Evening star., 1935-11-17
Increased Profits, Dividends
and Climb in Stocks Cheer
Entire Country.
OTHER NATIONS FACE
TROUBLED CONDITIONS
Bank of France Compelled to
Raise Discount Rate by Re.
newal of Gold Outflow.
BY CHARLES F. SPEARE.
pecial Dispatch to The Star.

NEW YORK, November 16.-The
degree of recovery in business is now
sufficient to convince the country,
without constant assurance Of the fact
from Washington, that it is on the
The record of progress in
many lines of industry is clear. Cor
poration profits are increasing; con-
Sequently, dividends are expanding.
This promotes investment in stocks.
AS they rise, as they did this week,
their appreciation widens the circle
of optimism.
After six years of depression of great
intensity, marked by brief interludes
of prosperity. as in 1888. the evidence
today is that the serious features OF
it have disappeared, and that, in the
present confidence, exhibited in many
directions, there is the foundation for
steady gain in the volume of pro-
duction, in the earnings of both man
ufacturers and their employees and in
the status of agriculturists as well as
of industrialists.
The Department Of Commerce this
week places the index of industrial
output at the highest point since 1880.
1t is now 80, compared with "A year
ago. The index of general business,
which includes production. distribu-
ton and financial operations, has re-
covered about 20 points since October,
1884. 1t is still lower than in the
transient boom that followed the
banking panic and revaluation of the
dollar.
Steel Output High.
Iron and steel output has risen to
81 per cent Of capacity, the best show
ing since February, when the auto
mobile makers were clamoring for ma
terial. Today they are buying more
freely than then to cover requirements
in the last quarter of 1885, which is
expected to bring their total produc-
ton to 850,000 cars, or 100000 more
than the first estimates October
construction work undertaken was,
with one exception, the largest in four
years.
Had the weather been seasonable
in the past month, the evidence of
in the retail trades
would have been more pronounced.
Even so, the dollar volume of sales in
the IL Federal reserve districts was 6
per cent greater than in 1884. run
ming to gains of 10 to IL per cent in
Cleveland, Atlanta, Kansas City, Chi
cago, Minneapolis and San Francisco.
There is considerable deferred buying
that will add to this momentum dur
ing the holidays.
The breadth of the buying move
ment is the best evidence of the re-
turn of business confidence. The
growth in bank deposits, not related
to Treasury operations, has furnished
proof that the public had reserves to
employ when once it had passed from
a state of fright to one of belief in
the future. Its demands have now
resulted in a policy of higher prices
for heavy materials and for certain
types of merchandise. Increased liv-
ing costs are probable during the
Winter.
Situation Troubled Abroad.
The situation abroad is not the
happy one that Americans enjoy.
There are all sorts OF financial and
political troubles facing England.
France, Holland and Italy. The out
break in Egypt is one of the collateral
phases of the Italo-Ethiopian war
that had occupied the minds of states
men during their conferences at
Geneva.
This week the Bank of France has
been compelled to advance to per
cent its discount rate, which it had
lowered in August, in order to pro-
tect its gold reserves. The flight of
capital from France to the United
States has been resumed, with nearly
$500, 100000 taken from that coun-
try in the last two months. The
French Government Is faced with an
element in the Parliament that op-
poses the Laval DEGREES and insists
on devaluation of the franc.
Holland, this week, has further re-
duced her money rate, in spite of
which the guilder fails to rally and
another demand from a strong Dutch
faction is for currency reform.
The success of the Tory party in
the British elections was conceded.
Along with this is program of arma-
ment that cannot but change the
fiscal policy of the government next
Spring to the disadvantage of the
And Italy has suspended
of her financial statement
for the obvious reason that it does
not make good reading.
The American taxpayer does not
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