Show economic highlights 0 according to one press dispatch wall street has had one of the quickest and most complete changes of heart within memory of oldest veterans the week ending july 2 saw another steady advance with the shares of industrial du Ou corporations reaching their best level since october on july 2 the volume of trading was the largest for any saturday in eight months and the tradition that buyers are always wary before a holiday weekend week end was shattered in two weeks quoted bond and stock values increased some the big question now is will business which so far has gained but little above its extreme depression lows follow the appreciation in security prices precedent holds that the stock market senses major changes in the state of business weeks or even months before they occur and it is a fact that the sentiment of business leaders while far from wholly optimistic is getting better belter even some of the most cautious commentators are now corn com ing out of their shells and forecasting that a strong upturn will be underway by labor day and that the fall season will be active at the same time it must be pointed out that the country is still confronted with a number of exceedingly grave problems which must be at least partially solved before any real measure of recovery can be unemployed unemployment is one of these problems there has been a certain amount of re employment lately particularly in those industries dus tries which are directly bene cited by the new pump priming primi nj program however on the basis of the best figures available it i appears that about people are out of work with seera millions more on part time the railroad problem growa worse not better and is easily the most important specific indus trial problem we have on out oui hands today railroad net operating income is running far below last year in april the decline was per cent it is regarded as inevitable that unless a occurs a considerable number ol 01 lines will go into receivership chii year the odds seem to be at least even that a special session ol 01 c congress will be called in september or october for the purpose of doing something for or oc about the railroads there is congressional talk of plans tor for ing down capital structures for effecting consolidation oil lines and for maki making ng loans to the industry for buying new equipment and other purposes the industry itself favors these measures but insists that its main need is higher rates and that until it is allowed greater leeway in changing its rate base to meet condition condi conditions tioW S the basic problem will remain unsolved drop in income national income will be materially lower this year than last when it reached its post 1930 peak ol 01 the president re bently offered the hope that 1938 income will not drop below 60 some experts believe the total will be loss less than that however it will be well above its 1932 low of the national debt of course will show another stiff rise this year and that is always a disturbing factor there is a very strong sentiment in dav favor or of 0 complete overhaul of the tax system to eliminate inequalities broaden the tax base and increase revenues to sum up the outlook is improving but it remains to be seen w whether hether tangible betterment will follow the upturn in sentiment watch the heavy industries utilities steel transportation etc the trends they take will determine ne the t ne course of business as a whole foreign affairs the new york herald tribune s london correspondent recently observed that if the franco hit ler mussolini combination continues to sink british merchantman carrying supplies to loyalist spain it may eventually sink the chamberlain government to boot As this column has pointed out before sentiment in england I 1 against the prime minister mini st er peace at any price policy is growing A short time ago the government suffered a major loss when viscount cecil of chelwood cheewood Ch elwood president of the league of nai eions union and a winner of the noble peace prize rose in the house of lords declared that chamberlains policy was inconsistent with british honor and resigned his position ass as conservative party whip that is about as startling as if majority leader barkley should rise in the senate and declare himself opposed to the new deal in the commons chamberlain ch amb erlain easily defeated a labor party motion of censure but ten of the conservative wing led by brilliant erratic winston churchhill refused to vote and one con serva tive M P voted for the motion chamberlains recent speeches e have tended to be worried and apologetic sor something that is next to unknown in the case of a prime minister with a top heavy corn com mons majority the spanish loyalists are lasting much better than it was believed they could and there is a rumor that hitler and mussolini Mus solin are planning to give franco enough ani an arr I 1 supplies to enable him to win a ft fart and decisive victory if that happened the fight against chamberlain would undoubtedly reach a fever pitch |