Evening star., 1933-09-03
More Activity and Strength
Expected With Signs of
Improvement.
INCREASE IS REPORTED
IN COMMERCIAL PAPER
Bankers Hail Gain in Middle West
and New England as Mark of
Trade Expansion.
BY CHARLES w. STORM.


Special Dispatch TO The Star.
NEW YORK, September 2 (N.ANA.).
General business Is again showing
improvement and this Is the outstand-
ing development calculated to inject
increased activity and strength into the
securities markets.
The revival of betterment In trade Is
comforting In that 1t comes when in
creased attention IS being directed to-
ward statistics emphasizing the con-
traction in business activity which oc-
CURED at manufacturing plants during
August. It also appears just when the
guessing contest in the financial dis
trict regarding the probable success or
failure Of the N. r. A. campaign has
become most heated.
The fact that general business again
is showing signs OF betterment after
more than a month of contraction un-
doubtedly will silence many Of those
who have been predicting continued
business recessions because Of an un-
willingness on the part Of the public to
follow advances In prices for consumer
goods.
Thoughts were also entertained that
the slowing up Of manufacturing &C.
tivity during August would necessitate
inflationary measures by the admins
tration to accelerate consumer demand,
but reports from important corporation
executives that business is picking up
should 60 a long way toward slencing
talk Of imitation.
More Commercial Paper.
Coming simultaneously with the
launching Of the buy now" campaign,
the expansion in general business is
viewed as most encouraging and prom
ises well for the Fall trade, regarding
which those of a constructive frame Of
mind have been predicting material i'm
provement.
To the ordinary person an increase
in the volume of commercial paper re-
ported by one of the Wall Street news
ticker services means practically moth
ing, but to the bankers a larger supply
Of commercial paper means expansion
in general business through increased
borrowings by business people.
Banking interests reported Friday
that offerings Of the best grade Of COM
mercial paper had shown a material
increase. This is the first increase fol-
lowing the dullness reported during
August. 1t is coming largely from mer-
chants in New England and the Middle
West, indicating resumption Of i'm
provement in general trade is appear
ing first in those sections.
An executive of one Of the largest
department stores in New York City
also reports material increase in sales.
In some instances the betterment has
been astounding" and has run as high
as rs per cent over the same period
year ago.
The improvement being reported in
general business is also encouraging be-
cause there has been considerable dis
cuSsion whether an expansion in busi-
ness following increases in prices would
be able to continue.
According to students of economics,
this is the first time in the business
history of the United States that gen.
eral business recovery has departed
from the usual rule of increased pro-
duction with subsequent price increases.
Gold Holds Interest.
There has also been considerable
comment that the readjustment up
ward of prices Of consumers goods has
been too sharp and that consumers
would show an unwillingness to buy.
The answer, however, is probably found
In the fact that there has been a ma
terial increase in the purchasing power
Of the Nation by the marked decrease
in unemployment, increased wages,
higher commodity prices and increased
stability Of security prices.
Gold continues to be the main topic
Of discussion in the financial district.
Much talk Is heard regarding price and
free market for the precious metal
Predictions are also being heard again
that the gold standard IS to be aban-
doned by those few European countries
still on it,
There is growing belief that the
daily new high prices being received
for gold in London will result In a ma
terial boom in the gold industry of the
United States and Canada.
The price quoted for gold in London
Friday was equivalent to approximately
$30.94 an ounce. The higher prices OBJ
tainable for the yellow metal are ex-
pected to stimulate American prospect
ing for gold, accelerate operations of
present producers and revive activity in
old gold mines that have been closed be-
cause OF inability to operate at a profit
when only $20.67 an ounce could be OBJ
tained for their product.
The increased activity in the gold
mining industry undoubtedly will re-
suit IN the employment Of many thou
sands Of additional men.
(copyrisht. 1898. by the North American
newspaper Alliance, Inc)
I1IaIl nArlApa ansr.,