Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-12-31


Secretary Hoover, unless reckless
optimism" is permitted to outweigh
ordinary caution.
Economic prospects, both for this
country and the rest of the world, he
Believes, now are more favorable than
fur u long time past. In a statement
the Secretary pictured fundamental
conditions as favorable. but he eX-
pressed concern over others, including
the possibility of extension of speCu-
latieu into commodities and the eN
tuItinn Icy foreign government -fostered
m"n"polies dominating our raw mate
rial imports" -,
Increase iii Production.
The most encouraging factor in the
oullook he declared To- lie Our In
creased productivity. due To funda
mental and continuing forces, such as
the cumuliltiun If education. ,he adj
rement OF science, skin and elm
nation Of waste. Other favorable
Indications he ltstel were that stocks
of commodities are moderate; there Is
employment for practically every one.
real wages are at a high level; say
ingS are the largest in history, and
cal itsI l. therefore abundant, ana the
whole machinery of production and
distribution Is operating at a higher
The Iulted States has produced
ana consumed more goods In 1928 in
proportion To population than ever
before in It's history" he said adding
that the couutry's foreign trade was
exceptionally satisfactory" He pre-
diCted that exports for 1925 would to-
tai around $4,000, 000,0 900. or about Z
per cent more than for 1924. with i'm
ports approXimating $4,000 900 900,
about II per cent higher.
Condition of Agriculture.
The secretary judged agriculture as
Improved over its condition OF two
years ago, but still leaving farmers
with much accumulated debt and lack
ing stability because OF unsolved mar
ket problems. Also, he said it suf-
ferS from continued distortion in price
relationship of the Middle West TO the
competing foreign countries because
our transportation costs to seaboard
have had to he increased more than
those Of foreign competitors"
Promise of continuing demand for
heavy construction was found in the
increased national and local public
works programs for 1876, and the Sec
retary declared the textile and show
industries as a whole also We're run
ming At high levels of production. Mr.
Hoover believed prospects were favor
able also for the automobile and tire
industries and the railways, with some
Improvement being shown in shipping
Text of Statement.
The statement in full follows:
Any business forecast must be
simply an appraisal of the forces in
motion at home and abroad, for and
against progress. All signs Indicate
that II we will temper our optimism
with 4 sprinkling of caution We shall
continue our high level of prosperity
over 1925.
The United States has produced
and consumed more goods in 1925 in
proportion To population than ever
before in its history. Our standards of
living has therefore been the highest
in our history and IS, Of course, the
highest in the world. This improve
ment, however, has been greater in
the urban centers than in agriCul-
tural communities
THE dominant favorable factor in
our outlook is our increased pro-
ductivity due to Fundamental and
continuing forceS-SuCh as the cunu-
lation OF education, the advancement
Of science. skill and elimination of
waste. Other favorable indication
on the immediate horizon are that the
stocks OF commodities are moderate;
there IS employment for practically
every one: real wages are at a high
level; savings are the largest In his
tory and capital is therefore abun-
dant, and the whole machinery of
production and distribution Is operat-
ing at higher degree Of efficiency
than ever before. While wholesale
prices Tor the year as d. whole have
ayera ged about s per cent higher
than for the previous year. It is large
" due 10 needed advance in prices
OF agricultural products.
Some Caution Needed.
There are some phases OF the situa-
ton which require caution. Continu
d ton Of real estate and stock specula-
ton and its possible extension into
with inevitable imitation,
the overexteusion of iDstalIrnent buy
ing the extortion by foreign govern
ment-fostered monopolies dominating
our raw material imports, the contin-
ued economic instability Of certain
foreign countries, the lag in recovery
of certain major agricultural prod
ucts the instability Of the coai indus
try, the uncertainties Of some tmpor
tant labor relationships-au these are
matters Of concern. But AS said
above, with caution we should con
tinue 8, prosperous year over 1926.
agriculture, while II Is better than
il was two years ago, still leaves the
farmers with much accumulated debt
and generally has not gained a sta
btlity that makes for contentment,
because its basic economic problem OF
market il unsolved. Also Il suffers
from continued distortion In price re-
lationship Of the Middle West to the
foreign countries because
our transportation costs to seaboard
have had to be increased more than
those Of its foreign competitors. The
projected enlarged program OF i'm
provement IN waterways Is OF great
Importance in this matter.
treat Construction Volume.
THE construction Industries have
PLAYED a very large part in the high
business activity of the past three
Years. The volume of construction has
been unprecedented during the past
year with consequent great activity IN
the. Observation-Disclosures industries,
iron. steel. lumber, cement, etc. Con
trary TO normal expectations this In
creased demand has not increased
prices Tor there has been Il slight re-
dlIctiun in building costs due In a large
measure to the gradual lengthening OF
the building season. The increasing
Federal State and municipal public
works programs for next year, to-
gether with the promise of large cleo
tricaI and railway extension and i'm
provement indicate a continuing de-
mand for heavy construction. While it
might be thought that the war de-
ticiency in housing has been over
come. yet the high real wage in In
dustry creates "a demand for better
housing. and this condition. combined
with the migration 10 suburbs. due TO
u Z