The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-09-02
GENERAL BUSINESS CONDITIONS

For readers of The Times-News who are
interested in business conditions through
out the country, and desire to be Informed
on a subject of more frequent discussion
than any other at the present time, we
herewith present a summary prepared by
one of the country's leading authorities.
This report says:
Trade in the primary markets, and industrial
operations generally, have slackened somewhat
during August after advancing between March
and July to the highest level since the Spring OF
1881. In this slackening the usual Summer dull
ness" which ordinarily would have been felt
month or six weeks earlier, is plainly factor
However the chief explanation is in the character
of the preceding advance, which was not only I'M
parallsed in speed and extent, but was influenced
by extraordinary measures tending to raise prices
These included of course the gold embargo and
the inAationary powers authorized by Congress for
possible use. and the ensuing depreciation of the
dollar in the foreign exchanges; the enforced
wage increases and reductions in working hours
under the Industrial Recovery Act; and the pro.
cessing taxes and restrictions on farm production
under the Farm Relief Act.
During the past few weeks however these IN
fuences for higher prices in the primary markets
have gradually been discounted, and the induce
ments to buy ahead have become less compelling.
The speculation in stocks grains and cotton has
collapsed with results which need no description.
In many industries the higher costs due t the
measures cited have now been added to prices, and
the factor of beating the gun" is no longer pres
ent. In others manufacturers have sold all the
goods they able to make at former costs, and
do not yet know what their new costs will be, and
the situation is temporarily in confusion. Doubt
less Also the speed of the advance itself inspired
conservatism. Operations in the Industries ger-
orally had increased so rapidly to regain within
four or five months One-half of the volume lost
over three and one-half years; and it was feared
by all good judges, including General Johnson, that
production at this rate was not only exceeding cur
rent requirements, but running ahead of pros
pective retail distribution
For all these reasons forward buying has slack
ened, and business has slowed down accordingly
The effect has been to check the rise in industrial
operations, and in some industries TO cause mod
crate recession. Electric power production is slight
y lower particularly in the industrial areas, though
still running the country, Is per cent or bet
ter above last year. MERCHANDISE and miscellane
Gus freight loadings, which the best thougi
not altogether a satisfactory of good
moving in trade, have been declining moderately
whereas usually they are rising slightly at this sea
Coal production is lower, as are lumber or
ders and shipments.
Steel operations have declined from 50 per cent O.
capacity, the peak of the upturn, to so per cent
according to Iron Ages latest estimates, and tn
sensitive scrap markets are lower. Takings by tn
automobile, tinplate and miscellaneous manufac
turers, whose orders brought about the steel re
cOvery, have declined, and thus far railroad an
construction buying has been insufficient to tax
up the slack
In some of the lighter industries which hav
been producing at a record pace the pause is ais
evident. The textile industries are slowing dow
somewhat, though they still have orders to kee
them going at a good rate, particularly in tn
woolens division. The processing tax has proved a.
almost unbearable burden upon the cotton good
manufacturers and has set up a confusion in tn
markets which has nearly strangled business TIL
industry is appealing for revision It's view O
the matter was stated by Mr.. Howard E. Coffin
chairman of Southeastern Cottons, Inc, in a re
cent address, in which he said that manufacturer,
selling prices of cotton textiles have PRACTICAL
doubled, and that production costs have reached
point where purchasing of textiles and volume O
output might be seriously curtailed,' thus ode
feating the very detectives which are sought"