Evening star., 1935-11-25
GOOD TIMES VIEW
. =GA|NS IN CAPITAL
Major Shift in Psychology Is
Reflected in Labor "8oom" /
Warning.
By the Associated Press.

BY the Associated Press.
The words coming BOOM" uttered
distinctly even if cautiously. by the
American Federation Of Labor, called
attention today to major shift OF
emphasis that has taken place in the
Capital almost overnight.
Many of the announcements that
stream from Washington presses and
mimeograph machines, official and
otherwise, show change from de-
preston psychology to a better
times" psychology.
Government reports, like the A. F.
of LIS and others, stress indices Of
better business. Officials who, only a
few short months ago, spoke mostly
of ways to combat the depression, now
talk of methods of controlling expan-
sion. Mariner S. Eccles, Federal
Reserve Board governor, speaks of the
boards adequate weapons" to con-
troll credit and prevent runaway
stock market"
Two Views as to Cause.
Concomitantly, politicians and eco
nomics commentators fall into argu-
ments as to what caused the better
business. One view, vigorously voiced,
is that New Deal spending and other
policies pulled the country through.
Another, upheld just as vehemently,
Is that natural forces are bringing re-
covery despite New Deal measures. 1t
Is an argument that appears destined
to go on for long time, If not
forever.
The A. F. of LIS report, published
today, said there probably would be a
business and industrial boom within
the next few years" At the same
time, the Federal Reserve Board said
maintenance of business activity at
near the years peak has been "the
outstanding fact in the economic sit
uation during the first 10 months OF
1885"
In the three preceding years, it en-
phasized, business advances were
quickly followed by sharp declines"
Unemployed Still Problem.
According to some predictions, how
ever. unemployment appears likely to
be the ghost at any recovery banquets
held in the near future. Though sew
eral indices show gains in employ
ment-millions are still out of jobs
Just how many millions is a matter in
some dispute in the absence of official
figures.
The A. F. of L. took the stand that
another depression would follow the
next boom "as surely as night fol-
lows day" unless working hours are
shortened and wage earners get a
larger proportion Of industrial earn
ings.
Another pronouncement dealing
with business was issued by the Ma
tional Association of Manufacturers
in the form of a committee report
opposing curbs on production in in
dustry and agriculture. 1t recon-
mended fighting resistance to any new
attempts by the Government to reg
ulate wages and hours.
THE true abundant life can be sup
ported only by abundant production
Of the things that enrich the lives Of
all," the report said.
Remarks Stress Confidence.
The A. F. of LIS discussion of the
coming boom" was prefaced by these
renerks:
with this Falls industrial upturn,
business has regained greater meas
ure of confidence than at any other
time since the depression began.
The upturn has reached a higher
level than anticipated. Standard Sta
tistics' estimate of industrial produc-
ton for November, first set at 746
per cent Of normal, has been revised
upward to I'll per cent. This is the
highest November since 1929, and IA
per cent above November last year"
Major shortages in durable goods,
such as houses, automobiles, machin-
cry and railroad equipment, were
found by the federation to be setting
the. heavy industries to work. The
Federal Reserve Board also empha-
sized that production increases were
''cnief1y in industries producing
durable goods"
The board added that the total
volume of employment was slightly
higher than a year ago and substan-
TALLY above the lowest level of the
depression" 1t numbered wage earn
ers employed at factories during Sep
tember at about 100000, as COM
pared with a low of 100000 in the
Spring Of 1888 and high of 100000
In the middle Of 1929"
Profits Held Growing.
Stressing rises in automobiles, build
ing materials, machinery and elec-
trical equipment, the board said in
dustrial profits, as indicted by re-
ports of large corporations, were larg-
er in each of the first three quarters
of 1895 than in the corresponding
periods of last year.
Likewise, the A. F. of L. estimated
that profits Of 1900 corporations
which made more than half of all
industrial profits in 1888 would be
IS to 40 per cent greater this year
than they were last. It added:
Production will increase, lifting
with it profits, such a boom will
probably develop within the next few
years.
ITO shorten hours sufficiently and
increase production enough to put
the unemployed to work we must
have trade union organization through
out the country strong enough to set
standards for hours and raise workers
buying power far above 1929.
Depression abroad has swept ma
tions into Fascism. If we want to
avoid similar fate in this country.
we must be ready before the next de-