Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-09-15
Improvement Substantial
and Declared to Carry EIe-
ments for Continuance. .
broadcast FALL BUYING
SINCE 1890 PREDICTED
Increased Iron and Steel Produc-
ton and Carloadings Among
Many Encouraging Signs.
BY CHARLES F. SPEARE.
oecial Dispatch TO The Star.


this week confirming the fact of
business recovery. 1t comes from
many industries and from widely
separated sections of the country.
Specifically, it includes the rise in
iron and steel production to 52l2 per
cent of capacity, the highest since
February: a IL per cent gain in cleo
trio power output over that of year
ago; railroad car loadings up per
cent and bank clearings 73 per cent
ahead of this week in 1884; retail
trade running above the dimensions
of August, with some of the luxury
lines showing nearly a 100 per cent
increase: national distributors doing
20 per cent more business in August
than the year previous; General Mo-
tors showing the largest sales in
August since 1929, and numerous mi
tial and increased dividends, including
several by public utility operating
companies that had been compelled
to defer payments to their preferred
shareholders due to falling gross
revenues and rising taxes.
Improvement Is Substantial.
The improvement in business is
substantial and appears to have those
elements OF naturalnesS necessary to
insure its continuance. 1t is the
belief of students of this situation
that the Autumn will witness the
broadest buying movement since 1880.
There Is a stirring in the capital
goods industry that reflects the need
to replace materials and equipment.
on the one hand reduced to small
volume through years of low pro-
duction and low buying power and
on the other hand because of worm
out machines rendered inadequate
by the changes in manufacturing
methods effected during the depres-
sion. The estimated cash income
Of American farmers this year is
Sc, 700, 900. 900. the largest since 1890
This is the basis for a considerable
part Of the prosperity which the
country enjoys and from which 1t
expects to realize a growing volume
Of trade.
JobIess Ranks Thin Slowly.
The fly in the ointment Is that,
with recovery so striking and persist
ent for several months, until more
than half of the decline in the bust
ness index from 1929 to 1882 has now
been regained, there should be so
little reduction in the number of the
unemployed and so high a proper
ton Of the families of the country on
relief. In July there were over TO-
100000 out of work The total rose
in that month in contrast with a drop
in England, Germany and France.
The August figures will reveal a better
situation in response to a pickup in
iron and steel, in the building trades
and in certain factories in the East.
The need continues for supplement-
ing the earnings, or reserves, of over
100000 persons with State or Fed
eral relief. And there is little pros
pect of important change in this sit
uation. For, in spite of the fact that
building activity is more positive and
construction records for August run
much ahead Of last year, the effect of
this on employment is not satisfac-
tory. Our foreign trade, which gives
work to nearly a third of the wage
earners Of the United States, is in an
anemic state with exports only about
40 per cent of those in 1929.
Work Relief Program Stalled.
The work-relief program is more or
less stalled. 1t is doubtful If it will
ever be an effective instrument for
curbing unemployment in the degree
claimed for it, for political opposi-
ton to many legitimate projects Is
intense.
1t is now generally admitted that
there are conditions in industry that
permanently compel a large number
of men and women to retire from the
ranks of wage earners and become
dependents Of the state. Business
developed new ways of economizing
in labor costs in the stressful years
since 1929 and with more skillful
management and new machines has
cast several million workers on the
human scrap heap. This compels a
social security program, conservative
~ projected and administered, that
meets the pattern of new economic
era in this country.
Stocks Push Ahead.
The impact of manifold evidences
of industrial expansion on the market
for common stocks has been pro-
nounced this week. 1t Is four years to
a day since the average of industrial
and railroad stocks corresponded to
that current. In six months there
has been a rise of 40 per cent in this
average. In duration and in the
scope Of the recovery, the March-Sep-
TENDER period of 1885 has no parallel
in the six years since the panic of
October-November, 1929.
In general, the bond market has
followed the course Of stocks. There
has been a recovery in the high
grade list of corporation bonds and
and more resisting ap-
pearance to the United States Treas
ury list. Improvement has also &C.
Cured in number of the new is
sues that were friendless two weeks
ago. And the improved state Of the
market is further indi-
Gated in the frequency Of real estate
purchases and the willingness Of in
stitutional lenders to enlarge their
portfolios of mortgages on real prop
erty.
This latter phase of the securities
situation reflects the state of the
money market, which is again being
flooded with European gold.
(Copyrieht. 1885. By the North American
liar kTNR