The Washington times., 1934-06-12

Ao"AB 4AAhOJ AAkASS1
consumer resistance to high prices,
and the general uncertainty as TO
Government policies.
Steel production gained last
week. and steel scrap markets,
steadied. There can be little doubt
that buying of steel has been
stepped up because OF the fear
that the threatened strike may
soon tie the industry up. Appar-
emily, too, specification on orders
placed at lower prices than Will
soon he available, is a factor.
This largely explains the gain
IN carloadings, which IS due to ore
and coke.
Such activity is not normal, and
is not likely to last long. In 1act'
it is reported that steel operations
at youngstown will be reduced
this week.
Automobile production was OF
quite sharply last week. May
REGISTRATIONS in Cook county, ILL.,,
are reported to have been con-
siderably below the April figure.
Declines were also registered IN
lumber orders and productlon'
and in forwardings of cotton to
mills.
Declines were also registered in
lumber orders and production,
and in forwardings of cotton to
mills.
Retail trade continues distinct
" spotty, being adversely affected
in drought areas (where mer-
chants are worried by inventor
ies), while hot weather and clear
ance sales have increased the
volume at other points.
Bank debts (checks drawn)
were only s per cent above
year ago, despite much higher
prices.
The average of commodity
prices was lower last week. Grains
were mixed and irregular on re-
ports of showers, and hopes that
the corn crop may come through
in fair shape. Advances occurred
in sugar, rubber, cotton, and some
cotton textiles (some doubt about
the condition of the cotton crop
having arisen). But zinc, tin,
hides, beef, lard and worsted
yarns, were lower.
There seems to be no reason
to modify forecasts of some
what mOre-than-seaSOnal de-
cline in business activity this
summer. Government borrow
ing and spending may put
money in circulation" but they
cannot make wheat or pastures
grow, and the Government has
to take money away from some
body in order to give it to
somebody else.
Probably factory employment
has declined.
The good news of the week may
be summed up as follows:
Cd Some fair showers brought
relief in several drought-stricken
areas, and improved corn pros
poets.
CD Despite much uncertainty,
and clustering on the part OF the
frank and file" leaders, there
was a growing belief that the
threatened steel strike would be
settled, possibly by Government
intervention. It seems unlikely
that a man who has the power
which we have let Mr.. Roosevelt
have will allow the steel industry
to be tied up at this critical
juncture.
90 Growing evidence that the
New Dealers are abandoning much
of the NRA and AAA set-up, ap-
peared. It is queer how the coun-
try lets the Administration get
away with one ill-considered ex-
pertinent after another. But we
may be glad that the price-fixing
features of the codes are on the
way out, and that processing
taxes seem likely to follow in
due time.
a The Stock Exchange Act as
finally passed has much less of
"teeth" than was originally in
tended, and the Securities Act
was softened a little.
Except as to Government Dor.
rowing and spending Gn lieu of
real business), we are learning
economic laws, and finding out
that experiments not based on
experience are merely costly ex
perience.
NeU HUDen ShOLUS