The Washington times., 1935-12-13

Although showing a little loss
Of momentum, the curve Of in
dustrial activity continued to rise
in November. On the whole, the
figures now available for the
month make q favorable showing,
and warrant hopes that the riS'
ing trend will continue.
To begin with, average daily
steel production was up more
than usual for the month, and
this gain was accompanied by
o rise in pig iron production.
Those two related industries were
in good balance, at around II
per cent Of normal"
Blast furnace activity increased
sharply to the highest level since
the fall Of 1880.
While the shipments of the
United States Steel Corporation
were off . little, and this sug-
geStS some stocking Of crude
steel, the outlook for this great
basic industry remains good.
Production Of zinc rose to the
highest level Of the year, as did
zinc shipments. Stocks Of zinc
were further reduced, while un-
filled orders gained. This is a
very favorable indication.
The vital building and construc-
ton industries Jagged trifle in
November, but not enough to
change the good prospects in this
quarter. The decline in building
permits is explainahle on seasonal
grounds. Anyhow, the figure was
the highest for any November
since 1881. Construction of non
residential buildings actually in
creased. Since the volume of the
heavy engineering type Of con-
struction (Which includes public
works. was lower, this probably
means industrial building.
Rents have been rising and have
gained considerably on building
cost, so one may infer that the
outlook for residential building is
improving.
One fly in the ointment is the
continued backwardnesS of rail
way freight traffic. According to
my estimates. shipments by rail
declined in November just about
as much as usual. This is not
bad, since it means that the re-
covery Of the preceding three
months was held. But railway
traffic has hardly risen in proper
ton to industrial production.
The distribution Of goods at re-
tail, however, came back nicely in
November. Figures for $50 de-
partment stores in 251 cities show
a sales gain greater than usual
for the month. In comparison
with October, the adjusted index
rose from II per cent Of the 1923
25 average to 80 per cent.
It is notable that the sales re-
turns were less spotty, the gains
being general throughout the coun-
try. Trade reports indicate more
diversified buying, and interest in
higherpriced merchandise.
This is evidence Of increased
purchasing power" One could
wish that less Of the purchasing
power" were Government bonuses
and work doles, but part Of it is
increased employment and earned
farm income.
If we include the New Deal
bonuses, farm incomes are the
highest since 1929.
Somewhat surprisingly, New
York State factories report a
per cent decrease In employment
and a 81 per cent decrease in
pay rolls. These declines are lit
tie gerater than usual, but that
may be due to the more general
observance Of the ArmiStice Day
holiday this year.
It is to be noted that metal
industries continued to show in
creaS d employment, including
automobiles and parts, brass and
copper, steel works, and inStru-
mentS and appliances.
Commodity prices rose a little
during November. A typical bill
Of goods at wholesale which cost
$102.83 in the beginning Of the
month, cost $104.03 at the end.
This was chiefly due to higher
livestock, provisions, textiles and
metals. Many political and inter
national uncertainties, however,
caused much irregularity, and
prices have recently sagged irregu-
larly.
OF course, living costs rose. One
estimate Is that the typical ex-
pense Of q low.income family
were 0.5 per cent higher in No
vember, chiefly on account Of food.
According to the Governments
November figures, If your retail
food bill was $32S in 1892, it rose
to 1884 IN 1888; $37S in 1884, and
$407 in 1885.
will conclude this summary
by noting that my P.V Line has
shown tendency to round off.
This suggests that supply has
gained on demand, and that lit
tie hesitation in business would
normally be expected to follow.
Hudson Shipments
dnuI~.~~H Co.