Evening star., 1933-10-15
SHOWS
IMPRESSIVE GAINS
IN THIRD QUARTER
Seven Favorable Trends
Given Place in Dun & Brad
street Review.
Special Dispatch to The Star.

NEW YORK, October 14-In the
third quarter of 1893, the industrial
gains recorded for the second quarter
were expanded to impressive propor-
tions The success of the national re-
covery administration program and the
definite progress made in the solution
of other major problems combined to
restore confidence on a national scale
and to foster vigorous renewal actiy-
ity in the business community. Prices,
employment and wages were advanced
during this period. while industrial ac-
tivity and sales brcadened appreciably,
and the volume of commercial liquida-
ton decreased uninterruptedly.
These impressive gains have improved
business psychology immeasurably, PET
and apprehension which had been
widely prevalent More ground has been
gained in the last six months than in
any other similar period for number
of years, even Though this strong, sus-
tanned recovery began with business
dragging at the lowest ebb in nearly a
century, according to the survey of In
dustry for the third quarter of 1888,
which has just been prepared by the
Research Department of Dun & Brad
street, Inc.
Favorable Trends Cited.
Seven outstandingiy favorable trends
reflected the progress of business dur
ing the third quarter:
/. Commercial Failures.-Although the
failure trend has shown continuous i'm
provement since the third quarter Of
1892, the declines in number and liabili-
ties recorded in the third quarter great
~ exceeded those of any other quarter
Of the period. The number of failures
was reduced by 472 per cent and the
liabilities by 586 per cent. The signifl-
canoe of the trend lies in the clear i'm
plication of steadily decreasing COM
mercial liquidation, development which
has occurred at the beginning Of every
other major industrial recovery upon
which statistical records are available.
2. Commodity Prices.-During the
third quarter the recovery of prices con-
tinued unabated. Dun's Index Number
reaching $126,632. the highest point of
the year, on october l. This was a
gain of 1911 per cent over the ccmpara-
tive position Of year ago, and repre-
sented rise of 27.4 per cent from the
years low. touched on March l. The
average of prices of the third quarter
was 1919 per cent over the average of
the corresponding 1882 quarter.
y.
support accorded the Presidents re-em-
ployment agreement and the specific N.
r. A. codes by indlntry in general re-
suited in a marked sain in salary and
wage scales. In the .econd quarter Of
the year salaries aven ,ged 20 per cent
under those of the sam period in 1882,
while wages were 18 per cent lower. The
third-quarter gains reduced these mar
gins to IA per cent for salaries and II
per cent for wages
f. Employment-Since the beginning
of the defiation in 1929. employment has
tended to decrease steadily and to re-
main well under the total Of the year
preceding. This trend was reversed for
the first time in the third quarter Of
1933 when the unemployed total for the
period was below that of the same quar-
ter of 1892
Other Factors Seen.
S. Industrial Sales-Sales in practi-
cally all lines in the third quarter were
substantially above those of the same
period of the year preceding. This also
was true of the second quarter, but the
gains of that period were extended in
the past three months and in the ma
jority of instances the margins over last
year were widened OF the Is industries,
only Is were above lOO per cent OF the
year previous in the second quarter,
while in the third quarter the sales aver
ages of % of the IS were above those
of the same period of 1882 The general
average OF all reported sales averages
was II per cent over the third quarter
of last year, whereas the second-quarter
gain was only IA per cent.
6. Industrial Activity. Coincident
with the improvement in business fun
damentals, industrial activity gained
markedly. The Index rose to 1877, q
gain of 20 per cent, in the second quar-
ter. The almost vertical rise was con-
tinued in July and August, when the In
dex reached 82.4, a gain Of 36 per cent
over the March position and IA per cent
above the June figure. The delayed
Summer recession, however, which ap-
peared in September carried the Index
down to 1872.
Z. Bank Clearings.-Another major
commercial indicator, which previously
had not risen above its position Of q
year earlier. is provided by bank clear
ings For the first time in number Of
months, clearings totals tended to aver
age higher than in the preceding year.