Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-19
PRODUCTION TIMING
SEEN BUSINESS AIM
Held Essential Element in
Present ReadjuStment of
Industries of Country.
BY DAVID LAWRENCE.


Timing" may become as important
a word in the vocabulary Of the present
readiustment in business as "co-ordina-
ton" was in war days.
For, expressed in single word,
President Hoover and the leaders of
industry and finance whom he has
summoned. will endeavor to develop a
Ginning" between the influences OF pro-
duction and distribution which will
make 1t possible for the country to go
forward uninterruptedly on its course
Of prosperity. ,, =.
uation cannot be disturbed eHcepS ny
psychological influences, and that heSl-
tation would result If steps were not
taken In time, the President Is plan
ming to apply the theory of voluntary
cooperation between the major forces
In American industrial life.
The Federal Government has several
steps of its own in mind. Already the
Treasury is requesting authority to ex-
pand the public building program by
SITS ,00O, 900. This means employment
for some of the labor which the motor
industry may release. The railways are
being urged to go ahead with their
expansion plans. Construction OF ships
hitherto held in allegiance through the
disputes over mail contracts Will go
forward, using up steel and also add
ing to employment.
Utilities to Expand.
Public utility companies have eA-
panSion programs, too. They also nave
been wondering whether industry, the
greatest consumer of electric power,
would hesitate,
For many years the President has
held the theory that the cycles OF
economic depression could be corrected
by concerted action and by timing
industry Just as the various parts OF
the motor in an automobile are timeo.
The committee on recent economic
changes, over which Mr.. Hoover pre-
sided as Secretary of Commerce, made
q report strengthening that idea or
synchronization. 1t has its first test
now In the recession facing business.
And the very men who helped 10 gee
I'D the report are participating In the
White House conferences.
Analysing the hesitation which some
business men feel over the future, the
Government here has come to the con-
clusion that it can be overcome by
evidences of action on the part of
washington. To implant confidence
that business is going to be good, 1t will
be necessary for the leaders OF bust
ness to receive assurances from each
other. Thus, II the motor industry
needs greater markets to absorb Its
product. the Federal Government will
put forth even greater efforts than ever
before to stimulate exports. Commercial
attaches throughout the world are pc
ing instructed to be keenly on the alert
in getting information as to fortncom-
kV,ow harS nYr1nFflInifiAG
Cheap Money Ahead.
Construction is the single major in
fiuence in business which Is relied upon
to give momentum to a business revival.
It has Jagged behind because OF high
money rates. Cheap money Will be
forthcoming within relatively snort
time. BY January 1t is believed flrst
mortgage money on good risks may
again be on q per cent basis, as 1t was
for a little while about two years ago:
This may mean the temperance OF
second mortgage money at fair levels.
The building of homes throughout the
country will undoubtedly be stimulated
If cheap money Is available, and this
should mean an active real estate
market.
Judging by the way the governmental
group here IS tackling the business sit
uation. there Is no longer any doubt
that the stock market decline Is felt
to have been a greater influence pSy-
chologically toward pessimiSm than
any one believed possible. Accordingly.
to swing the country's thinking into
channels of confidence and real ex-
pansion the entire governmental ma
chinery Is being geared up. The pur-
pose is unrelated to stock market val
ues. These will rise only when earn
ings have been fully developed. The
soiicitude Is not the immediate future,
for the momentum Of the last quarter
Of 1929 is considered excellent: 1t Is
for January and February and the first
six months of 1880 that the planning
now is being intensified.
Copyright. 1927