BANN DANNER YEAR f R Strong Position Shown by Economic Indices Banker Says Unless some very adverse development development devel devel- intervenes 1928 will go godown godown godown down in business history as a year of ot exceptional prosperity for trade and industry throughout the United States In the opinion of ot Theodore G. G Smith vice president of ot the Central Central Cen Cen- tr l Union Trust company of New York There Thore seems to toe Ibe little doubt that the period of depression that began In the early months ol ot of 1927 1327 has been overcome Today practically all economic indices show good or excellent positions Even relatively high money rates have not prevented the forward movement and this is true of ot ac activities activities activities ac- ac such as building which it was predicted would react unfavorably unfavorably unfavorably to an increasing cost of ot funds The situation seems to be however that demand in all de departments departments departments de- de is of a temper that wil will not be checked by factors that or ordinarily ordinarily ordinarily or- or are effective Credit re re- requirements requirements requirements have probably passed their seasonal peak and rates are easing slightly which strengthens tho the pros prospect ec for continuance of present activity although money rates may remain firm Mr Smiths Smith's statement continues as follows In staple lines such as copper and steel there thero is strong demand I and in other branches a large vol vol- moving Into con con- ume of ot goods is Wholesale trade in general general general gen gen- satisfactory conditions conditions conditions con con- eral reports very throughout and retail trade I In Inthe Inthe shape the country is in splendid sections abundant b the agricultural crops will give a large P purchasing chasing power and strengthen the rural conditions conditions con con- Employment credit situation are healthy and labor turnover turnover turn turn- workers that indicating over high feel their position sufficiently strong to abandon jobs not to their liking for tor others more to their taste WHOLESALE PRICES UP Wholesale prices have been ad advancing advancing advancing ad- ad steadily for the tho past four tour months and in September reached the highest point since June 1926 have shown a anet anet Agricultural prices f net improvement as the result or ot sharp Increases in livestock prices offsetting declines in grains and ana cotton petroleum and petroleum I products have registered substantial i increases and copper is at the highest point years Advances Advances Ad Advances Ad- Ad Char har Character vances of ot a more moderate acter have been noted in iron coal and lumber There is some evidence that the movement Iri In the stock market Is beginning to be reflected reflect reflect- ed in general prices and business conditions since more mora money is go goIng going going go- go Ing into equipment and plant while stocks in a good many lines Unes are larger Jarger than usual although it Is probable that present methods of ot buying will prevent any undue ac ac- ac Movements of corporate shares and the conversion of bank depositors depositors' depositors depositors' depositors depositors' tors' tors balances into loans on these shares are the outstanding features features features fea fea- tures of ot the country's economic life Transactions on the New NewYork NewYork York Stock Exchange are arc in immense immense immense im im- mense volume and prices have been forced to high levels Average yields at current prices are small and much below the cost of ot money used to finance stock speculation Many months ago stock prices ceased to move in In harmony in-harmony with business developments developments- but the publIc public public pub pub- lic Is convinced that still higher prices will be obtained basing its views on the prospect for larger equity values from Increased earnings earnings earnings earn earn- ings in the next three to five years A peculiar phase of ot the situa- situa financed have not don tion is s that banks this year expansion stock c market stocks andIn and on In fact total loans remain below bonds made by banks banks' and June but the levels ot of last May dealers made and loans Joans to brokers shOW a by banks for depositors have supplied and largo large in increase crease additional funds all the practicallY the stock marl market et since by absorbed corporations corporations cor- cor many At present last spring individuals with surplUS surplus sur- sur and demand loans deeming plUS funds to demand deposits regard regard re- re equivalent street call money gard the Wall Vall safe outlet at good market as a consequently has rates and there ot of funds Into this been a a. diversion or Is one The situation as channel potential difficulty as considerable the tho control con con- under not cahn these funds are and may be wl withdrawn withdrawn with with- tr of bankerS time without regard to drawn the effect at any on stock values or pUblic pUb pUb- lie lic confidence nine for the first s trade trado Export present year is s larger larg- larg months ot of the larger larg- previoUS than for any er In volume in value than than In year and greater to the theany 1921 Up since l lJ J uv any year end Of ot September some of commodities were exported exI ex- ex worth r of ot which represented represented 73 cent I per pet p ported goods wholly or partly se manufactured the highest proportion proportion m record record- Indeed exports of on tion goods during these manufactured valued at months nine nino exceeded by more than 50 50 j the value ot of oo our e exports ex ex- ex 1913 The automobile industry Industry In- In n in ports contributes 14 per cent 1 now of 1 nS movement manu manu- export to o our while increases In F goods Industrial and r exports machinery of office specialties tural machinery and apparatus 1 electrical other lines have been and many notable The vote for Mr Hoover seems a 8 refusal whole to 0 represent on the of party administration administration adminis- adminis to tort risk a change during a generally prosperous prosper prosper- Hoovers Hoover's situation and Mr ous election eJection apparently assureS assure a continuation continuation continuation con con- of ot the governmental poU- poU contributed to the tho which have ci cies 9 present satisfactory satisfactory business condition condi condi- tion The political factors accordingly accordingly accord- accord are in line with the general sum of ot prevailing prevailing business In influences In- In |