Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-06
BUSINESS OUTLOOK
DECLARED BRIGHT
Activity in Many
Lines Looked For Dur.
ing 1880.
BY ]. C. ROYLE.

0enLAmenC mas SOnulneQ In the laSC
week regarding business conditions and
the face of business Is bright and
smiling in consequence. The leaders
Of the business world gathered here at
the indirect behest of the President
The action which was taken has not
on the surface been particularly sig
nificant, but they have sounded eacn
other out. They came here knowing
pretty accurately what conditions were
in their own lines of endeavor. They
had belief that they were equally
sound In other lines. After the dis
cusSions Of yesterday and today, not
all of which, or the most important
of which were held on the floor of
the conference, they are sure of it.
That confidence in itself is the great
est asset business could have at the
moment. There was no attempt to be-
little the significance Of the huge drop
in securities values. But there is
feeling that the raw nerves and head
aches which followed the speculative
debauch are merely case Of "katzen-
jammer," or hangover" and that in
all essentials the business health or
the Nation will be as good as or better
than it was before it had its Specu-
lative headache.
Foreign Trade.
It is significant that an expert in
foreign as we'll as domestic trade, such
as President James Farrell Of the
United States Steel Corporation, de-
clared that the United States faced a
brighter outlook today than it did at
the opening of this year and that for
eign trade would run well over $8,000,-
600, 900 in exports and imports.
More than half the retail distributors
present at the conference felt that the
outlook was bright. When so per cent
conditions are bright they are more
than bright-they are glowing.
It is also significant that the only
groups which found fault with the out
look were those composed of the So
called sick industries. The textile manu-
facturers, with the exception of the silk
and rayon men, could see little to
hearten them, but they have been view
ing the neutrality-suspicious. correctly
through the same dark glasses during
the three last years, the best years
America ever had commercially. The
silk men are outstanding exceptions.
They feel that the trend Of fashion
now Is in their favor. The wooden
manufacturers are low in mind and so
are the coal men, some Of the paper
men and the sugar men.
Prepare for Increase.
The representatives of the prosperous
industries on the other hand have no
fault to find with the situation The
steel men predict that the present rate
OF activity will be increased sharply
during the early months of 1880 and
are preparing their plants accordingly.
The automobile men are counting
strongly on the appeal which the new
models to be shown shortly will have
on the purchasing public. Even today
those Of December, 1923, when the out
look was regarded as splendid. 1t now
seems that production will reach at
least 5,700,000 cars and trucks for the
year.. This compares with 4,60I 900
units In 1928, the previous high record.
The building industries have only one
worry, the financing Of the huge pro-
gram Of construction which has been
decided on. The cement makers say,
however, that their profit margins will
De narrower than ever and that con.
sumption has not yet caught up with
plant capacity and is not likely to do
90 in 1880.
It is worthy of note that the food
products men, whose commodities are
| supposed to be OF the most stable char
, acteT. are the ones who are most appre-
hensive of the future. They admit that
people must have flour, vegetables, cereals,
beverages, ice cream, candy and other
foodstuffs, yet they are fearful Of the
buying trend, more fearful than any
who deal in the so-called luxury COM
| modities.
Report on Other Lines.
The machinery and machine tool
men are so fully booked that they are
assured of operations at practically ca
pacity for about three months. The
oil industry is slowly but surely regain
ing a safe statistical position. The
| railroad car loadings are making new
records, and the value of Christmas
trade is better than the most optimistic
hoped for three weeks ago. The rubber
manufacturers, rayon producers, to-
bacco products men, electrical equip
ment producers and clothing distributors
all are confident Of profitable period
during thu next few months.
! There has lH"en no attempt to mini
mize the seriousness of the situation,
but they all express the belief that buy
ing power can be maintained, produc-
ton spurred and employment stabilized,
although profit margins will be narrow
| Copyright. 1921