Evening star., 1935-01-13
BUSINESS KEEPS
EYES ON CAPITAL
Roosevelt Plans and High
Court Decisions Given
Close Attention.
Special Dispatch to The Star.

CfCSioA oAopdtth W 4iC oeoAs
NEW YORK, January 12.-While
industry is putting on its motor and
shoe shows, its food and retail con-
ventions, Washington Is staging a
little performance of its own, Business
Week declares in its issue today. The
Presidents prologue speeches to Con-
gress were so well anticipated that
they caused very little surprise" it
continues. "The Supreme Court dis
patched the oil case with virtual un-
animity, sheared the powers dele
gated unlawfully to the President and
restored them to Congress. 1t is now
engrossed with the important gold
clause test. In addition, the capital
is the center Of the price-f1xing con-
ference, first shot Of which fell in the
soft coal industry, barring price-cut-
ting on future deliveries.
Business will probably not relish
the definite failure to balance the
budget in 1885, and the decision to go
full speed ahead on public WORKS
program to absorb the unemployed.
But, in November, 1884. 38 out of 90
manufacturing industries employed
fewer persons than the year before.
The unemployed still exceed ten mil
lions. In such a situation, the admin
istration move was inevitable. Chief
grain of encouragement was the be-
iet expressed that taxes need not be
boosted, that increase in business VOL
une would bring in additional revenue.
Motor Firms Confident.
"Motor manufacturers are confident
that public reception of their 1885
presentations will insure a market for
3.3 million cars this year. With mod
crate improvements, coupled with
prices that are about on a par with
last year, the outlook is promising.
Moreover, the prospect Of better earn
ings this year based on lower pro-
duction costs seems brighter. With
the customary difficulty OF getting
materials and parts together, the in
dustry might fall short of the 100000
cars scheduled for this month. But
1t does not hesitate to place the
February output at 100000 units.
Apparently even the threat of labor
difficulties is fading with the realiza-
ton that labor ranks are split among
themselves.
steel production in December, like
many other business indicators, was
SO much better than anticipated that
the gain of the year has been raised
somewhat above preliminary esti-
mates. Operations averaged 35 per
cent of capacity, bringing 1884 ton
mage to 25.3 million tons compared
with 226 millions in 1888, a IL per
cent improvement. The current rate
is above 43 per cent of capacity. and
points upward, under the combined
drive of automobile, farm equipment,
and can manufacturers, together with
some business from railroads. The
roads are reported to be planning ex-
penditures of S65,000,000 in repairing
freight cars this year. condition
ing orders were 100 per cent larger in
November, 1884, than the year before,
and 81 per cent ahead of the IL
month totals of 1888. This reflects
the situation of one of steel's miscel-
laneous customers. Refrigerator manu-
factufers are also busy. several of
them having doubled working forces
since early December.
Power Production Higher.
Power production started 1885 at
ahnuo
the same week of 1929, spread that
stands a good chance of continuing.
In fact, the preliminary report on
national power indicates that there
are sections in the country where
capacity to generate Electricity may
fall short of the demand when nor
NAL industrial activity is resumed.
The copper industry looks to some
expansion Of this market in 1885,
one of its former important outlets.
December check transactions were
also larger than anticipated, with the
Eastern industrial districts showing
signs of revival The Cleveland Re-
serve district was SO per cent ahead
Of 1888: Chicago. % per cent; New
York. II per cent; Boston, IA per
cent. Dallas was only per cent
ahead of last year, the lowest of the
list, while the 141 cities as a whole
were II per cent above 1888. The
first week of January, 1885, found
check payments in the 140 cities out
side of New York at the highest level
for any week since January 6, 1882.
Commodity prices started the new
year at the highest level since
January, 1881, reaching 77.9 per cent
of the 1926 average. Farm and food
products were mainly responsible for
the gain. These two groups, which
gained 80 per cent and II per cent in
1888 from the lows recorded early in
the year, added 27 per cent and %
per cent more in 1884, and are des-
tined for still higher levels in the
near future"