The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1934-06-26


~ NNM realized.
~ After reced-
LOWS Haney ing for a couple
of weeks, the curve of industrial
activity turned up slightly, due
allowance being made for the
usual seasonal variation This,
however, has brought no enthusi-
asm, and few observers look upon
it as a real turn for the better.
The reason for this attitude of
caution is that the main factor is
steel production, and this seems
unlikely to hold. In fact, signs
of the inevitable reaction in steel
making are already apparent, and
production schedules have dropped
quite sharply. The Steel Corpora
ton is blowing OUT two furnaces
this week.
For several weeks, the steel
industry has been operating on
orders to anticipate the higher
prices which take effect July l.
Labor uncertainties have also
caused some speeding up of pro.
ductiOn. These factors arc now
losing effect. Orders are falling
off. A sharp let down in steel.
making is almost certain in July.
Some stimulus is reported to
have been given to automobile
sales by the price cutting policy.
This will relieve dealers who have
large inventories, but all prece-
dents indicate that the manufac
turing season is too far along to
allow us to expect much change in
the very moderate prospects re-
yealed by May automobile sales.
The lumber and textile indus
tries remain backward. Lumber
orders were below production last
week, with untitled orders lower
and below year ago.
Evidently here is case in which
price-booSting tactics, under the
"code," helped to kill the goose.
Carloadings last week showed
about the usual seasonal gain.
This showing has been helped
little by an early movement of
winter wheat, and by what is
probably one of the last weeks ot
heavy movement of steel, ore, coal.
and coke resulting from the fac
tors mentioned above.
Commodity prices again aver
aged higher, some weekly in
dexeS touching new highs by
narrow margin. The chief
factor here appears to have
been a rise in hogs and lard, to-
gether with other food products
and hides, and it reflects the
drought and government pur-
ehases. Grains, flour, rubber,
silk, and wool were a little
lower.
Evidently initiation is not yet
having much fresh effect on
prices, being offset by numer-
GUS uncertainties.
These uncertainties have hardly
been reduced by the adjournment
of Congress. The big question
right along has been What will
he do?"-meaning Mr.. Roosevelt
and his advisors.
How fast will he deal out the
billions of our money which he
has been given to spend? He has
just signed an order to pour $780,
100000 into drought areas. but
that is only a drop in the big
bucket.
How enthusiastically" are he
and Mr.. MOrgenthau going to
buy silver and deal out silver
certificates under the new law?
There will be only about 81 cents
worth of silver back of the new
paper, but will they price it at
$1.OO or $1.29? Will they soon
write up a big paper profit" for
the Treasury and proceed to
spend it as they have done with
gold?
What will he deal in the new
tariff game?
Will he hold or discard the
Frazier-Lemke bill, which would
probably result in virtually wiping
out farm mortgage debt, bringing
ruin either to creditors or to the
United States Treasury?
Will he try to finesse a pep"
housing campaign. or will he give
a real boost by putting down the
prices and wages which are keep
ing building costs prohibitive?
These are some of the uncer-
taintieS in the New Deal. Business
is waiting to see how the President
will play his hand.
office Building
Switches to Coal
The Equitable Building, said to
be the worlds largest office build
ing containing an isolated heat
l.. u As~Aa aINSa