New Britain Herald Newspaper, April 20, 1928, Page 18

The “Why” of the Viewed by Prominent Economist Today’s Wealth and Tomorrow’s Bright Prospects Are | Given as Chief Factors. BY PAUL M. MAZUR Banker, FEconomist, Author of | “American Prosperity. Its | Causes and Consequences.” For NEA Service There are at least reasonable ex- planations for the enthusiasm of Wall Street in the face of depression elsewhere. | In the first place, the country is fundamentally prosperous. Despite | spotty conditions through the winter | in several branches of industry and | in certain sections of the country, | and despite the fact that freight loadings are slightly behind last troactive statistical data of unfavor- able significance, business on the whole has be good. More important still, beneath the surface there has now appeared a psychological undercurrent of busi- ness optimism that is not yet defi- nitely felt on the outside and has not vet heen reflected in the news-| paper. Wall Street has sensed it. | Unemployment Not Serious Now | Unemployment, if more wide-| spread recent government figures | indicated, is perhaps not so serious | as others would h us believe, al- | though it has been a definite condi- | tion in the coal regions, in Detroit, to some extent in New York and ! other sections. But this was all an- ticipated last fall, at least by Wall Street, so that it bears no relations to activities in that quarter now. | The shut-down of the Ford plant | last year caused a general let-down | in the automotive field and was im- mediately felt in many avenues of industry—naturally so, considering the things that go into the making of automobiles. Unemployment in Detroit was duplicated elsewhere. But Ford has resumed, and there is undoubtedly a definite uplift throughout the whole of the auto- mobile industry. It has affected the accessory trades, the asteel industry, and innumerable others. Further- more, agriculture secms to be on the | upgrade, and over-capitalization and other post-war difficulties are being corrected by the process of time. The farmer is getting better prices. They say of the stock market | that it is an index of futures—that | good news is accompanied by a sluggish market and bad news is a signal for a bullish movement. The theory is that Wall Strect discounts the news long before it happens, and is already occupied with what will | happen next. This may account for the present turore at a time of de- pressive feelings elsewhere. Wall | Street apparently anticipates better | news ahead—improvement in terms of gencral business volume. It per- haps senses other developments | which the financial world regards as | indicative of profit-making oppor-| tunity. Talk of mergers and consoli- dation is usually a favorable indica- tion in Wall Strect, and has been since the creation of the United | States Steel Corporation. An Era of Consolidation Mergers represent size and strength, which appeal to the Amer- | ican psychology. Consolidation is a | forecast of greater economy and ef- ficiency in manufacture and sales, | with increased profits for all eon- | cerned. The country has definitely entered into an era of consolidation, and the fact is registered by enthu- | siasm {n the stock market. | The recent merger report may | have had something to do with the spectacular rise in Radio Corpori- tion, although an important factor | is probably that radio has caught the popular imagination, and there is a belief that it may be the next great industry, like the telcphone and the automobile. The market has been & special | one in that the sccurities of two classes of companies have bern most active—those wk husiness carry an imaginative appeal to the «nd those which have b well, such as Gen- tendency to dis- | it future prospeets hase becn operative technical position of Radio was 1i and demand r the stock market. " been & noticeable curtail floating supply of most securities recent ye that peo avoid taki ject 1o the taXES. But what 1s to my mind perhaps due perhaps to the fact are locking them up to profits that will be prevailing high incom | formation | position product, that obviously Wall St. Boom the most important reason for the | unusual activity in Wall Street az' this time is the fact that there is so much money available for invest- ment—more than at any time in the country’s history. Our total income now is computed to aggregate enty billion doilars annuall out of these earnings there is mated to be about elcven billion dol- lars available for investment of vari- ous kinds—more than $35,000,000 daily. Much of it is going into stocks and bonds. Also, less money is needed to do business than formerly, and business | borrowings are relatively less. Pro- fiting by their expe of 1921, companies ar- maintaining u strong- er cash position. Then our credit facili re more elastic. The net result is that there is more money | available for investment than before, and people are hurrying place ence ever to | it. | General Increase in Prices I The natural demand for securi- ties is greater, while the floating supply is less, and prices are natur- ally rising pretty much along the entire list. This is one of the funda- mental reasons for the bullish ten- dency in Wall Street, | All in all, there would seem to he many reasons, or at least participat- | ing explanations, for the feverish ex- ‘nt in Wall Street. Business itions would seem to be im- ing and there is reason for op- timism. On the other hand, conserv. ative opinion in financial eircles would hesitate to say that the fever- Jsh activity on the stock market has any speclal significance, or by any | means indicates a banner year. There is certainly no sign boom yet, and certainly no tancy of serious depression. Bacteria Form Coal By Action on Plants Washington, April 20. (P—Bac- teria, causing the decay of vegetabl: matter, have played and still are playing an important part in the of the world's fuel sup- ply. These microscopic organisms have been found at all depths in the peat bogs of Wisconsin, which are being studied by specialists of the United States bureau of mines. Scientists of the bureau also are studying samples of the Wisconsin peat taken from various depths in an effort to determine just what part of the decayed vegetable mat- ter goes into {its composition. Their chief problem in this phas of the study is to find out whether the woody matter or the cellulose, the principle constituents of plants, decays completely in the process. If only one leaves a solid decom- s the original substance from which coal is formed. Hunting clubs of Mexico have joined in a movement to stop the driving of game by burning the un- derbrush, StomachDisorders First Revealed by Coated Tongue Your tongue is nothing more than the upper end of your stom- ach and intestines. It is the first thing your doctor looks at. It tells at a glance the condition of your digestive system—and physicians say that 90% of all sickness starts with stomach and bowel trouble. A coated tongue is a danger sig- nal of those digestive disorders which lead to 2o many kinds of serious illness. It tells why the least exertion tires you out; why you have pains in the bowels, gas, sour stomach, dizzy spells. Coating on the tongue is a sign that you need Tanlac—the medi- cine which has helped thousands who were physical wrecks from stomach and bowel troubles—who had “tried everything” in vain and about given up hope. Tanlac contains no mineral drugs; it is made of barks, herbs and roots. Get a bottle from your druggist today. Your money back if it doesn't help you. Tanlac 52 MILLION BOTILES USED 400,000 Women | Report Benefit | by actual record “Have you received benefit from taking Lydia E. Pinkham’s Vegetable Compound?” Chicago, sional filibuster is like a tete-a-tete compared discourse on grain rates the interstate commerce commission 4 | representatives have listened here. | And the end is not in sight. Investigation The under the has been completed west, but there are hearings to be | words a day—Mackley and Hall| ‘Angeles. | would spend almost a year on the They have mini- work, however, held in Se: Several million niore words will be | grain hearing. recorded can undertake cut what tablished that will be of the great- | est benefit 0 MILLION WORDS _ TAKEN AT HEARING Grain Rates Investigation Calls Forth Much Testimony NEW BRITAIN DAILY HERALD, FRIDAY, APRIL 20, 1928, some of his burden, The hearing, tion and extensiveneas has conducted. 1927. at Dallas and has Wichita, Kas., were spent; than 1,400 totalling 25,000 words. Upon Arthur George Hall, examiners, the task of preparing a the commiasion. They in constant attendance. | sioner B. H. Meyer has authorizged | most of the time, Reading at the speed they April 20 PM—A congres- with the 10,000,000-word to which Hoch-Smith resolution, | in the middle- | iners say attle and Los the commission | mized their keeping notes before the task of finding freight rates can be es- | intending on the to the farmer, where the The Hoch-8mith resolution was | portant. aimed at relieving the producer of | in point of dura- is the longest the commission ever It began in May, where six weeks to Minneapolis for an- other six and then Chicago, the sittings lasted 15 weeks. In addition to the more than 10,000,000 words of testimony writ- ten into the record, there are more exhibits, some of them Mackley mdintain—40,000 to refer to the record | only when they are -disputed issues are the most tm- | The Hoch-Smith resolution was passed in 1925, of record, | with domestic and ex dividual shifted to| of railroads, state where | in Kansas City, Minneapolis, Milwaukee, Wichita, Cairo, Galveston and Houston, and will fall | report m; have been Commis- attended 1922, the exam- HEST COLDS by testimony, or| Vvic ET IT RAIN! Raincoats For WOMEN MISSES GUARANTEED RAINPROOF Newest Models U Womens’ and JACKETS Belted models of rain- proof fabrics in red, brown, new blue, green. Sizes 14 to 42. Priced $4.95 GIRLS Featuring the new TRENCH COAT at $8.50 Version of the new French Trench Coat, so popular in the large cities. Col- ors are red, green, brown, new blue. Sizes 16 to 44. 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