The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1935-04-30

Lewis Haney suggests a de-
Ginning trend underneath. 1t is
usually the forerunner Of an &C.
tual decrease in activity.
Thus conditions continue to fit
the hypothesis that adjusted" in
dexes of business will decline until
summer. But the overproduct1on
at the February peak was less than
on the other New Deal spurts. and
the recession seems likely to be
more moderate.
Moreover, another period Of
administering StimuIants will
soon get under way, SO that by
fall another squirt is to be ex-
pected. Sometime between now
and October, the AdminiStra-
ton will have completed its
bond conversions. Probably the
banking bill will have been
forced through, giving the New
Deal politicians complete con-
troll over money and credit.
Then they can proceed to spend
enough of any kind of currency
they prefer in order to Sweeten
the voters and Twin" the cleo
ton.
If the long-restrained initiation
climax is to appear, it now seems
more likely to come toward the
end of the year, or by next
spring, than at any time since
we entered this era of currency
manipulation.
Last week, actual steel produc-
ton held up, but did not gain as
usual for the season. Evidently
automobile producers are taking
less steel as the steel sheets and
strips which they use were in less
demand. Probably the motor in
dustry is approximately at peak
for the current season, and the
output of cars will begin to de-
cline soon.
Recession continued in cotton
textile production. Lumber pro-
duction was also below normal
expectations, though orders
gained.
The increase in railway carload
ings seems to have been occA-
stoned by an effort by shippers to
anticipate the small advances in
freight rates recently granted by
the Interstate Commerce Commits"
sion. These went into effect on the
18th.
Commodity prices continue to
back and fill, last week showing
a small decline in the average.
While silver and lead were
marked up, and cotton rose,
there were declines in grain,
butter and lard, silk and wool,
tin, rubber and coffee. Steel
scrap weakened further in the
Philadelphia market, but held
at Pittsburgh.
The Governments manipulation
of silver conceded with weakness
in most world-market commodi-
ties. In fact, it is having more and
more seriously destructive effects
upon silver-money countries such
as China and Mexico, whose finan-
cial systems are being ruined by
our folly. Directly and indirectly.
these deflationary effects react
upon US. 1t is not surprising to
find our exports greatly reduced
in March, and further reductions
may confidently be expected.
The Presidents ffreside chat,
while showing him to be more on
the defensive than at any previous
time, will probably not be con-
sidered constructive by the bust.
ness world. There is no must"
talk in it, but there is no recogni.
ton of error, nor any sign of re"
vised ideas.
He leaves a loophole for some
retreat on. the issue of destroying
utility holding companies, but
shows no intention of retreating.
The worst feature is his notion
that banking resources" must be
more fully utilized in the eco
nomic life of the country" by
means of Government control.
These resources" are largely the
Governments own debt, and their
fuller utilization by the Govern
s,@e LA