Current Situation

The end of August has frequently in the past marked the dullest point in trade for the year. Last week proved no exception to the rule. In fact, it is generally agreed that business this August has been slow to feel the inevitable preparations for the Autumn's trade. Thus far inquiries rather than advance purchases have been received from buyers, and conjecture is widespread concerning the mercantile and industrial future.

One cheering note has been the distinct rally in the stock market, although this has been primarily due to the overextension of the " short interest" and a technical and temporary condition in the securities market.

Meanwhile, the foreign situation continues to be a factor of importance in the current business outlook. More confidence has been expressed in the new German Chancellor, Stresemann, than had been placed in his predecessor, Cuno, although no Pollyanna attitude is or can be taken toward that country. On the other hand, the widening breach between France and Great Britain aroused apprehension in financial circles, and is probably responsible for the decline of francs to a new low exchange record with dollars.

But, after all, this is the vacation season, and there will not be strong vitality in American business, nor important new policies set for its guidance until after Labor Day.