The Washington times., 1935-11-26
COOL WEATHER
SEEN BOON TO
&
! RETAIL TRADE
By LEWIS HANEY
: professor Of Economics, New York
University

4 Business reports continue 1aVof'
able. Last week, the expected
spurt occurred in retail trade, as
seaSonable weather developed and
the first effects of the approach
ing holidays were seen. Doubtless
an, increase in government distri-
buttons through WPA also helped.
Especially optimistic reports come
from California and parts Of the
South.
'A'It seems reasonably clear that
any seasonal lull in the heavy
Industries will be rather less than
usual this year.
. The steel industry has stepped
dp production close to SIS per cent
Of capacity, which is notable, since
4 seasonal decline is usual. Partly
this is due to the new automobile
season, but unquestionably there
has been some general broadening
Of demand for steel.
- The automobile industry turned
out some $4,000 cars against
$4,000 the preceding week, and an
output of 100000 is expected for
the month. No one knows whether
This gain is more or less than
formal seasonal amount, for this
Is the first time the industry in
General has shown new models at
this time of year. No one knows
how much of the current business
Is being taken away from next
gear. The motor products strike
in Detroit is a threat. But the
volume of sales is encouraging.
81 The lumber industry continues
Teactionary, and is further hurt
by anticipation of Canadian i'm
ports under the new tariff ar
rangement. The cotton textile in
dustry. too, has reacted little,
and the manufacturers margin
between raw cotton prices and
Goods prices has declined. This,
however. seems likely to be tenn
porary. as demand for goods is
picking up again, and prices have
firmed.
While the situation as to build
ing activity is somewhat mixed,
the general trend is upward, and,
with the auto industry so active.
the producers of glass, paints, and
hardware are expanding produc-
ton and earnings.
- The chief dark tint in the indus,
trial picture continues to be the
GarloadingS. For the second week,
these declined more than usual.
OF course, they are above a year
ago. 1t is foolish even to mention
that obvious fact, because a year
aEo business was but little above
The bottom of the depression. But
TIE reasonably cautious observer
will note that unless railway ship
Hnents pick up soon, it will become
apparent that goods are being pro-
duced faster than they are being
sold.
Meanwhile, commodity prices
have shown little average change.
Wheat and hogs Spurted. Semi
finished steel was marked up.
Steel scrap rebounded. But inter
national commodities declined, in
cluding coffee. tin. rubber, hides,
and silk. Evidently the threat Of
q collapse in the gold bloc is sug-
gesting the usually "deflationary"
effects in the world markets.
The political news was most
IMPORTANT.
On the side of the politicians
who are Gin" we find the Roose-
velt Administration taking the
following steps:
l. Announced that Federal ere
lief" will be continued indefinitely.
2. Announced that no initiation
exists. and gave such definition
of initiation that they will not ad-
NIT that any exists until it is too
late. They will do nothing to pre-
vent further initiation.
g. Announced that the Depart
ment of Justice will not try to
enforce the criminal provisions OF
the utility holding company act,
pending decision as to its con-
Stitutionality.
On the side of business, grow
ing revolt was apparent. Several
utility companies refused to reg
lister under the SEC, and took
steps to test the utility act under
the Constitution. The railways
moved to attack the pension act.
A coal company brought suit to
have the Guffey act invalidated.
The Associated General Con-
tractors of America issued state
ment that made work" of little or
no permanent value is absorbing
too much IF the Governments
spending, and that Congress pro-
vision that full use be made of the
facilities Of private enterprise is
being ignored
N~Cthec highly important develop.
ments were (f ,t.4e resignation Of
John L. Lewis, head of the miners
union, from the A. F. of L., and
(2) the New York court decision
against manufacturers retail price
maintenance. The former may
split the labor federation. and lead
to more radical labor policies.