The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1934-05-15

uEES, A4GI1VUSk1 VIC NOAAAHASVS ~
turns for that month Will prob
ably show a new high Tor the
year. Iron and steel production
were up, automobile production
gained a little, and factory en-
ployment increased to the mid
die of the month. But the April
motor output was not up to ex-
pectations, employment seems to
have Jagged in the latter part OF
the month, and retail trade was
lower than in March, even after
allowance for seasonal conditions.
Last weeks statistics indicate
q distinct and mOre-than-sea-
sonal setback in early May.
Steel production continued to
rise, but that is known to be on
account of orders to anticipate
higher prices and labor diff
culties. 1t is going into acCumu-
IatiOn Of stocks Of steel, and
that means less production
later.
Automobile sales are not hold
ing up, and production has been
rounding off, despite the intro
ductiOn Of some new models.
Electric power production and
railway car loadingS are both
off a bit, considering the season.
Retail trade is very spotty and
sensitive to price resistance. It is
unfavorably affected by drought
conditions in large sections. OF
course, the 1et-down in Govern
ment spending has been a factor.
Commodity prices were much
mixed, leaving the average for the
week about unchanged. The grains
and butter and lard were up on
drought developments, but rubber,
sugar, tin, wool, and hides were
lower, and steel scrap continues to
decline. The indications are that,
aside from supply factors, indus
trial demand for materials was
weaker.
The general idea seems to be
that a moderate recession in buSi-
ness is likely to go on during the
summer months, but that better
balance between supply and de-
mand will be established by fall.
It is also considered likely that
the Administration will step up
its spending for relief and stimu-
lation IN advance of the fall cleo
lions.
At the moment, however, the
Government seems to have tired
of administering stimulantS or
to have become convinced Of
the futiIity Of such expedientS.
1t seems to be bent upon push
ing through its reform program
In the shape Of control over
stock exchanges, cOmmunica-
ton companies, and tariffs,
which are certainly not stimuIa-
tive, whatever else they may be.
Everything seems to be mixed
and uncertain. One might sup
pose that the crawfishing now
going on concerning the "codes"
might be constructive. MIRA is
now apparently ready to drop
many codes in the smaller indus
tries, and to lean back" on price
fixing activities. But at the mo-
ment even this arouses fears Of
renewed disturbance and price
competition.
That is the trouble with such
experiments" When they fail,
you find you have something to
undo.
Then there is the labor situa-
ton. Organized labor is not
satisfied with NRA or with the
new motor labor board. Strikes
are brewing at many points. This
is a condition which MIRA started.
Now it may well make the Blue
Eagle feel blue.
But we have learned much.
The President IS reported to be
now listening to sOunder ad-
viSerS. Out Of our present
trials, I am beginning to hope,
may emerge the basis for .
more sustained recovery. Must
we not soon decide whether it
Is to be socialism or individual
enterprise? Currency initiation
or sound money? Surely we
must soon quit this experiment.
ing, and get down to business.