Evening star., 1934-11-16
ECLIPSE
BUSINESS NEWS
Support for New Deal and
French Situation Draw
Attention.
Special Dispatch to The Star.

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NEW YORK, November l6.-Politi.
cal developments both abroad and at
home overshadowed the business situ-
alton Of early November, Business
Week states in its current issue. "Criti-
cal events in France" it continues,
again threatened the position Of the
goldAbloc countries. At home the un-
expected extent Of the support Of the
New Deal party threw into confusion
conservatives counting on some symp-
toms Of dwindling enthusiasm. 1t
became glaringly apparent that the
general public, recipients of the bounty
of New Deal measures. was not averse
to its continuance. Business, In the
minority when it goes to the polls,
failed to register its misgivings and
disapproval decisively except in Cali
fornia.
"Yet the overwhelming success Of
the Democratic party in the off-year
election is not likely to prove an un-
mixed blessing to the administration.
The urge to spend freely will make it
self prominent early in the next ses-
sion Of Congress. The veterans will
ride in on the tide of budgetary in
fation and claim their bonus. Ex-
pectations are, however, that the final
settlement Of the issue will be much
more modest than their current de-
mands.
Role as Moderator Seen.
with Congress set to spend right
and left in the name Of recovery, the
President will be forced to assume the
role Of stabilizer and moderator. In
this role he will need the support Of
business generally.
In the next two months before the
convening of Congress in January
business will have its best opportunity
to exert pressure for such modifica-
ton Of the alphabetical organizations
as 1t desires. Labor will leave no stone
unturned to get a definition Of the
meaning Of section IA more to its
liking.
That N. r. A. and A. A. A. will
persist after June. 1885, possibly un-
der new names, seems certain. The
soft coal and % durable goods indus
tries have indorsed the underlying
principles Of the codes and expressed
themselves in favor of open-price
provisions. Other industries. like mo-
tors, find little value in the codes.
Meanwhile, the reorganized National
Emergency Council, headed by Rich
berg. becomes the dominating factor
in N. r. A. circles. 1t is working
quietly, devising suggestions for next
years legislation.
"A. A. A., less dictatorial concern
ing next years crop -curtailment plans
and more willing to permit the farm
er to voice his own opinions concern
ing production cuts, is favoring some
increase in cotton and wheat produce
ton for 1885. With the lure of prices
substantially higher than a year ago,
it would be inexpedient to leave the
farmer to his own devices now, with
the risk of bumper crops and a price
collapse. A. A. A. will ease itself
gradually out Of the agricultural pic
ture over period of few years. II
comedies that its price-boosting pro-
gram has dealt the foreign export
market a blow. Clamors are now
arising in scme quarters for utilizing
the processing tax to expand the for
eign market for cotton.
"ndustrially, the automobile indus
try provided the chief highlight of
the week. The automobile code was
extended for 90 days to February i.
Henry Ford declared the depression
was over as far as he was concerned
said 1885 would be million-car year
for him. Both announcements. car
ried good and bad aspects. Extension
of the code by executive order with
out modification prevented a break in
labor relations on the eve of starting
the 1885 models.
'Ford's announcement elected very
little comment from his competitors.
To them. the prospect of a Million
car year for Ford might spell small
er proportion of the motor market
for them. They are a bit uneasy over
the reported attractiveness of the new
models coming from Dearborn, and
especially over the price tag attached.
There IS no question but that COM
petition will be keen next year, that
the fair-sized expenditures for new
equipment in motor centers were
forced by the necessity to cut corners
off costs.
That the Federal Government in
tends to push its housing drive to the
fullest extent in the conviction that
it is the key log In the durable goods
industry jam was further evidenced
last week by announcement that S
per cent should be the basic interest
rate on home mortgages insured Tn
der the housing act. The rate will
be uniform throughout the country.
More Activity Reported.
"Steel, automobile and textile ac-
tivity should lift the production level
Of November and December above the
October level. Merchants are count
ing on Christmas trade well above
last year, with toy manufacturers fig
uring on $200,000,000 of business, 10
per cent higher than 1888.
"Oil and tire prices are on the rise
again, with producers hopeful they
can be maintained above the recent
lows. Residential construction Of the
first three weeks of October makes a
good increase over September"