The Washington times., 1934-11-27

Last week,
steel nroduction Lewis Haney
gained another point. with pur-
chases by motor and farm imple-
ment manufacturers reported as
the basis. Steel production is now
about 20 per cent of capacity.
Current automobile production
declined, however, as did cotton
cloth and lumber outputs.
Building activity continues to
feel the stimulus of PWA and
FHA activity. Last week, engineer
ing construction con rae S
awarded were up to 81 million dol
lars. OF this total, Ill millions
were Federal Government awards,
1859 millions were State and local
government awards, and only 80
millions we're private.
Railway carloadingS declined
less than usual for the week, and
were only a little below year ago.
Strangely enough, in view OF
the inflationary factors at work,
commodity price averages declined
last week. Zinc and lead touched
new lows for the year, and copper
was weak. Meats and some tex.
tiles were lower. Corn was up.
however, and lard, eggs and paper
rose in price.
Among the significant news
. items was another increase of
S45,OOO,OO in the TreaSury's
stock Of gold, as imports were
received. This development is
swelling the excess reserves Of
the banks, especially as cur.
rency in circulation has de-
clined.
Since July %, the Government
has distributed seven million
checks among farmers, totaling
over half billion dollars. 1t is
: now announced that another mil
lion and a half cattle are to be
bought by AAA to be processed
and distributed to those on re-
lief.
One may we'll ask, how can it
be that with so much bank
credit and such great Government
spending and lending, business
does not at once squirt and prices
rise?
1 think the answer is that
confidence" is mostly talk, as
yet. And the reason for this is
that those who have real saw
lngS to spend or lend are still
doubtful. They like the aban-
dOnment of the 3O-cent mini.
mum wage policy by FERA,
which Governor Talmadge of
Georgia had the courage to
stand against. They would like
to believe that the AdminiStra-
= tiOn is Swinging right" to give
business a chance.
But the week found the Presi.
dent adding old age insurance to
his immediate security" pro.
gram, and making no retraction
Of his threat to utilities. Wash
ington reports suggest that some
thing may be done for the sol.
dierS' bonus after all.
Ickes is pushing for additional
billions of PWA spending, much
Of it to go into "low-cost" housing.
Hopkins is proposing a sort of
Federal EPIC to give "relief" in
the guiSe of employment"
Richberg is defending social
planning" ill-disguised as self.
government" BY the latter, he
means a sort of Semipolitical in.
dustrial democracy with the Gov
ernment as a partner" in busi-
ness.
. Jesse Jones is moving to let
down the bars to RFC loans.
TugWell has been visiting the
President in Georgia.
So radicals may remain hope.
full, and conservatives doubtful.
And, since people who have any
money are generally inclined to
be more or less conservative,
it is easy to understand why
cash spending and investing
remains backward.
1t seems to me that the pres
ent confidence game is designed
to induce the business cat to
pull the cheStnuts out of the
fire. If it succeeds, the New
Dealers will get the nuts. Then
the radicals can be appeaSed
by eating them.
Be that as it may, business
activity is now growing, and is
likely to do so for another month
or two if present conditions are
not disturbed.