The Washington times., 1935-05-15

lowing com.
Lewis Haney mentS.
Iron and steel production re-
coded gradually but distinctly
showing a two-month recession.
The April output was below that
Of last year, and the peaks made
in February were much lower than
those attained during the spurtS
in 1888 and 1884.
There is some likelihood that
further recession will be recorded
for May. But I note that the de.
cline from the February peak has
been much less precipitate than
in the earlier Slumps, and blast
furnace activity has changed but
little. Steel scrap prices have
risen. These facts suggest that
the anticipated stimulus of Gov.
eminent spending may sustain
production better this time.
In this connection, there is the
fact that building permits rose in
April, and indicate gains in urban
construction activity this spring.
This gain was particularly marked
on the Pacific Coast and in the
East and South Central areas.
Building permits declined in the
West Central area where the
drought affected conditions.
The permit figures were only II
per cent of the average for 1921.
Is, and the current move resem-
bles that of mid-1933, which did
not get very far.
April estimates confirm the in.
dications that the early automo.
bile squirt has spent itself. The
production last month failed to
make the usual seasonal increase
over March.
Factory employment, as judged
by the figures for New York
State, made a fractional gain in
April-at least up to the middle
Of the month. Strikes in other
sections, however, make this con.
clusion somewhat doubtful.
Employment in New York
was 74.7 per cent of the aver.
age for 1925-27. This compares
with 1872 per cent year ago.
Thus the figure is low, and
little changed during the past
IL months.
One should keep in mind,
furthermore, that factory pay.
rolls in New York were only
62.9 per cent of the average
for 1925G7, and are thus rela-
lively low compared with the
number employed. Evidently,
under the New Deal, the fac.
tory workers have more leisure,
but do not have SO much
money to spend.
Be that as it may, department
store sales took a sharp slump
last month, allowance being made
for the usual seasonal movements.
The Federal Reserve Board reports
the sales for a large number Of
stores as being only "a per cent
of the monthly rate during 1923-25.
This compares with 81 per cent
in March.
The figure reported a year ago
was IT per cent, and the total
sales for the 1885 period through
April were only 3 per cent above
the same period in 1884. It is thus
apparent that consumer buying
(outside of automobiles, etc. has
been backward.
The retail trade figures made
strong showing in the San
Francisco and Richmond (Va.)
areas. They were not good in
Boston and New York areas,
and were very poor in the st.
Louis and Kansas City territory.
Railway freight tonnage in
April showed no Improvement.
It declined from March at just
about the usual seasonal percent.
age rate, so that we may say it
was practically unchanged.
Wholesale prices averaged about
~ per cent higher on May l
than on April /, and were close to
the high point of the New Deal
period.
Money rates eased further, and
bank loans other than those on
securities, were lower at the end
of the month.
Plainly, April was month Of
hesitation and moderate reaction.
People bought automobiles, and
brokers' loans expanded. Drought
monopolies, and speculation.
raised wholesale prices bit. But
the nations business is awaiting
the next New Deal manipulationS
and doles.