Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-15
Cleveland Economist Believes
Business Sentiment Has Be-
come More Cheerful.
HOPE FOR REAL UPTURN
is FADING, HE ASSERTS
Cites Factors Which Might Bring
About Substantial Recovery
This Spring.
BY JOHN F. SINCLAIR.

ard P. Ayres, the Cleveland financial
prophet, says that every evidence con-
tinues to confirm his belief that the
bottom of the business depression has
been reached, but there are as yet no
reliable signs that sustained recovery is
under way"
Like many other observers, Col. Ayres
believes that much better business
sentiment prevails in the country to-
day than was true month or two ago,
although the improvement in most lines
lis no more than seasonal in character"
With regard to an immediate change,
he says: THE hope for a real upturn
this Spring does not yet need to be
abandoned, but it is fading and a gen.
uine increase of activity in automobile
production, IN building construction and
in iron and steel output would be needed
to sustain and revive it."
Automobile production indicates a
moderate increase for March; building
construction is above February. But
the new tonnage booked in January by
the United States Steel Corporation was
only A per cent of capacity-the low
est rate since August, 1880.
Yes, the looked-for Spring upturn is
fading fast!
BemOans Americas Fate.
Count Keyserling, the German philos-
opher, is bemoaning the fate of Amer
lea He turns his powerful guns on
the mechanical and machine effects OF
American civilization, which have made
mans existence much like that of the
insect" And he blames this condition
upon the American intellectual, whom
he declared "is the least intelligent type
of the present age"
The German philosopher pleads for
a great spiritual revival in the present
era, wherein social civilization may
be built which will serve the SOUL in
stead of stifle it." and which will use
science mot to restrict mans existence
(such as is happening in Anlerica) TO
sort of specialization"
I'VE must construct a new spirituality
as perfect as poSsible-as total as pos
sible," said the count. with this will
come comprehension Of the significance
of life"
One well known American business
leader expressed a similar view of the
coming American civilization, much as
Count Keyserling outlined in his latest
Paris address.
Every American business man should
get these three latest Keyserling adj
dresses, read them in full, and see how
the Thoughtful European locks at bust
ness America.
Canada's Electrical Industry.
Floyd Chalmers, editor of the Fl
nancial Post CT Toronto, told this
writer last week that it would not be
long before Canada would have one
horsepower of electrical energy for every
man. woman and child in the Dominion.
BY the end of the 1881, counting on
projects now building, there will be
eight-tenths of a horsepower per
capita, said Mr. Chalmers. Billions
have been invested in hydro-electric
power, that Canadian industry may
grow: that the city streets may be
LIGHTED: and the hamlet and house
hold served. And at what strtkingly
.ow costs. too.
Today the Dominion boasts 62-f00ths
of a horsepower per capita. No other
country in the world Is blessed with
such enormous horsepower.
"Canada'S hope for the future lies
in the development of. cheap power for
manufacture" continued Mr.. Chalmers.
I'VE may yet be an industrial work
shop-the equal of any in the world"
That's why the United States had
better do anything and everything with
in its power to facilitate and not
ALLEVIATE the trade Of Canada.
The Glass Committee.
The Glass Committee of the United
States Senate continues to hear teSti-
mony in its investigation of American
banking and credit conditions. Not yet
has it touched the New York Stock
Market, although there's been a revival
of the discussion on the matter of short
selling.
One correspondent, a banker from
the West, gives his opinions of short
selling, thus
MY own view is that the legitimacy
OF short-selling depends on where it is
done. If a stock is sold short at
grossly inflated prices, that is rendering
a valid economic service; if it is sold
short merely to freeze out weak stocks
that has no more justification than a
craps game with loaded dice. But it
would appear hard for the law to make
any workable distinction"
Then he continues:
incidentally, short-selling sometimes
causes what I believe is a technical
violation of the rules of the exchange
1t has happened many times that the
extent of the short interest was greater
than the entire floating supply, available
for lending in the hands of brokers and
banks. In that case, the only way
that immediate covering of a portion
of the short contracts can be avoided
brokers to permit certain shorts sale
on delivery at a clearing house next
day. I am assured by an old veteran
that this has often been done, although
I don't know whether it is violation
of the rules or not"
The subject of short-selling has all
ways been one which is open to criticism
in certain situations-but in a free
market, the query can always be asked:
And, what are we going to do
about it?"
TalIest Building.
Is the Empire State Building of New
York, the worlds tallest building, pierre
ing the sky as far as it is possible to
reach?
Stephen F. Voorhees,, supervising
architect at Princeton University, an
swers that question in the Affirmative.
This building, managed by ex-Gov. Al
Smith, Is as high as man may be
expected to build-for some time, says
this New York architect.
In the Daily Princetonian, he says:
by this I mean that vertical trans
portation will not cover more than
1880 feet until further inventions come
to light to facilitate it."
This does not mean, according to
Mr.. Voorhees,, that the Anal height for
all time has been attained. Far from