Evening star., 1934-09-09
Uncertainty Over Financing
Is Major Factor in
Security Trends.
LABOR STRIFE HOLDS
BUSINESS SPOTLIGHT
Appointment of Federal Media
tion Board Eases Fears of
Grave Disorders in South.
BY CHARLES F. SPEARE.

Special Dispatch to The Star.
NEW YORK. September S.-The
textile strike has been the dominant
factor in the business world this week.
1t has had moderate effect on the
prices of speculative securities and
commodities.
More important In controlling the
movements Of investment issues has
been the uncertainty over the Govern
ment financing to be indicated Mon
day. Direct Treasury issues have de-
clined an average of 3 points from
the years high, while the new guar
anteed farm mortgage and home own.
ers' bonds sold of points from their
prices of Midsummer, prior to the
controller of the currency's announce
ment. This obviously is serious en-
barrassment at critical period in the
Governments financial program.
The appointment of a Board Of
Mediation by President Roosevelt
modified the fears that the textile
strike might lead to grave disorders
in the South. It also created more
confidence in the likelihood of an ad-
justment of the differences between
the employees and the mill owners.
The situation exposed the futility Of
the hastily appointed National Labor
Relations Board, which was empow-
cred to Investigate issues, facts, prac-
tices and activities Of employers and
employees in any controversy arising
under section Ia of the N. I. r. A.
or which are burdening or obstructing
or threatening to burden or obstruct
the free flow of interstate commerce"
When a real crisis arose it had to
admit its inability to deal with 1t and
step aside in favor of still another
group of umpireS.
Textile Supplies Large.
There has been little suggestion so
far that prices of goods have been
affected by the closing of such large
proportion of the mills in the South
and in New England. Possibly this is
due to the present large stocks Of
merchandise in the hands Of the man
ufacturers. 1t has been estimated by
competent authorities in the trade
that there is a sufficient supply of
cotton goods to meet the require
kAASAAIO Va b1lC IlCAb C4S1Ab NCCho d44Q VI
silk for the months of September and
October and part Of November. The
woolen mills have not been stocking
up so rapidly as the others. Even they
have sufficient inventory to serve all
needs until the middle of October.
From a strict manufacturing and
merchandising point of view, there
fore, the strike is not without its COM
pensations to the producer. From
every other angle, however, it is a
national tragedy.
Together with the drought, the
textile strike must delay the recovery
that had been in sight and which
would have proceeded slowly along
normal lines this Autumn. 1t is an
irritant for other smoldering labor
troubles. Its political and social con-
sequences are serious. 1t involves the
factor of relief, which will be para
mount nationally and locally this
Winter. 1t comes at time when un-
employment is increasing, incomes de-
creasing and the cost of living rising.
This week the food price index has
touched new high for the year, hav-
ing advanced 10 per cent since the
end of July. The August rise in COM
modities Of slightly less than 2 per
cent was caused primarily by the
drought, which has induced steady ad-
vances in this gauge of business since
June.
Business Pace SIackens.
September has failed to bring an
improvement in the durable industries.
The latest figures of iron and steel pro-
duction show that output is only 1874
per cent of capacity, the lowest point
reached since March, 1888. This has
compelled some of the manufacturers
to return to the policy of reducing SAL
aries of unorganized labor. The slow
ing up in trade has also affected the
movement of railroad traffic and the
returns from the mines and gives a
less favorable trend to electric power
production than the industry has en-
joyed throughout most of the year.
(CopyTight. 1884 by the North American
Newspaper Alliance. Inc)