Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-01

high plane. and / W&SASzSE N
TIE period drew 20 III 4
p close with VOL Is ~. - N SM
time Of business liz <$E E#%S%N
PROGRESS which was 50
thoroughly unusual -
st this season OF ]. c. RcyIr.
the year.
The period was not without its dips
snd depressionS. nor was it entirely free
from danger 10 the business nler
throughout tire country However, tbs
CepressiouS al certain periods were
more than compensated for by periods
of extra activity and prosperity al
others.
The period vas one Of the most Sc
we're kind Of competition, and in conse-
cuence was a thoroughly healthy one
Profit margins were narrow, but they
were strengthened and wi6ened. not SC
much by increase IN prices as by de-
creases in costs due TO efficiency OF
equipment and personnel. Buying
power remained undiminished, and the
same could be said Of buying impulse
in most lines,
Il was notable. however. that tha
lergeT. stronger and better financed
concerns IN nearly every case reported
the better profits In other words. the
stronger concerns did the better bust
ness IN most lines.
Prosperity Due to Farmers.
Urclastionably. business owes ne
small part OF its prosperity IN the last
- months TO the improved condition
Of the farmer Returns 10 the latter
undoubtedly were we'll over those fol-
the preceding fiscal year. In addition
the money which flowed into the peck
cts Of the cultivators Of the soil found
these pockets better lined than the.
had been a year previous.
There was an undoubted dir1lnutlDr
of industrial activity as the calendar
year Of 1927 drew to close, and thi'
continued for some little time after tins
opening OF 1928. For some weeks there
was extreme anxiety over the employ
ment situation. but this was found te
have been unwarrantsd. There wert
assertions repeatedly made that the in
PRODUCTION OF new and improved ma
chinery was throwing thousands out Of
work. This has never been the case ir
America. and ii was not the case this
wear. The workers displaced by new
machinery readily were absorbed IN eX-
pansiors along new lines which MANY
companies Immediately undertook II
order 10 care for the men on their pay
roll
Dollar Value Advanced.
The value Of the dollar. as represent
ed in the commodities which 1t would
buy. improved to point 1t hao NOT
tnuched since the beginning of the
World War. IL 1914 Funds were in
ample supply for all legitimate busi-
ness enterprises. and a tremendous
volume Of money earned by business
men and wage workers went into sound
permanent investments
A huge amount also went into stock
speculation, and to the latter factor
Is attributed no small part OF the de-
cline in savings accounts which TOOK
place as the fiscal year commenced &c
draw To a close. The money situation
however. undoubtedly is tighter today
than it was at this time last year. This
Is attributed BIZ many 10 the extraor-
binary volume of money now tied UP
In brokers loans incident to the furry
Of stock speculation.
Key Industries in Fine Shape.
The ma ority Of the basic industries
of the country were in a sound and
satisfactory condition. This applied
especially 70 steel, automobile manufac-
tIre, building construction, agricul-
tural implement production and rail-
road traGic. The volume OF industrial
ACTIVITY can be readily measured by the
huge demand for electrical power and
hy the development Of gas consumption
for industrial and domestic purposes
The rate Of power consumption today u
fully 10 Der cent above the demand II
evidence a year ago. This reflects Low
fuel costs. Capitalization OF facilities
end production economies. There is
possibility Of lower rates for both gas
and electricity in proposed consolida.
lions involving districts distributed
throughout the entire United States.
Telephone companies In the last flsca
year have shown q steady gain in OPP
Grating revenues as compared with tbs
previous year.
The disputes with regard To fares
charged bY the traction companies o.
the United States are still IN progress
bat in most instances these disputes
have been settled by q definite advance
81 the general rate charged for rides
To app Ultimately III cents, for thf
country As whole.
Utility Financing Successful
Electric power production has reached
% stage Of better than 236 100000 xii
owatt hours per cay. and financing u
the industry IN the fiscal period Jus
closed has amounted 70 almost $4,000.
cor. 600.
Tns volume Of new life Insurance.
written during the last fiscal year ma
shown a gain Of approximately Il pc
cent for the major companies engaged
ia this field. This seems like a nomina
gain when expressed in percentage. bu
wf1an expressed in millions Of dollar
the increase is startling,
Real estate has been active, bat a
LII. 5rrvze $sgf5glE -
IN z healthy state There have been ~
outstanding booms, and for this fact
men IN the INDUSTRY are grateful, aincf
snen 30cnas are usually followed b.
acute dfpregSi0ns. The greatest gain
have bsen IN farm values City req
estate has been maintained az hig'
}eyal bat rentals have dropped Silgnti
In some districts. owing - the develop
nlant Of suburban home building. A
the year drew 30 a close. many real Is
tate men were peTturbed At the slack
er4ng Of resident construction and pur
chase They attributed this 20 the wiz
furry q speculation in the stock mar
kct
None the less, it has come % be rec
ognjzed that q a!X-biilio1 dollar year II
the building Industry is not extraor
6lnary That can he expected both no'
and IN the future In fact for the cal
endar year Of 1923, 3 volume 0f $1,000,
000 900 is expected % be expended II
this way
IT,. rar bten distinct advance II
the long distance telephone. telegraph
cable and radio fields Services are nos
- he disposal of customers which neye
have bern offered before, Direct com
gn1rr8tion by word 81 mouth is pos
elble across the Atlantic 20 practical
~ every outstanding European country
and this field has only been scratched
Real returns 81 money 70 the utilit
-.-..... l.. L..-.D II az fanntiia Il