Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-23

tCOnllnueQ from t1rSL Rage.)
lean Rolling Mill Co.. expressed the
view that a new basis for confidence
was in the making. L. E. Gohegan,
vice president of Gulf States Steel, said
sentiment in the South was somewhat
more cheerful than in the North, al
though he did not expect any large up
turn this Fall
z. T. Weir, chairman of National
Steel Corporation, said his company's
business had improved this month and
that he felt the industry had seen the
low point.
James A. Farrell, president Of the
United States Steel Corporation, will
address the institute at its dinner to-
night and declined to make a formal
speech at this mornings meeting.
There will be no discussion of the
tariff this evening"" he informed the
meeting. "An the protective tariffs in
the world cannot protect the industry
from internal competition"
1t was recalled that at the Spring
gathering of the producers Mr.. Farrell
had assailed price cutting.
Has Firm Faith in Future.
The Schwab viewpoint was summed
up as follows: Il believe in the con-
tinued growth Of our country, the es-
sential strength Of the steel industry
and the ability of our Nation to master
the problems of a complicated age. If
this be optimism, make the most of It,"
Although. he said, every one is feel
ing better" Mr.. Schfab warned, I'VE
must face some hard facts, both in our
own business and the industrial world
as a whole. I said at our last meeting
that the tide was coming init GER
tainly was, but it proved to be tidal
wave.
"Our production this year will be
about 5000 900 tons of ingots, or Is
per cent under what was expected. This
change in expectation teaches us an
important lesson. AS a matter of fact
America was on the upward move last
Spring. Our production curve had in
creased steadily from the first of the
year. Then came the breakdown Of
finances in Central Europe which
spread to England and brought violent
repercuSsionS to our own shores.
Other Nations Figure.
The lesson is that we cannot longer
ignore the economy OF other countries.
In other depreSsionS We could forget
about the hard times in other countries.
Then we were a debtor nation and
largely seh-suficient. Today We are q
creditor nation and the prosperity Of
our international neighborS is necessary
to our well being. We must promote
better economic relationships among
nations, and we must declare a per-
manent moratorium on national
LIMOGES"
The desire of peoples in all parts Of
the world is for peace. the speaker said.
adding that 1.-The talk of another war
has no place in the hearts of people
anywhere" He said II the Government
deemed it wise to reduce our Navy
program" the steel industry will be
the first to support the move" although
some of the companies have large
facilities for building Navy vessels and
armament, facilities which would well
comes first and We shall welcome any
measure that fosters permanent peace"
Prescribes Remedies.
Mr.. Schwab gave this prescription for
bringing about industrial improvement:
"A better financial structure, which is
now under way; a liquidation of ex-
travagance in business. including prices,
which has already taken place in most
lines to an abnormal extent; reduc-
ton in the cost of government, which
is borne by industry and the people, and
vigorous, enterprising attitude on the
part of industry"
OF the security markets, the steel
executive said: For a time the Amer
lean public has had a bad case Of
nerves. The liquidation of securities
has been beyond all reason. One would
conclude by the security prices that
our transportation lines would never do
any more business. Transportation, in
fact, is a basic necessity of all business.
1T am not aiming to boost railroad
stocks, nor am I saying that the mar
ket will 90 higher or lower in the i'm
mediate future, but / do say that the
overliquidated prices of many securities
is sign of too short perspective, and
too excitable temperament"