Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1936-12-18

ers also joined in. BY mid-1935 the
consumption industries were back to
normal and unemployment was con-
fined chiefly to the tagging capital
goods group.
Laggards Take Lead
1t is a characteristic of consumer
goods to speed up when the general
public feels better. 1t is a characteris
tic of the capital goods to speed up
when business men feel better Since
! the capital goods industries operate
on a credit ba Ms, their activities do
not expand until investors and bust
ness men regain confidence. Hence,
it was not until the latter part of 1885
that the capital goods industries be-
gan their upward climb. In the van
guard was the building industry
During the last eighteen months con-
struction has jumped from 80 per cent
of normal to SIS per cent. Farm tool
manufacturers were next in line
Then came office equipment and lab
or saving machinery makers. Grad
ually recovery in these lines famed
out through all the heavy good bust
neSSeS.
Now comes flood of post-election
orders to give these industries added
impetus. Steel companies, flushed
with their heaviest orders in years,
are expanding capacity and moderniz-
ing their plants. Railroads, encourag-
ed by the highest level of freight
movement since 1880, are pouring
money into roadbeds and rolling
stock. For instance, locomotive ord
ers for November were the highest
for any month since May, 1927 The
railroads are one of the biggest buy
ers of steel and other capital goods.
Now that they are actively back in
the market for rails, locomotives, pas
senger cars, and the like. another
cyfnder of our national business
motor has gone into action.
High Spots of Current Business
1. Holiday trade best since 1929
2. Electric power output at record
peak
3. Cotton mills operating at full ca
pacity.
4. December motor output highest
on record.
5. Unemployment back to 1880 level.
6. December steel activity highest
Z. Locomotive orders best in ten
years.
s. Home building 500 per cent above
March, 1888. -..~
8. Dividend increases heaviest on
record.
1G December business best since
1928.
Utility Building Boom
The great gain in factory activity
and the huge sale of domestic appli-
ances during the past three years has
boosted electric power consumption to
a record peak Generating equip
nent that was idle during depression
years, is now working overtime News
$ gradually filtering out that anoth-
2r era Of utility expansion is at hand
Diesel engine manufacturers have
moved from the tool-maker's bench to
The assembly lines. They are build
.ng their business into a full-fledged
industry. Machine tool orders are
close to 1929 figures. Activity at Lead
ng shipyards, fostered by the gov
ernment's naval program, is bacA at
boom levels. The sum total of all this
is the busiest December for any year
since 1928.
This sudden surge of demand for
capital goods, plus the holiday buy
ing wave of consumer goods, is tax
ing producing facilities. Factories
are booked up for months ahead. For
instance, the output of many textile
mills for most of 1887 is already sold
out. Meanwhile, the labor situation
looks threatening. Wage increases
have already been handed out in
many industries and workers therein
will soon be back to 1929 rates. In |