Show ECONOMIC highlights from the business standpoint the year 1937 can be compared to tile year 1929 during tile the first halt half industrial production rose roae with pleasing steadiness as it did in 1929 security prices moved gradually upward with no important setbacks the bad signs were tar far outweighed by the good signs and it I 1 seemed a certainty that the recovery movement would go ahead wit without impediment then early in the second halt half of the year industrial production started to tall fall ott off slightly gan agan as it did in mid 1929 and in october the values ot of securities took the fastest drop in amerlean american history with shares as a whole approximately 45 per cent in a period ot of a few weeks week thereafter The reatter tile tho business busina ss indices tt arted on a swift decline which sped out most ot of the progress that had bad been made since 1934 in n many lines them the last week of 0 the year was the in spite ot of a generally g gd christmas retail fiade the financial periodicals have all ther their t traditional annual review and forecast lo recast issues general tenor is expressed by business week when it says the year 1338 1938 on oil a low note but chances are better than fair that it will end on a substantially higher one the wall street journal hopes the the influence of mental attitudes on the volume of busine bu sinei q transactions has reached its maximum and states stance that ties are that the present business depression will not last tar far into 1938 8 individual prognosticators such as ayres and babson seem generally convinced that this depression pres slon will be the thee thea a are a few who feel that it is destined to turn into another major depression unless a drastic reversal of many present policies occurs which is ia unlikely some of the most of the experts belong in the group which see eee the future as being tar far from bright to got get down to actual facts the statistics are not favorable during 1936 and 1937 the automobile industry probably did more than any other to provide employment purchasing power and to at stimulate industrial du activity in general it was expected that this industry would have an another cither big year in 1938 but that hope in ell all probability will not materialize the used car problem has become acute de dealers alers tn in vento are at excessive levels As a result new car sales gales have undergone an exceedingly sharp drop this is reflected in curtailment of dac duct on by the industry with layoffs lay offs of labor and plants working on a part week basis both general motors and chrysler which Is suo figures recently cut production end and payrolls heavily the other member of the big three ford does not issue figures but it Is believed that a similar condition exists in this company the steel industry closed the year at the tha lowest rate of production sinco september 1934 however there is an encouraging factor hero here a steady ady ram in the markets for steel act 11 shuo paces p ices lead to the belief that consumption 0 the basic metal is running strongly ahead of pio production dechau TIC on the part of the railroads has s also been a majol influence the industry lias has reduced its purchasing to the L lare bare are necessity point business in general hopes that the will requested increase in tf or rates in order that hallwa railway pur burching chIng alad employment may be A less specific but highly imbor tant factor Is the continuing war beleen the roosevelt administration and bils business the recent speeches ot of ickes and jackson add ed fuel to the ires fires ot of investor pes however the president two latest to ito Con congress grest and at the jackson day dinner while far front from reassuring to business were milder than many ex doted it Is the general chrt mr air roosevelt roo sevelt to lg marking unit time and testing the state stale ot of the cal weather thron gli gil the acts ts and talks ot of his dae underlings an and that hat he has not made up his mind which way to turn there Is still a chance that he ha may steer mhd tbs new deal in a gorne somewhat whit more conservative direction on hie elie favorable side the signs are largely psychological all the financial magazines lay heavy stress on the apparently growing congressional sentiment in favor of cooperation a with business and the alleviation or repeal of 0 laws which business ness eels are hampering the labor situation stua tion seems a little better than it was a tew few months ago in a ti time ill e of declining production product lon labor tends to temper its demands on management and there is less leas sympathy among the rank and tile file in 14 favor of 0 radical a action there w will ill bo be much less talk about higher wages and shorter hours until the depression is ended the price situation has both its favorable avor ablo and unfavorable side theorice the price decline continues in spite ot of the efforts of some industries to hold prices to prosperity levels this tends to spur buying on the uther other hand a severe price break dould make additional cuts in in industrial du earnings and so emeit a f further U arther unfavorable influence on an activity job insurance now in effect in halt half the states will help t to reduce tile the loss of purchasing power resulting from Iner increasing easing unemployment |