Evening star., 1932-11-01
SIX POINTS CITED
TO SHOW UPTURN
Bankers lcuT1aI Reports In
poTtant Changes in Lead
ing Indices.
special pispatch 10 The star.

optSldl DISpdtCH 10 Inc SthT.
NEW YORK, November while
the markets have given a poor account
Of themselves recently, the financial sit
uation has continued to improve and
the general trend Of business has been
steadily although somewhat unevenly.
toward higher levels. the current review
OF the American Bankers Association
Journal finds
As We enter November we are pass
ing the crest Of normal seasonal indus
trial expansion and it is only natural
to expect decreased rate Of production
and distribution" the Journal says.
However it is possible to conclude
that, just as three months ago We wit
messed the breaking Of the chain of
financial deflation, so in this latter
period We witnessed the definite end
Of business deflation. This does not
mean that the level of business activity
in the last few weeks has been high as
compared with normal standards. 1t
means that the continuity of the de-
cline has been interrupted and for the
first time in 4 years We have seen at
least moderate Fall business recovery"
Evidences of Improvement.
Statistical evidences of improvement.
cited crc as follow
i Most Of the important genera,
indiecs OF bG mess rose for two month
III succession in August and September
the hrst time this has occurred since
the Spring Of 1891 and the first time
IN the Fall since 1928
y. The Bureau of Labor Statistics
showed IN August the first monthly rise
in employment since the depression
began. More recently In New York
State. the industrial commissioner re-
ported the second successive monthly
rise in employment during September.
when the number of workers in manu-
featuring industries increased 63 per
cent ard pay rolls 93 per cent
g, Steel ingot production in Septem-
Der showed It's first upturn since May,
while untitled orders of the United
States Steel Corporation showed the
second successive rise in the same pc
Rod following a steady decline covering
the previous l6 months.
4 The weekly rate of steel produc-
tion, as estimated. rose from low OF
l3 per cent capacity in Midsummer to
1872 per cent in tie middle Of October.
IS. Car loadings increased from a low
weekly rate Of 489 600 in July TO $4,000
in the first week Of last month.
e Electric power production. which
touched l.4l5 100000 kilowatt hours in
the week ended August 13, Increased to
l646.000000 kiloWatt hours the frst
week Of october.
{ Bank Outlook Also Better.
7 These examples of industrial recoy-
ery are offered not because they are
( Sensational. but they are the indices
regarded as standard.
+ Supporting the Fall rise in business
has been a steadily improving banking
+ and financial position. Bank failures
I have fallen to nominal figures, and the
/ daily records of the Treasury have
shown recently declining demand for
( Reconstruction Finance Corporation
funds Looking in another direction,
loans on life insurance policies were
reported to have declined in September
to about &c per cent of the peak reached
in June.
"S:ressing banking improvement have
been rising gold stocks and declining
s currencT circulation and member bank
borrowings at the Federal Reserve, one
Cf tie most striking changes in bank
ing Following the collapse OF the gold
standard in England a year ago. when
gold started moving out of this country
at a rapid rate, rediscounts, then
amounting to S328.000, 600, rose by De-
cen3ber 80 to 81 O24000 600 The Glass
for member banks to borrow to replace
gold losses was tine beginning of the
liquidation Of this situation and by Oc
tober rediscounts had fallen 70
s333,000,o ,o00.'