Current Situation

As shown by a map made by the Chamber of Commerce of the U. S., business conditions are good in southern New England, along the Mohawk Valley, along the southern edges of the Great Lakes (except of Superior), in the Minnesota and immediately contiguous grain regions, the Chesapeake Bay district, throughout the South except the Delta country, in northern Texas, along the Mexican Border (except the Texas line), coastal California from San Francisco south, in the Columbia valley and Puget Sound areas, and on the easterly side of the northern Rocky Mountains. Elsewhere business was fair; nowhere quiet.

Market quotations of stocks continued last week to decline, with heavy selling. For industrials the Dow-Jones average stood at 139.02, the lowest for the year and more than 20 points less than six weeks ago. Towards this effect, of the many complicating causes, two may be pointed out: 1) The 1925 earnings, were considerbly below the optimistic expectations of share buyers; and 2) there was a piling up of inventories. They have accumulated despite the opening of the spring seasons. Several automotive makers have already quietly cut production. In this last field the easy credit terms of last year may in part be blamed. This year a huge accumulation of used cars competes with the sale of new. More cheerful is the steel situation, with production near 96% of capacity.

But the new week opened with another sickening descent of the stock market--new 1926 low marks for 125 issues.