The Washington times., 1935-06-18


crop pros
S poets are better
-, and hot weather
Lewis nancy has stimulated
seasonal retail buying. Some gain
in residential building activity
continues to be reported. But this
does not seem enough to cause one
of those spurts which has marked
each of the preceding New Deal
rallies in business.
The latest figures available at
this writing show steel production
off a little further. A week ago
the percentage of capacity had
fallen to 80, which is hardly
enough for profits. There is still
some hesitancy about prices, on
the part of buyers. Tin plate out
put is down, and consumers are
heavily stocked. Purchases by the
automobile trade are more spotty
It is notable that the steel scrap
market has weakened perceptibly
The automobile industry re-
mains in the shaky position to
which 1 have referred in past
analyses of business. Motor pro-
ductiOn increased more than
SeasOnally a week ago, but this
squirt is unlikely to last. On the
whole, automobile dealers arai
uncOmfOrtably stocked. With
the used car situation as it ID
trade.in allowances are now
likely to show price c0ncessiOns,'
and lead to cutting. While this.
in turn, might stimulate buying,
/ doubt much increase.
The plans for an earlier than
usual showing of new models may
result in confusion, now that
NRA is legally gone.
Lumber production gained. Cot
ton textile production declined
and the shoe industry is dull and
affected by difficulty in getting
higher prices. Flour sales are
off.
OF course, railway car loadings
have been climbing. Unfortu
nately, however, this is largely due
to the fear of coal strike, which
has shot coal production and ship
ments up to unreasonably high
figures.
The week brought the good
news of truce in the coal labor
conflict, but the situation remains
strained, and apparently peace
hinges upon the passage of tho
Guffey bill, which is another un
desirable New Deal measure and
of doubtful constitutionality. Tho
Wagner bill is also slated to Cd
through. In general, the labol
situation remains threatening.
Retail trade has recently run d
little above a year ago. In most
sections, and especially in tho
East, it is nothing to write home
about.
AS to commodity prices, the
wholesale averages show a decline
to the lowest level in several
weeks. The main declines came
in grains, flour, meats, and eggs,
with raw cotton, cotton cloth, and
worsted yarns also lower. Coke
ard steel scrap weakened. Tin
hides, and rubber, showed tho
chief gains. The better grain
crop prospects and the large
Canadian supplies, depreSse
wheat. Doubts as to continuing
the 12-cent loan policy held cot
ton down, despite a squirt on
Senator Bankhead's chatter about
Is cents.
On the other hand, gold CON
tinued to pour into the country
bringing our total up to nine biz
lion dollars. The banks excess
reserves are climbing. Money
rates are almost zero.
Why doesn't money and credit
go to work? Why do loans remain
so low?
doubt and uncertainty, are
the answer. Those must" bills
are looming up. Mr.. Roosevelt
has pounded the table, and,
with the aid of his power to
distribute billions of "wOrk re-
lief" funds among congressional
districts, these bills will prob
ably go through. They include
the utility bill, the Wagner bill,
the Eccles banking bill, the AAA
amendments, the social sec
urity" bill, and probably the
Guffey coal bill.
No wonder business dragS!
Even initiation doesn't work.