Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-24
i. S. BUSINESS GAIN
CONTINUED IN MAY
Practically All Lines Report
Maintenance of High
Level of Activity.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, May 24.-Like ship
wreck Kelly, the worlds champion flag
pole sitter, industry refuses to come
down. Business and industry and COM
merce have all been perched on the
peaks of prosperity for months. and
while an early Summer slump Is always
expected, more as conformation TO
tradition than for any other reason, 1t
has so far failed to materialize and
there Is no immediate indication that 1t
will.
The only thing likely to drag business
down from its high perch is sentiment
due to uncertainty as to the money rate
situation. Some feel that the increase
In the rediscount rate, if 1t comes, will
have a psychological tendency to
tighten up funds and have senti-
mental effect exactly opposite to that
desired by the Federal Reserve Board,
which asserts 1t Is concerned with
drawing money from Wall Street and
inducing it to flow into commercial
channels. It is as easy and in some
cases easier to hurt business by Senti-
nlent as by actual conditions.
Forecast for May.
NonetheIess, May unqueStionably will
show a higher general level of produc-
ton, distribution and sales than any
ther May In history. and the forward
business booked is sufficient to keep the
pace steady to the end of June.
What will happen after July re-
mains to be decided by agricultural and
other conditions. In the meantime
production in basic industries is high
and costs are relatively low. This con-
dition is being aided by the efficiency of
the railroads, which is preventing delays
of labor and high buying power. Hence
even If there should be slump in the
third quarter, 1t is likely to be of lesser
proportions than that of 1928.
The steel industry Is at or about at
capacity production. The automobile
manufacturers are taking raw materials
in large quantities. The sheet and tin
plate units are being rushed to fill de-
mands, and even the oil country goods
are showing some improvement, al
though this is mainly evident in tubular
goods for pipe lines.
The increase in the price Of one au-
tomobile in the low-priced field, al
though concealed under the guise Of
additional equipment, Is an indication
of the activity CT motor car sales. The
rumored entry of a big English firm
into this country is not feared at pres
ent, although the midget car may
eventually come to have an appeal.
Trend in Metals Field.
In the non-ferrous metals field the
trend toward the acquisition of copper
and brass fabricating plants by copper
companies to absorb their output has
been a feature Of recent developments.
mi. - e.. ~ AkAle 9
rather dull and prices are moving with
in narrow limits. The advance in the
quotations of oil and oil productions Is
having a heartening effect on that in
dustry and so are the reports OF in
creased earnings from some influential
companies.
The curve Of electric power con-
sumption has again turned upward
after brief fiattening out due to
weather and climatic conditions, which
affected the hydroe!ectric plants. Lum-
Der orders have responded nobly to the
better weather conditions.
Apparel sales are doing excellently.
The highway construction programs
started in many States are absorbing a
huge number of workers and are bring
ing aid to the cement industry, which
has needed it rather badly at times
this Spring. The tire factories are
keeping three full shifts on. The
chemical trades are finding their prod
ucts in strong demand and the mergers
in the paint and varnish industries
have strengthened an already firm
position.
The demand for sporting goods, sport
clothes and motor boats Is exceeding
anything Of the sort ever known in this
country.