Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-07
ERA OF PROSPERITY
CONTINUES IN i. S.
Midyear Finds Many Indus.
tries Maintaining Forward
Movement of 1928.
By the Associated Press.

By the Associated Press.
This week terminated the Federal
Governments fiscal year. and the in
cident stock taking, which demonstrat-
ed that the national debt had dropped
to below $4,000. 900, 900, occasioned
early discussion of tax cutting posi-
bilities. The prospect, though incapa-
BILE Of realization for many months.
added a small but tangible item to the
list of things maintaining o national
prosperity view, especially as coupled
with the debt showing, since by 1t
national income has proven adequate
to accomplish in nine years 40 per
cent payment of the debt burden left
by the war against Germany. Further
shrinkage of the debt total, and cor
responding reduction In tax rates are
both outlined now as a NATTER of fact
portion of national outlook.
Credit Situation.
While bank credit was proven IN
broker loan figures TO be daily turning
in greater volume to the collateral
markets, Federal Reserve quarters gave
no sign of hostile attention to the
phenomenon. Regular and increasing
imports of gold occurring in recent
WEEKS nave flS1DIy AltCICo
as to the currency base in the United
States, and by some observers are
counted as having produced Sufncient
change to avert interest rate increases.
Meanwhile, by the test of railroad traf-
nc volume and other considerations.
general business activity In the country
was shown to remain satisfactory.
Commercial transactions during the
last week Of June as reflected by check
payments declined from the preceding
week, but were larger than in the cor
responding week OF 1928" said the
Commerce Departments weekly sum-
mary of business conditions at home
and abroad
"Activity in steel plants. while lower
than during the previous week. showed
a considerably higher rate of operation
than for the same week of last year.
The output Of bituminous coal like
wise declined from the preceding week,
but was greater than a year ago. The
production of crude petroleum for the
latest reported week showed gains over
both prior periods.
Wholesale Prices.
1.-THE general level Of wholesale prices
showed a further fractional gain over
the preceding week and was slightly
lower than a year ago. Iron and steel
prices continued TO decline, although
exceeding last years level. Prices for
wheat and for copper showed no change
from the previous week. Loans and
of the Federal Reserve Banks
were slightly larger than during either
the previous week or the corresponding
week of 1928. Interest rates On both
time and call loans advanced sharply
from last weeks average and were sub
cf0 NfioiIy ter than a RQnA
prices, rejecting the higher rates Of
interest, declined from the average Of
the previous week and continued below
last years level. Business failures were
slightly less than In the previous week
and only a fraction above the total for
the corresponding week Of 1928.
Receipts Of cotton were slightly
larger than during either the previous
week or the corresponding period OF last
year. Receipts of cattle likewise showed
a gain over both prior periods. Hog
receipts, on the other hand. were
smaller than for either the previous
last year. Wheat receipts showed a
substantial gain from both prior
periods"
OF Canada, the review 9aid that
wholesale and retail trade has i'm
proved distinctly In the past week and
are expecting q record tour
list traffic" In Mexico, there was noted
an increase in the national currency
value, which along with other points,
was taken to illustrate the bettered
economic condition flowing from q set
Element Of dtf1iculties between the gov
eminent and the principal religious
body in the country.
Foreign Conditions.
Brazil and Argentina, leading coun-
tries in South America, were rated as
quiet. European comment indiAated
little change from conditions found IN
recent weeks, though a review of Polish
conditions, noting business depression
as having been present in the country
for several months, added that observers
held the opinion that the state was
transitory.
In China, business was adjudged to
be waiting for more political settlement,
while japanese silk trade betterment.
most important to the country, was
mentioned.
MFIAF AFElnEDc ENYEn