Evening star., 1934-06-03
Broad Industrial Advance
Shown Since 1888, but
Gloom Persists.
RETAIL FOOD PRICES
LIFT COST Of LIVING
Mems Apparel, Furniture and
Many Other Lines Also Far
Above Levels Year Ago.
BY CHARLES F. SPEARE.


the last month Of the second quar-
ter of the fifth year of the depression
for with over 100000 still un-
employed it cannot be said that sat-
isfactory recovery has been achieved
the observer may note business
and financial conditions that give
concern for the outlook during the
remainder of 1884.
Ones conclusions as to improve
ment depend on the dates when COM
parison is made of what was with
what is. June, 1884, for instance,
shows a degree of industrial health
that seemed impossible of attainment
in March or April, 1888. 1t is even
more vigorous than that Of last No
vember. On the other hand, to pro-
fessionaI Wall Street the late Spring
of 1888 carried promises as glowing
as those Of 1928 or 1929, while today
the inactive financial district Is wait
ing with folded hands and bowed
heads the approach of its doom. A
year from now it will wonder how
it could have been so near sighted.
Many statistics might be given to
confirm the broadening out of in
dustrial operationS-the remarkable
pickup in railroad traffic, with April
net 70 per cent over last year; the
improvement in electrical output,
and, highly important, the complete
return Of confidence among bank de-
positors since the guarantee plan
went into effect. If the figure Is ac-
curate, the estimated $2,500, 900, 900
that bank depositors and stockhold-
ers finally will lose as result Of the
banking panic will be only about 5
per cent of the total liabilities in
1880; though as much as so per
cent in some Institutions.
Labor Troubles Disturbing.
At the moment it has to be ad-
mitted that business has gone a
little stale, as compared with its early
Spring proportions. Industry has
caught up partly with the needs of
the country, while drought in many
sections of the United States, the
most severe on record, has restricted
buying by those who had contributed
largely to the greater business mo-
mentum, even though grain prices
have advanced sharply.
Labor troubles of a violent charac-
ter have disturbed manufacturers,
though the number of days lost while
disputes were being adjusted was
smaller in the March quarter Of this
year than in the December quarter Of
last year.
1t is the happenings during May in
Toledo, Minneapolis and San Fran
cisco, however, that have aroused
most alarm, and those anticipated
during the Summer in iron and steel
and textile centers.
In the closing days Of every Con-
gress, measures are rushed through
that subsequently affect an unpre-
pared business community. This fear
enters into the mood of all engaged
today in commerce and in the financ-
ing of it. 1t is likely to diminish
after Congress has adjourned. There
is no present prospect OF serious in
flation measures at this session. This
removes an element that has long
made for restriction of trade.
1t Is encouraging to find the N. r.
A. releasing from its authority some
of the service industries and admit
ting that 1t has gone beyond reason
able limits in compelling code adop-
ton. Also, the diminishing expendi-
lures of the Treasury and budget
deficit to June 80 Of $4,000, 900, 900.
instead Of the S7,300,000,0 900 esti-
mated, strengthen the general situa-
ton in preserving Government credit.
More new high records have been
made this week for Treasury issues.
This is the only feature of security
markets, which have been exception
ally dull and have shown little weak
ness, in spite of the mood Of appre-
hension that has settled over Wall
Street.
Consumers Costs Rise.
It is a matter Of considerable gen.
eral interest that retail prices Of
foods are Is per cent higher than
year ago and that manufactured ar
ticles at retail are 80 per cent above
the level Of May, 1888.
Going into more detail, the situa-
tion facing the consumer, and par
ticularly those living on their incomes
or on the reduced salaries Of the past
few years, appears quite serious. For
instance, such table essentials as
meat, eggs, butter, flour, potatoes,
bread, rice, canned vegetables and
prunes have advanced in the 12-
month period from 10 per cent to
nearly go per cent, the latter for po-
tatoes. :.
The manager Of a large chain Of
hotels told the writer this week that,
in May, the cost of all foods used
was IS per cent above that Of last
year. Taking another group Of es-
sentials, such as clothing, it will be
noted from the Fairchild Retail In
dex Of prices that mems apparel Is
Is per cent and women's apparel 28
per cent over that Of May, 1888.
Sheets are nearly so per cent and
blankets one-third more in cost than
| In the earlier period. Furniture has,
meanwhile, risen about 40 per cent.
Mention frequently has been made
by this writer Of the swift advance
in the cost of building materials and
the effect this is likely to have on
the program of renovating or mod
ernizing homes, which the Govern
ment is projecting. Using the De-
partment of Labor's wholesale figures
for April, the latest available, we dis
cover that in that month average
costs Of such materials were Is per
cent over April, 1888. Specifically,
lumber had advanced more than so
per cent: brick ard tile, 20 per cent;
paint, 16 per cent, and plumbing and
heating, 80 per cent. During May ad-
ditional advances were made in many
articles included in this general clas-
sification. 1t plaques both the home
(Conttnued on Fourth Page.l