Evening star., 1934-08-27

Our Midsummer decline, therefore,
appears to be about IL to IA per cent
more than seasonal. All lines, except
production, are generally at the level
of this time last year (before the
N. r. A. became effective).
The figures in the chart are adjusted
for seasonal variations. They repre-
sent the percentage of normal at the
times stated, all items, except prices,
based on a normal of 100, computed
from the average years 1923-4-5.
The chart is in an adjoining column.
Steel Falls Off.
What knocked down the industrial
production figure most was steel. 1t
has been operating at about "a per
cent of capacity lately. That is be-
cause it did most of its Midsummer
business before July l, when increased
prices went into effect.
Textiles also Jagged under 25 per
cent curtailment agreement, which
expired August Is. The inside word
is that stocks of finished cotton goods
are still unusually high and that the
textile manufacturers do not care
particularly whether the threatened
strike comes off in September or not.
Lumber has been just $3.50, but
automobiles are holding up re-
markedly Uell. The automobile
line is better of today than any
other, except possibly tobacco. The
automobile price cuts certainly
stopped the buyers strike in that
industry. The mdneuuer Uds so
successful that most insiders be-
lieue the manufacturers Diu lop
tetD more gddgets of their cars
merit year and maintain ertstin1
lou prices, II they do not lo,0er
them further.
The increase of the wholesale price
index was entirely due to the drought.
Prices of manufactured goods have
actually decreased lately, but the in
creases in farm and food prices offset
this decrease in the general index.
You can get better slant on that
situation by analyzing the weekly fig
ures for the last 10 weeks (the drought
period. In that time, farm prices
have gone up 1914 per cent and food
prices rose 9.6 per cent. All other
prices went down one-half Of ! per
cent.
That shows that the farmer will be
able to make what money he has (and
gets from the Government) 60 further
in the purchase of manufactured
goods this year. If there is any conso-
lation in that.
The new housing set-up has not
had chance to get started. There is
some question about when and whether
it will get started. 1t has been re-
ceiving unusually good publicity, but
a private check-up of half dozen
major banks in New York showed that
just exactly 81 applications for reno
vation loans had been made to them
up to few days ago. They have had
no chance to look into each one, but
they suspect probably half of the ap-
plications would be worth looking into
p. w. A. Flood Falls OFF.
That is pointed hint of how much
can be expected of the housing pro-
gram this year.
The figures on building suggest
that the P. w. A. flood of billions
is again trickling of to an eye
dropper tlow.
Building contracts filed in July
amounted to about $120, 900 900, of
tohich S31 900, 900 represented di-
rect public tUorkS This showS
horizontal decline from June, uhen
s51 100000 OF public iUorks con-
tracts tOere awarded out of total
of s127, 900, 900. That forecasts
sharp contraction OF public iUorks
actiUity in the Fall. Dhen road
building also tOtll decline.
The private building industry has
however, shown some remote signs OF
life. In July, Sc per cent of the
building was financed by private funds
There was a rather striking, but small
squirt in factory building. Nearly
$4,000 900 of the contracts filed were
in that class.
The sharp increase was due to new
buildings proposed in the chemical ano
textiles lines and is hardly important
| enough to signify a trend.
Copyright, 1891