Evening star., 1933-04-30
Average Price Level Is Ten
Points Below Last Sep.
tember High.
PROCESS OF RECOVERY
GOES FORWARD STEADILY
Natural Forces Believed Asserting
Themselves After Setback During
the Recent Bank Holiday.
BY CHARLES F. SPEARE.

Special Dispatch to The Star.
NEW YORK, April 29.-Whfle the
Senate this week has been debating and
voting on the different sections Of the
imitation bill, President Roosevelt has
held conversations with the representa-
tives of Great Britain and France
which should have an important bear
ing on world economyA
Agreement has been reached between
the President and Prime Minister Mac
Donald that there Is "a necessity for
an increase in the general level Of
commodity prices" and that this Is
recognized as primary and funda-
mental"
It has been clearly indicated that the
policy of this Government toward war
debts is rapidly changing and that the
whole situation concerning international
trade relationships is approaching a
change such as has long been recog-
nized as essential to recovery in busi-
ness and a strengthening not only Of
domestic but Of foreign credits.
Natural Forces Operating.
All this is encouraging. 1t acknowl-
edges the fact that there can be no
permanent improvement in conditions
in the United States unless there is an
us brings prosperity or Is powerful
influence in causing depression.
There Is sound basis for the opinion
that prices would have initiated a re-
covery and that business would have
gradually worked out of its rut had
there been no discussion of imitation
Evidence to this effect was present in
the improvement of conditions last
Autumn. This was later nullified by
the banking crisis. There were some
gains in progress Immediately after the
bank holiday. as in iron and steel,
in car loadings. and, occasionally, in
the volume Of electric production. The
crop outlook had had quite as much
to do with raising the price Of wheat
as any other factor. Commercial fail
ures had begun to decrease. There
was an improvement In retail trade and
IN certain sections Of the wholesale
field.
Altogether the liquidated state of in
dustry was having the same cheering
effect on consumers as the sold-out
position of the market for stocks was
having on investors. Therefore, some
credit must be given to natural forces
in bringing about the present price
advance.
The most striking of all the busi-
ness changes Is to be found In the
iron and steel industry, where opera
tons this week have advanced to
nearly Is per cent Of capacity and are
now the highest In over q year. This
helps to Offset the gloomy showing
Of the iron and steel companies for the
March quarter. when six Of the leading
producers showed a net loss of over
$27,000.000. It gave the directors Of
United States Steel Corporation war
rant for maintaining the small divi-
dend now being paid on their pre-
ferred stock.
There has also been a substantial
expansion in the automobile trade and
improvement in the public utility in
dustry. The rise in commodity prices
from the low point Of the year now
amounts to points, while the level
Of food prices has advanced about IS
per cent since the end of February,
mainly due to the strength in farm
products such as grain, live stock and
provisions.
Should Benefit Producers.
This increase should benefit all pro-
ducers, but it Is one Of those infla-
tionary movements which bears down
hardest on q class that Is numerically
the largest In this country and whose
income has been the most severely
curtailed in the last two years.
April ends with the average price
of stocks still about 10 points below
the high of last SEPTEMBER, after the
largest average gain in any period
since August. The public has not yet
Joined in the movement to accumulate
common stocks on the imitation ex-
pectancy because it has only a vague
idea Of the effects Of imitation. It fears
them today more than 1t welcomes
(Copyright, 1933)