Current Situation

In the commercial field, the most conspicuous developments of the past week were price-reductions in the closely related motor and gasoline industries. Businessmen were distracted, however, by the intense speculative operations in real estate and securities. In both cases, the cause seemed to be ample idle funds to play with rather than great increases in prospective earning power. What will happen next is anyone's guess.

Statisticians are declaring that the housing shortage is over, and numerous "To Rent" signs confirm their statements. Yet the astonishing construction boom continues. Likewise, old stockbrokers shake their heads and require larger margins, but stocks continue to march upward.

The speculation in Florida real estate is nationwide, and very wild; sporadic outbreaks of the same fever are, however, to be seen in many other sections of the country on a smaller scale. The collapse of Los Angeles real estate speculation is forgotten.

In stocks, the public know and let alone the best and the worst. But there are not apparently enough uncertain stocks with big possible future earning power to go round. In consequence, sensational advances continue in American Can, Mack Truck and similar issues. The rage for utility shares has apparently begun to subside, owing partly to Mr. Insull's warning (see below). But now railroads are beginning to be boomed.

The economic skies still are cloudless. Nevertheless, not all second and third mortgages are going to be worth their weight in gold presently. Neither is the stockmarket an El Dorado all the time.