The Waterbury Democrat., 1933-10-12

Recent developments In the business situation tend to empha-
 size the extent to which the more pronounced recessions have been confined to the basic industries, ac- cofding to a weekly survey by the
 Guarantee Trust Company of New York.
 Both wholesale and retail trade we'll maintained, the Survey con- tinues, although recent gains are admittedly due in large measure to
 seasonal influences.
 Among the directions In which decreased activity has been noted are steel production, automobile output, cotton textiles, lumber, and
 bank debits to individual accounts
 Railway freight traffic has in-
 creased irregularly, but hardly by the usual seasonal amount. ~ Department store sales, on the other hand, according to the pre- liminary index of the Federal Re-
 serve board. increased from July to August by considerably more than the estimated seasonal amount, The index for last month stands at 75 as against 72 month earlier and 6S in June.
 Sales of cotton textiles, after an abrupt decline following the ap. plicat!on of the code and the pro- cessing tax, have advanced sharply
 in the last few weeks. Commission houses report large volumes both In cotton and woolen goods and anticipate a continuance of. active
 business for some time.
 An encouraging feature of the situation in recent weeks has been the growing number of corporate dividends resumed or increased.
 While the movement has not yet
 become by any means general, it has been substantial enough to at- tract comment. The tendency is significant as an indication that some companies have experienced an improvement in their business sufficiently marked and sustained to be reflected in earnings and to
 inspire some confidence regarding
 future trends.
 Another favorable development
 is the consistent decline that has
 occurred in business failures. lm- provement In this direction has
 been visible for several nionths, with the result that the total num-
 Der of failures for the year to date makes n conspicuously favorable
 comparison with that of Inst year,
 when conditions were particularly
 difficult.
 The American Federation of La
 Dor estimated at the beginning of this month that 2,033,000 persons had been re.employed between
 March and July and that tho res covery program during that period had added new purchasing power at the rate of s5,000,000,000 an- nually, or enough to increase totnl retail sales by 17 per cent. About the same time. General Johnson, recovery administrator, made a somewhat more conservative estl. mate. placing the number of rec employed at 2,000,0O0 and the ad- dition to annual payrolls at $1,.
 500, 900, 900.
 A step toward direct federal un- employment relief was taken on September 2t, when President Roosevelt authorized the agricul- tural adjustment administration to spend s75.000.000 for surplus food and clothing materials to be dis tributed among the destitute un- employed. In announcing the plan, the president expressed the hope
 that the absorption of surplus commodities would help to raiso prices, besides striking q direct Fblow at "the economic paradox
 which has choked farms with an abundance of farm products while
 many of the unemployed have gone
 hungry"
 Steel production continued to de- cline steadily from early August
 until about tho middle of Septcm-
 Der, when slight Increase oc. cured. The gain. however. Is de- scribed by trade authorities as tenn porary in character and is attrib-
 uted 10 pressure for shipments
 rather than an increase in new
 business. In part. the recession ir