Evening star., 1934-12-16
Iron and Steel Industry
Reports Best Volume
in Five Months.
RETAIL SALES LIFTED
BY CHRISTMAS RUSH
Social Differences Cited in Dawes
Comparison With Nations
Past Depressions.
BY CHARLES F. SPEARE.

NEW YORK, December 15.-The
index Of business activity this week
has moved up to the level Of last
July. For some time now its advance
has been constant.
Likewise the iron and steel industry
shows steady progress, with no in
terruption to its upward trend since
October and with the largest volume
in flve months. Steel scrap prices,
q recognized barometer of trade varia-
tions, are dollar ton higher than
in early November. 1t is officially
stated that the electric power output
for the week Of December was the
greatest in four years.
Reports from different sections of
the country tell of stores crowded with
Christmas shoppers who are buying
merchandise freely and whose pur-
chases are expected to realize a dol
lar value exceeding that of any year
since 1929
It seems rather foolish to attribute
all Of this holiday demand to the
spending of a people cushioned with
public funds. What it signifies is
that the spirit Of confidence in recov-
cry is growing stronger and, as the
public thinks it sees the end of the
depression, it is more willing to draw
on its reserves or to make use of its
current income.
Dawes Words Cheerful.
It is pleasant to read the words OF
former Vice President Dawes; how
profitable the reading may be can
better be told next June. To predict
what may be the economic status of
the country six months hence requires
courage, though it may not reflect
accurate judgment.
Mr.. Dawes rightly emphasizes the
time element in recovery and draws
parallels between the present depres-
sion and those of the past. The crisis
of 1873 ended in 1878. That Of 1893
also ran through its acute phases in
five years. The one beginning in the
Summer of 1929 has been more ex-
tended and more severe than the
earlier two. For this reason there is
the legitimate argument that 1t will
end like the others-with a sudden
realization on the part Of consumers
that they are bare Of essential goods
and must begin to replenish.
There are, however, quite different
social and economic conditions in the
United States and over the entire
world than prevailed in 1878 or in
1898. These may be factors retarding
the return Of business health Of
country that obviously is in mood
for going steadily ahead.
We are not today the homogeneous
people we were IS or SIS years ago. We
are more sensitive of and responsible
to the political and monetary condi-
tions Of Europe and the Far East. The
middle stratum of the business and
professional world, conscious of its
abuse and exploitation in the last gen.
Grafton, is now becoming articulate.
For the first time it realizes its power.
Foreign tariffs shut out our surplus
goods, which moved more freely in the
past and eased down the effects of a
domestic crisis. New political phi
losophies and new economic principles
control in Russia, Germany and Italy.
There Is certain backwash from
them to these shores.
There has been in every depression
some strange set of circumstance
which seemed to offer an insurmount-
able barrier to a return to normalcy,
but in each instance the laws of sup
ply and demand, the inevitable swim
from reaction to recovery, have oper
ated and slow recuperation has bee.
followed by vigorous material health.
or course, there must be a skillfr
physician to prescribe for the chill
fevers, indigestion or skull fracture @
his patient and one who employees tbs
right remedies .or building up de
stroyed tissues. Among those in the
banking and business world who criti-
cize the present administration 70.
Its methods in trying to revive indus
try there Is disposition to forget that
the ills from which we are suffering
were nearly all contracted prior to
1882. The physician now in charge
was compelled to take case that was
seemingly incurable. The patient at
times has been intractable.
The fact that the physician has
been OF another school than his pred
ecessors has made his Job more diff
cult. His regime has been one in
which direct action toward relief and
sympathetic understanding have re-
placed cure by faith or by amputation.
This Is more likely to succeed than
the old method Of treatment which
exalted the doctrine of the survival of
the flttest.
Domestic Outlook Good.
Turning back to the domestic Incl
dents Of the week that give a clue to
later developments Of importance. or
which should hush up rumors. OF i'm
pending unfavorable events, we find
them In several directions. Senator
Fletcher, chairman of the Senate
Banking Committee, has committed
himself this Winter to a policy Of let
ting banking legislation stand. This
eliminates the prospect for a central
bank, which has been a disturbing
factor. Secretary Of Agriculture Wal
lace, In his annual report, writes of
the uselessness Of trying to raise farm
incomes by greater restriction of out
put. Jesse H. Jones, chairman of the
Reconstruction Finance Corp, says his
agency will continue to be helpful to
the railroads, but that those in need
Of reorganization should get about this
work before it is too late.
The Federal Trade Commission has
added another Illuminating chapter to
the history Of public utility holding
companies, which all investors in the
securities Of power and light operating
concerns should read with satisfaction.
Amendments are to be made to the
securities exchange act that will
assist In the refunding of large
amounts Of high coupon mortgages
and debentures.