The Washington times., 1935-11-05
EXPECTED
TO REMAIN BULL|SH
Until ELECTIONS
BY LEWIS HANEY
Professor of Economies, New York University

Current reports indicate that little change occurred in busi
ness activity last week The indexes show If the en-
phasis placed upon automobile production and electric
power consumption these difficult interpret. We
do not yet what extent the motor companies
just doing of the business that they would usually
do spring Electricity largely used for household
consumption that it does not tell much as to industry
Furthermore in reading the Ofepeated statements to
how much we above "a year ago., must remember
that in October, 1884, the bottom of bad
slump that from May September last year. Con-
siderng the season. railway traffic and steel production
not up to the high points touched early this year.
Business has been lul for about three weeks Un-
seasonaby weather has slowed up retail trade The
spurt has died down The delay and mess in the
New Dealers WPA spending scheme has not helped There
is tendency to wait to how the automo
bile season will work out
But this lul probably only temporary The weather will
change and the New Dealers won't They will pass around
enough currency enable voters to buy the desired auto
mobile We definitely count the Presidents s
claim that we coming back to force enough spending
to make business good until election time.
So if that far ahead you want to look should
be "bullsh.'
Briefly the facts follows:
Last week steel production held the preceding weeks
but slated for little seasonal letdown this week Buying
by automobile manufacturers is still small Evidently
nearly enough make the required
stock Dealers cautiously waiting actual sales
before buying much steel But the miscellaneous steel demand
good and has been helped by squirt in tin plate production
largely to make the beer cans which to be big
Steel production likely hold present levels
the of the with
next year.
Cotton textile manufacturing active and rising
wardng of cotton domestic mills last week the largest
In several years.
Building permits appear to have gained As least several
sections report large increases.
The least encouraging item in weeks statistics the
oadngs report The number of freight loaded de-
Cned than seasonay and the largest decline in
miscellaneous freight"
Retail trade reports very spotty and wholesalers have
begun feel the slowing Bank debts declined last week.
But this condition will pass with seasonable weather and
creased distributions of Government funds.
For three weeks now, wholesale commodity prices have
averaged lower. Last week, the decline led by corn
and hog products Hides silk and pine lumber also reacted
But iron and petroleum prices marked up ad-
occurred in rubber cotton wool ops paper board
and rosn.
The New Dealers potato puch is taking effect and po-
taoes in prices We will how Professor Tug
wells workers Gin cites) will like this of cooperation
with their comrade farmers.
1t begins to look if prices will have rise because Of
increased costs Labor and fuel
Now up, and it looks steel will be advanced
next year Hides high that shoe prices edgng
With rubber and cotton up, how tires stay down?
The way the game is being played first make things
scarce or raise the cost of production Then
give currency to people to buy with But the farmer
sales dollar And the finds living costs so high
that after he has bought his automobile bacon he finds
little left for football and he re higher shoe prices