Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-29
SUMMER-FALL OUTLOOK GOOD,
WITH WEATHER LARGE FACTOR
Good Wages, High Industrial Activity,
Little Unemployment and Fair Farm
Conditions Factors in Prosperity.
BY j. G. ROYLE,

generally ran WITH the SteddlHeSS Vi
well regulated watch during the fsca
year of 1927, which Is drawing to Q
close today. This is the more remark
able when it is remembered that the
last twelvemonth followed a fiscal and
a calendar year which were the most
generally prosperous periods ever ex
perienced by the United States.
The fiscal period just closing also
is to be numbered among the most
advantageous business years ever
known. It was its outstanding char
acteristic of steadinesS which made
it so. There has been a drop in the
general level Of prices as compared
with the 1926 fiscal year. In some
industries, margins of profit were mar
rover. But the steadiness of demand.
the lack of sharp and unexpected
fluctuations in price, the continuity
OF employment and the maintenance
If buying power more than made up
the difference in the long run.
The national wealth of, the United
States not only retained the gain OF
SO, 000, 000, 900 recorded In the 1870
fiscal year, but added to that amount
enough to bring the total, according
to a conservative estimate by trained
statistfeians, to above $370,000 ,0OO, 600.
This includes tangible physical OBJ
iects only, and does not take into ac-
count credits, good will or paper cur
yencv. hut counts gold and silver coins
and bullion.
Stability Came Unawares.
Stability. so much sought after by
business men, just sneaked In I'M
awares. The activity OF the previous
two years was so adequately maln.a1n,
ed that sterilization in the last hscai
neriod was accomplished before econ
omists realized that the ordinary cycle
embracing both years Of famine and
wears of plenty had not turned as ex-
pected.
The stabilized business was mistrust-
al for a time after the turn or the
wear. Merchants and manufacturers
hardly could believe that the volume
Of trade was to suffer so little dlmlnu-
ton, but when realization came, 1t
banished the business fear and I'M
certainty which in the past mas oone
90 much mischief.
The above statements do not mean
that the commercial body has been
entirely immune from all complaints.
There still are sick companies and
sick industries. Some are so per-
sistently unwell that it almost seems
as If they enjoyed poor health. Most
of the ailing, however. are getting
better and some which started the
year with aches and means are en-
tirely cured.
Only a few Of the basic industries
showed either a weakening of posi-
ton or a decrease in production. The
usual late Summer hull in 1925 waa
CONSPICUOUS by it's absence. The Fall
season was most active. There was
slight hesitation in the post-holiday
period, caused by uncertainty rather
than lack of demand. Since that time
volume of production has been main.
tanned at a level fully equal to that
of the previous year.
There was almost no unemploy-
Ynent. The seasonal workers were
drafted from one job right to another,
and this move was favored by the
weather which prevailed. There were
comparatively few labor disputes. The
soft coal strike was the largest. Most
of the others were in the building
trades and were shortly adjusted.
Wages Were Steady.
Following the tendency OF the
whole period, wages were steady.
They showed in some sections a slight
Advance in hourly rate and in others
a. decided raising of the number of
hours worked. The feature of the
Situation of the wage Garner was the
Involvement in real wages, as
measured by what wages would buy
and the corresponding fall in living
coses
This was reflected in the volume
of Sboth checking and savings &C.
counts. which advanced to an amount
peH capita never previously reached.
The cash flowed over into sound, per-
manent investments, which were alb
Horbed in an astounding manner.
Throughout the year money was
easy; so easy and available in such
huge volume that gilt-edged bonds ad-
vaaced to price where they yielded
only to AS per cent.
III the last six months the investing
public absorbed new financing ap-
proximating a total of $500, 000, 900.
The rate for the last six calendar
months Of 1925 was slightly lower, but
almost up to SO 900, 900 900.
The year ended with nothing to
indicate any wide fiuctuation in the
volume of funds available for financ-
ings legitimate enterprises or in the
level of interest rates, which are about
the same as they were a year ago.
Commercial loans of Federal Reserve
member banks amount to about S.
$4,000, 900, or 8 per cent more than
yeah ago. Total loans of these banks
amount to $14, 900 900 900 or more, and
area per cent larger than last June.
Total loans and investments of mem
bers banks stand at nearly $20.475,-
100000.
Stocks of money gold in this coun-
try total over $4.609, 100000. The
banks, therefore, could increase their
loans a billion or so without necessity
of expanding further their gold base.
One has only to scan the income tax
figures to see what kind of a year
most corporations and individuals en-
joyed, at least in the last half of 1926.
Government receipts will exceed Gov
eminent expenditures for the fiscal
year by between s600.000,000 and
$3.50, 100000.
Five Main Supports.
The business structure throughout
thes fiscal year was supported largely
by the corner columns of steel, auto
mobile manufacture, building construc-
ton and railroad traffic and by the
center column of electrical production
and consumption.
It has been an electrical year. De-
mand for current was tremendous ana
new central stations were put into
commission as fast as possible. Scores
of factories, especially in the steel IN
duStry, were electrlned, ana the SAFE
of current to farms reached a height
never before approached. The daily
average production OF electric current
in kilowatt hours in the fiscal year
totaaed approximately 209 100000. and
the gain after January l was con-
slant one.
For nearly every new hydro-electric
plant there has been a steam gener-
ated plant built or projected, and this
I@,o 70 zid
coal situation.
Electrical equipment sales held up
remarkably, both for heavy central
station enuinment and for househO.d