At the present moment the price level is a little below the so-called "normal." Taking into account. the increase in population an economist has stated that industrial output was still Jess than the average rate for any prevdlepression year since 1024. The present price level of most Hoods and of most securities is justly fied by business conditions, But there is first of alt the popular focl-Ing that another startling rise would be just as desirable as the rise from depression tews which makes many people including members of the ade ministration feel nervous. And secondly there are present certain economic fociers right at the beinning of a prosperity period which Ssually have inet" appeared tit is One of the causes of the last depression was that the public could Ret hold of teo much credit for stock speculation. "An increased demand for stocks sent the prices up and couraged the creation of new industries and the building of new factor-although there was no real ceonomic justifeation. There is no similar expansion of credit to-day, but there expansion of credit from a diferent source, the Federal Gov: ferment. Ax long as heavy government borrowings continue then there is an artificial factor in the recovery movement. And the chief difference between a dangerous boom. and healthy: prosperity is that in the one case the foundations of expansion are artificial and inevitably non-perman-fent while inthe other they' natural and continuous.
'The secon threat is labour rest. 'The Roosevelt Administration has' introduced the spirit of the "good-neighbour™ into foreign relation but has been' unable to per suade industry to accept the same principle in its ranks—1037 seems to be doomed to be a year of strikes, children want to stay away from school to show their affection for a dismissed teacher they call ita strike. An annual strike "against war is held in American colleges, that is to say those who participate cut their lectures for a day.
'You cannot stroll 100 yards down New York pavement without passing pickets welking in' front of some
Text read from the printed page and cleaned; old type leaves the occasional error.