Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-08
DECLINE IN BUYING
HAS Been SEVERE
Timidity of Public Held Chief
Cause for Decrease
in Sales.
BY J. C. RoYLE.

Decreases in earning and buyine
power OF the American people have not
been nearly so severe as the drop In
buying which has accompanied them.
The decline in employment, even among
the skilled and organized groups has
not reached 20 per cent. This does not
mean unemployment, as most of the
decrease is due to part-time work and
has not cut of or seriously damaged the
buying power or the credit of such q
large proportion of workers.
Buying power exists, as is shown BY
reduction in installment credits and
in the volume Of savings deposits, which
now stand at approximately $28,485,-
600, 900. gain OF $267, 10000 over this
time last year. Income from dividend
and interest has been larger than las
year. There are over 100000 saving
bank depositors in the United State
today.
Gain in Savings.
OF course, this is not to be taken a
an evidence of prosperity. People wit
money take extraordinary means o.
safeguarding themselves in periods OF
depression. and the gain in savings de-
poSitS may be attributed to that fact
as may the increase in sales of life
insurance. But it is prima facie evil
dence that buying power exists and
neeQS only 10 De stimulated.
1t Is being stimulated by the price
level of commodities, which now stands
at the index figure of 1872 compared
with 95.7 a year ago today with 10C
representing the level of 1926 to 1928
II is also being spurred by the "buy
now" campaign being waged in tn
interest Of increased employment. The
danger which sponsors of this campaign
have to face Is the "let George do IT
attitude. Unless extreme care Is exer-
cised, there may arise a group which
will reason that If they let others buy
and save their own resources, they vii
benefit. This is admittedly an economic
mistake, but, of course, few people art
economists.
There is per cent less money in cir
culation today than q year ago, bu
there Is ample at that Car loadings ART
growing steadily and with them tn
profits of the railroads, which form on
of the buttreSses of the investment field
The railroads are wiser than their pa
irons, for they are buying materials an
equipment now at rate Is per Ger
over the amount they were spending
year ago,
Building Operations.
Building operations are showing sc
sonal improvement, although the VIC
VI dLAQ ACoANCAAOC COkAotA
ton still is low. Steel is holding
own and there is no longer Indicate
of willingness to shade prices, eve
for favored customerss The utilitif
are having seasonal increase in dc
mand Coal is gaining because, in time
of depression, 1t is usual for the cheap
fuels to be used, even though they er
tail additional work and trouble i
their handling
What gains have been made in tn
non-ferrous metals are nominal an
not SUFFICIENT to indicate a real trend
The textile mills are in splendid stats
tical position, with consumption stif
exceeding production and stocks reced
ing. Lumber orders are slightly below
production, but this is a matter
weekly adjustment, and finished stock
are extremely low.
There is a broad demand for meat
and Chairman Legge Of the Feders
Farm Board has told feeders they ca
safely expand operations No troubi
has been experienced in handling an
financing the peak crop movement
the year, now at its height.
Copyright 1g3O)