Business: Current Situation: May 25, 1925

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Except for psychological factors, there was little change in business conditions during the past week. The continuance of easy money, of hand-to-mouth buying by dealers, of large consumption of relatively stable stock and commodity prices, made for a condition of prosperity without sensation. Except in a few industries, business was good, and most complaints that were heard were to the effect that current earnings were not the best on record-somewhat captious and unreasonable criticism.

The state of mind prevalent among business men, however, has recently changed. During the winter, a boom in trade was eagerly anticipated. When, by early spring, this common expectation was shown to be vain, an attitude of alarm spread to some extent. The collapse of stockmarket prices, the St. Paul receivership, the Hindenburg election and other untoward incidents were cited as indicative of calamities to come.

Prosperity has, however, remained, and seems likely to endure. But it is not a very exciting sort of prosperity. The average American engaged in business is restless, mercurial, expectant of change. When nothing much happens, he therefore becomes alarmed, even though the situation and outlook be good. U.S. business has yet to develop a temperament suited to economic stability.