Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-09-14
RECOVERY GAINS
SPEED INVESTING
Better Feeling Is Based on
Optimistic Reports Along
Many Lines.
BY EDWARD C. STONE,

OHeTlnRS commune 10 increase, dIlC
while they still largely represent re-
funding operations, nevertheless are
of great Importance for the savings
effected in corporate operations and
the reduction of fixed charges
This conservative magazine adds
that as an indication of the better
feeling regarding the investment sit
uation. the renewed activity in the
stock market is not without signifi-
canoe. Average prices of late have
reached the peak for the present year
and proflt-taking he S only occasioned
moderate recessions for brief periods
The magazine concludes that easy
money" has been prime factor in
recent investment developments, but
believes unmistakable signs of bust
ness recovery have probably beer
chiefly responsible for them. These
signs are so widely spread as to
warrant the belief that the country
Is now making substantial advance
out of the slough of depression en-
countered shortly after the stock mar
ket collapse nearly six years ago,
Best Records" Coming Rapidly.
Right along this line comes the
weekly business report from Standard
Statistics which is crowded with
optimism. 1t says:
Recent news has included several
items in which the phrase the best
since occurred. In the aggregate
they make an impressive showing
A few follow:
Railroad carloadings for the last
week of August were the best since
November. 1881.
This weeks steel rate was the
best since early February.
Average stock prices this week
reached the best levels since Febru-
airy. 1884.
industrial production for Septem-
Der is estimated at the best leve
for any September since 1880.
There were fewer unfavorable divi-
dend revisions last month than ir
any previous month since January
1929
August unemployment in the
building industry was the smallest
since June, 1881
Power production has had the
best Summer in the history of the
industry.
Machine tool orders in July were
at the best levels since late 1929.
Cigarette Withdrawals in July
reached an all-time record.
Income tax collections for the
fiscal year ended June 30, 1885, were
up IS per cent from the preceding
year and were the best since 1881"
Labor Heads Very Optimistic.
Substantial business gains are re-
corded in the monthly business review
of the American Federation of Labor,
the report arousing more than usual
comment in the financial district.
Business Is now well over halfway
back to normal, the report states, but
employment still lags. Prospects for
the remaining months of 1885 are
brighter.
The last four months of 1885 may
well bring the highest level of indus
trial operations and earnings for any
similar period since 1881. The pres
ent business upswing is the healthiest
thus far, not due to Government
spending or currency action, but to
inherent economic strength.
Dividend payments in August ex-
ceeded last year by s1l,000,000 or 4
per cent, the report adds, and the
steel industry is out of the red for
the first time since 1880. Buying at
retail stores has continued steadily
through the eight months of 1885
until a shortage of goods has devel-
oped and this Falls orders to manu-
tacturers are in large volume. Orders
for farm machinery in the first half
of 1885 were IS per cent above last
year. The automobile industry sold
500, 1000 more cars this year than last,
in the first seven months, raising its
total sales to 2,054,000.
AS a result of increased buying and
production and growing confidence, in
duStry is beginning to order new
machinery; machine tool orders in the
first half of 1885 were Al per cent
above last year. All these lines of
activity have continued at a high
level through July and August. The
100000 on production equipment; the
steel industry s130,0O0000, it is esti-
mated. This new life in the heavy
industries should mean more jobs
where unemployment has been par
ticularly severe, the review asserts.
Car Loading Reports Better.
analysis of the figures" says the
Railway Age in its current issue,
shows that never since the depression
began has there been an increase of
car loadings so impressively indicat-
ing, as does the increase in the eight
weeks ending August 81, the beginning
or renewal of improvement in busi-
ness, especially OF increased production
in the durable goods industries.
After having declined until in the
two weeks ended July Is they were
relatively the smallest in two years,
they increased Is per cent in the
eight weeks ending August 81. This
compared with an advance in the same
period in 1880 of 73 per cent; a de-
cline in 1881 Of 212 per cent; an adj
vance in 1882 of IL per cent, and de-
ClIlSS III 1900 OI D per cent ana IN
1884 of per cent The improvement
looks like the real thing. If it con-
tinues undated car loadings in the
last third of 1885 will be the
largest since 1890"
The above reports were picked out
at random. They show how much
optimism has been floating around
this week and why. The Presidents
breathing spell utterance is another
much-d discussed factor. There are
plenty of handicaps yet to be over
come. But the latest financial sum-
maries are certainly interesting read
ing.
The host of General Motors stock
holders in Washington received divi-
dend checks this week in payment oil
the regular quarterly dividend of Sc
cents per share and the extra of Is
cents a share, this week. The letter
of transmittal stated that the policy
of the cnnnnanv will continue tn be