Show economic highlights Highlight 8 the cyclonic disturbances in the stock market have detracted attention from business production and activity indices A security collapse that at tile tho bottom wiped out values to tho the tune of some has been far and away tho the major doi domestic nestle occurrence occur ence of 1037 at this writing a majority of economists seem convinced that tho the worst of if the debacle Is over A very large proportion of margin dealers wore were wiped out in the break As business week puts la Is there lg 10 a limit to every downward spiral and thal thai limit seems to have been approached in the present situation so go far as industrial production Is concerned there has been a substantial drop but me drop was wag nowhere near as severe as aa the drop in stocks in ili two months shares as a whole went down 38 per cent reclining to ao acho late 1035 level though not to the file lows of 1032 in tile the same period business activity dropped a little over 0 1 per cent A few Inaus industries tries notably steel will not in fit all probability recover much of their recent losses lu in production for a considerable length ot of time most however hope for a good winter and spring business tho the prediction Is that this years christmas buying will hold up well some specific business In forma lioa of interest follows commodities dropped in along with securities but to a much losses leases extent belief is that t the e trend in ili tho the future will be slowly upward power and light america Is constantly becoming more completely electrified with the utility in du dustira dus tiya output holding to a high level new power production records have been constantly recorded the indu not net earnings however howe vei remain in practically the 1932 level duo due to greatly increased taxes and higher fuel and material costs its politician cial troubles such as federal competition have hae not been abated and retard its normal development bretall trado trade has held to a high level throughout the country substantially s ly surpassing tho the same period in 1930 1030 slightest improvement 3 per cent has occurred luNew in new agricultural buying Is heavy construction the raise in belld building costs has haa at least temporarily stopped As a result contracts let have been rising COTTON this seasons exports have been about 10 per cent ahead of last seasons domestic consumption has been satisfactory though not starring raw haw cotton prices have been firm agriculture the farmers far mcra cash income this year will be the largest in many years and may touch the special session of congress has been called to con ader additional farm ald aid laws lawa of a permanent rather than an all emer bency nature thus farmers as aa a whole are arc in an happy position labor the peace negotiations between tho the A F of L and oto CIO have as aa was alpar bontly broken down completely fur ther later inter labor warfare thus seems inevitable also An evitable seems more labor demands for higher wages and or shorter hours to be supported by strikes it employers ref refuse use it Is impossible to exaggerate the importance of this industry which accounts for nearly 1 13 per cent of tho the national income the 1038 1938 cars are out and are little changed from last years with tho the exception of one or two makes many minor but few major improvements have been made prices fire are higher the prediction 1 la a for a 1038 sales record which will equal or surpass 1037 unit profits may also be larger inasmuch a as increases in the retail selling prices of most mait cars are a trifle greater than the increases in ili manufacturing costs Inde independents pon may make some inroads ili into the big three but they will be insignificant according to observers and general motors chrysler I 1 and ford will bo be the big sellers prices recent deflationary events have caused a downward trend in retail prices especially foods increased consumption Is the result this Is 18 especially noticeable in the meat field zooming prices had bad brought about consumer strikes in many areas A short time ago tills this column commented anthe on the belief of a number of washington writers that the new deal Is tempering its course and is being steered in a more conservative serva tive direction recent events add authority to that view th president Is talking of bud get balancing and there has been a cut down in federal activities notably t in the relief field and the sentiment t ot t congressmen who are worried vor ried by the stock collapse Is generally in favor favo r of taking a cautious line A continuance oi or this trend could do as much as anything to encourage bir business siness some of the gals gal in bathing suits who win beauty prizes must have received thel their decisions from a packed court |