Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-03
BUSINESS STARTS
YEAR CONFIDENTLY
Indications Point to In
creased Activity as
Weeks Pass.
BY ]. C. ROYLE.

The new business year is now under
full Roadway. The pace is by no means
slow, but there is a general belief among
business authorities that the present
will prove the slowest pace of the year.
Little doubt exists that basic conditions
are sound. Indications point to mod
crate advance from present activity as
the weeks pass, with decided recovery
oy Spring followed by gradual speed
ing up, which will leave the year with a
record fully up to that of 1929.
Pessimism is not warranted, according
to authoritative opinions r. w. Wood
ruff, president of the White Motor Co.
and of the Cocoa Cola Co., declares that
the stock market break was confined to
the stock market; that there is no COM
modify price speculation; that inven-
tories Of business concerns in general
are low, and that ample credit is avail
able.
Corporations" he added, "are finan-
cially stronger today than at any time
In American history. People have left
the ticker and gone back to work. The
question in my mind is what our COR
porationS are going to do with the 81
900 100000 they withdrew from the call
money market. There are only two
things they can do. First, they can
put their money away in the corporate
sock curtail production, reduce labor,
cancel or withhold commitments and
begin again the vicious circle. Second,
the corporations can put their surplus
profits back into circulation by contin-
uing and extending operations-spend-
ing money to make money-building
new plants and buying new equipment.
Commerce and industry are making
preparations for these outward steps.
Results cannot be brought about by
few corporations. It must be made
the business of the corporations of the
country. 1t is now strictly up to our
corporations. Are they sufficiently for
ward-looking and have they the mag
ination and courage to permit the
optimist to paint the picture of 1902"
The steel mills are increasing their
rate of production. It is still we'll be-
low the high level of 1928. but COM
pares most favorably with average
years. The improvement is attributable
to the improvement in demand from
automobile manufacturers, machinery
producers, electrical equipment plants
and the construction industry.
The automobile shows are on the
point Of opening. Plants are now
turning out the new models so that
deliveries can be made on sales pro-
duced as a result of the shows. The
tire people are speeding up to keep
pace with the demand both for original
equipment and requirements. Parts
and accessory manufacturers are again
filling orders on old contracts. after a
period when shipments had been held
up 10 some extent.
The outlook for foreign trade never
was better. The business situation In
foreign countries Is undoubtedly inn
proved. Demand for American goods
Is high. This is specially marked in
the automobile industry and it is like
~ that exports of cars in 1880 will
exceed $600,000,000 in value.
The outlook for construction is I'M
deniably bright. The programs out
lined have not yet been put into ac-
tive operation, but this will develop
In a few weeks and will expand as
the weather grows more favorable. . The
volume OF buying at wholesale for
Spring trade has been satisfactory in
many centers, although some merchants
are still holding back from filling re-
quirements.
The mining industry is facing for a
time the necessity of restriction Of pro-
auction. Stocks of copper, lead, zinc
and tin are high. The big period of
ANNUAL coal production Is past. Then
too, other fuels have cut somewhat into
the coal consumptive demand. Oil
also Is under restriction. In connec-
ton with the petroleum situation, Pres
ldent K. r. Kingsbury of the Standard
Oh Co. Of California says:
The most encouraging factor In
the outlook for the oil industry is the
better appreciation amongst producers
OF problems involved in over-produc-
tlon OF crude oil and realization of the
benefits accruing from balanced sup
ply and demand. If curtailment con-
tlnues, there is prosperity ahead"
There is a general feeling among
governmental agencies that the con-
oltion OF the farmer is better today
IMAM Tor some years. Textile pro-
duction is hesitating, as Is natural with
an industry which has struggled SO long
with unfavorable conditions, but the
OUTLOOK undoubtedly is brighter.