PROSPERITY SIGNS

Dominion, Volume 26, Issue 88, 7 January 1933, Page 10

PROSPERITY SIGNS

Growing Faith in Return of Better Times OPTIMISTIC SURVEY “Investors and speculators, traders, and statesmen would all at any time barter the shirts on their backs to know within what period trade revival could be looked for. And at present that knowledge is more important than ever before,” says the “Financial News” in an optimistic survey of the economic outlook. “There has never been a time when so imlny iu extremis remedies —exchange clearing, quotas, public works, inflation, and so forth —have been on lhe political carpet, and, as few sane people would tolerate any of them if they thought that trade revival lay around any corner along the road, spotting the corner is of paramount importance. On Burning Boats. ■•Boat-burning is a fool's game if one has not carefully determined that the place whence, one has come is’not lit to live in. Naturally, the superficial indications are that the slump has been stayed. Putting the matter at its crudest, it has gone on a preternaturally long time, and, since a recovery in prices of commodities and securities has now been maintained for over four months, we have a right to expect to see something. “The reign of cheap money, short and long, has been firmly established, the war-debt spectre has been laid to the satisfaction of most people, and altogether the stage seems reasonably well prepared. In British industry, the most convincing signs of at least a temporary recovery have been seen during the last month or so. “The decline of over 100,090 in unemployment during October remains incontrovertible evidence of non-sea sonal revival during October, whatever may happen afterward. The October foreign trade returns, although we must view them in the light of the worst months on record, reflected a very remarkable upturn, and, even as compared with the previous two or three months, suggested an expansion of trade in a more than seasonal degree. “Provincial bank clearings have been progressively improving, and, even though there was a slight setback last month, this was more than accounted for by a shortage of one working day, as compared with the previous year. The home railway traffics, though far from inspiring, have latterly indicated at least, an Improvement in the trend. This is particularly noticeable in the receipts from ‘general merchandise.’ Good Signs, Too, Abroad. “Iu America, sales of rayon, clothing, and canned foods have improved; here, there has been some advance in electrical goods, furniture, clothing, woollens, machinery and chemicals, and the October increase in our imports of non-ferrous metals, wood, leather, pig-iron, flax, hemp, and jute is a good sign as far as it goes. New financial difficulties arc not, recurring, though lhe fruits of the old may still be all too much with us. “The Continent is less uneasy than it was, and no one can fail to have observed the remarkable steadying of feeling in Germany. It is not certainly very much easier to take a view than it was three months ago. But we find it easier now, if anything, to feel confidence in the view’ which we suggested early in August might be reasonable—that a turn in the trend ought to become perceptible by the ycar-end and that signs of a decisive nptiirn may be looked for in the spring. “In this connection it must not bo overlooked that, iu America there is a substantial seasonal recession in the winter months, and that, it is in _ the spring, with its large seasonal business expansion, that, a definite recovery is most likely to come about.”