Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-04
RETAILERS BUYING
RESERVE REPORT
Wholesalers Business PicE(
ing Up WeII-Confidence
Chief Need of Industry.
BY ]. C. ROYLE.

Retail houses have begun to buy.
This fact is thoroughly Substantiated
by the report of the Federal Reserve
Board on wholesale trade issued today
In many important lines business
done by wholesalers has been larger in
recent weeks than in the corresponding
period of 1929. This was especially so
in the case of agricultural implements,
silks and groceries. Agricultural i'm
plementS sold in the United States
showed gain of SO per cent as COM
pared with the closing weeks of 1929
and a gain of 18 per cent as compared
with the early weeks of 1880. Stocks
of all kinds In the hands of retailers
are low.
The significance of this report of
the Federal Reserve lies in the fact
that the buying by retailers indicates
a decided return of confidence.
Confidence Is Needed.
Confidence, according to Treasury
officials, is all that the country needs
to put business on an equal or higher
plane than 1t was a year ago, when
new records were being established.
There Is some difference of opinion
among Treasury officials as to the out
look, but the executives in the highest
positions feel extremely optimistic.
One dominant figure in the Treasury
Department said he was certain that
the depression and crash in stocks
would not even have a marked de-
pressing effect on the total of income
taxes which will become due in IL
days. He declared that with most peo-
pie these losses were paper losses.
IF they did not have a big market
and see quotations every day, most of
them would not have known that they
had lost money" he said.
Not all the Treasury officials agree
with this view, but the fact that man
in a position to judge accurately ex-
presses the belief that income taxes will
not be materially lowered may be taken
as prime evidence that the depression
from which the country Is suffering Is
mental and not financial.
Confidence Is being reflected also by
the reports of the national business sur
vey conference. This body reports that
the advertising appropriations of firms
engaged in Nationwide distribution are
substantially in excess of those available
at this time in 1929. The conference
adds that machinery orders have been
placed so freely that more employees are
on the pay rolls today than year ago.
Expansion in Building.
The volume of structural steel being
turned out by the mills is indicative
of the immediate expansion of building
construction. That is the one industry
which economists are most anxious to
see active, since it in turn affects di-
rectly so mony other producers.
The actual contracts let for heavy
construction since the first of the year,
while they are well under those for 1929,
show steady upward gain in aggregate
value. This has been especially marked
in industrial building awards. In the
last week the letting of contracts
showed $50, 900 devoted to CONNER
cial building, $7,806,000 to industrial
buildings, other engineering construc-
ton, $12,213, 900, and road building, $3,-
$4,000. Corporations report increased
! success in the securing of new capital
through the sale of bonds and notes.