Evening star., 1935-05-31

Perhaps some N. r. A. enthusiasts
would rather take the July figure for
the purpose of measuring N. r. A. &C
complishments They are at liberty
to claim a better showing for the
Blue Eagle in that way. but, Of course,
basically the July situation was arti-
fetal
You may trace for yourself the
prem. R. A. business situation,
and the fluctuations since its in
duguration, in the chart uhich
tollows All figures are Official,
ercept those OF the last month.
uhich are uno6ic1ally estimated.
Each figure represents the percent
age of normal existing at the times
stated. Seasonal fluctuations are
eliminated. Normal is the monthly
averages for the years 1928 to 1928,
inclusive, except for the price index
which is based on 1925.
You may also note from the chart
that business this Spring continues
to show slightly less than the normal
seasonal mprovement-the May stock
market to the contrary notwithstand-
ing
The general level of production,
employment, wages and sales is about
the same as at this time last year.
Only one feature is strongly improved,
prices. However, prices involved Spe-
cial situation rejecting the condition
brought by last years drought. Gen.
eral business prices have undergone
little change recently.
Prospects in Fog.
Few economics authorities will be
foolhardy enough to make any prom
ises about the next few months. The
situation seems to be entirely in the
hands of the administration. The out
come depends entirely on how the
New Deal readjusts the details of its
economic policies.
In general, aside from the all-im-
provement Washington situation,
there is nothing particularly signifi-
can't in the existing business condi-
ton; nothing to be pessimistic about;
nothing to cheer about. Some author
tiles expect a boom; others are an
ticipating a milder improvement.
The failure of industrial produc-
ton to measure up to seasonal expec-
tations may be traced to several spe-
textile production is one. Another is
the fact that coal consumers stocked
up in expectation of strike April /
and coal loadings have been subnor-
NAL since the striked failed to ma
terialize. Lumber output was cut by
a recent strike in the Northwest.
The leDel of other manutactur-
ing generally continued at about
normal Plate glass, tobacco and
shoes shotDed some increases.
The bellwether automobile industry
was strong in April, but fell off in
May due to the strike The output for
one week in May was ITO. In dropped
to 81 in the strike week. Steel figures
shortly to be announced for May will
probably establish a new low for the
year. Textiles have lately been show
ing some new signs of life. A sub
stantial increase has been noted in
rayon, cotton is slightly better, wool
activity is keeping up.
Price Comment.
There is no use trying to measure
what the N. r. A. did to prices. Too
many other factors are involved. 1t
Is impossible to segregate what in
fluence was exerted by N. r. A., money
policy, the drought.
But you can say fatty that farm
and food prices continued to increase
from March to April, while the level
of all other prices shrank almost i'm
perceptibly. Farm prices jumped up
to 804, food to 84.5. while all others
Jagged at 77.2. This condition con-
tinued basically unchanged through
May.
Cast your eye on the building figures