Evening star., 1934-03-11
Trend Proves Disappointing
in View of Continued
Business Gains.
BROAD UPTURN JOINED
BY HEAVY INDUSTRIES
Steel Makers Enter Period Of Net
Pr0its-Auto and Coal Out
puts Also Soar.
BY CHARLES F. SPEARE.

SpcSldl bAopdlCu 10 me Sldr,
NEW YORK, March 1O.-With
factual evidence from the business
world encouraging, though sentiment
IN sections Of 1t is none too cheerful,
the action of the stock market the
greater part Of this week has been
disappointing. Average prices have
gone through the low of February,
with trading on the increase as the
decline has been extended.
1t is quite possible that the strength
OF corporation shares in the first two
months Of the year was an effort to
readjust the market to the expansion
In trade, as well as to the volume of
capital made available to it by the
new gold taken back from Europe
and the huge bookkeeping credits
created from the devaluation process.
The present movement, on the other
hand, reflects uncertainty over the
future OF industry under the proposed
penalties on profits if the N. r. A.
program Of 10 per cent reduction in
hours per week and a like advance in
hourly wages is made effective.
throughout the business recovery.
dating from last Spring, the smaller
industries have shown the greatest
percentage Of gain over preceding
years. What are classified as the
consumers goods industries" have
enjoyed satisfactory recovery. They
have absorbed the largest numbers of
the unemployed. In contrast, the
capital goods industries" have hung
back. Quoting Gen. Johnson's speech
OF Wednesday, "by far the larger part
OF those unemployed today are per-
sons who were formerly attached to
the capital goods industries and ex-
pect Unemployment there"
Heavy Industries Improve.
1t Is fact, however. that the in
dustries identified with iron and steel
and the manufacture of automobiles
are among those showing the most
rapid degree Of expansion this year
ihe latest figure Of steel production
Is close to SO per cent. This means
That the era Of net profits for the
steelmakers has been entered. InGi-
vidual mills are running to capacity
where closely allied with automobile
output, in itself heavy. It is esi-
mated mat the demands Of the steel
traoe tnls season will compel the
largest movement of iron ore from the
Northern ranges since l929-an Incl
dent in the railroad traffic situation
that has wide Importance.
one OF the most desperately de-
pressed of the major industries for
some years has been bituminous coal
mining and distribution. The current
movement OF soft coal, however, ex-
ceeos mat OF March in each of the
three preceding years. This is re-
sponsible for rising car loadings on
many Of the railroads East of the
MISSISSIPPI. The electric power out
put Is 161z per cent above March
1888, and nearly Is per cent higher
IN the central industrial section of
the country than q year ago.
once more 1t should be emphasized
tnat present statistics compare with
those of the period of banking and
commercial stagnation IL months
PACK. Hence, such February gains as
So 70 52 per cent by the mail order
houses and chain stores are robbed of
real significance. However. the trend
Is evidence of improving
consumer demand both in the mann.
Iacturlng and the agricultural dis
trlcts OF the United States.
Counting the N. R. A. Gains
The address of President Rooseve,t
before the N. r. A. code authorities
contained this paragraph: .eThe na.
t!onaI recovery act was drawn with
the greatest good of the greatest
number in mind. Its aim was to in.
crease the buying power of wage
earners and farmers so that industrv
labor and the public might benefit
through building UP the market for
1arm and factory goods"
Ihere Is sentiment that the NJ
n. A. has accomplished all that might
De expected Of it in erasing disparities
between groups Of capital and labor
ana that the voluntary acceptance of
lts codes has reached the limit. Con.
siderable evidence is available to SUD-
port the argument that, if business is
now permitted to operate on its own
initiative, the recovery in progress
will continue and gradually expand
This Is especially true of Industry of
small or medium size.
Inc question of imitation has taken
q oack seat. Few commitments have
been made in recent weeks ON the
premise OF capital appreciation by the
gold price route. It has been apparent
since the N. r. A. began to function
eight months ago that the element of
limited profits under its operation
might overbalance that of reasonable
appreciation in conformity with the
declining dollar.
The introduction into the market
situation recently of Government
regulation of Stock Exchange practice
has compared in importance as a mo-
tivating factor in speculation with in
f1ation and with the business outlook.
This week the threats to Wall Streets
trade were not so serious as q week
ago. The vicious and irrelevant fea.
lures Of the Fletcher-Rayburn bill are
likely to be eliminated. This fact
was generally appreciated at the week
end, and 1t helped revive speculation
for the rise.
The gold imports since the dollar
was stabilized around So cents have
reached q sum In excess of half q
billion. This has again thrown the
international gold situation out of
gear.
tcopyrisht 1884. by the North American
Newspaper Alliance. Inc.)
HOSIERY SALES LAG.