Current Situation

On the whole, 1925 has so far justified those prophets of business who last January forecast widespread yet non-sensational prosperity. As in practically all periods of prosperity, however, industries are sharing the general benefits quite unevenly. The sugar trade, for example, is depressed (see below) while Florida realty soars.

This widespread prosperity for 1925 was largely predicated upon easy money conditions, and as yet no end to this favorable factor is in sight. Moreover, the Locarno Conference has led the way definitely and decisively to peace in Europe, reduction in armaments, balanced budgets and business recovery.

On top of the optimistic foreign news comes the prospect of a new Revenue Bill in Washington, designed to satisfy the desires of conservative business men (see Page 6, TAXATION). Not only will the income tax rates be lowered, thus freeing much money each year for investment in business instead of Government projects, but the anticipated repeal of many excise nuisance taxes should also prove a considerable boon to trade.