New Britain herald., 1930-10-25
GLOOM TRANSIENT
 SCHWAB DECLARES
Says Steel Industry Will Lead
 Nation to Prosperity

New York, Oct. 25 NUP) - The American steel industry, a corner store of the nations business, is now preparing to meet a greater future demand for it's products than ever realized in the past and will lead the march to prosperity President Charles M. Schwab of the American Iron & Steel institute declared yes- tcrday at tho semi-annual meeting of the institute.
 The steel industry, Schwab assert cd, has held true to it's pledge of six months ago that it would not cut wages and has substantially" avoid cd the tradition practice of whole sal lay-offs Of employees.
 Progress is born out of the pains of economic adjustment" the vet cran steel executive said in dis Cussing the general business situa- ton. 'The past ? months are the first real test we have had of our American prosperity by which l mean the basic factors underlying our higher standards of living, in- cluding mass production and dis tribution and high wages.
 Tt is significant that there has not been uncovered in our economic foundation any basic structural fail- ures.
 Because of this I believe that business revival will bring to this country larger measure of pros- perity than the American people have ever before known.
 Admitting that there is marked unemployment in certain areas and lines of business, Schwab called at tontion to the fact that "a number Of the large industries" have par celled out their work and kept most of their employees on the payrolls.
 "The situation as a whole is mucht improved over what it would be if large industrial lay-offs were the practice" he said
 "The steel industry today is more actively engaged than ever before in my long experience with it, in the cultivation and expansion of it's markets, in the stablization of it's policies and in the improvement of it's plans and organization. More over, it is preparing to meet great CT future demand for our products han we have ever realized in the past.
 And when say that we are nov 1nS forward. I am not overlooking the fact that there are many at home and abroad who can see things only through spectacles darkened by im- mediate but transient gloom"
 Some are inclined to think be- cause business pauses from time to time in its forward course that our natural optimism has somehow been tricked. At the first signs of reces- sion the timid become pessimistic, assurance gives way to uncertainty and fear. Those with faith and cour- age based upon known facts refuse 10 accept this philosophy; they recognize that such pauses really make for sounder progress. It is only in a stagnant civilization that changes do not occur. Moreover. it is only during such peroids that we can see just how real are the under lying foundations of our economic prosperity. The level-headed way in which business in general has weathered the current recession is most assuring"
 While sounding warning that unreasonable expansion would re- suit in overproduction, Schwab pointed out that new uses for steel. especially alloys, were being develop cd every day. Aviation, improved railroad and automobile transporta- ion, shipbuilding, and building con- Struction all are demanding greater volumes of steel.
 lngot production this year will be around 40.000.000 tons. or within five per cent of the average for the past ten years. Schwab said.
 Although stock market prices do affect business they arc of second ary importance. Schwab said.
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