The Washington times., 1935-04-02

| This fear has
| w led many to
A''N>' speed up in or.
Lewis Haney der to have
stocks on hand in the event Of q
tie-up.
Another is the fact that the pre-
ceding squirt in production was not
carried to such eXceSseS as those
in 1888 and 1884. Still another is
a small but growing hope that re.
sistance to New Deal radical ex.
periments may become more effec-
tive.
Last week, steel production re-
ceded a little further, but the
reaction seems to be tapering
off somewhat, and the current
steel output is not far out Of line
with the current requirements
of consuming industries.
It remains true, however, that
normally heavy consumers are
buying little steel, and that the
demand comes chiefly from mis-
cellaneous light industries, agri.
cultural implements, and tinplate.
The automobile producers are
turning out over 100000 cars q
week, but are not showing the
further expansion usual at this
season, nor buying much new
steel. They seem to be at or near
the seasonal ceiling"
Lumber and cotton textiles
show little change. The latter
industry, however, is suffering
from over-production, and curtail.
ment is in process.
Carloadings Spurted a bit, but
entirely on account of coal ship.
ments, which were undoubtedly
made to insure against a coal
strike.
! Wholesale prices averaged
higher, recovering to about where
they were two weeks ago. Several
world-market commodities rose
with the pound sterling. Grains
firmed up on renewed evidence OF
drought in the West. Even steel
scrap, though lower, declined at a
less rapid rate.
The serious dust storms in west.
ern Kansas, Nebraska, and Okla
homa, and in eastern Colorado,
have seriously injured winter
wheat and hurt pasturage for cat
tie. The dust may add fertility to
farms in Iowa and Missouri.
Rains in the Northwest have been,
helpful. But no general farm
prosperity is likely this year.
Reluctantly, by S to 4
ruling, the Commerce Com
mission has authorized some
railway rate advances, eSti-
mated to bring in $84,OOO,OOO
revenue. This hardly offsets
the Step-up in wages for rail-
way labor on April /. Mean
while, schemes for solving "the
railway problem" make no pro-
greSs. The Eastman proposal
are practically dead. We are
drifting toward government
ownership of railways, and the
probability that the railway =
| deficit will be sadGjad npcu
/! the taxpayer, alorys with III"
Post Office deficit.
In the news - ne Ueek Was a
| statement by u Sc JoHe5. head.
of RFC, tha1'.4. .qoo}A Ike we
are in the oT {3y DusAess" as a
result of # 4ng to ftake over,
companies ~. which 'sel '.quid.
ating" lo3as have been made!
Under the work &e-iei scheme
to spend $48 blio. arm lands
are going "a oe b04ght for ere
habilitatiou At rof. Tugwell's
direction.
The work relief program is
going to turn into a sort Of
CWA. The CCC is to get twice
as much money as before, and
this work army of young men"
will be expanded.
Thus the Federal Govern
ment, from being largest
banker in the world (RFC),
may develop into the largest
farmer, the largest utility
operator, the largest railway
owner, and the largest en-
pIOyer of labOr-Outside of
Russia.
This is one sign of National
ism" Another is the 20 per
cent devaluation of her currency
by Belgium. Another is our
move to provide bounties for
farm exports (to be financed by
processing taxes and tariff
duties) as an amendment to
the AAA.
Gradually throughout the
world here is developing a con-
dition of international economic
conflict among internally "regi.
mented' nations, each with its
own managed currency" In
many ways, we are being dragged
back to conditions Of two
hundred years ago in the days
of "mercantilism."