Current Situation

As Spring passes into Summer, it becomes more and more apparent that American business will not really get its bearings until the political conventions are over, and until the results of the Fall's election as far as they will affect trade can be intelligently fore cast. With the Democratic candi date still unknown, both "platforms" yet unannounced, and the seriousness of La Follette's third party gesture not clearly determined, a tone of hesitation in the markets is quite natural.

Nevertheless, it is scarcely safe to conclude with Secretary Hoover that this Spring's depression has no economic causes. On the contrary, economic factors have been even more important in bringing the depression about than the political situation. The country is still adjusting its industries to a peacetime basis, and struggling with an overbuilt condition of its productive facilities. There remains the long-awaited liquidation of rents and real estate values, which many students of the subject pre dict will be seen this Fall. Until the inflation is taken out of rents and real estate, hopes for "a long period of na tional prosperity" so piously expressed by many business leaders are bound to be vain.

Money continues easier. Call funds, a fairly reliable barometer to the money market, here established a new low interest record below 3%, and the better class of fixed investments have risen slightly in sympathy. In the stock market, industrials continue to sag, rail way shares are climbing slowly, and certain utility stocks are booming, in the greatly restricted volume of dealings