The Washington times., 1935-10-29
WARM WEATHER SEEN
TO BLAME FOR LULL
IN RETAIL TRADE
BY LEWIS HANEY
Professor of Economics, New York

Professor of Economics New York University
In general gets the impression from last weeks reports
that business activity showed temporary u but gave nd
cation of any change in the upward trend.
The prolonged spell of abnormally weather has
naturally slowed seasonal buying This is well illustrated
by the fact that in the Kansas City and Dallas territories where
the weather has been COOL business activity has gone right
ahead.
The inbetween situation in the automobile industry also
tends to period of hesitation Perhaps the present
transition from direct does the WPA method giving
relief has interrupted the distribution of Government funds
Certainly the greater hope of European peace has given set
back to war-scare buying and price mark-ups
But there little overproduction The supply of bank credit
is larger than Sentiment bulsh is encour
aged by sustained strength in the stock market The President
has gone record sponsoring business expansion which
warrants hope of breathing spe that will last until Novem
ber 1885, &c. until initiation begins away look for in
creasing activity.
Furthermore the third earnings statements are on
the whole favorable Even the railways showed gains in net
make profits and that is what counts.
Last week. steel production continued hold up
usual for the The increase in automobile production
beginning to help steel demand The demand from rural
territory well established illustrated continued
activity of farm machinery implement manufacturers
Hopes of railway buying for freight renewals growing
While there certainly evidence Of boom the steel in
dustry price stability and sustained volume of production
80 likely to hold the bal
Of the year.
Automobile production increased again, and prospects
favorable One must allow for the change however
and must remember that seeing move which
usually in January and February One result may be
letdown early next year.
Most encouraging the rise in the adjusted index of rail-
way carloadngs This that freight shipments week
ago declined less than usual at this Furthermore
there gains both miscellaneous and lesshancaroad
loadings while coal shipments dropped The total was l4
per cent above the same week last year.
Retail trade has somewhat backward in most sections
for about two weeks this has slowed wholesale bus
ness little but already stated this seems to be only
temporary uu
Similarly commodity prices averaged little lower again
last week The chief factor wheat which declined on
better crop outlook in the southern hemisphere, and the
sowness Of export demand for the large Canadian surplus
Lard and cottonseed oil also lower. But rubber SIX
certain chemicals cotton, and spot were hlgher
fornia crude oil marked up by producer FIG IRON
advanced in the Chicago market
Be that as it may prices going to be gond deal
higher eventually for credit initiation is growing, and no
disposition is being shown to stop it. Mr. Morgenthau IN
commenting on the inflow Of European funds says FINE
MIR Roosevelt in commenting increased business actV1E
saws ne The governors of the Federal Reserve Banks
meet and say nothing but 'Watchul waiting Mr. Eccles
says nothing, because things going as he wishes
You NAV be sure that there will be leup IN Govern
ent spending until after the election next That means
bigger public debt Carried by the banks as an asset
and this is the sure way to initiation.
The cornhog farmers have voted in favor Of
guarantee their incomes for the next four yearsthat
what it comes Of course the New Dealers are graft
fled"