Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-02
BUSINESS DISAPPOINTING.
Progress During First Part of Year
Regarded as Slight.
BY DAVID LAWRENCE,

Business recovery is having its ups
and downs. The last weeks develop
ments have been disappointing. It is
apparent now that progress in general
during the first quarter Of the year has
been slight, although several basic in
dustries have been just above their sea-
sonal spurts.
This is bird's-eye view based on in
formation gathered from offlcial sources
about current business conditions. Any
substantial recovery appears now to be
directly dependent upon DEVELOPMENTS
IN foreign trade and in agricultural at
home, as well as on the way the steel
and automobile industries may be able
70 continue their present rate of gain.
Building Industry Lays.
It Is recalled that in the last depres-
sion Of 1921 and 1929 there were GER
tain demands for products which began
TO stimulate recovery, but these have
not yet appeared. The building indus
try, for example, is tagging behind and
not getting under way as was expected,
particularly in residential construction.
The activity in the automobile industry
Is said to lack the momentum that it
nao 10 years ago when it began TO re-
cover
: There is, however. a more favorable
parallel in the activity of the textile
industry, which is increasing its orders
and adding to its pay rolls very much
as it did in 1921. Generally speaking
there was series Of spurts and re-
actions throughout 1922 somewhat as
Is being experienced this year. From
the low point reached at the end Of
February the gains have been about
on a seasonal basis. There appears
no doubt that the dividend omissions
have been affecting the state of mind
OF the security market and that the
changing dividend rates have been
causing uneasiness.
Many Pass Dividends.
1t is estimated that since March /
more than 100 companies, MANY of
them of large size, have passed divi-
dends entirely, while others have re-
duced their regular rates. Just year
ago 81 companies emitted their divi-
bends. 1t seems that industrial and
transportation corporations are the
principal units which have been cut
ting dividend rates.
Commodity prices have been ad-
versely affected by the fall in grains,
but there Is a continuing tendency on
the part Of the majority OF these COM
modities to move forward. European
countries are showing stable or rising
price level.
The last week showed an increase in
wholesale business, while retail trade is
active now, presumably due to Easter
buying. Looking over particular groups
and claSsifications it is notable that
production and sales OF airplsnes are
being maintained at the levels of a
year ago, that agricultural implements
are ahead of sales Of year ago and
! that passenger car production is show
ing slight increases in the Eastern and
Midwestern industrial centers, with the
general retail situation still spotty, but
with truck production increasing for the
first time since January.
Iron and Steel Industry.
There are hopeful signs for iron and
| steel from the expected orders in build
ing and highway construction. The
| pending awards by the Pennsylvania
Railroad are expected to provide a stirn-
illus to the iron industry The ma
chinery business is showing a decided
gain for the first quarter of this year
over the last quarter of 1880, with Rus
STA an active purchaser The motion
| picture theaters report receipts holding
UP well. The New England shoe man.
ufacturers were busy during the week
| though in other centers production oil
shoes tapered Of somewhat. From al
districts there came reports of reduced
loading Of commodities, as compared
with the same week a year ago
The inference may be drawn that the
curve Of recovery in business, while un.
doubtedly above the lowest point since
the depression began, will continue
from time to time to reveal a Jagged OF
fluctuating course.
Copyright, 1879