Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-06-29
BY J. c. ROYLE.

NEW YORK, June 29.-lffQuStry,
commerce and trade went through the
record books today and chalked up
new high figures for all time. The
fiscal year. which ends June 80, has
been the most prosperous period ever
enjoyed by the United States. The
last six months of 1925 showed a
volume business which lifted that cal
endar year above any similar period.
despite the fact that the first six
months of 1925 showed many weak
spots. The first six calendar months
of 1925 showed continuous gains over
the corresponding period OF the pre-
viouS year.
Most conservative estimates indl-
cate that the assets of the United
States OF America today are Sl0,0OO.-
00O, 900 higher than they were year
ago. Only a certain portion of these
assets, of course, have been cash.
Many Of them are nonliquid. but the
volume of actual currency made avail
able for retail and wholesale purchases
has been sufficient to lift the nscai
year to heights unprecedented nth
erto.
This does not mean that there were
no thin spots in the business fabric.
Certain lines of endeavor failed sig
nally to return adequate profits to
those engaged in them. Some OF the
industries alluded to still have q long
way to go before they find themselves
on a. sound and satisfactory footing.
Unprecendented Production.
The fact remains, however. that
only a few of the basic industries of
the country failed TO show better
ments when compared with previous
fiscal wears Production in the last
half of 1925 rose to remarkable vol
ume. 1t was maintained. with only
lfrl, fhro1IOhn1If
half of 1926. Unemployment was al
most non-existent except in the case
Of the itinerant workers. some of
whom, either voluntarily or involun-
tarily, always are jobless. There
were comparatively few labor dis
putes. but those strikes which did take
place were exceedingly costly not only
to the workers but to employers.
In general, wages were extraordt-
narily stable throughout the entire
industrial field. The general hiring
rate for skilled and unskilled labor
during the ~ months of the fiscal
wear period was firmly maintained at
a level never exceeded since any rec
ords have been kept. This resulted
in a tremendous buying power on the
part Of the population and in mark
ed increase in the checking and say.
ings deposits. Total bank clearinSs
Increased over IL per cent.
Money Was Easy
Money was easy Ample funds
we're always available for the financ-
ing of legitimate business projects,
for the movement of crops and for the
necessary expansion of building and
industry. The amount of credit ex-
tended by member banks of the Fed
eral Reserve system was greater than
N anv ofhaYs fiscal ye9r eSndci9lIV for
agricultural and commercial purposes.
The banks at times were at a loss to
know just how to dispose of their
cash most advantageouSly. This re-
suited in a. firm and steady invest
ment security market and permitted
business men to take full advantage
of opportunities presented. Indica-
tons Of the huge monetary returns to
individuals and corporations alike are
TO be found In the announcement of
Secretary Mellon, made in June, that
the volume of income tax receipts
has been such that no new Govern
nent financing was necessary at this
Tina Tax reductions unquestionably
had thoroughly stimulating effect
on many lines Of endeavor.
Three Big Factors.
The three big factors which aided
In establishing this record for bust
ness were the automobile industry,
the steel industry and building con-
struction. Production Of automobiles
has been such that automotive engt-
neers anticipate a. total production Of
approximately 100000 cars by De-
>Cember 81. Sales in the first six
months of 1926 showed that this
country still has a tremendous ability
to absorb automobiles, but the heavy
sales were not made without the most
severe kind of competition.
In the case of the majority of auto
mobile companies, they were spurred by
sharp price reductions. These were
made possible without deleterious effect
on profits through increasesin individual
and machinery efficiency and volume
output. Principal passenger car pro-
ducerS unquestionalby experienced
more satisfactory profits in the last
six months than in the corresponding
period Of 1925, and more cars were
produced and sold in this half year
than in any full year previous to
1922. This business has been supple
mented by record breaking sales In
the truck division of the industry,
which has been running Is per cent
ahead of that of the corresponding
period of 1925. Bus demand has been
heavier than ever before.
Steel prices in general have been
remarkably steady throughout the
last six months and the fluctuations
in the fiscal year have been within a
comparatively narrow range. Pro
duction has been equally steady, and
the fiscal year wound up with mills
r,r,,,,xr,,,-,u.--