The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1934-10-02

doubtful again. ~
It seems prob
able, however,
that business
will show some
further sea-
sonal gains, Lewis Haney
and that October will be little
better than September. So prob
ably business sentiment will soon
regain its equilibrium.
Business news last week was
mixed, and the statistics showed
little net change. The gradual ex-
pansion in steel production con-
tinued, under the influence Of de-
layed seasonal forces and Govern
ment spending. The textile in
duStries increased their activity a
little, as the result Of the ending
of the strike. But the production
Of automobiles and lumber showed
more than seasonal declines, and
electric power production only
held about even, considering the
season.
Railway carloadings barely held
steady, with decline in livestock
shipments offsetting gains in coal
and miscellaneous freight. The
volume of bank checks drawn was
down and considerably below a
year ago.
Retail trade appears to have
been affected by untavoraole
weather and to have temporarily
let down a bit.
Wholesale trade was noticeably
slower.
AS to wholesale prices, the av.
Orages were distinctly lower, and
were in fact the lowest In over
month. This was notably true OF
metals. textiles and rubber. Grains
and hogs also lost little. Silver,
sugar, hides and tobacco were
higher. The weakening in many
wholesale markets went along
with a decline in the pound ster-
ling, and the continued soft-ped-
sling of Initiation" at Washing
ton.
On the whole, it begins to
look as if the current period of
business rally is another case
Of stimulation in trade and
slight industries" with little
response on the part of the
"heavy industries" The effects
Of the drOugh: on food prices
and of the strike on textiles,
have driven in some buying.
Large distributions of Govern
ment funds have Created pur-
chasing power" mostly among
farmers. But private building
and the non-ferrOuS metal and
the heavy rolled steel indus
tries remain depressed.
Accordingly, employment has
declined, and organized labor Is
expressing dissatisfaction.
This situation brings out one
Of the crucial problems which
confronts the country as result
of New Deal experiments. These
experiments bring periods OF rls-
ing prices caused by money and
credit juggling and increased
costs of production. Then the
purchasing power of the people
fails to keep pace, consumer re.
Sistance develops, and sales and
profits decline. Prices finally re-
act.
Just now, prices are tending to
decline. In fact. the former
price.boosting tactics of the New
Dealers are being soft-pedaled
and NRA price fixing is in the
discard. At at the same time,
the higher production costs re-
main, and the urge to increase
employment and maintain wages
is as strong as ever.
Here lies the basis for Seri-
Gus clash. Can living costs be
held down while production
costs are held up? Can employ
ment be held up while the
profits of employers are held
down? Can prices be lower
while wage rates are higher?
The President talks about chat
volume of production which would
make possible lower prices and in
creased employment" That is a
sound thought. But it is inconsiS-
tent with every thing that the New
Deal has stood for. If we are 60
ing to get increased employment
by low prices. how are we going
to keep wage rates up?
This seems to be the big issue
Of the next few months. Organized
labor will be heard from. An in
flation-minded public will be heard
from. If industrial volume and en-
ployment require "lower prices"
as the President suggests the New
Deal is on the way-out.