Evening star., 1933-12-01
A.E.L. ENCOURAGED
BY NOVEMBER DATA.
Unemployment Held to Mini
mum in Month Usually
Showing Gain.
BY the Associated Press.

November business conditions and
developments were found encouraging"
by the American Federation of Labor,
whose monthly report, issued today, re-
ported that unemployment, which
usually increases at this season, has
been held close to September levels"
The federation reviewed the Roosevelt
gold policy in som, detail, pointed to
moderate price rises it said were
coincident with the depreciation Of the
dollar abroad and sgain warned against
direct currency imitation.
ANY form of imitation which
threatens violent declines in the dollar
or loss of currency control is of the
greatest danger to workers.. it said.
In the fiat money infiations of Europe
after the war, workers saw their savings
swept away and their incomes cut down
by rising prices. Strong Government
control over the currency is essential.
Situation Too Nervous.
1.-THE issue is now clouded by uncer-
tainties and the claims and fears of
various groups. The situation is too
nervous for the confidence business
needs. Uncertainty over the dollars
future and fear of fat money retard
business advance
The federation noted an increase in
the farm price average of 8.3 per cent
between October 81 and November l8,
simultaneously with the decline Of the
dollars gold value, but said that since
speculation plays an important part IN
fixing prices on world exchanges 1t Is
impossible to tell in so short period
what ultimate changes dollar devalua-
ton will cause
With reference to imitation it said:
"Tampering with the currency is
very serious matter, for the buying
power of dollar Is of the greatest
concern to every American citizen.
Since we left the gold standard in April
declines in the dollars value and de-
mands for initiation have caused alarm
in the business world and acted as a
brake on recovery.
Hesitation of Business.
Banks, business concerns, men and
women with savtngs-an have hesitated
to place their money in investments
because as long as the dollar declines
dollars they lend now are worth more
than the dollars they will get back in
the future. Credit for business under
takings has been hard to get; invest
ments fed to Government bonds for
security.
Lurking in every ones mind is the
fear of initiation by fiat money. If we
ever started to issue greenbacks with
out gold value, in answer to demands
from farm areas, an orgy of uncontrol-
able imitation might follow, it is feared,
such as that in Germany after the war.
THE Presidents method of devaluing
the dollar by stating the gold price diff
fers greatly from imitation by fiat
money. For fiat money has no gold
value-it is worth only what people will
give for it, and there is no means OF
control.
Since the administration has delib-
erately deprecated the dollar distrust
of our currency has increased. money
has fed abroad in amounts estimated
from one to four billion dollars, prices
of high-grade bonds have declined 7 per
cent and Government bond prices have
dropped considerably below par in the
last weeks"
Unemployment Gain Slight.
The federation estimated unemploy-
ment at 1o,076,0O0 in October. Its Sep
temher estimate was 1O.O65 900. 1t
added that trade union reports for No
vember SHOW only a small increase"
over October
Pay roll totals were still moving up /,
ward in october, and as living costs |
rose only OIL per cent, workers total
real buying power increased from 2O-5
per cent (September) to 23.1 per cent
(October) above the March level" the
survey said. Farmers buying power
has also been increased by the gain in
farm prices in November and by gov i,
eminent payments of more than $780,
100000 to farmers who agreed to reduce
crops in cotton, wheat and tobacco
THE effect of growing buying power
was checked in October by price rises,
but released in November by price ad-
Justments in some lines and by fear OF ,,
still higher prices. In the first half
month department store sales in New
York were per cent above last year;
weeks ending November 209 per cent
above 1882 ...
These gains, together with Govern
ment loans to railroads for equipment
and the public works program are at
last beginning to reach the heavy in
dustrieS which have been called the
key to recovery. Steel production |
turned upward in the week Of November |
20, and the outlook in this basic in
dustry has improved greatly"
The federation also reported upturnS |
in automobile and lumber production !
and building contracts.
Gains in these industries are basic"
1t said, for workers employed in steel, |
building or lumber must employ other |
workers in consumer industries to feed |
and clothe them. Business observers |
have repeatedly said that recovery must |
start in the heavy industries, and the |
beginning of improvement here bright
ems the horizon"