Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-01
HOOVER FORESEES
PROSPERITY AHEAD
Depicts U. S. as Nation With
"Job" in Hand for
"Most Everybody"

A picture of a prosperous Nation
with a job in prospect for most every
| body" and with the entire Nation bet
ter fed, better housed and better
clothed than any other nation, was
drawn today in a New Year day
statement by Secretary Hoover. Re
viewing the prosperity of 1925, Mr.
Hoover said:
"A reply to requests for opinion on
| the new years economic prospects car
only be based on the economic cur
rents already born of the old year
New and unknown currents will enter
in the new year, SO there is no such
thing as assured economic prophecy.
High Production i'm 1926.
mo one will deny that 1925 has
shown the highest total production
and consumption Of industrial com
modities Of any year in the history of
the United States. Except in the tex
tile industry and parts Of the coal
industry, 1t has been a year of high
degree Of employment, which has been
accompanied by the highest peaF in
real wages, because wage income for
the country as a whole has slightly
increased and cost Of living slightly
decreased during the year. Manufac-
commerce generally have continued to
improve their methods, to reduce
costs, and to improve services. In
aggregate, each industry appears to
show substantial profits except the
textile and some parts of the coal in
dustry. While there has been slack
ening in production and demand for
several staple lines during the last
few weeks, we enter the new year
with no consequential overstock of
manufactured goods. With the larg-
est volume of construction during the
last year ever known there may prove
to be some construction in advance of
immediate needs, but slackening in
this direction may be partially COM
pensated by the assurance of a larger
amount Of public construction during
the next year. Savings Of the coun-
try have shown a steady increase, and
there is ample cheap capital available.
Crop Failures and Other Ills.
1.-THE lag Of agricultural recovery
has continued and has been accentu-
ated by distressing crop failures in
some localities. Cotton and some fruit
crops beyond world demand have
brought about prices below the cost
of production of large areas Of those
commodities. There is a consequent
lowered buying power in SEINE agri-
cultural sections.
Taking the foreign field as a whole.
it shows continued progress toward
balance of budgets; reduction of float
ing debt; greater stability in currency,
and somewhat diminished unemploy-
ment. The most important exception
has been the results of the British
coal strike, which left the world
poorer by it's interruption of the prog
ress of that country, but this is now
happily over Russia shows some eco
nomic improvement, and China, due
to international trade relations, still
continues below normal. Each year
sees progress in European political
relations, with fear less and less a
dominating factor.
Combining all foreign and domes-
tic tendencies with which we enter the
new year, while some of them are not
so good as we could wish, others are
most hopeful. To those who are in
terested in the movement of the bust
ness cycle. 1t is worth remarking that