Show economic cullum ALZa 9 0 highlights from the business standpoint tho the year 1037 can can be compared to tho year 1029 during duran the first halt half industrial production pi rose with pleasing it asing steadiness as it did in 1029 1929 security prices i moved gradually upward with no important set setbacks backs back tho the bad signs were far outweighed by the good signs and it seemed a certainty certa incy that the recovery movement would go ahead w without impediment then early I 1 in n the second half balf of the year industrial production started to full fall off slightly again as it did in mid 1929 and in october the values of securities took the fast acts drop in american history with shares as a whole depreciating approximately 45 per cent in a period of a few w decla e ek is thereafter tho the business indices started on an a swift decline which wiped out most of the progress that had leen been made since 1934 in many lines the last week of the year was the worst in spite of a generally good christmas retail trade tho the financial periodicals have all published their traditional annual review and forecast issues general tenor is expressed by bus bua anem week when it says the year 1938 opens on a low jow note but chances are better than fair that it will end on a substantially higher one the wall street journal hopes that the influence of mental attitudes on the volume of business transactions has reached its maximum and states that probabilities are that tho the present business depression will not last far into 1038 individual cafora such as ayres and babson seem generally convinced that this depression will bo be short lived there aro are a few who feel that it la Is destined to turn into another major depression unless a drastic sal of many present policies occurs which is unlikely some of the most clear sighted of the experts b elong belong in the group which sm tho the future us its being far from aright Yr Ight to get flown down to actual facts the statistics are not favorable during 1930 1030 and 1937 the automobile industry probably did more than any other to provide employment purchasing power and to lato late industrial activity in general it ws aoa expected that this industry would have another big year in 1038 1018 but that hope in all probability will not materialize the used car problem has ha become acute dealers inventories are at excessive levels As a resu result new car s sales have undergone an exceeding sharp drop this is reflected in curtailment of production by the industry with layoffs of labor paid arld plants working in a part week basis both general motors and chrysler which issue figures recently cut production and payrolls heavily the other member of the ilg big three F ford ord does not issue figures but it Is believed that a similar condition exists in this company the steel industry closed the year at uio the lowest rate ot of production since september 1034 however there la Is nil an encouraging factor lacre ia a steady rise in the markets for steel scrap plus stable prices leads to the belief that consumption of the basic metal Is run rna alii strongly ahead of production declining income on the part of tl the railroads has haa also been A major depression influence the industry lias has reduced its purchasing pow ed cd to the bare necessity point business in general eral hopes that the ICO will permit the requested increase in freight rates in order that railway purchasing and employment may bo be raised A less specific but highly important factor Is the continuing war between the roo orvelt administration and business busl the recent speeches of jackson added fuel to the fares of investor pessimism however the two latest addresses to coit congress gress and at the jackson day dinner wille while from reassuring to business were milder than many expected it Is the general opinion that mr roosevelt Is marking time and testing tho the state of political weather through the acts and talks of his underlings and all that he has not underlings under lings and mat he has haa not made up hla his mind which way to turn here thare Is stilt a chance that ho he may steer the new deal la ili a soine somewhat what more conservative direction on the favorable side the signs are largely psychological all the financial magazines lay heavy stress on the he apparently growing congressional ional sentiment I 1 la in flavor of cooperation with y ith busl business nies and the alleviation or repeal of laws which business feels are hampering the labor situation seems seema a little better thau than it was waa a few ew months agola ago la in a time of declining labor tends to temper its demands on management and there Is less sympathy among the rank and tile file in favor of rail radical leal action there will be much less talk about higher wages and shorter hours until the depression Is ended I 1 tho the price situation has both its favorable and unfavorable side the price decline continues in spite of the efforts of 0 some industries to hold prices to prosperity levels this tends to spur buying on the other hund hand a severe price break would make additional addition il cuts in industrial earnings and so exert a further unfavorable influence oil du activity job insurance now in effect in half the states will help to reduce the loss of purchasing power r resulting C stil ting from increasing anent |