Evening star., 1924-01-02
HOOVER AND DAVIS
FORESEE GOOD YEAR
Cabinet Officials See Odds in Favor
of Prosperity for
America.
LABOR MORE COMMENTED
Commerce Secretary Reviews Con-
ditions Abroad.

That the "OdQS are IaVOraOle IOr
1924" and that the American worker
has completed a year of unexampled
prc .-4.y, were opinions voiced by Sec
retaries Hoover OF the Commerce De-
partment and Davis of the Labor De-
partment in New Years statements
yesterday. Secretary Hoover said, In
part:
Odds Favorable for Year.
Secretary Hoover declared that. con-
sidering all factors which make for
business prosperity, the ODDS are
favorable to 1924" He said, in part:
THE economic outlook for our t own
country for the next year is prlgnt.
In general the world situation Is
hopeful. The general spirit OF pru-
dence, the absence or speculation
complete employment, high produc-
tion and the great financial strength
and stability of the important states
in the western hemisphere, together
with the promise of the early confer
ence for systematic consideration OF
constructive solution of the worlds
greatest economic menace-Franco-
German RELATIONSHIP create hope
full foundation on which the new year
may build.
The decreased consuming power of
Germany and of the states most az
fected has contributed to the low
price levels of food products in the
United States and other food-eXport-
ing countries. The decrease in her
steel and coal production at first gave
some stimulus to the production OF
other countries, but this is now onset
by decreased buying power or the de-
pressed area for other commodities.
One other effect of Importance has
been the undoubted substantial flight
of capital from many of the states IN
this area of depression to the United
States, resulting in further excessive
, accumulation of gold here: The eco
nomic world has not yet felt the ruli
impact of the occupation OF the Runr:
Were it not for the hope inspired by
the initiation of negotiations for set
tlement of the German problem the
situation would be most uncompro-
, missing for the future.
Progress in Russia.
Russia is slowly making progress
with the inch by inch abandonment or
communism and socialism. war mas
ceased in the near east. Greece ana
Turkey are turned toward progress.
The eastern states of Europe are SEN
sibly approaching sound projects Tor
stabilization of budgets and currency.
China is still disturbed politically,
but her commerce is maintained de-
spite of it. The japanese disaster sase
&c stability than many anticipated
and has furnished new proof Of the
great strength and courage or that
Increasing in productivity but cur
rency conditions in some instances
leave much to be desired. Except In
Mexico there has been steady in
crease in political and social sta
bility.
Our own country has shown a
more freedom from depressing Euro
pean economic influences than most
others. The explanation lies in the
fact that although our exports are Of
profound Importance less than per
cent of our total productivity is eX-
ported and of this only about one.half
to Europe. The proportion of differ
ent products exported to Europe or
course varies and European contii-
tions therefore, have a f1uctuating
influence upon different industries.
featured products find their market
in Europe the direct effect upon these
industries is more negligfble than up
on certain agricultural products
which are much more dependent upon
European consumption, such as wheat
and pork products. and we endure
both economic and political reactions
at home from this latter fact.
United States Has Good Year.
In 1928 the United States has wit
messed the highest total productivity
and movement of commodities since
the war, with full employment, high
real wages, greatly increased savings
large additions to home building and
the largest increase of railway equip
ment since the war. The whole has
been accomplished by remarkable
absence of speculation, consequent
overaccumulation of conSumable
goods or dangerous expansion of
credit. AS we are not in a boom we
can expect freedom from a slump.
Some secondary interrogations can
be raised as to the effect of the ex-
pansion Of installment buying of con-
sumable goods, the acute suffering in
the northwest agricultural areas, the
increase on stocks of some commod-
tiles and decrease on some advance
orders. These items are small COM
pared to the whole industrial fabric.
Taking the country as whole we
never in history have enjoyed high
er standard of living and comfort,
nor so great a degree of commercial
and industrial efficiency as today, or
so wide an understanding of the
forces which control the ebb and flow
of business. AS severe as the situa-
tion Is in the worst of the agricul
tural states, yet the disparity between
agricultural prices as whole and
industrial commodities is gradually
lesSening and the economic balance
is tending to right itself.
"A more detailed examination of
our own situation, based upon the
first eleven months, and some later
data, indicates that our foreign trade
will show about S4,100,000,00O in ex-
ports and about $4,000, 900, 900 in i'm
ports--an increase of per cent in