Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-08-06
FOUNDATION FIRM,
BUSINESS SHOWS
Shock of Coolidge Choice Met
With Rigidity-Discount
Rate Cut Felt.

Special Dispatch to Tho Star.


NEW YORK, August Glow firm
is the foundation beneath the walls of
business was clearly shown in the last
few days. Those walls have not been
undermined. They met an unexpected
shock in the Coolidge announcement
with unexpected rigidity. While this
blow was entirely psychological. the
answer of business took direct finan-
cial form in the reduction of the dis
count rates of some of the Federal
reserve banks.
business as usual" was the watch
word as the week closed. The employ
ment situation is more satisfactory
from the employers standpoint than
at any time in years. 1t also is sat
isfactory to the great majority of
workers. This is highly important
and significant, for if workers don't
and can't work. they won't and can't
buy. Wages have been high in gen
eral, but worker efficiency has shown
a marked increase. There is no labor
shortage, but no severe shortage of
jobs, while the cost of living is less
than last year.
Labor Turnover Lessening.
On the other side of the picture, the
Bureau of Labor Statistics reports
there are more than a million skilled
labOrers who are underpaid with the
wage in some industries as low as SIT
a week. But labor turnover is lessen
ing, and the prospects for the re-
mainder of the year are favorable TO
both workers and employers.
AS a result of these facts and
recent improvement in crop condi-
tons merchants, wholesalers and
manufacturers anticipate that retail
sales. the backbone of the financial
structure, will hold we'll up to the
1926 levels.
The period of seasonal industrial
dullness has been passed. The steel
industry is picking up. although the
Improvement is more psychological as
yet than physical. Introduction of
new models in the automobile field
has provided Il needed stimulus, while
the fact that the many huge Ford
plants are reassembling workers and
are on the verge Of a period of large
production is bound to have d squirting
effect. Some of the less fortunate
companies have continued price-cut-
ting, but without disturbing the
serenity of the more successful fac
tors in the trade.
Building to BE Active.
Building activity will remain
around present levels for months.
Contracts already awarded assure this.
This means continued demand for
materials and activity in lumber, ce-
ment, glass, stone and brick.
The non-ferrous metals have turned
more active and prices have Shown
corresponding strength. Copper regis
tered the more impressive. gains, but
lead and zinc also rose. The improve
ment in European demand was the
factor which effected this. Silver was
the exception, declining on sales made
by the Indian government.
Oil is still awaiting results of at
.empts to stabilize and reduce Seminole
production. The statistical position of
coal has improved. but net the atti-
tude of the buyers Chemicals are in
fine demand. especially the inSectisde
used against the boil weevil and the
japanese beetle. The improvement in
production of rubber goods and tex
tiles has affected the textile groups.
Textiles Doing Better.
The cotton textiles continued to do
better, with the South now running
most Of it's mills above normal one.shift
capacity. The WOODEN and Worsted
mills show q Woeful lack of ability to
follow. but raw wool demand is good
and prices firm. Furs are moving up
ward despite the approach of the Au-
gust bargain sale season.
News print production is outrun-
ming consumption and price shading
has made its appearance.
Tire manufacturers predict n good
consumer business during the last half
of the year, and with the price of
crude rubber steady this business is
expected to be done or u satisfactory
basis.