The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1935-04-23

opments.
~ Perhaps an
- NV - average of Sc
Lewis Haney lected indexes
of industrial activity would
show small up-turn for the
week, but more as rebound
from the rather sharp reaction
of the preceding week. 1 would
say that the underlying trend is
still moderately downward, and
that activity is likely to work a
little lower, until the President
begins passing around his four bill
lion dollar fund.
Steel production held with
little change. Automobile pro-
duction continued to fall behind
the normal seasonal gain,
though increasing somewhat.
Cotton manufacturing showed
further curtailment, as did
lumber manufacturing, consid-
cFlHg Luc ScdSOH.
Railway carloadings recovered
partially from the slump Of the
preceding week, but show gen.
eral sagging trend.
Most indexes of industry are
below a year ago, automobile pro.
duction being the outstanding ex-
ception. In fact, even the volume
of bank checks reported last week
fell behind last years figure.
Trade was distinctly spotty, and
all indications are that April de-
partment store sales, after allow
ance for normal Easter gains, will
retreat from the March peak.
This will be attributed to unfavor-
able weather.
Much the same mixed condition
is found in commodity markets,
but the average was probably on
the doWnside. Corn, sugar, hides,
cotton goods, lead, and gasoline,
were up. Cotton, silk, burlap,
rayon, silver, tin, steel scrap, but
ter and lard, were lower.
A price war broke out in auto
mobile tires, inventories having
become excessive.
Meanwhile, fresh evidence of
the excessive supply of "credit"
developed, with money rates
marked down to nominal figures
in New York, and the Govern
ment taking further steps to
substitute lOw-intereSt bonds for
the Az war loans.
The net result is that the
Government is milking the
credit cow which it has raised.
1t saves few millions in
interest, while it spends billions
and adds billions to our debt.
On top of the four billion for
work relief" a soldiers bonus
compromise is now making pro-
gress, and will add another billion
or two to the financial strain.
The social security" bill Just
passed by the House will in a
few years require additional
taxes of some $500 billions,
and will eventually require the
accumulation of 80 billion
fund for old age donations.
The Townsend plan was over
whelmingly defeated, showing
that the nation has not COM
pletely lost it's senses.
Furthermore, there is growing
evidence of revolt against the New
Deal industrial planning schemes,
notably AAA and NRA. Both cot.
ton growers and manufacturers
are rebelling against the folly
which is destroying their markets.
Governor Talmadge, of Georgia.
is openly criticising the New Deal
regulations, and Ex-Governor Muir.
ray, of Oklahoma, says he is right.
Add to these symptoms, Huey
Longs Louisiana empire" and
one may wonder if the solid South
is going to be solid for the New
Deal.
It seems to me that from now
on, we are likely to see less dras>
tic regulation and planning for
industry by the New Dealers.
and more spending and "Stimu-
latiOn."
Money has been made so
cheap that little is to be gained
by holding it. The Administra-
ton, with its control over the
banks (which is likely to be
greatly extended by the pending
bank bil) is in a position to fl
nance its deficits with no diff
Guilty. An election is coming.
The New Deal leader will ask
himself, why continue to hold
back initiation by drastic and
irritating regulations? Then, at
last, initiation NAV break loose.