Current Situation

No special change was experienced in the general trend of American business during the past week. The steel and iron trade continued production at its recent sensational levels, but with an evident slackening of future contracts, as shown by the falling off in U. S. Steel's unfilled orders. Nevertheless the sensitive stock market continued its decline, now, despite temporary rallies, a severe one. The peak has obviously been reached for the time being in the building trades, and in New York alone over $100,000,000 of new construction is reported to be held in abeyance until the rise in wages and materials subsides. The credit situation is, however, reassuring, and, as Secretary Mellon points out, should occasion no alarm concerning overextension. But a banking stringency is not necessary to usher in a period of declining industrial activity; the business cycle before now has turned from boom into mild depression while money was fairly easy.