Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-29

J. C. ReyIe. the country. The
fourth quarter of
1929 and the first quarter of 1880 re-
Vealed business depression which in
some lines of endeavor was acute. The
second quarter of 1880 showed the be-
ginning of return to normal condi-
tons with prospects for sound indus
trial prosperity to come.
Storm Warnings.
Indications of the coming storm were
not entirely lacking in the late Summer
of 1929. The chief one of these was
the weakening of the position of the
farmer. The farm population, embrace
ing some 100000 people, who spend
over $4,000, 100000 annually, is basic
factor in the commerce, industry and
trade of the Nation, and the position
of the agricultural communities was
undoubtedly weakened at the wind-up
of the crop year of 1929.
The furore of speculation also gave
warning that the upward trend could
not continue indefinitely and that the
pendulum must swing back with equal
violence over the same arc on which it
had risen. After the break in the stock
market there was a sharp curtailment
of luxury and semi-luxury buying. All
we'll informed business men expected
this. Ibut they were confident of the
essential Soundnessf of the business
position and maintained their produc-
ton and buying schedules over q very
considerable period
Then came a decision on the part of
many business leaders, including Fed
eral authorities, that the position of the
country must be still further fortified.
Business men were gathered together
and pledged themselves to maintain
production and wages. Labor leaders
gave assurances against strikes and de-
mandS for increased wages. Munich
palities and States and the utility COM
panies agreed to carry out tremendous
programs of expansion and construc-
ton.
HalfHearted Response.
Business responded only half-heart-
eddy to these spurs Predictions we're
! freely made by outstanding executives
In various industries that things would
be back on normal basis within 80,
so or 80 days. On the other hand, men
of. equal prominence forecast many
! months of depression before normalcy
was regained
The full letter of the pledges made
was not in all cases carried out. Bush
hess concerns, after all, are in business
to make money for their stockholders,
and 1t was found economically unsound
to continue heavy production and en-
bark on expansions when consumptive
demand was not keeping pace More
over not a few of the men who had
made these promises were without the
| authority to pledge their companies to
such programs. There was, however.
tremendous volume of construction
work undertaken and this unquestion-
ably offered a buttress to the business
structure.
Then the normal business man COM
| menced to look instead of to listen.
He began to analyze the situation in
lis own industry and in others and to
make his plans on sound economic
basis. He discovered that conditions
were not as bad as some painted them
and not as good as others hoped
Right then conditions in the business
world commenced to mend and have
grown better steadily If slowly since
| the glamour was stripped from the situa-
ton and conditions were examined in
the cold light of day instead of under
the tricky spotlight of anticipation.
Railroad Consultations.
Another disturbing factor was the
uncertainty as to the consultations of
.
The final announcement of the Inter-
state Commerce Commissions plans for
such mergers went far toward reaSSur-
ing the carriers and inducing them to
continue with programs of expansion
and construction.
There is no doubt but that employ
ment from December to April fell off
sharply. There are no adequate figures
available to any one, as President
Hoover has said. The number of men
out of work, is variously estimated at
between three to five million, but in
making these estimates most statisti-
clans have overlooked the fact that
there Is a constant factor IF unem-
ployment throughout the country in
cident to the changing of Jobs, the sea-
sonal demands for workers and vol;in-
tary unemployment. A heartening
feature is the fact that throughout
this period of slack employment there
were few labor disputes and those
mostly jurisdictional and that wage
levels were maintained.
New Products Developed.
With increased competition facing
them and In the midst o. a period of
declining profits, the more eficient
| business men and corporations of the
country turned to new methods for in
creasing their revenues. This took the
form in most cases of production and
marketing of by-productS. Radio man
ufacturers commenced to make refrig-
orators: piano makers built motor
boats; automobile producers turned
toward aviation for extra profits, and
nearly every line of industry found
some method of increasing its gross re-
ceipts. This has been known as 1.-THE
development of overhead units" There
most industries to permit of additional
production and this additional produce
ton Is being used to pay overhead
necessitated in the production Of main
products.
The steel industry has been an out
standing example of efficiency in man
agement and utilization of labor, ma
chinery and sales forces. Consequently
steel production has maintained pace
throughout this trying period which
has established an astounding record
Automobile HOusecleaning.
The automobile industry, faced at the
beginning of the depression with a sales
resistance which many considered all
most impossible to overcome, has been
cleaning house. The old stock of used
cars and the new cars in dealers hands
have been sharply reduced. Sales have
oeen of extraordinary volume. Pro-
duction has been kept closely within
reach of sales demand and as q result
the industry at present Is turning out
fully as many new cars as at this time
last year. This Ia having a marked