The Current Situation

The developments of the past week in American business here centered in the improved outlook for farmers and its probable consequences.

Money continues cheap, and industry continues in poor shape, except in a few departments, such as chain stores and utilities. Railroads, although earnings are showing a tendency to decline temporarily, are daily more cheerful over their prospects. Yet through all this there is an unusual dearth of novel or sensational news.

The consequences of agricultural prosperity are many and important. First, they will lead to conservative politics this Fall, and favor the re-election of Mr. Coolidge. By improving the farmer's buying power they should increase the consumption of manufactured goods with greater rail traffic as a result. This development may, as a matter of fact, provide a basis for the subsequent recovery of our industries from their present depression although that is still far ahead. Finally, the former serious disparity between agricultural and other prices is being reduced. A restoration of the former balance between prices will, in the long run, prove fundamentally advantageous to the business of the country as a whole.