Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-12
SECRETARY LISTS
1929 TRADE FORCES
Economic Conditions Rule
Outlook at Opening
of Year.

Some of the more important economic
forces which dominated the business
situation at the opening of the year
1929 were credit conditions, the degree
of accumulation of merchandise stocks
and of speculation in them, the size Of
the crops, the rate of wages and volume
of employment and the prospects of
foreign trade.
This was the statement of Secretary
of Commerce William F. Whiting as re-
porte. in the January issue Of the Con-
structor, publication of the Associated
General Contractors of America.
1928 Extraordinary Year.
The statement continued:
with respect to credit conditions
1928 has been an extraordinary year.
The outflow of gold which began in
the Autumn of 1927 continued during
the first half of 1928. and caused re-
versal in the easy money situation that
had prevailed for several years. Public
attention has been fixed on the rise in
the rates of Stock Exchange 90-day
time loans from 4l4 per cent in Janu-
airy to ~ per cent in the early Autumn
and the even greater rise in call money
rates. 1t is well, however. to note that
bank credit for commercial purposes
has been in ample supply at rates rang
ing from less than Il per cent higher in
Southern and Western cities to slightly
over / per cent in New York City,
while open-market rates for commercial
paper have increased by only 1l2 per
cent during the year.
Agricultural output during the past
year was about per cent larger than
In 1927, and there was an even greater
expansion in manufacturing production,
but neither stocks of raw materials nor
of manufactured goods have shown any
general tendency to accumulate. There
is no considerable speculation in COM
modities, and wholesale prices average
about the same as year ago.
Wages Hold High Level.
''Wages continue at high level and
unemployment has been reduced to a
minimum. There has been continued
demand for additional workers by mer-
camille establishments, hotels and the
automotive industry, and factories have
once more been increasing the number
on their pay rolls. Labor conflicts in
the coal and cotton textile industries
were settled during the past year, and
relations in most sections of the labor
world are now amicable.
ACTIVITY III lie dubOIIlOLlNe anu Gull"
struction industries has been sustained
and is particularly noteworthy. Auto
mobile production has been at higher
level in recent months than at any
earlier period, and contracts for future
construction have been substantially
greater than in the corresponding
period year ago. Production of many
related products, such as iron and steel,
cement, gasoline and rubber tires has
been stimulated as a result of these de-
velopments The textile and coal in
dustries, however, still lag behind the
others.
Foreign as we'll as domestic demand
for the products Of our farms and fac
tories Is steadily expanding. During the
past year there has been an exception
ally large growth of our exports of fin
ished manufactures-especially automo-
biles, machinery and petroleum prod
uctS.
I'm general it may be stated that
both industry and trade are exception
ally active as we enter the new year"