Evening star., 1935-06-30
BUSINESS GUIDED
BY NEW DEAL AND
COURT DECISIONS
Continued From First Page.)

country today is unemployment. In
this respect there is little change
from the conditions at the end Of
1884. The latest figures available
show there were 9,7ll000 unemployed
workers in May, or about 5la per cent
more than in the similar period last
year. The expectation that $500, 900
of these will be absorbed In the $4,-
00,0O0000 Federal program is not
likely to find early realization. though
the ranks of the unemployed ought
to decrease materially during the Sum-
mer and up to December l. when out
door work will be checked by the
weather. The problem of relief is not
a temporary one but permanent
responsibility which the Government
must assume"
The striking feature in all the in
dustrial statistics of the first half
year is the slight change that has oc-
Cured during the last IL months and
since the end Of 1884. Most of the
business graphs present an index OF
activity quite closely paralleling
those of June, 1884. and of last De-
cember They show a steady but
slight rise in the last six weeks, with
no particular dips due to the first
uncertainty over the effect Of the
N r. A. decision. In general the coun-
try is doing between so and IS per cent
of its normal business.
While the volume of automobile
production is above normal for the
season and better than in recent
years. that of iron and steel is low
and has been slowly sagging for
weeks. At the end of June it appar-
emily had reached point of stab
ilization Car loadings are almost
exactly the same as in the first half
of 1894 and IS per cent higher than
in the same period of 1888. Output
of electric power has week by week
shown small percentages of gains over
last year, and from the standpoint of
gross earnings the power industry has
little cause for complaint.
Turning to building construction,
it will De found that while residen-
tial building in the first five m onths
of this ,ear increased so per cent.
there was a sharp drop as against
1884 in the value of non-residential
and public works construction. which
again reflects the tardiness of getting
Federal projects under way.
AS an indication of the completed
in ho M
We have an extremely low mortality
rate in business. which has been the
situation since the end of 1888. the
high point of commercial failures
having been reached at the end of
1881.
The currency affairs of European
nations have been an important fac
tor in the monetary situation here
during The half year and are likely
to remain conspicuous in the coming
six months. The pressure on the Bel
gian banks compelled a % per cent
devaluation of the belga at the end
of March and started flight of cap
ital from France, Holland and Switz-
erland. In 10 weeks the Bank Of
France lost between s750000 900 and
$500 900 900 and the Bank of Switz-
erland sl80000.0OO. There were also
heavy Withdrawals from the Bank Of
the Netherlands.
The greater part of this gold found
its way to this country imports in
the last IL months exceeding 81 l.200.-
nm 0n0l with tho ctN
of monetary gold in the United States
has risen above $4,000 100000. This
was gain Of nearly $4,000 900 900
since the devaluation Of the dollar
in January. 1884, and compares with
about $4,000. 100000 just prior to de-
valuation 1t means that this coun-
try today holds over 40 per cent of
the worlds monetary gold stocks,
which is unreasonable and inimicai
to world trade
1t is doubtful if the three remain
ing members of the gold bloc can
maintain their position for another
six months. France has temporarily
Gained the fears OF her people but
she has not balanced her budget. This
is her greatest task
There is a conscientious effort on
the part Of the Washington admin
iStration to effect world stabiliza ton
OF the currencies. Evidence of this
was recently given in the support
given by the United States Treasury
to the Bank Of France during the
crisis of the franc. 1t has been fur
ther emphasized in Paris this week
at the International Chamber of Com
merce Convention.
The only way a more serious COL
lapse of the foreign currencies can
be avoided will be by a test period
of stabilization on agreement between
the United States and Great Britain
to certain PARTIES for their countries,
to which France probably will give her
assent. Such an arrangement is like
ly to be one of the most important
of the financial events in the next
six months. In the end Great Britain
must consider the economic condi-
tions Of the world at large, as af-
fected by disorganized currencies. and
not her individual advantage growing
out of this condition.