Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-20
POWER OF DOLLAR
REMAINS At $l.9)
Purchasing Worth so Per
Cent Above 1926 Value
Holds Four Weeks.

The purchasing power of the 1926
wholesale dollar has remained firm at
$3.50 for the last four weeks, Govern
ment and private indices revealed yes
terday.
The general firming Of wholesale
prices and the continued improvement
in the financial situation as reflected
in gains in the security market, and a
reduction in money in circulation fea-
tured the general economic situation
for the week ending Marcn H. accord
ing to a tabulation of statistics of the
Federal Reserve Bank and the Com
merce and Labor Departments by the
Commerce Departments survey of cur
rent business
The wholesale price index for all
commodities as of March IL, the Labor
Department said in a weekly report
yesterday, was 66.5. This includes 764
commodities, weighed according to the
Importance of each article and based
on the average prices in 1926 as 1000.
The accommodates index for the week
of March 5 was 662, the same as for
the week ending February 10.
Not Greatly Optimistic.
Iadices of Fisher and other private
economists indicated that wholesale
prices showed the greatest appreciation
1OI Ol1C WCCk 1llC
decline In the Fisher index since the
first week in February has been slight
and, excepting for the initial week in
March, the deviation from the average
for the past five weeks has not been
pronounced.
While there is evidence of wholesale
prices leveling off, Government econo-
mists yesterday were not inclined to
be overoptimistic. They pointed out
there have been other such levels, par
ticularly the sterilization occurring in
June, 1881, which lasted through
August before moving downward again.
However, they said a better trend in
sentiment had been reported to them
from all sections of the country. They
attributed this to the better flow of
money out of hiding places, as the re-
suit of recent withdrawing campaigns;
a firner security market and the dill
gent effort on the part of Congress to
balance the budget. They refrained
from commenting on the recent turn on
Capitol Hill in the sales tax fight.
Bank Debts REDEEMED.
Bank debts outside OF New York
declined, according to the survey, fol-
lowing the increase during the pre-
ceding week, which resulted from
month-end influences, and the total
was 26 per cent below the correspond
ing week of 1881. Because of the gen.
eral interest in the economic situation
the Federal Reserve Bank last week
bank debts as follows:
For the most part, bank debts are
checks against depositors accounts,
representing payments. Bank debts
are all debts against accounts of in
dtviduals, firms, corporations and Gov
eminent accounts, including war loan
deposit accounts, and debts to savings
accounts payments from trust accounts
and certificates of deposits paid. Bank
debts do not include debts in settle
ment of clearing house balance, nor
debts to correspondent bank accounts,
nor payments of cashier checks, charges
to expense and miscellaneous accounts,
corrections and similar charges"
The survey said time deposits in
creased for the second successive week,
but the slight increase in demand de-
positS for the week ending March was
succeeded by a further reduction during
the next seven days. Liquidation OF
bank credit of the reporting member
banks Of the Federal Reserve System
continues with a drop Of $l52,000. 900
in loans and discounts. Commercial
loans were $685. 900 lower, and BUSH
level, the survey said.
Jobs Are Real Problem.
As for the unemployment situation,
President William Green of the Ameri-
can Federation of Labor said last night
in a radio address over the network Of
the Columbia BroadcaSting System that
society is paying a terrific price in
social degradation, moral deterioration
and lowered human values"
The question of prime Importance,
oyershadowing as it does the temporary
requirements of those who are the VIC
TINS of unemployment" he continued,
lis that of providing work for able
bodied, self-respecting people who are
appealing for the exercise OF the right
to work Society cannot ignore this i'm
portant matter. nor can it shirk its
duty. Work must be provided in the
fullest manner possible so that unem-
ployment may be reduced to a mini
mum.
"An adjustment of working time and
the development of buying power are
the primary requirements to the resto-
ration of prosperity. The acceptance Of
this economic philosophy will involve
the elimination of night work where it
is unnecessary and the adoption Of q
planning policy which will enable In
OuStTy 10 DC SO u1OIIHco anu cQuPPCu
as to meet the market and economic
changes in more practical and sue
cessful way"
Mr. Green placed the total unem-
ployed at 100000. It is understood
that employment in manufacturing in
dustries during the past 80 days has
shown an increase. This could not be
confirmed pending the completion Of
the Labor Departments Bureau OF Sta
tistics employment report
The Commerce Department reported
business in Europe, South America and
the Far East as being quiet during the
week.