Indianapolis Times, Indianapolis, Marion County, 1 January 1937 — Page 26
Trends
Lack of Wheat in Germany May | Aid Peace.
l_BY JOHN T. FLYNN
EW YORK, Jan. l1.—Nature works in a mysterious way her wonders to perform. Germany suffers a wheat shortage. That would seem to have little bearing n Zhe Spanish war. But the wheat shortage has done something to Germany i may well aid the peace of the world. Because of the shortage, Germany will have to buy wheat abroad. And to buy wheat abroad G e rmany will have to have purchasing power abroad. A nd Germanys purchasing power is limited abroad of course. . ~ It is only a ik ¥iyan short time ago that Hitler announced that certain foreign securities held in Germany would be taken into possession by the government. The securities were not confiscated— merely impounded. If you owned a bond—a U. S. Steel bond—im® # Berlin, you had to register it in the finance ministry.
=" ow 3
“HE object, of course, is obvious. The government may heed funds to buy goods in America or England or South America. If it holds the foreign securities of its citizens, the government may take the interest and dividend payments, keep them and pay its own citizens in German marks, no matter what marks are worth. Germany may even sell the securities, as Mr. Mussolini did,.and convert them into credits in various countries to enable her to buy war materials when needed. But now, standing on the very brink of war, Germany finds herself short of wheat. This is something she and every European country has been trying to avoid since the last war. Every device known to the subsidist and regimenter has been employed to force the production in every European country of the necessary supplies
of food.
” # z
ND here, efficient Germany, on the very eve -of her direct need, finds herself short of wheat. This means she must buy wheat jin South American, in the Balkans, in the United States. It is suggested she may have to buy $100,000,000 of wheat. If she does she will have to. use up her valuable and very limited foreign credits on wheat, when the fatherland needs so seriously the raw materials of war. She must buy wheat, as Mr. Bru- * backer ° suggests, when German children are crying for cannon. | This unfortunate misadventure of slipshod nature may have "a pacifying. effect for the moment at least upon the Reichfuhrer. The nation can not spend her reserves upon food and munitions too. And so, for the moment, she may be disposed to postpone her use of the latter. It is an illustration of the unforseen circumstances which may make or unmake those mad policies which are driving Europe toward war. (Copyright.
1937. NEA Service. Inc.)
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Abreast of The Times on Finaice
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PAGE 26
FRIDAY, JANUARY 1, 1937
The high was $17,000.
Exchange Seats Rally Stock Ezxchaiye memberships sank to & new low since May 10, 1935, on Dec. 1, at $89,000, and then recovered to above £100,000 before the end if the Your]
United Press
further gains are anticipated.
of hand as it did in 1929. Further recovery © could
of Wall Street experts. But its
include increased margins, tion in market liquidity through segregation of broker and dealer activity,
and tax law changes.
tration desires to squelch the market. A strong stock market induces confidence in business and helps the recovery along. The plan that might be adopted is to prevent a runaway boom based on flimsy credit accounts. Just how far the government can go without aisastrous results is problematical. But it is believed efforts will be made to prevent duplication of the 1929 debacle in event the rise continues at a fast pace.
April Only Month of Decline
Gains during the past year were scored in every month save. April. That month broke a rise that had endured for exactly 12 months to
become one of the most prolonged
in recent market history. Bonds also mounted with United States governments making records. Commodities made new recovery flights. Millions and™ billions can be bandied about in describing the year’s results in addition to the gigantic stock appreciation. Bond ang stock offerings approached $5,000,000,000, a new six-year high, but most of these were for refunding. The government's gold holdings crossed -$11,000,000,000 to the highest on record. Electricity output neared 107,000,000,000 kilowatt hours, a record; automobile production approached 5,000,00C units, the best since 1929. Steel ingot output at 47,700,000 tons was the best since 1929. Building permits in principal cities were close to $1,000,000,000 for the first time since 1931. Car loadings totaled better than 36,000,000, the best since 1931. The oil industry turned out 1,100,000,000 barrels of crude oil, for a record production. The nation’s railroads had net income of around $150,000,000, the highest since 1930. Foreigners raised their investments in American securitiesfto above $7,000,000,000.
Stocks Follow Trend Stocks generally followed the
TRADING ON CURB UP * ABOUT 75 PER CENT i:
Special ndusiriol Shares Feature N. Y. Sales.
By United Press NEW YORK, Jan. 1—Wide gains in special industrial shares plus an _ increase of about 75 per cent in trading volume featured dealings
on the New York Curb Exchange this year. Sales volume for the year totaled around 133,000,000 shares compared with approximately 75,750,919 shares last year. Heaviest volume centered in utility shares. The utility division, however, suffered from the legislative difficulties which confront the industry and its gains. for the year were only moderate. Electric Bond & Share, Cities Service, and United Gas were the trading favorites. Wide gains in the industrial division, were made by Singer Manufacturing, Repperell Manufacturing, | Royal Typewriter, and Jones & Laughlin Steel Corporation’ issues. The ofl division—another popular trading group on the curb— strengthened with the remainder of the market; although the year found nervous trading among leaders. Gulf Oil was the leader with a year’s gain of more than 30 points, but Pantepec and some of the lower priced issues were among the active trading favorite favorites.
ee t————
REVENUE LOADINGS CLIMB 15 PER CENT
By United Press HASHING TON. Jan. 1.—Ldadings revenue freight on the nation’s oF were consistently above 1935 this year. The total of around 36,100,000 cars was nearly 15 per cent above the 1935 figure of 31,518,- * 372 cars, and the largest since 1931 when the total was 37,151,249 cars. Detailed figures for the past two - years as compiled by the Association of American Railroads follow: “ Period 1936
5.05% 2.318.583 ,100.000 31,518.37 518, 372 *Estimated.
- NAME BANK REPRESENTATIVE Times Special NEW YORK, Jan. 1.—The Continental Bank & Trust Co. today nounced the appointment of Thomas W. Farwell, for the past 10 years representative of the Chemical Bank & Trust Co. in the Middle West,” ag its Middlewestern repre-
|
frond of their industries. Utilities were exceptions to this because of government pressure. Leading motor shares made new highs since . Steels mounted as output api, 80 per cent of capacity. Oils were slow. Coppers rose when domestic copper was advanced steadily to 11 cents a pound. Rails gained but at a slower pace than the industrials. Far shares were strong on outlook for heavier purchases from the agricultural community whose income was up about’ 10 per cent for 1936. made wide gains. Can stocks declined on poor. business caused by the drought. Golds lost popularity. The market weathered the election without difficulty. Following the Democratic landslide, the attitude of Wall Street and industry changed to one of co-operation with the Administration. The European situation produced momentary flares of difficulty quickly followed by recoveries. Wall Street doesn’t believe Europe is ready for a war just now and hence is prone to overlook much of the situation there. Break up of the former gold block through devaluation of French, Swiss and Dutch currencies had been anticipated and discounted amply before it happened.
Business Rise Aids Market
The stock market recovery was induced primarily by the business rally. The latter's pickdp in turn was aided by natural recovery factors and by artificial stimulation of cf government funds. A soldier bonus injected more than a billion dollars into trade channels. Several million more came in the form of relief and public; works. These expenditures may Be curtailed in 1937, but the finangial community hopes the reductions will be offset by expenditures by industry which would do much to aid re-employ-ment of those on relief rolls. Inflation appeared to be out of the picture in 1936 and it is not mentioned as a factor in 1937. There is, of course, the basis for giant credit inflation in the gold hoard and it it believed the Federal Reserve will take steps shortly to
1educe that base through raising re-
serve requirements. Uncertainties overhanging the market in addition to fears of govV= ernment irftervention to slow the rise include the attitude of Congress with respect to industry, ability of the government to continue.an
1 | easy money policy, Supreme Court
action on such items as the Social Security Act and Wagner Labor bill, trend of the government in the utility industry, and labor’s attitude.
ASSISTANT IS NAMED
Cores Times Special
KANSAS CITY, Mo. Jan. 1.— Jack Frye, Transcontinental and Western Air president today announced appointment of Milton Van Slyck as his assistant. ° For the past ten months Mr. Van Slyck has been TWA public relations manager in Chicago. Before joining TWA he was transportation
sentative, with offices in the Field
editor for the Chicago Journal of
Commerdl, the announcement said. |
with the situation before it got cute
easily | carry over into 1337 in the opinion |
scope depends on checks imposed |
by the government. These might] | reduc- |
| Goldin 1936
legislation against foreign transactions in American markets, |
None believes that the Adminis-
Chemicals’
13-BILLION-DOLLAR MARKET SPURT INDUCES GOVERNMENT EFFORTS TO PREVENT CRASH
Stocks Believed Ready to Extend Gains in New Year, but Scope of Recovery May Be Circumscribed by Series of Restraints on Trading.
BY ELMER C. WALZER
Financial Editor
Some issues made all-
Depression seemed to have been left behind despite the fact that much of the incentive for the recovery was artificial. So rapid was the rise that official Washington trained its attention on methods to cope
> ¢
NEW YORK, Jan. 1.—Stocks listed on the New York Stock ‘Exchange appreciated $13,000,000,000 in 1936 in a half billion-share turnover. Prices were restored to levels of 1931 in the averages. time highs.; Business meanwhile rose to its best level since 1930 and
U. S. Gains,
France Loses
By United Press A gain of more than a billion dollars in the United States gold stocks and a decline of about one and a half billions in the French gold hoard featured the changes in gold among principal nations during 1936. Switzerland had a sharp gain. Increases also were noted in the British and Belgian totals. Decreases were reported by Germany and The NetherJands. The following table gives the latest 1936 gold holdings “of “principal . nations in United States dollars based on gold at $35 per ounce, and the totals at the end of 1935 for comparison: 1936 1935 .. 81, 222, 000, 000 $9. 133, 000,000 2.8 345,275,000 1 ‘344. FN S00 0, 629,525,480 804.95.469
364,692,991 26,722,981
u. Sats . England Belgium. Switz'l'd. Neth'l'ds Germany
SOY BEAN TRADE HELD PROMISING
New Market in Chicago Aids Farmer, Boylan Claims.
RY ROBERT P. BOYLAN President, Chicago Board of Trade
CHICAGO, Jan, 1.—An outstanding 1936 development, one which promises to’ result in increasing benefit to farmers, was the establishment on the Chicago Board of Trade of the world’s only futures market for soy beans. Futures trading in soy beans was inaugurated on the exchange Oct. 5, after the most thorcugh investigation had been made into the need for such facilities. The new market has performed splendidly, adding a buying demand which broadens the field once occupied almost exclusively by processors. The cash market for soy beans had broken from a. price level of $1.51 per bushel to the $1.20 mark before. our futures market opened. Since Oct. 5, a date which coincides "with the usual start of soy bean harvesting in the central west, soy bean values have advanced materially at the time this is written, with all offerings both in'cash and futures being absorbed in the Chicago market. Function Is Sméoth
Officials . and members of the Chicago Board of Trade take a natural pride in the performance of the new market since it functioned from the start with all the ease and accuracy other Board of Trade markets have acquired over a period of almost 89 years. This is not surprising, however, since our special soy bean committee’s investigation revealed a consensus of opinion among growers, cash handlers and processors, favoring establishment of such an open market, giving soy bean interests the same trading privileges enjoyed by growers and handlers of other cereals. The soy bean crop, both from the standpoint of the farmer who has found the crop decidedly profitable —also valuable as a catch crop or as a substitute for other grains—and from “the standpoint of industry, is steadily increasing in importance.
Value of the new market met with prompt recognition from the trade, a great part of its activities being due to hedging, or price insurance, which makes it available to processors. We feel here that the facils: ities offered by this futures market will be a big factor in popularizing soy beans and that the exchange has taken a long stride forward by demonstrating its market leadership with a new product of agriculture.
1937 RAIL INCOME NEAR 1931 FIGURE
By United Press CHICAGO, Jan. 1—The present trend of traffic volume indicates that in the year 1937 the revenues of the railroads may approximate what they were in 1931. If the revenues are the same, it will mean a substantial increase in freight ton miles above 1931, because even with the passenger business improving, revenue from that service will not anywhere near equal 1931. About 15 per cent more freight will have to be carried on this account, and by reason of lower freight rates. Assuming that 1931 revenues will be attained in 1937, a natural query is how will net railway operating income in 1937 compare with 1931. By, reason of lower freight rates and passenger fares (and consequent necessity for handling more traffic to get the same results), increased cost of materials, higher taxes, etc., net railway income in 1937 from revenues equal to those of 1931 probably would not exceed two-thirds of 1931 net Taliwey operating income. =
o
a
the highest rate since 1929.
Increased activity in American was reflected by the stock ticker, highs.
Stock Market Reflects cies...
business and tdusiry during 1936 i
as the markets soared to recovery: comes all helped.
Upswing as Business Picks
Steel employment surpassed 1929 marks, as capital goods industries picked up. Building, automobile industry and ‘higher farm in-
Up
a2
By United Press around 1930 levels this year and th
Heavy industry was the answer. levels since 1929.
a step-up after the bleak years of¢ depression, continued to: expand to 7-year highs, while the consumer industries had even better years than those #since the recovery got underway.
Pickup Carries Through .Year
Business slowly picked up the momentum given in 1934 and 1935 and rose, steadily through the year, reaching peak developments in the final months.
There was to aid this movement the urging of co-operation by such financial leader as Winthrop W. Aldrich, head of the Chase National Bank. There were optimistic views on the times by industrialists such as Eugene G. Grace, president of the Bethlehem Steel Corp. and Alfred P. Sloan Jr., president of General Motors Corp. Legislative restrictions were fewer. To be certain there was a new revenue measure and the tax on corporation undivided surplus profits. Neither had restrictive influences mow although the latter tax in bleak years might react by failing to permit companies to build up cushions against depression.
Outlook Is Promising
There was the .bonus payment with- its tremendous outpouring of funds and the flood of increased dividends brought . about by the surplus profits tax. There were in-, creased pay rolls particularly in the steel “industry—hourly rates there now being the highest in history— and certain new taxes which affected railroads. But, these were overlooked as the surge of business improvement swept aside obstacles. The 1937 outlook gives even greater promise. Sloan said automobile production next year may even exceed 1929 which found a total of 5,621,715 automobiles produced. Steel production will go into 1937 operating at Railroad equipment buying will continue wHile vast plant expansion work—totaling into the hundreds of millions—will get underway fully next years:
LIVESTOCK PRICES
By United Press ! CHICAGO, Jan, 1.—Market experts today forecast rising prices for livestock in the early months of 1937 because of indications of a scarcity of suitable ‘offerings. Such situation would = about parallel that of early this “year when prices of some livestock made. peaks for the year. Declinessthereafter continued in some lines into autumn with a recovery coming late in the year. Cattle prices reached their peak for 1936 on Jan. 22, when producers asked $15 for the best offerings. The lowest price of the year was $8.85 on May 4. Year-end prices were about $3 above the low. Hogs made their top at $12.05 per hundredweight on Aug. 22. Then offerings increased and the price fell until it touched its low on Oct. 30 at $9.50. Receipts continued heavy in November and December, but better demand offset them to some extent. Sheep, old crop, touched a’ high of $12.85 on April 29, with spring lambs at a top of $13 in June. The low on old crop sheep was made Dec. 8 at $9.
(9h |
NITES
uy
TAR TAILLE
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Heavy Goods Industries Aid Recovery as Page Is Boosted to 1930 Level|
Business Men See Further Gains Being Recorded in 1937 With Rail Equipment Buying, Plant Expansion and Building Boom, Forecast.
NEW YORK, Jan. 1.—American business rallied in the average to maintaining much of the recovery pace. Railroad equipment buying was the greatest for the depression period. Electric power production—refiecting tremendous increase in industrial operations—went to record highs.
.vanced, although more slowly than other industries. And meanwhile automobile production, the first industry to show
MAY RISE IN 1937 3:
‘PRODUCE SHOWS GAIN
By United Press
b better than 1932.
statistics for 1936 compared with
i. Auto Output (units) ti Bank Clearings ($)* i Building Permits ($) . Boots .and Shoes (prs.) -| Car Loadings .. . Cement Production (bbls) Cigaret Production (noj* .... "Coal Bitum. (tons) “| Electric Output (kwh)* 3 Pneumatic Casing Shipments. {Steel Ingots (tons)
e outlook for 1937 gives promise of
Steel production rose to the best
Building ad-.|| ‘000 omitted.
| re Cony 9 to] 62 Per Cent
NEW YORK, Jan. 1.—Industrial Rint 1936 ranged from 9 to 62 per cent above 1935, compared with 3 to 69 per cent gain in 1935 over 1934. Building contracts and cement production showed the “wider gains, the former 62 per cent and the latter 49 per cent. All 11 divisions used in the compilation recorded gains over a year ago. On the basis of estimates for 1936, automobile production was 122 per cent greater than in 1932, building permits 142 per cent greater than the depression low and steel production 258 per cent
The following table shows estimates on important business
i bottom of the depression and 1929, the record year:
1936 4,600,000 297,000,000
36.100, 000 113,807,000 151,864,000 428,500,000 108,882,152
54,025,000 47,700,000
aétual figures for 1935, 1932, the
1935 4,119,811 273.077,000 596,687,000 383,761,000 31,518,372 76,472 000 134,609.000 369,024,000 93,420,286 50,335 000 33,940,445
1932 1,431,467 235,941,000 399,289,000 313.290,000 28,179,952 76,509,000 103,710,000 309,710,000 442, 2% 0,260,0 13 322 pt
~1929 5,621,715 638,710,000 2,913,132,000 361,397,000 52,827,925 170,198,000 119,038,843 534,948,000 90,277,000 69.394,000 54,312,279
modities to
nd Since 1930
Grains Lead Com New High Grou
By United Press NEW YORK, Jan. 1.—Commodities’ high ground since 1930 and, measured b street daily weighted price index of 30 representing 81 per gent of the 192¢ average normal. Late in the year ihe. index was arou a 140 per cent of the 1930-1932 average. That was more than 100 per ¢ nt above the depression low of 67.86 made on Jan. 20, 1933.. The 1936 lo of 115.13 was made on May 27.
The 1926 average index on the pres-$-ent basis of caleniation works out lew Record 'n Electricity
at 171.52. I. : Consumption
during 1936 advanced into new the United Press-Dun & Bradisic commodities, were at levels which many consider
Of the 30 commodities on the index six declined, 22 advanced and two—Douglas fir and yellow pine— were unchanged. Declines were made from the 1935 close by butter, steers, lambs, silk, silver and gasoline.
Grains Advance Most
Grains made the best advances. No. 2 yellow corn and No. 2 red wheat made 7-year highs at gains of 56 cents a bushel and 30 cents a bushel, respectively. Rye No. 2 doubled on its close of 1935.
Rubber futures were carried into new highs for many years and the spot posiition which is included in the index rose nearly. 6 cents a pound. Copper led the nonférrous metals—except silver—higher. Flour, lard, coffee and sugar were substantially higher. Wool jumped 9! cents a pound. Steel scrap made a | sharp rise. :
Cocoa, not included in the index because of its relatively small total cash value, recorded a rise of more than “100 per cent during the year to above 11 cents a pound, a new nigh since 1929. Sharp declines in West African crop prospects caused the rise.
{ | Tnited Press . IEW YORK; Jan. 1—Elec1iz2ity consumption ran ahead | || general business recovery ring 1936, rising more than { ‘per cent over the preceding ar. to a new record high. The year’s use of almost 1:/7,000,000,000 kilowatt hours Ww. 5 nearly '40,000,000,000 kwh 0 8r the depression low set in 12 and about 13,500,000,000 kil h, or 14.4 per cent over the p ‘vious record established in 16135. i Monthly output for 1936, 1:35 and 1932 as reported by t..e Edison Electric Institute f¢ lows (in kilowatt hours, 000
1935 2,5
PRICE INDEX OF 30 BASIC COMMODITIES (Compiléd for United Press by Dun & Bradstreet, Inc.) (1930-1932 equals 100)
High
De 9.637.478* 8.521.201 Tc 11.106,882,152* 93, 420, 386
+ istimated.
ree] . CH AGO EXCHANGE + HEAD/IS CONFIDENT
BE! THADDEUS R. BENSON Pres ent, The Chicago Stock Exchange CI CAGO, Jan. 1—Examination of tl: balance sheet of business as 1936 omes to a close reveals, I believe a satisfactory condition from whic/ we can all take confidence. Like! ise, an examination of the
busir :ss statement of earnings reveals a satisfactory record of progress «rer the last 12 months. Th | balance sheet, in my opinjon, [liscloses a surplus account repre inted by assets which will enable 1 1siness to make a satisfactory recor: of progress in 1937 in spite of th contingent liabilities in the form f the European political situations nd other similar ones, the effect ¢ which on America depends upon Evelopments which cannot be foreto 1. I hive every-confidence for 1937.
1936
January .... February oe
Close
August September. . ctober ....131
Novenber ' December*
1936*. 193
.134.60 139.49
12 31 13335 Tey 18 84.41 Jan. 17
3 * To December 14,
69.55 Dec. 24
By United-Rress CHICAGO; Jan. 1.—Butter, egg, and potato: futures reached new highs for the recovery during 1936 on the Chicago Mercantile Exchange. > Butter quotes were the best since: 1930 at 36's cents per pound in August. Eggs made new 7-year peaks in the final months of the year. Potato futures climbed to $3.47 per hundredweight, a record high.
‘Best Wishes For 1937 to Our Policyhold rs and Friends.
State Nlutual Life Assurance Company
Fred T. Cretors William A. Tidwell .C. Fred Davis Ross M. Halgren
- 620 Ci cle Tower.
WHEAT PRICES AT NEW PEAKS
Other Grains Rise With Best Levels Reached Late In the Year.
By United Press | CHICAGO, Jan. 1—War rumors and curtailmen of world crops by nature’ s ravages| brought strength to grain| markets this year which carried |some ‘prices on Chicago's famous pit to the highest level in seven | years: Trading was vigorous late in the year as wheat prices pushed through to their highs on reports of demand for .some 35,000,000 bushels from Germany whiche likely will go to Canada and thereby cut that nation’s surplus — constant market threat—down appreciably. Other grains followed wheat. Thus the outlook for 1937 is improved with the supply and demand situation in better position than any time in several years.
Grain Hit by Drought Recurrence of a grain belt drought cut deeply into American production
this year and the nation contin-
ued to be an importer of grains, 40 | million bushels of wheat, 12,656,000
bushels of corn, 2,188,000 bushels of | rye and#3,719,000 bushels of barley being brought in during the. first nine months. The nation’s corn crop was estimated around 1,527,000,000 bushels compared with 2,292,000,000 last year, the oats crop around 784,000,000 bushels or 413,000,000 under 1935, the barley crop 144,000,000 bushels
‘| compared with 282,000,000 last year
and the wheat crop around 627,000,000 bushels compared with 631,000,000 bushels last year.
Cash Grain Up
Cash grain was constantly in demand as milling interests stepped up activity through the year. Highest prices in ‘several years were quoted on cash delivery to benefit those growers who were sufficiently successful in raising a crop. Cash wheat in Chicago gained about 30 cents a bushel for the year. Speculative activity increased late in the year on the Board of Trade, resulting in increased margin quotations and lifting of the trading fluctuations limit from 5 cents a bushel to 8 cents a bushel on the
{
near month. Traders for the first
time operated under the Commodity Exchange Act which became operative in September, but this did not
| advertising
LE
ANALYSIS SEES GAINS IN MAIR BUSINESS LINES
Most Industries Siries Slated for Further Climbs in ’37, Poor’s, Say.
% het
ah Fraps
By United Press ~ NEW YORK, Jan. 1 ~ Practical’ all major lines of industry are dated for further gains in 1937, according
to Poor's Publishing Co. in a de= tailed analysis compiled for the United Press. The analysis follows: Advertising, Publishing and Print. ing—Advertising appropriations fer: 1937 should top. those of 1936 by: 12 to 14-per cent due to improved; business conditions, plans of manu facturers to Offset outlawed dealer allowances; and the: growing tendency to invest profits in advertising rather than to pay. them out as taxes.
Automobile Accessories—N e x year should withess a gain of ap=~: proximately 10 per cent in produce: tion and sales. IZ Automobiles and Trucks—Car sales in 1937 should total 5,000,000 and possibly more. Truck sales and. earnings gains are forecast due te” steady revival of heavy industries: .
Building Material and Construcs tion—Excellent prospects for fur=.' ther expansion during 1937 in new: construction and building rehabili=-
earnings uptrend.
.Coal—The outlook is unifpress sive. Whatever may be the form of regulation attempted in the bituminus branch, the permanence or effectiveness of any artificial means of stimulating profits over the long term is open to doubt, Operators of anthracite mines will continue to face keen competition, bootleg operators should diminish.
Department: Stores and Mail Ors" der Companies—Rising consumer ins comes have boosted department. store and mail order company sales well above the 1935 levels. That the uptrend will continue into 1937 is: indicated by the growing optimism * of “the man in the street” and by . continued gains in consumer pur=chasing power. 2 Electrical Equipment — With a maintenance of the upward trend . in the wage scale, the houseno:s equipment branch locks forward to ° further jmprovement in*1937. In the ° industrial equipment division, pros= : pects for further earnings growth in 1937 are conspicuously favorable. Electric Power and Gas Utilities—= In spite of the broad gains in con= sumption during 1936, the power and light industry has been de=
certainties, most of which will be removed in the immediate future, The more objectionable administra= tion activities will probably be: invalidated, and replaced by new leg= islation also designed to lower rates. This should pave the way for renewed expansion. The manufac= tured .gas industry has solved its immediate problems, and favorable earnings are in prospect. The natural gas division boasts a bright ou= look.
Industrial Machinery and Ma-~ .
chine Tools — Increased confidence in the genuineness of the business improvement released pentup orders
stage is set for manufacturers in this group for a prolonged period of activity in compensation for the meager volume of the depression years. Ne Motion Pictures — Continued in creases in individual incomes suggest largey attendance at theatersf It implies, too, that ‘box-office price§ may be raised early in 1937. y Nonferrous Metals — Expanding demand for all base metals, accompanying rising business activity will continue to favor the nonferrous metal mining industry.
Petroleum—Leading oil companies
promise to continue into 1937 the | striking earnings gains recorded in 1936. The outlook for ultimate sta=- . bility: of crude production, the key to the industry's future, prosperity, may be regarded optimistically.
Railroad Equipment—The outlook is brighter than at any time prior to the depression.
Railroads—If the 1936 earnings of - approximately $150,000,000 are to be surpassed in 1937, the railroads must handle considerably more: traffic because of the expiration on Dec. 31 of surcharges, higher labor costs and the social security and railroad retirement act. 2
Shoes and Leather—Improved de= mand for quality shoes suggests ‘that higher prices may come in 1937, {
outlook for 1937 is justified.
TETCIN IR
curtail operations.
LL 8571
“Largest Insurer of Automobiles in Indiana”
- OUR NEW LOCATION |
5th-6th Floors Underwriters Bldg.
FORMERLY MEDICAL ARTS BUILDING
~~ 445 North Pennsylvania St.
FULL COVERAGE—LOW COST
LIL 8571
AUTOMOBILE INSU RANGE
tation favor maintenance of the.
although |
pressed by political and legal un- =
for new equipment in 1936. The ‘=
Steel and Iron—A more optimistic | BEAM