Evening star., 1934-05-27
Politics and Drought Get
BIame-IndustriaI Indices
Mostly Favorable.
ALARMED BY DECLINE
IN INVENTORY VALUES
Retailer, Wholesaler and Manu-
facturer Fail to Share Optimism
Over Imitation Propects.
BY JOHN A. CRONE.
'ecial Dispatch to The Star.

DI JOnN n. NhONE.
Special Dispatch to The Star.
NEW YORK, May 26.-Politics and
the drought continue to be blamed
for the uncertainty now gripping most
sections of the business world. Lead
ing industrial production indices, for
the most part, are favorable. Retail
sales in many sections improved as
for their holiday.
Buyer arrivals, for the sixth sue
cessive week, declined in primary
markets. This trend, along with
fewer orders from road statesmen and
through the mail, explains lessened
wholesale purchases. The unsettled
price outlook for commodities and
finished goods appears to be reason
enough for merchants hesitancy
about placing orders.
Although Washington and Wall
Street agree that imitation Is on the
way, this opinion Is not shared by
the retailer, jobber, wholesaler or
manufacturer who has seen inventory
values depreciate in the last two
months.
The drought has and will curtail
purchasing power over a large region,
which, fortunately, can depend for
sonc Of its relief on the National
Government.
Failures Again Drop.
Failures during the week took
another decided drop. Bank clearings
were 10.7 per cent higher than last
h,rS tka fry-
any week this year since the closing
holiday week of February. Food prices
show an average gain of cents dur
ing the week, but commodity prices
generally continue unsettled, with such
items as hides, burlap, rayon and some
types Of cotton goods reduced.
Some of the major industries, such
as automobile and steel, expect les
sened operations over the next month.
This is why such industries regard
labor threats with equanimity. The
heavier industries expect fewer book
ings over the next 80 to go days and,
in some instances, predict reduced
quotations
The cotton mills are to 90 on a
Is per cent curtailment basis early In
June, because Of sales declines.
while a period Of curtailment is
at hand for many manufacturers of
consumers goods" according to the
national weekly business review Of
Dun & Bradstreet, Inc, "the rate of
| operations in many divisions during
the Summer months will be main
tanned at present levels by the ad-
ministration's plans to accelerate the
- {-9x
through the large-scaie building pro-
gram. OF the estimated 5000 900
now unemployed, nearly 5,00o, 900 for
merly were employed in the produc-
ton Of durable goods and 2,500, 900
in the construction industry"
N. r. A. Attacks Shelved.
cas- unquestioned proof abundantly
| Is in evidence that the unmatched
progress of the last IL months has
been made possible by the relentless
efforts of governmental agencies, cur
rent criticisms of the N r. A. gen.
orally are considered as rather pre-
| mature and decidedly out of order,
| as distributors and manufacturers
really have been given no opportunity,
| as yet, to operate under the various
codes as freely as the law intended
they should.
This Is attributed to the excess
sive amount Of time being wasted in
discussing theories and to the indif-
ferent attention given to answering
requests Of code committees seeking
permission to proceed as the law pro-
| vides in matters of regulating pro-
| duction and competition. In view of
the benefits which have been spread
over such q wide range Of indus
| tries any comments on the value or
workability of the N. r. A. should
be withheld until complete and
thorough application Of its various
provisions will have been made.
Plans now under way to eliminate
some of the acknowledged unfavor-
able provisions, particularly those af-
| fecting small business, viii produce
the desired improvements. without o
departure from the fundamental re-
covery principles, and thus will serve
to strengthen support for policies Of
industrial regulation"
Industrial production declines were
registered in steel, motors, bitumi-
| nous coal and crude oil, but lumber
output increased, though its orders
declined and stocks increased.
Wearing apparel sales were stimu-
lated by the Memorial day holiday.
Summer furniture, rugs. household
electrical appliances, protective COW
erings for furniture and garden equip
ment and tools formed such an i'm
pressive bulk Of purchases this week
| that the decline in some other de-
| partments were Offset. OF course,
trade in the drought area further
/! declined, with buying spotty In other
1 territories.
(Copyright, 1e341