Current Situation

The markets were on the whole listless and reactionary, waiting for developments from the very uncertain Democratic Convention. Moreover, the seasoned Summer dullness is now at hand.

Money continued easy, call funds ruling at 2%, and paper and time money dropping slightly to new low levels around 3%. Interior Reserve banks followed Manhattan's lead in cutting re-discount rates. The plethora of loanable funds has become apparent even in the West. Bonds continued upward, especially the cheaper high-coupon foreign issues.

The slump in commodity prices halted for the time being at least. Yet even the most optimistic fail to see a boom right around the corner. Conditions show all signs of deepening depression for the immediate future, yet confidence concerning Autumn business is growing. Just now unemployment is beginning to be noticeable in some sections, notably the New England textile centres.

Without really being a factor of first importance to business, the political struggle now starting is nevertheless unsettling and distracting. Most business men wish that all the ballyhooing were over, that someone were elected and someone else defeated, so that some of the snarls into which the last Congress got itself could be untangled and constructive efforts could be started to sidetrack politics for awhile and get business really on its feet again.