| Show economic econom k highlights highfi gats it has haa been generally quiet on tile the business front lately with the indicators tending slightly downward activity in the stock market has been sporadic with al corrective setbacks taking place and with profit taking a moderately disturbing influence nothing noteworthy has occurred in the bond market reason for the downward trend of the indicators says bays business week can be found in the abnormally high level recorded toward the close of 1936 and the beginning of 1937 rather than the current level in other words in tile the immediate past activity was artificially feverish due largely to prospective labor troubles and prospective price rises inventories were built up rapidly in iii some case to tn excessive proportions buyers thron thronged ged a sellers arket market now tile the situation Is a little dit different the problem of labor ties remains though honea are held that the national labor rel relations act ac i will prove lt a soothing factor or to 6 both labor and capital but the price outlook now Is mixed d no longer does it appear certain 8 that continuous rises will take place this year copper prices recently dropped more than two cents A large steel corporation an noticed that there would be no increase in III the third quarter scrap prices are down and are weakening this Is generally true throughout the durable goods market in the consumer goods market there are also signs of 0 re cessin in prices tho the average commodity price level has oozed downward Irac fractionally donally tor for a number of successive weeks and the Prent president dent is known to be turning his atten 1 eloh to the price structure and tending to the view held by most economists that the late upward trend was a dangerous one filled with inflationary possibilities inescapably connected with the course of prices and the progress ai chit industry I 1 la Is government fiscal po policy llcy T the he recent budget bessega ines sege was wads not encouraging in that it showed wide abbles between actual and contemplated income it did stress the need i for economy need which la Is ma making king itself felt in congress sortie borne leaders having come out strongly for cuts along the line in appropriations business awaits tho them outcome aless tangible but encouraging factor la Is the outlook in tile the legislative field it seems doubt doubtful tul it if congress will en noise norse this seq seil slon any major law inimical to in ill duelcy A number of such laws have been proposed such as tho the thirty hour week bill and the corporation pol po ration licensing bill but those caole close to the washington scene give such laws almost no lie chanco chance of gassing bassing the radical congressional sion blocs being definitely an in the ilithe I 1 meantime employment la rising corporation earnings statements covering the first of this year are mostly better than in fit the same period in 1936 home building made advances though the long anticipated boom in it this field la Is still over the horizon A few in III dusti dust les rles potable Jno table manufacturers have made ary sales records passing all previous levels by wide margins so it looks as it if we will be in for bior a quiet summer with paramount issues at a minimum tini save fot for those already la in the headlines tile the next six weeks or so in III congress will be concentrated on oil floor debate of the proposal to increase inci ease the membership of the supreme court and there Is a good chance that congress will not adjourn until september continued on oil last page economic highlights continued from page 1 tito tho other day an all army plane winged southward from washington hearing bearing a document that finally reached the president at sea was quickly signed by him this was tile tho new neutrality act hurried through house and senate by congressmen with an anxious eye on the turbid european war situation the act is a compromise between the advocates of mandatory neutrality and discretionary that la Is a law which corces the president to forbid trade with belligerent nations na tlona arid and one which permits him to use hla his judgement jud gement in ill the light of circumstances tito the new act la is not perfect but it Is regarded as being about an aa good as could be had and great hopes toi for keeping america out a of war are bound up tip in m it it places an all embargo on oil arms shipments to fighting nations and in the event of war it gives the president discretionary power to list goods that cannot be exported to belligerents to deny belligerents use of our ports etc important provision extends this authority to sivil as aa well as an inter nation wars war in ili europe this summer perhaps this fall sure Is 13 being talked by some nut but there has been much talk ot at that mild tor for several years and no general war has broken out yet it looks as it the powers are uncertain of their relative rela tiye fire are doing a con call alterable ald sid erable amount of t t blustery bluffing |
