Evening star., 1925-11-07
PROSPERITY mus.
SETS NEW RECORD,
HOOVER REPORTS
Living Conditions During
Past Year Best in History,
Says Secretary.
UNEMPLOYMENT CEASES
AND FARMERS THRIVE
All Traffic Marks Fall-Construc.
tion Total $4,000, 900, 900, But
Houses Are Still Needed
B. the Associated Press.

B. the Associated Press
Material conditions of living ror the
American people during the last year
have been the highest in all history"
Secretary Hoover declared today in an
economic review made public as part
Of the annual report of the Commerce
Department.
Factors listed by the Secretary as
contributing TO this condition included
2 practically complete absence Of un-
employment. high wages. efficient
railroad operation, an equable bal
ance OF prices as among the greater
producing groups of the population
and a gradual return to stable cur
rencies and normal business opera
tions among the nations abroad.
Mr.. Hoover's review took in the
banking situation. and noted the In
vestment abroad by Americans during
the year ending June 30, 1925. OF
81 ,3S2 900. 900. and the net gold export
from the country OF s115. 900 as
further contributions to general
stability.
The greatest volume OF construC.
ton operations on record" was also
proceeding internally in the United
for the year of $4,000. 900. 900. and the
Secretary noted the result as for the
most part well calculated to meet the
permanent and growing needs Of the
Nation
Food Costs Up 50 Per Cent.
Illustrating the situation by index
figures. Mr.. Hoover's review said that.
taking 1919 output as 100. during the
fiscal year 1925 manufa curing pro-
duction in the country was 1l8: min.
cral production, 1874; railroad freight
haulage. 110; factory employment, 81,
and building contracts let were III.
Retail sales on the average showed a
substantial gain over 1919.
Considering prices of 1913 as 100.
retail food costs for 1925 were found
10 be $50 and the general cost OF lir-
ing to be 172. Farm products had an
index number of 1853, food and cloth
ing 1888. metal and metal products
1870 and building materials ia.
Building activity was we'll distrib-
uted throughout the different regions
of the country" Mr.. Hoover CON
tinued. and there was apparently an
increased consumption of building ma
teria1s on the farms.
Although some instances may lie
claimed OF expenditures not justified
by current needs, the sum spent for
tOIlS UCllO1 lUT IIlS IllOSl part
sented not only a keeping pace with
the needs of expanding population.
but also a substantial lettering of the
country's housing and commercial ia
cilitieS.
Housing Shortage Continues.
The housing shortage arising from
the war has not yet been substantially
relieved for the lower-income groups,
nd of tho tasks ahead of
the country Is to organize this field
so that new houses may be reasonably
financed and owned preponderantly
through the thrift of the individual
families who occupy them.
Advances in prices of agricultural
commodities. together with large
volume OF production and marketing,
caused the farm income to reach a
greater total in the crop year 1s24-2o
than in any year since l920-2l.
September forecasts indicate that
the aggregate output OF all crops dur
ing the present year will be about
per cent smaller than last year, but
this will probably not adversely affect
farm communities. since ii has been
Just about Offset by advances in agri-
cultural prices. AS a result of the
successive rises in the prices of cot
ton. grains and animal products dur
ing the past three years, the agricul-
tural industry has now reached a
better adjustment with other indus.
tries than at any time since the war.
Greatest Traffic Total.
Greater traffic was handled during
the fiscal year 1925 than ever before
in our railroad history. The highly
successful operation of our railroads
during the year reflects the greatest
credit upon the efforts of the man
.;1 141 h,.y Hn
operation of the shippers and re-
ceivers of freight.
Extensions of terminals and the
problem of rate adjustments are still
before us. The problems of railroad
consultations are yet to be solved.
Improvement in railroad finances and
services is dependent upon the solu-
ton of these problems. That trans
portation facilities shall keep pace
with the demands upon them is nee
essary for our economic stability.
The bankers figures at the end
of the year indicate a high degree OF
stability in a period of fairly substan-
tial prosperity. All banking opera
tions consistently kept pace with the
increases In production, employment
and prices during the year.
"PerhapS the most encourag gin:
feature of the period was the prog
ress made throughout the world in
the stabilization of monetary sys-
tens.
World Currencies Stabilized.
"The progress in the re-establish-
ment of the gold standard is of in
calculable Importance to international
trade, which has been so severely
hampered by the uncertainty result
ing from exchange fluctuations. The
foreign trade of those countries that
have long been on a silver basis
might we'll be included with the gold
standard nations. in which case II
appears that the financing of an
overwhelming proportion of the
worlds trade will henceforth be done
on a metallic monetary basis COM
parable to that Of before the war.
''In this work of stabiiizing the
worlds currencies. the United States
has been of great assistance to the
other nations through the granting
of stabilization credits by our banks
and the flotation of loans in our
security market. The gross volume
of foreign securities publicly offered
in this country during the fiscal
year ended June 30. 1925. amounted
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