Evening star., 1935-12-31

greatest amount OF aid and sympathy
should be rendered and, with neces-
sary revisions by Congress. the social
security acts should be made to func-
ton.
Machines Reduce Jobs.
archaeological unemployment and
the division of the relief burden
among community, State and Nation
are two of the greatest problems that
the administration will have to deal
with in 1886.
Last November President Roosevelt
asked why there should be such a
spread between industrial production,
which was then 90 per cent of normal,
and employment and pay rolls. The
answer is that machines are every
month replacing men and that the
efficiency learned during the depres-
sion has cast off tens of thousands of
white collar workers. Many of both
classes may be absorbed when indus
try achieves what may be called full
recovery" but the Involuntary idle
will increase with the years. Provi-
sion must be made for them.
AS the cost of living has risen this
year the difficulties of those on relief
or bound in their spending by small
incomes have increased. Retail food
costs have advanced about 10 per cent
over the level of a year ago, with IS
PER cent rise in meats, followed by
a reaction in this group. Wholesale
commodity prices. which include farm
and food products, building materials,
fuel metals, ETC., advanced nearly so
points between January and october,
and have also reacted.
There is nc evidence of imitation; in
fact, the recent utterances of COVER
nors of the Federal Reserve Board and
of private bankers dismiss the subject
of credit expansion as a potentially
harmful factor in the business situa-
ton. The demand on the part of the
Government for lower interest rates
and the urge of lenders to make q
profit on their idle funds is steadily
driving down the average of interest
rates, which is to the advantage Of
borrowers and especially to the build
ing industry. A feature of the years
improvement is the rise in the average
prices of real estate bonds and the
considerable number of defaulted
issues that have resumed moderate
payments. Rents over the country are
rising.
Business Gains Spectacular.
When we review what has been ac-
complished in 1885 in the way of ma
terial gain in this country, the results
are startling Taking first the general
business index. showing the growth
Of activity in its many parts since the
end of 1884, We find that it is about
81 per cent of normal, against IS per
cent year ago. Automobile produc-
ton is double that of last December
and steel output shows about the same
gain. The output of electric power has
never been so high as it is today. Resi-
dental building is still low compare
lively, but more than twice as active
as at the end of 1884.
Profits of $50 industrial and mer-
camille concerns in the September
NudA tCA lo11 dDOub % pei CcIlL dLlSdQ
of the same period in 1884, and it is
fair to expect that an even better
record will be shown for the three
months ending December 81, as the
momentum of the industrial recovery
did not gain force until after Sep
tember. Many corporations that were
compelled to pass their dividends from
1881 to 1884 have been resuming
them; others have been advancing
their dividend rates. The total pay
ments to shareholders of the profits
of industry will exceed those of any
year since 1882.
Farm cash income this year is esti-
mated at over $500 100000, or IL
per cent more than in the year pre-
vious. The effect of this on mer-
chandise trade. on the farm imple-
ment market, on the sale of automo-
biles, on building construction and on
the banking situation in agricultural
States is one of the notable phases of
national recovery.
Copyright. 1885, by the North American
Newspaper Alliance. Inc.)