Current Situation

No new turn in general business affairs occurred during the week. Railway traffic continued to be unusually heavy, merchants reported large sales while their customers talked of " how high everything is"; the basic industries showed depression for the most part.

An added stimulus has been given to the construction industry, with a reappearance of a demand for higher wages. But even under slightly higher wage and material costs it is apparent that the " building boom " is going to continue well into 1924 and probably even longer. This will in turn serve as a back log for the iron and steel, lumber, cement and brick industries, and furnish much traffic for the railways.

The stock market halted rather abruptly in its upward advance, on disquieting foreign news. Foreign exchange and foreign bonds were also weak.

The most interesting episode recently has been Secretary Mellon's proposal to scale down income taxes. Of all the cheerful news which has occurred, or been made to occur, this Fall, Mr. Mellon's adroit move has been the soundest, the most genuinely optimistic, and the most popular with the rank and file of businessmen.