The Washington times., 1935-02-12


M Most indica-
A saS&&# tions continue
Lewis Haney to fit the pat
tern of a further expansion into
March, It looks as if the big
squirt in automobile and steel pro
duction may be tapering off, and
already leading trade journals
speak of the upsWing in steel los
ing momentum" But such moves
have widespread effects, and et'
forts to stimulate building activity
will become somewhat more ettec'
tive as spring draws nearer.
A "late Easter" will have It's
usual effect upon business volume
later on.
The steel industry showed
another increase in activity,
but not enough to come up to
the gains which usually occur
at this time. Automobile pro-
ductiOn kept its pace a little
better, although it, too, gained
less sharply than in previous
weeks, and Chrysler cut prices.
Cotton manufacturing, and even
lumber production, made good
gains.
I note that railway carload
ings of forest products were quite
a bit greater last week. This
helped the total carloadings to
register sizable increase, IN
which miscellaneous freight was
the chief factor. Although this
gain in freight traffic was in
fluenced by changing weather con-
ditions, I think that it suggests
further expansion in industrial
volume.
Retail trade, however, has
plainly been tagging in several
areas, and 1 note that Woolworth
and Kresge sales for January fell
behind last year. Perhaps this
shows consumer resistance and
explains why one of the big mail
order houses has just announced
reduced prices. Even though these
reductions may be largely due
to lower quality merchandise, 1t
shows the same tendency
Wholesale commodity prices re-
covered as the week progressed,
and averaged higher at the close,
being near the top of the move
that began last November or De-
cember. International commodi'
ties such as tin, rubber, sugar,
and cotton recovered, and grain,
lard, and pork worked higher
Zinc was lower, and cotton goods
did not rise with cotton.
The outstanding develop
ment of the week was the
introduction of the Admins
tration's bank bill, and the out
standing point in this bill is IT'S
clear revelation of the plan to
push spending and initiation.
The Government is getting
ready to "sell" it's bonds to it.
self, and to keep the banks
liquid" by providing cold
storage for their frozen assets.
The scheme is to have pO-
litically controlled "reserve sys-
tenn to take the paper is
sued by the politicians. The
banks are to go into the real
estate business, but the result
ing liquid paper is to be
dumped on the Federal Re
serve.
This is the scheme is a nut.
shell.
The next most significant de-
velopment was the conflict over
wages" to be paid for work re-
lief"
AS I have pointed out, the so
called right to work" involves the
questions of what work, and al
what wages? If you pay the regu
lar wage for "relief work." you
have to put the Government into
business. If you pay less (as the
President now appears to deSlre)
you admit that you are merely
carrying on needlessly expensive
dole system, and one which Seri'
ously interiors with private bust
ness.
The whole idea is economically
impossible.
Another interesting develop
ment is the growing labor con-
fusion. While the labor chiefs
and the Administration Squab-
BILE, strikes are growing in the
textile industry and the autOmO-
bile parts manufacturers have
been forced to make large con-
CeSSiOnS in hours and wages.
The chickens are coming
home to roOst-but doubtless we
will muddle through somehow.
DUPLEX DIVIDEND
Durham Duplex Razor Com,
pany has voted a dividend of
20 cents on the 81 prior prefer
ence with warrants, payable
March tn stock of record Feb.