Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-18
INDUSTRY IS KEPT
AT HIGHER LEVELS
Wide Volume of Distribution
Indicates Huge Buying
Power of Public.
BY J. C. RoYLE.
Special Dispatch to The Star.


NEW YORK, october 18.-There are
fewer thin spots in the business fabric
today than in any Autumn since 1920.
This Is not because of high prices. In
fact, the general list shows a decline in
wholesale prices, as compared with most
previous Autumns. It is due to the
broad general demand for commodities.
This demand Is the strong lining of
the business fabric which is keeping the
disastrous holes.
Prices for most commodities do not
admit of extreme margins of profit.
Competition is still extremely stiff. But
buying power is much in evidence, and
general distribution is remarkably high.
Merchants have not aroused buyer re-
sistance, and it is unlikely that the
wiser retailers will do so.
Wages and Employment.
It is known, for example, that many
tire dealers look with considerable un-
easiness on the proposal for an adj
vance In tire prices Of from to 712
per cent. The raw rubber situation
may justify it, but the public, the deal
ers fear, will simply quit buying and
make old castings do for a longer time.
Employment is at q high level and
30 are wages in most cases. The tex
tile trades and some Of the other man
ufacturing lines are attempting to
lower wage levels, but 1t is noticeable
that 1t is in those industries where
wages are already low, where the worse
depression exists, whereas the prosper
Gus lines have raised wages, in most
cases voluntarily. This, Of course, is re-
fiected in buying power, and Secretary
Of Commerce Lamont declares ne fully
expects buying power to be maintained
at q high level for year at least.
AS result Of the volume OF distrtbu-
ton, production Is maintained at high
levels. Steel demand Is fne. 1t has
been bolStered up by structural steel
demand, by tin plate requirements and
by call for tubular goods and pipe.
The railroad buying is a factor, but not
SO great a one as in other seasons.
There is some railroad construction OF
new lines in prospect, however, which
should help.
Autumn Auto Demand.
Some automobile manufacturers are
adding to their forces to meet Autumn
demand from the agricultural commu-
mites, where the farmers have now got
the cash from their crops. 1t Is likely
that there will come lull prior to the
introduction Of new models at the nrst
Of the year.
Building construction is not so high
as 1t was a year ago, but the amount OF
commercial, industrial and municipal
construction is still so high that there
is no danger of the 1929 total falling
below that Of the previous year.
The railroads are making more ex-
tensive profits than last year in many
cases, for they are in Abetter condition
and taking matters in their own hands
to get them. This Is shown by the list
Of big manufacturers in the Middle
west who are backing the new barge
line on the Ohio and Mississippi Rivers,
which will enable them to take adj
vantage of water and joint rail and
water rates
The agricultural implement dealers
are finding ready sales for farm power
equipment, but the trend has been held
back by the holding Of wheat and some
other products for future marketing.
The electrical equipment business is
more active than ever. The volume OF
business resulting from orders from
public utility companies has been ire
mendous. The call for household equip
ment Is increasing. New York State
will have $4,000 electrified farms by the
end Of the year.
Electric Current Production.
The curve Of electric current produc-
ton and sale Is sharply upward. The
falling of in hydro electric plant pro-
duction is being made up by more &C
tive operation Of steam generating
plants. The hook-up between the Radio
Corporation Of America group, includ-
ing Westinghouse, General Electric and
Radio Corporation, with General Motors
Corporation undoubtedly will give I'M.
petus/ to sales of radio sets and equip
ment. Radio sales are now approaching
peak levels.
The oil industry Is being benefited by
the demand for natural gas. Both Pc
troleum and coal are still in unfavor-
able positions, although betterment has
been shown in the last week.