Evening star., 1932-07-16
AYRES SEES SIGNS
. OF BUSINESS TURN
Gold Exports LoWer-StatuS
of Dollar Better-HintS of
Building Recovery.
BY EDWARD c. STONE.

BY EDWARD c. STONE.
Leonard P. Ayres. Cleveland Trust
Co. economist, who stands so high in
the estimation of many local bankers,
believes conditions are now more IA
vorable to economic recovery, that the
gold situation has greatly improved and
that the open market operations of the
Federal Reserve System continue to be
a vital factor toward helping credit eX-
panSion.
In his latest business bulletin, Col.
Ayres says that by ending reparations
the nations of Europe have taken long
step toward making economic recovery
possible. They have also placed grave
responsibility on the American people
for it seems clear that this Nation
must shortly absorb the war debts, or
greatly reduce them. The alternative
would be to bear the blame of the rest
of the world for blocking international
reconciliation and accord. Inc cholce
lies between the heavy cost OF aSSump-
ton and the dangerous futility Of in
sisting on payment.
Economic problems were discussed
hardly at all by the delegates to the
two great political conventions that met
in Chicago. 1t is an astonishing TACT,
the banker adds, that the thousands of
men and women meeting there to NOM
mate candidates and adopt party plat
forms evinced almost no interest in the
depression, and adopted with little dis
CllSSion those parts of their campaign
programs that have to do with aerl-
culture, business, banking and money.
They appeared to adhere to the old
doctrine that depresSions cause them
selves and cure themselves. and that
nothing can be done about them. They
seemed clearly to have little faith in
political remedies for economic dltfl-
CultieS.
Economic Programs Much Alike.
Both platforms pledged support to our
.oresent monetary system. both OF them
promised economy in governmental eX-
penditures, and neither one suggested
important changes in tariff policies.
Both promise unemployment relief and
aid to agriculture. Either party could
without embarrassment accept the eco
nomic program of the other. APP
parently business has little to hope for
or to fear in the coming political cam
paign. In this respect, Col. Ayres
thinks, this presidential year differs
from those of previous periods of great
depression in our earlier history.
During the first half Of this year
business activity has steadily decreased
from month to month, and 1t cannot
truly be said that definite signs of i'm
provement are appearing. Nevertheless,
some fundamental factors are more ia
vorable than they have been. Gold
exports have greatly declined. and this
makes it possible for the continuing
open-market operations of the Federal
Reserve System to bring further pres
sure to bear dor credit expansion. in
stead of merely offsetting the effects OF
gold Withdrawals Foreign doubts about
the dollar have disappeared, Col. Ayres
declares.
Building Shows Recovery Signs.
The low levels reached by the iron
and steel industry are the logical con-
sequence of curtailed buying by its
three chief customers - the railroads,
the automobile industry and the build
ing industry. Illustrative Of the re-
stricted railroad buying is the record
of freight car orders placed During
the first six months of last year the
During the first six months of this year
the total was only 359, and in two OF
these months there was actually not a
single car ordered.
Automobile production for the first
half year was approximately one-half
of the production for the first six
months of 1881. A somewhat similar
comment may be made about the build
ing industry. The hopeful thing for
the steel industry in the months ahead,
the banker asserts, is that building ac-
tivities are beginning to show some
signs of recovery, that the automobile
industry in the second half of the year
is likely to feel the sustaining influence
of continued Ford production. and that
any relief afforded railroads would soon
show itself in orders for steel products.
Transfer Company Expanding.
At the semi-annual meeting of the
directors of Smiths Transfer & Storage
Co. it was voted to lease another large
freproof warehouse, which includes
100000 cubic feet of space. The Off
GERS of the corporation are Clarendon
Smith, president and treasurer; Arthur
c. Smith, vice president, secretary and
general manager; J. H. Gaszner, sales
manager and M. c. Richardson, super
1ntendent.
American Ice Adds New Unit.
Completion of the first large unit in
what will ultimately be a chain Of
laundries operated by the American Ice
Co. and its subsidiaries in the larger
cities of the Atlantic Seaboard. was
announced today by President Charles
c Small of the American Co.
The new plant is located in Long
Island City and will serve New York,
Brooklyn, Long Island and Westchester
County. Employment will be afforded
to several hundred people.
Noted in Financial District.
The governors of the Federal reserve
banks met here yesterday with the Fed
eral Reserve Board. No statement was
made as to the matters discussed.
The National Association of Credit
Men has joined the campaign to bring
about the wider use OF trade accept
ances to expand transactions.
A new record low for prices received
by farmers for their goods was estab-
lished June IS, at So per cent of the
19l0-19l4 advance, the Department of
Agriculture announced yesterday.
Stars. directors and other employees of
the Metro Goldwyn- Mayer and LoeW
motion picture interests earning Sl.500
or more a week will have their pay
checks cut by 35 per cent, under gen.
eral salary reduction order effective
Monday.