Evening star., 1932-01-01
LAMONT FORESEES
BETTER BUSINESS
Commerce Secretary Says
Upbuilding Forces Have
Begun Work.

Commerce Secretary Lamont, In q
statement today on present conditions
and prospects for the coming year, said
evidences are accommodating that liquida-
tion has largely run It's course, and
that the natural upbuilding forces are
beginning to take hold.
He said business has continued un-
der the influence OF the worldwide
economic depression, which has deep
ened and broadened in the past year
Chiefly because of foreign difficulties"
Most of our domestic difficulties"
Mr.. Lamont asserted, could have been
corrected prior to this time had 1t not
been for the destructive effect upon
our own economy of a series Of flnan-
ciaI crises abroad"
He explained that early in 1881 this
country had made distinct recupera-
tive progress, but this heavy expansive
movement was stopped by the crisis
which developed in Central Europe in
May and June.
Catastrophe Prevented.
THAT crisis" he added, created ap-
prehenSion and fear in the United
States. which resulted in currency with
draWalS and bank failures, besides re-
versing the upward trend of industry
and commerce.
The years postponement of inter
governmental debt payments at the
initiative of the United States pre-
| vented impending catastrophe, and the
situation was further relieved by the
agreement by which Germany'S Short
| term obligations were extended TO the
end OF a Six-month periodicals. at
American initiative.
The favorable effect of these agree
| mentS upon world business were vitiated
by lack of cooperation in Europe, which
| resulted in the crisis, eliminating in
September in the suspension Of gold
payments by Great Britain and later
by other European countries. The fear
and apprehension caused by this crisis
both abroad and at home resulted in
enormously increased boarding and
domestic bank failures, and unprece-
dented Withdrawals of gold from the
United States by other nations fearful
Of repetition of the British action.
October Crisis Halted.
"a financial crisis rapidly developed
in the United States which was again
arrested on October by the action of
the President in creating the National
Credit Corporation and by other eco
nomic measures initiated at that time"
Mr. Lamont asserted that the very
extent and nature of the decline have
forced drastic readjustmentS, which
are serving as correctiVes and are aid'
ing in the restoration of equilibrium.
He said prompt enactment by Con
gress Of administration measures foa
financial relief would tend to check
needless liquidation and to arrest
boarding, as well as to enable this
country to withstand any possible ad-
ditional shocks from Europe.
AFx~ oIS aI
also will put us in a position to begin
our own independent economic re-
covery."
Present difficulties formidable as
they may be, are temporary" the cab
met officer declared, "and the recuper-
atiVe powers Of our country, stimulated
by this constructive program, are Suf-
flcient to contribute in large measure
to the restoration of world prosperity"
Encouraging ct Present.
The commerce executive said he be-
lieved that the force Of the decline in
wholesale prices, which slumped 90 per
cent since 1929, has been spent, and
with prices practically at 1918 levels
the outlook now appears more encour-
aging than at any time since the acute
weakness developed two years ago.
Current price levels for raw ma
terials are acting positively to reduce
production induced by war demands
anS to bring about better balance be-
tween production and consumption, he
added.
AS to jobless conditions, he said
effort by both private and govern
mental interests to alleviate unemploy~
ment has continued in the latter case
particularly through the medium of
public works construction. He pointed
out that the past year was marked by
continued absence Of industrial dis
putes which have characterized pre-
vious depreSsionS, and labor relations
have been marked by a spirit of CO.
operation.
Per Cent Unemployed.
He said recent statistics indicated
an unemployment total for this country
of about per cent Of the population
or $3.50 900, which is the same as his
estimate made in January, last. after
an employment census had been taken
in IS leading industrial centers.
Labor Secretary Doak asserted that
things "are not what we would wish
them to be-" but added that II do think.
however, that 1 am justified in saying
today there are some signs Of improve
ment"
"The light as it shows may be only
glimmer," Mr.. Doak continued, but
my strong hope and may say my be-
lief is that its illuminating powers will
grow greater day by day"
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