The Washington times., 1935-01-08
Autom O bill e

creased sharply. This IS sea-
sonal movement, somewhat de-
layed, and thus seeming sharper
than usual. The output, however,
Is far above the same week last
year.
This gain in automobile manu-
featuring is chiefly responsible
for the continued increase in
steel production. Other impor-
tant steel-consuming industries re-
main very backward, and a
week ago steel production did
not gain as much as usual for
the period. But with the motor
industry now expanding, and
prospects for heavy Government
construction ahead, the steel in
dustry will doubtless expand fur
ther.
Lumber manufacturing shows
little change, and, like building
activity, is low-far under a year
ago. Cotton cloth production de-
clined sharply at the year end,
reflecting narrow profits margins
and ample supplies.
Railway carloadings remain the
least encouraging index, for they
declined more than seasonally,
and were about per cent below
a year ago and only 81 per cent
of the 10-year average for the
week. Grain and livestock ship
ments are now abnormally small,
while merchandise lesS-than-car-
load freight is very backward.
After an excellent pre- Christ
mas volume, retail trade
slumped in the latter part Of
December and early January,
and seems to have been little
better than year ago.
Commodity prices showed a
broad advance last week, and
reached q level nearly up to the
high made last September. The
rise was led by livestock, meats,
lard, feed, grain, butter and
eggs. Rubber, silk, and silver
were higher. In fact, there was
no important decline except in
cotton, and this was small.
Thus the new year has begun
with commodity prices averaging
about 10 per cent above the be-
ginning of 1884. Industrial act1v-
ity is about per cent higher
than year ago. Railway freight
shipments are at about the same
level. The current trend is a riS-
ing one.
The outstanding news Of the
week all centers in Government
activity and debt.
The AAA is seeking to broaden
It's compulsory control over crops,
undeterred by the dangers of ex-
perimentation and regimentation.
The RF'C has started to make
loans to corporations for the ex-
press purpose of allowing them
to pay off debts.
The Administration has COM
mitted itself definitely to a vast
program of public works to give
work relief" and plans to return
unemployable recipients of relief
to the State and local agencies.
Both mean increased debt. CThe
local governments will un-
doubtedly have to be given funds
by the Federal Government
Some soldiers bonus" pay
ment seems certain, which means
more Government borrowing.
The year 1885 begins with new
high record public debt of 28la
billion dollars. 1t will probably
end with another new high Of over
80 billions.
Much interest attaches to the
change in governors for the
Bank Of France. The new in
Cumbent is supposed to be more
favorable to q policy of credit
expansion, and some question
has been raised to the effect
upon Frances adherence to the
gold standard.
As nearly as can be learned,
however, the new governor is as
strongly in favor of maintaining
the gold standard as his prede-
CeSsOr. The gold bloc currencies,
while threatened by internal
political and social conditions,
have recently held up we'll. 1t
still seems that if they are fin
ally to be engulfed by the de-
valuation" craze, it will have to
be through some "cOllectivist"
development in French politics,
which 1T present does not an.
pear to be inevitable.