The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1935-05-14

what lower
levels.
Lewis Haney More favor.
able indications as to the flu.
ture are not lacking, however,
and it does not seem likely that
the current moderate recession
will carry back to the low level
Of last fall.
For example, steel scrap
prices have stabilized and
shown recovery at some points.
Trade reports indicate further
improvement in demand for
machine tools. On the whole,
though spOtty, some real gains
appear in residential building.
Figures for week ago indicate
that the decline in steel produc.
ton was checked. This is prob
ably due largely to government
awards. but tin plate production
and activity in tractor manufac.
turing are large.
One of the least ENCOURAGING
indications is the evidence that
automobile production and sales
may be about to slump. Last
week the output was rather
sharply reduced, and while
strikes had something to do with
this, it appears that retail sales
have begun to lag and the
usual indications of congested
used car" situation are not
lacking.
On the whole, cotton textile
curtailment continues, and de-
mand is low, but this is now
largely seasonal.
The slight gain in the season
ally adjusted index of railway
carloadings is not significant,
and the figure is much below
a year ago.
Retail trade was spotty, and,
taking the country as a whole,
has been distinctly backward.
Unfavorable weather conditions
have affected buying, but the
general atmosphere of uncer-
tainty, labor unrest, and the
higher cost of living are chiefly
responsible.
Wholesale prices averaged
higher last week, the weekly
averages approaching closely the
high point Of the year that was
touched in February. There
were advances in zinc, tin, steel,
scrap, foreign copper, rubber.
hides, cotton, meats, lard, cocoa
and gasoline. Grains and silk
were a little lower, and cotton
goods were weak.
On all sides, one gets the i'm
preston of mixed and uncertain
trends, both among trades and
among sections. Perhaps this is
not an unfavOrable symptom in
q declining phase of business,
since it may indicate a tendency
to stabilize. But one could wish
for more certainty at Washing
ton and the establishment Of
sound and definite monetary
principles. As long as fears Of
initiation and unstable monetary
and banking conditions prevail,
business Is bound to be unsettled.
We find at Washington a Con-
gress which is radical as to infla'
ton, but inclined to be relatively
conservative on socialistic IRE
forms" On the other hand, Mr..
Roosevelt is inclined to hold back
on direct initiation. and be radical
on social reforms"
Thus Congress votes an infla.
tionary bonus bill to which Mr..
Roosevelt objects. But Mr.. Roose-
Velt pushes social security" and
utility holding company bills,
about which Congress is dubious.
Probably the result will be the
usual sort Of politician-like COM
promise, and we will get most of
The must" bills, together with
nflationary measures. (These
after will easily be regarded as
Useful in providing means Of
financing" the debt required by
he reform measureS).
After all, Government spending
and debt lie at the bottom of
nflation. It does not make
great deal Of difference whether
We finance" the New Deal expert.
nents by means of honestly dis
honest greenbacks. or by means
# the disguised dishonesty of in
lated bank deposits based on Gov
debt.