Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-18
Business News
in
Retrospect
although Signs of Re.
coyery Can Be Seen,
Trade Has Shown But
Little Progress Since the
Stock Market Break.
BY I. A. FLEMING.

There can be no question but what
the recovery In general business and
especially Of trading In securities is
very slow and disappointing in the mat
ter of the holding of improvements
made. other than temporarily. Nor
are there exceptions of importance to
the rule. Perhaps real estate and build
ing operations are at their lowest.
President Hoover sensed the advent
Of the depression in building operations
very early and his personal efforts were
responsible for furnishing employment
to many, but 1t Is not humanity pos
sible to force the activity in one over
supplied industry any more than it Is
in another and 1t looks today rs If the
supply exceeded the demand in almost
every line Of endeavor.
Likewise retail trade is slow, merch-
ants are buying frequently and in very
by q desire to take advantage of all
price recessions, which manufacturers,
in an effort to stimulate trade, are will
ing to make.
Depression on farms, In city lots, the
disposition on the part of the usual
buyers Of mortgages to choose some
other security and the growing indif-
ference on the part Of the makers of
mortgages and deeds of trust to meet
their obligations promptly all tend to
increase the depression.
Statistics indicate that the cost Of
living Is coming down and also that
the movies and theaters are about the
only interests that are working at full
speed-there Is much Unemployment
but the shows are cheap If patronized
early in the day.
Caused General Surprise.
Business reports for the first quarter
of the current year indicated severe de-
creases in the earnings of corporations,
with the exception Of food and steel,
with some few other Industries, notably
the automotive, where the wisdom of
the manufacturers in not forcing bust
ness has left the trade much healthier,
with production not strained, stocks
rather light, with used cars disposed Of
to q desirable extent.
There was q very general idea that
conditions were bound to improve after
the slump last Fall. Very many ex-
pected 1t in the security market, but
while there have been days when the
strength there appeared to be well
founded and some days when the trans
actions reached nearly 5000, 900 shares,
yet traders did not show, confidence.
but were speedily in and out, small
profits were gratefully grabbed when
they fingered long enough to permit, the
payment to Uncle Sam Of part Of the
profit In income taxes never being con-
sidered.
Wall Street has a habit Of discount
ing, so that II there were radical signs
Of betterment there might be an adj
vance, but one must indeed be an
optimist to find encouragement In the
news Of the day.
Local Mortgage Situation Rad.
Foreclosures are very general in the
local mortgage field and the DISPOSE
ton on the part Of the makers Of the
trusts Is to ignore interest rates. Even
foreclosure threats indicate q state Of
affairs that lessons ones desire to
bother with them. It does not help
the situation that so many prominent
buildings and high-grade apartment
houses are covered by trusts that are
being offered for sale at prices much
below the face Of the mortgage.
It Is harvest time on very MANY
trusts issued for cost of the buildings
covered-iniquitously through taking
out building permits for much greater
face value than the builders had any
idea Of putting into the structure COW
cred, even skimping In many essentials
Of construction for grating purposes.
Cereals and Cotton.
Overproduction In corn, wheat and
cotton, larger acreage planting and
smaller consumption are having their
natural effect on supply and demand.
Diversity Of production Is the saliva
ton Of this country. Automobiles,
radios and the thousand and one cleo
trio appliances with numerous other i'm
provements in old-line manufactures
have broadened the scope of industry,
else conditions today would indeed be
more serious than they are.
Also the wisdom of the retailer In
meeting the tnstallment trade with
open arms is to be commended, for at
this game there Is q chance to keep
ahead.
National City Theories.
The regular monthly circular Of the
National City Bank, rejecting the views
OF Economist Roberts, has this to say:
THE slowness Of recovery confirms
the view that the stock market crash
was not the main cause Of the in
dustrial disturbance, but only one fea-
ture Of 1t, although one which has con-
tributed substantially to the general
confusion and decentralization which
followed. No doubt the stock market
boom, with the resulting high interest
rates and displacement of funds, had
more to do fundamentally with the up
set Of the worlds equilibrium than the
collapse Of the boam. but while the