Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-04
CONGRESS MAY AID.
IN TRADE REVIVAL
Character of Legislation to
Have important Effect on
Business World.
BY J. C. RoYLE.

Fully as much anxiety is felt as to
what the present Congress is going to
do to relieve the business minds of both
employers and workers as. in what Con-
gress may do to relieve unemployment
and business depression by. means Of
legislation and appropriations.
Economists here hold that business
depression was never cured by 1egiSla-
ton and that attempts to legislate the
providing and filling of jobs has never
proven satisfactory. since it is an I'M
natural rather than a natural business
influence. But If Congress, among its
other relief measures, relieves the minds
of bankers, investors and business ex-
ecutives, the latter can be counted on
to do little appropriating for expan-
sion on their own account.
Employment Volume.
Men in the closest touch with the
situation assert that business slumps are
the result Of psychological as much as
actual conditions. President Hoover as
serted Tuesday that the volume of de-
partment store sales in the last three
mollths only dropped per cent below
the corresponding period of 1923, the
most prosperous year any country ever
had in world history. The volume of
factory employment for the period, he
said, was 16 per cent below that Of
1928, but the cost of living fell 6 per
cent. so that the loss was compensated
to some extent.
On the other hand, bank deposits
were per cent higher. Manufacture
ing production dropped 20 per cent.
Careful study of those figures offers
fully as great reinsurance as the fact
that President Hoover. asked Congress
for the appropriation Of 100000. 900 to
$50, 000, 900 to increase still further the
construction of public works and build
ings to aid relief of unemployment and
also will seek authority to make en-
larged temporary advances Of Federal
highway aid to the States.
The Presidents implied assurance
that 100000 will be expended in
the next six months Is not miniTnized
In the slightest as an economic factor,
but business men and workers realize
that the money for this work will have
been furnished largely by themselves in
the form Of taxes. They also realize
that President Hoover's message car
ried no indication that it would be pos
sible to continue the temporary in
come tax reduction of last year, but
asserted that extreme care would be
necessary to avoid an increase.
Retail Trade Barometer.
IL Is quite possible that the way In
which Congress handles the problems
which will come before it viii aid ma
terially in reassuring the business
mind, but what it does regarding bus
and electric power regulation, railroad
consolidation, the consolidation of
business interests, the present applica-
bility of the Sherman antitrust law
and taxation, win probably have as
much influence as any immediate re-
lief measures which it can take
II business can be treasured the
huge sums now in the banks can be
utilized. Only slight push is needed
In view of the fact that retail trade
in the last year has dropped only
around z to 10 per cent. When all is
said retail trade is the real barometer
of business. 1t is the first speed gear
of business and high speed can be
obtained only after the impetus has
gone from retail to wholesale trade and
thence to the manufacture and produc-
ton of raw materials.
(Copyright. 1900