, 1925-02-11

strike, stocks and mid-year dip in
Industrial activity should soon be
overcome.
Construction Work Maintains
Activity
The construction work of the
country has maintained high activ-
ity. While the shortage-particu-
larly of housing and business build
ings, due t. the cessation of con-
struction during the war-has been
to n large degree overcome, yet
continued high real wages and gem
eral prosperity create a demand in
excess of hat due only to increas
ing population, because of the in
s~istance of a population of rising
standards of living for more elbow
room and better housing generally.
One striking factor in mainten-
ance OF increased construction ac-
~tivities is the effect which the auto
mobile is producing in increasing
demand for road construction and
in causing migration of population
in many of IL towns to new hous-
ing in the suburbs. Another effect
of these forces is to maintain rents
out of line above the general price
levels. With our high real wages
and little unemployment, there IS
no reason to expect any material
change in the course of this IN
dustrys
Our railroads have shown contin-
ued increase in efficiency during the
year, and have now proved them
| SQlVng nnIto1 fn n hrrJ1, ,-hiab IL,
likely to be thrown upon them.
Motor transportation continues TO
develop and to enter more and more
into the vital economic life of the
country-in fact, almost impercept-
IDLY our road improvement programs
are taking on the complexion of
new transportation systems.
Considerable Increase i'm
American Exports
Our foreign trade has shown con-
siderable expansion during the year
in exports, and some decreases in
imports. The increase in export fl
cures has been due in some degree
to the higher prices of agricultural
produce-though chiefly due to the
general expansion in all exports.
The decrease in imports has been
due in large part to lessening ac-
tivity in production lines at the
middle of the year, thus reducing
the requirements for imports of raw
material. The total of our exports
for the year will show about S4.-
500 900 and our imports about
$4,000, 900 900. The merchandise
balance will be about $1,OOO.OOO.-
900 in our favor. The net gold i'm
ports for the year in partial liquida-
ton of this balance amounts tc
about $3.50. 900, 600.
Invisible Exchange Balance
Our invisible exchange will show
larger balances against us than in
1928, because of greater volume of
tourist travel, increased freight
charges paid foreign shipping, and
above all, the largely increased vol
ume. of loans and investments to
foreign lands which will probably
amount to as much as $1,000 900.
600 as against one third of that
amount for 1923.
International trade in the world
as a whole shows a large movement
OF commodities during the past veal
than at any time since before the
war. But international exchange of
goods, measured in quantities, is
probably still 10 or IL per cen be-
low pre-war, although the United
States is uniqe among the large
combatant nations in having recov-
cred its foreign trade to a point Is
per cent 10 20 per cent above pre-
war on a quantity basis.
One of the ~by-products hitherto of
of this lower movement of commod-
tiles has been the continued depres-
sion of shipping. With the general
strengthening of the econmic fabric
of the world with the gradual growth
in the movement of commodities
which is now taking place, together
with the fact that there has been
but little new ship construction dur
ing the last four years, and thai the
existing shipping is becoming more
and more obsolete, it is fair to ex-
pect a recovery in the shipping
world. The disable surplus tonnage
at the present time in the world is
probably not in evcess of 1000, 900
tons as against 10000 OO IONS a
ago.
Taxation and Debt Decreased
The year has again been marked
by a decrease in Federal taxation
and by a large discharge of Federal
debt which will amount for the year
to something in excess of $500, 900,
900.
Time and demand deposits in
member banks show an increase of
about $4,000, 900 900, and bank
clearings for the year were higher
than in 1928. The gold reserve
have NOT iDcTaocad 5o.,iIa .e