The Washington times., 1935-02-05


be reached by
March. ~
Last week, Lewis HaneS
steel production climbed to about
Sc per cent of capacity. This
chiefly reflects active automobile
production. and good operations
by farm implement and can
manufacturers. Motor production
failed to make the gain usual at
this time Of year, but that means
little, since this year it has merely
been having its seasonal" squirt
q little out of season.
Lumber and cotton cloth pro-
duction were really backward, the
former being much below a year
ago. Cotton mills are hampered
by high raw cotton prices, as
compared with the prices they
can get for most yarns and
cloths.
The least favorable data,
however, are the railway car
lOadings, which declined more
than seasonally, and again fell
below a year ago. This is
partly due to billiards., but it
Is obvious that industry has
been running at a production
rate which is in excess of the
rate of shipments.
Retail trade was naturally
retarded by severe weather.
Another factor TO be remem-
bered is the lateneSS of Easter
this year. The sales tax factor
is also disturbing. Apparently
the approach Of the Ohio State
sales tax drove in some antici-
patOry buying, while the exist
ing New York city tax slowed
up trade in that center.
Commodity prices sagged last
week. The weather retarded de-
liveries. The gold clause situa-
ton made buyers hesitant. The
failure of an important COM
modify trading house in London
hurt some international COM
modities. So while foods (nota-
bly, butter and canned goods)
rose, such commodities as shellac,
pepper. silk, silver, and wheat
were lower. Lead and cotton
cloth were weak.
We certainly need badly some
certainty in monetary matters,
so that buyers will not have to
make a gamble on the dollar a
part Of every transaction.
Some interest attaches to the
question whether bank deposits
have begun to go to work. The
volume Of checks drawn Ger.
tainly increased more than
SeaSonally in December and
January, and this increase was
greater than the gain in de-
mand deposits. 1t seems fair
to say that the pressure Of
record excess reserves and low
money rates has had some
effect, and that financial &C.
tivity shows q little stimulation.
At that, however, the deposits
are being turned over only about
23 times per month, which is
very low. Moreover. it is less
than a year ago. The increase
in January bank debts over last
year is not in proportion to the
increase in deposits.
At Washington there is con.
fusion and delay on all hands,
Congress as a whole seems to be
less radical than feared, but is
very new to its job, and very
much in doubt as to what to do.)
Nobody seems to know what
to do with the NRA and it's
price-fiXing and labor provisions.
The social insurance" bill is
q vague mess, and its financial
provisions are thoroughly in
adequate. Delay is certain, and
meanwhile some State legisla-
lures will have gone home, so
they cannot act.
The $4,SSO,OOO,OOO "work re.
lief" bill is being forced through
by pleas that it carries needed
direct relief for the immediate
present, but the Senate is
wisely doubtful concerning the
gift Of a blank check for four
billion dollars to the Admins
tratiOn.
The defeat of the President on
the World Court proposal, en-
phasiZeS the falling out among
radical elements, and the situa.
tion is further mixed by the grow
ing disaffection of organized
labor regarding the codes"
Some sort of a third party CO.
alition embracing the various
"Soak the rich and share the
wealth" elements is possibility.
This would probably throw the
balance Of power further to the
radical side, although eventually
it might weld together the un.
organized majority of people in
this country who are at heart con.
servattve in the best sense of the
word.
NAVAL STORES