Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-01
HOOVER STRESSES
TRADE STABILITY
Swing Toward Lower Costs
and Prices Seen by
Secretary.

Stability dominates the business
world of the United States as the New
Year Ii ushered in. Secretary Hoover
declared in his annual New Year
statement yesterday. A swing to-
ward decreased price costs was seen
by the Commerce Secretary, while at
the same time the average level or
wages and the national buying power
have been maintained.
Mr.. Hoovers statement follows:
IAN answer to the usual annual re-
quest Of the press for statement O,
prospects requires a short catalogue
II the economic forces which domi-
nate the business situation at our
entry into the new year.
THE more general OF these forces,
Of course. includes the credit s'tna-
fion the degree of accumulated stocks
of goods or speculation in them. the
size of the crops, the rate OF wages
the outlook In labor relations anu EN-
ployment. the prospects OF forciEh
trade and to these also need be added
the particular forces in motion III the
different ma jor industries.
Supply of Credits.
"upon these points it may be said
tina, there is an ample supply OF
credits at low rates. the somewhat
larger stock of goods which were ac'
cl,muiated during the summer are be.
ing reduced, there is no consequential
speculation in commodities; the crops
have been abundant: wages are AT u
nigh level: we are recovering from
some partial unemployment, especial
IL in the automobile industry, 1here
* peace in most sections of the labor
world except bituminous coal; there
il more peace in the international
world than at any time since the war
the foreign world is recovering It's
economic strength and buying power,
therefore, our foreign trade is steaullS
increasing. Tho phenomena usually
accredited as premonitory OF q stump
are therefore absent.
During the past year there have
been important shifts in our own
economic world which have an import
ant bearing upon the future. While
the average wholesale price of all com
noditics at about 80 per cent above
pre.war IL today the same as year
ago. Vet IL we divide them into asri'
,ultural and non agricultural goods. II
Will be found that the average price
of on-agricultural products has Fali'
en- In the II months from about 90
Der cent above pre.war 10 81 per cent
pre.war: while the average OF asri-
cultural products at central markets
has risen from about 81 per cent
| above prc.war to about 81 per cent
above pre.war; however. prices on the
farm show only a rise of from about
| 80 per cent above 10 about 50 per
cent above pro'war.
buying Power Level.
Manufacture and distribution have
nv savings and diminished profits ac'
| eommodated themselves TO this situa'
ton of decreasing prices without re
duction in the average level OF wages
A I'd therefore in the national buNins
power. Hut the great extent to which
| industry has accommodated UseH Tn
lower prices by decreased costs makes
for a sounder condition for the en-
suing year. Despite decreasing prices.
production and consumption of manu-
featured commodities have been main
tanned upon n high level. as shown ny
| car ioadings OF class OF goods. whicn
have been about equal 10 those OF last
year.
LAS to particular industries. agfi.
culture, textiles. hltuminous coal anu
some metals~stil lag behind tue
others. The contracts let Tor future
execution In the construction lndNS
| tries are at ~ high level rs AT tins
| time a year ago.
Taken In broad sense we enter
the new year with the forces al
| stability dominant IN the business
| "A -