Evening star., 1933-06-25
Nations Business Apparently
Up 4 Degrees of Projected
40 for Recovery.
MANY INDUSTRIAL LINES
SHOWING IMPROVEMENT
Roosevelt, Although on Vacation,
Keeping in Close Touch With
Trade Developments.
BY THEODORE C. WALLEN.

BY THEODORE c. WALLEN.
A steady and sustained business i'm
provement over a broad front was indi-
| Gated yesterday by reports from several
Federal Government agencies. On the
basis Of President Roosevelts attempt
to raise commodity prices to approx
mately the 1926 level, the Nation ap-
peared to have moved upward more
than 4 degrees Of projected 40.
With the country off the gold STAN
dard and resisting European demand
for stabilization of the dollar as the
huge national recovery program swings
into operation, the official reporting
| system of the Government, centering
around the Federal Reserve System and
the Department Of Commerce, showed
the following:
| Increase in industrial production
from so per cent of normal In March
to 81 per cent in April to rs per cent in
May.
Pronounced increases in steel, auto
mobile. lumber. textile and shoe produc-
tion, in construction contracts awarded
and in freight traffic.
Increase in Employment.
A 3 per cent increase in employment
IN manufacturing industries in one
month, bringing the total Of re-em-
ployed to more than 100000.
An increase in factory pay rolls by a
large percentage to about A per cent
Of normal
A rise In wholesale commodity prices
from 60.3 per cent of the 1926 average
in mid-Aprn to GAS per cent a week
ago.
| widespread results of dollar deprecia-
ton, especially in the Western Canadian
market, where American chemical man
ufacturers have gained a decided ad-
vantage over French and German
suppliers while in some instances Shut
ting out British exporters from the East
ern Canadian market.
| Heavier purchases Of American auto
mobiles In several foreign markets, par
ticularly Swedish and swiss.
A return flow of $156, ,000, 900 of cur
rency from circulation.
Increases Of 175,000 900 in loans and
investments of Federal Reserve member
banks in 80 leading cities in one month.
Que chiefly to growth of security loans
and other loans at New York City
banks.
| World Shipping Gains.
The Commerce Department's trans
portation division presented reports
from various parts Of the world show
ing an appreciable improvement in
world shipping, more shipyard activity
ana less la1d-up tonnage. This report
suggested no special application to the
United States. The reports covered. in
general way, the trend Of the last
! Two months and presented a situation
which Government experts viewed as
nlgnly encouraging on the whole and
the most reassuring evidence to date
that the tide has turned.
In view OF all the previous disappoint-
ments, the general disposition was to
be cautious about predictions and to
assume a realistic attitude about the
dlmculties ahead. It is felt that prema-
ture ballyhoo about having made the
turn declsively would make all the
worse the psychological reaction to a
temporary setback. And yet the OFF,
cials who expressed this view reflected
considerable optimism.
President Roosevelt, aboard his vaca-
ton schooner on the Maine coast, has
been kept advised Of business Develop
ments and was represented here to be
nlghly encouraged at time when he Is
refusing to stabilize the dollar In terms
OF foreign currencieS for fear of ar
resting the price upswing in the United
States.
1926 Level Is Goal.
With this unprecedented control over
the economic life of the Nation, the
President is understood to have set tine
1876 level OF wholesale commodity prices
as the goal of his recovery program.
This is on the theory that such a re-
covery OF prices would carry with it the
increased purchasing power, wide re-
employment and higher wages consid-
cred essential to normal American pros
perity.
The commodity price increase report
ed In the Federal Reserve bulletin was
based on the weekly index of the Bureau
OF Labor Statistics. A rapid rise in the
prices of commodities traded in on or
ganized exchanges raised the wholesale
price level from sos per cent to 64.5
per cent in the last complete nine weeks,
up to the first of last week
Wheat, cotton, wool, hides, lard.
sugar, silk. rubber and non-ferrous
metals figure in the price rise, and
also flour, textiles and leather Other
prices showed small relative change.
The steel industry reported one of
the sharpest gains in operating activity.
Hard hit by the depression, they were
operating at less than 20 per cent of
capacity at one time. Today, contrary
to seasonal tendency, they are reported
at about so per cent capacity. They
seldom operate at full capacity. The
shoe industry had its best May on rec
ord and the textile industry its best
month of May since the depression
began.
Commerce Department Summary.
In the Department of Commerce
summary Of the business situation ap-
peared the following:
Business indexes reveal continued
resistance to adverse seasonal factors,
and activity during the week ended
June II was well maintained in most
productive lines, according to data as
sembled by the survey of current bus.-
ness. Steel ingot production increased
for the twelfth consecutive week, and
this industry Is currently operating at
close to so per cent Of capacity. Auto
noble schedules were expanded further
and the weekly output was higher than
a year ago. Cotton receipts for the
week were lower, but remained well
above year ago. Textile mills con-
tinued to operate at high level Wheat
receipts were higher for the week and
were larger than a year ago.
For the week ended June 10, most
OF the major indexes were higher, al
though there was a slight decline in
bituminous coal production. Freight car
loadings increased 56.312 cars, following
the holiday week, and were the largest of
the year. The weeks total was 13 per
cent above year ago. compared with
IA per cent in the preceding week. The
May statistics on factory employment
and pay rolls indicated some improve
ment. but not to the extent Of produce