The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-05-20
By MILTON HOWARD

BY MILTON HOWARD
In our article last week, we anal
yzed the current prosperity propa-
ganda in the light Of the actual data
presented by the business indiceS. We
showed that the sharp rise in steel
capacity, upon the basis of which the
whole capitalist press halls a turn"
in the crisis, was based on an eX-
trenely rotten foundation, that is, the
attempt Of the automobile industry to
expand production upon the basis of
q complete lack Of retail demand.
We showed that whatever business
activity has developed is merely the
transferring Of manufactured goods,
from one section Of the capitalist
class to another, and in no sense
represents the increase of purchases
by the basic sections of the popu-
lation.
No Rise in Retail Auto Sales
Evidence which has developed this
week not only confirms our conclu-
sionS, but demonstrates that the pre-
sent rise in certain indices is almost
entirely due to nothing but infla-
tionary gas, and not to any basic
upturn in the crisis at all.
The first important news of this
week is the news about retail sales
of automobiles Obviously, retail
sales are not increasing and the
whole seasonal squirt in automobile
production is going to suffer sud-
den collapse.
The reports OF r. L. Polk 81 Co,
specialists in reporting retail auto
sales, SHOW that retail sales of the
first 20 states reporting sales only 8
managed to exceed by a triding mar
gin sales for the same period last
year, while the rest wer4 below the
same period last year A
Registration OF new cars for the en-
tire 20 states reporting shows that
retail sales are proceeding at rate
10 per cent below last year.
General Motors increased its sales
TO automobile wholesale DEALERS; but
its sales to consumers declined dur
ing the month of April over IL per
cent from S1,573 to 1,599s
This is true of practically all the
producers, and indicates that there is
being added to the present stocks
large quantities of indigestible sup
plies. The auto business is headed
for a sharp fall
1t is clear that with such retail
markets, crash of the automobile
boom" will inevitably follow the pre-
sent feverish squirt in auto produc-
ton.
Even more significant confirnlatory
evidence that commodities are not
getting into the hands Of the people
is given by the figures for retail sales
4 of the largest chain stores. The A.
& p, for example, reports a decline
OF Is per cent in sales for the month
q Of April compared with last year.
No Basic Steel Demand
AS for the steel industry, capit-
alist journals are being forced to adj
NIT more and more openly that the
current rise in steel capacity is not
only as sharp as the reported figures
would seem to Indicate, but that no
basis exists for its continuance. The
American Metal Market in speaking
of the increase in steel industry in
points out that ''the cumulative total
in 100 working days from January ]
to the end of this week is nearly 10
per cent under the total in the same
number of working days last year"
Even more significantly, this re-
view admits reluctantly that there
is no further increase in demand by
the automobile industry, railroad de-
mand is almost absent and little steel
is going into building construction"
The Annalist, one of the leading
organs of Wall Street finance, admits
that the current steel operations have
developed ON an extremely narrow
base, with fundamental factors in
the industry unimproved.
AS we pointed out last week, build
ing construction, very sensitive in
dex of business trends is continuing
Awithout interruption its long three
year drop. The Illinois building
l"boom" so widely heralded in the
capitalist press ballooned for g. week
or so, and then collapsed, the latest
figures indicating that building OPP
erations there are now % per cent
below even the usual seasonal in
creases, with expenditures for build
ing more than so per cent below the
same period last year.
And building construction figures
for the entire country, as published
by r. w. Dodge, indicate that build
ing construction has made an all
time low record in the last month
after allowing for the proper correc-
ton factors.
Another extremely sensitive index
which gives an accurate forecast of
steel production is the index OF
untitled tonnage. This index con-
tinues to scrape along absolute bot
tom crisis levels. Untitled tonnage
for April Is reported at more than SO
per cent below the same period last
year, and over 300 per cent below the
same period in 1880.
Foreign Trade Drops
A This week the United States De-
,artment of Commerce has published
he figures for foreign trade. They
indicate that the foreign trade during
April (the latest month reported) has
fallen to the lowest level since 1899
This drop of exports to nineteenth
century levels closely parallels the
drop Of heavy industry production Ia
the same levels.
Merchandising Drops
The figures for merchandise car
loadings, which are good indicators OF
the trend in retail demand, confirm
Che evidence of other retail sales in
dices that consumers goods are not
reaching the masses. For the week
ending May g. merchandise carload
InRs totalIed 1874. 343. a decrease OF