Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-05
TIMES
TO FOLLOW TRADE
DROP, SAYS GRACE
Bethlehem Steel Presiden,
Believes Way Has Been
Paved for Recovery.
DECLARES NO OBSTACLE
TO IMPROVEMENT EXISTS
Advocates Maintenance of Present
Wage Scales and Increase
in Employment.
BY JOHN F. SINCLAIR.

oAENSLhAns
| Special Dispatch to The Star.
NEW YORK. October 4.-Eugene G.
Grace, president OF the Bethlehem steel
Co., sees in the present depression n
time OF readjustment as "forerunner
Of increasingly prosperous times"
In our industry the most satisfac-
tory sign for the last quarter of 1890
is that steel prices are slowly but
steadily strengthening, especially for
the principal products" said Mr.. Grace.
More satisfactory operating. and en-
prices continue to be stabilized, but it
Is not reasonable to expect the last
quarter OF 1880 to exceed or equal the
corresponding period in 1929"
Why is 1t not reasonable?"
1T is generally recognized that the
country Is in a period of readjustment.
To look for too rapid return to peak
conditions would be unjustifiable," he
replied. 1T Is much better to discount
! the future and find that conditions
may exceed anticipation than to expect
too much and have hope deferred. The
| Stabiliz1ng of prices after a readi1st-
ment is usually the forerunner to nor
NAL business, and that is one of the
| outstanding constructive factors In the
present situation"
Good Mana cement
When I asked him what was the
most effective force at the present time
making for business recovery, he said:
Good management. Times of busi-
ness readjustment bring about more
searching analysis of costs and a prlln-
ing of unessential expenditures. Such
economies, however, must be undertaken
with broad vision. 1t has been tradi-
| tional in the steel industry to utilize
| times Of quiet business for construction
and reconstruction of plant equipment.
We have been doing a great deal of
that during the current year, and there
have been similar developments in other
companies"
When asked him why business was
not coming back faster than 1t is, and
whether there were any forces that
were holding back such recovery, he re-
piled that he knew. of none.
The Nation overproduced and there
was an extra volume Of buying in 1929,
which brought about an inevitable re-
/ action" said the steel manufacturer.
Every effort must be made to main
tain the wage scale and spread out en-
| ployment as effectively as possible.
Business men in this present situation
| have maintained a more constructive
attitude than at any similar time in the
past, and that itself will hasten re-
| covery."
During his experience in industry Mr..
Grace has gone through all the ups and
downs of the business cycle, but that
has not thrown him of his balance.
THE trend of the general business
curve in the United States has been
upward from the beginning" he con-
tinued. There are various peaks and
valleys but the general direction has
always been one of increasing pros
perity. A Nation of 120,000,000 people
will soon use up the oversupply of
houses, automobiles and the scores of
other products which make up our
standard of living. AS soon as that oc-
ours there will be a rapid return to
normal business conditions
And in the meantime what's TO be
done?" I asked.
Meanwhile, steps should be taken to-
ward improving our fundamental struc-
ture. We should enlarge Our merchant
marine, so as not to be dependent upon
foreign bottoms for our trade The pro-
gram Of highway and municipal con-
struction advocated at Washington re-
quires time before 1t becomes effective,
but we shall soon be feeling the good
effects from that direction. All lines
Of business have problems of retrench-
ment. but the history of the country in
dicates that such conditions have al
ways been the forerunner of increas-
ingly prosperous times"
Vatican State Monopoly.
When Mussolini made his agreement
with the Vatican whereby the Vatican
State again came into being as po-
litically free government, it carried with
1t the salt and tobacco monopolies
y1,sa knIt hoe
trolled. ...
The sale of these two commodities
are made to residents of the Vatican
City and to those persons whose voca-
tons cause them to spend most OF their
time within the city limits, according
to the Department of Commerce.
From the preliminary reports the
Vatican State monopoly has resulted In
an increase in the prices of both to-
bacco and salt. Before the state was
created the inhabitants Of the Vatican
City had imported these products from
Italian factories almost at cost.
Still the advanced prices now are less
than those in effect throughout Italy.
It is understood that the Vatican States
profits on tobacco range from so to 10
per cent, as compared to 200 to 800 per
cent realized by the italian government.
Automobiles in China.
China, with it's 300,Oo0,o00 people,
had only 35,489 automobiles registered
on last January /. Above II per cent
of the cars registered are of American
make, an increase of "a per cent over
the number in operation on January
/, 1929.
There are many Chinese cities of
100000 to 100000 people that have
never seen an automobile.
China has few good roads-most OF
its roads are impossible. This Is one
of the reasons for the limited sale OF
cars in that vast republic. Still, the
number of automobiles imported into
China during 1929 was twice as large
as in 1928. The figures are as follows:
In 1925 the number was 3,246: in
1926, 1909; in 1927, 1919; in 1928,
1904; in 1929, $685.
Shanghai, with also, 900 Chinese and
5000 foreigners has the largest num-
Der Of cars Of any city in the nation.
But the government of China is be-
coming more stabilized. Quick trans
portation is necessity, under modern
conditions. 1t is only matter of time
when China will be one of the greatest
markets for American cars.
(Copyricht. 900 by North Amen News
paper Alliance