Evening star., 1936-08-23
FEDERAL SPENDING.
OFFSET BY RISE IN.
NATIONAL INCOME.
Spectacular Advance in
Corn Prices Being Felt
by Other Staples.
USUAL AUGUST SLUMP
BEGINNING TO SHOW UP
Steel Operations and Car Loadings
Make Best Showings as Busi-
ness Barometers.
BY CHARLES F. SPEARE.
cIal DiSpatch tn The Star

81 tcIal Dispatch to The Star
NEW YORK, August % (NANA).
1t has been the misfortune Of the
Roosevelt administration that, when
ever conditions seemed to permit of
reduction in the appropriations for
relief, some national crisis developed,
compelling fresh drains on the Treas
ury.
This was true in the Spring, when
the Government had to look after
those flood-ravaged States that could
not support their losses and again in
the present drought emergency, which,
it is estimated, will add an extra $780,
100000 to Federal expenditures
When we talk of the benefits Of
to the producer, and, possibly. larger
total income from these crops, it is
well to remember the offsets, such
as relief benefits, which the average
taxpayer and consumer must finance.
National Income Rising.
Fortunately, the national income is
rising. This presumes higher pay rolls
larger salaries and greater corpora
tion profits. 1t is now believed that
the total income for 1886 will approx
mate 100000, 100000. This would be
an increase of $7,0OO,O0O,0 1000, or 13
per cent, over 1885. 1t compares with
less than $40 1000, 100000 in 1882, the
low year of the depression. Between
1929 and 1882, national income drop
ped So per cent, or from $8l ,000,-
100000 to around $4,000 ,000, 900. 1t
has recovered half of its loss.
The continued hot weather in the
corn belt this week has lifted the price
of corn to be the highest in many years
and greatly lowered the harvest pros
poets. 1t is apparent that the 1896
yield will be one of the smallest on
record. This condition is beginning to
affect the market values of other sta
Piles. This week, the average price of
wheat, corn, oats, rye and barley was
nearly 80 per cent higher than year
ago. On the other hand, provisions,
such as pork, bacon. hogs and beef,
are from IL to % per cent below the |
late August prices in 1885. The rise |
in hog prices, however. has begun.
Metals are up substantially, except |
silver, which is down % cents an |
ounce, and tin. Hides, cotton, wool, |
rayon, rubber and silk have advanced |
sharply in the last IL months. The |
wholesale commodity index this week |
is the highest since 1880. We have
here the elements entering into a
higher cost of living. in the essen
tials Of food and clothing. as we'll as
an increased cost of construction,
which acects the capital gods in
dustries.
Some Activity Tapering OF.
The business barometer this week |
has changed little, though there rae
indications of some tapering of in
activity in accord with the usual end |
Of August dullness. More people are
away from their desks today than at |
any time since the Summer of 1929
and more shop employees are enjoying
paid vacations than ever before. This |
affects retail trade to some extent |
in the North and East, though less
in the South, but prospers the tourist |
business.
Among the recognized indices of |
trade. steel operations make the best |
showing, with rise to 72.2 per cent
Of capacity. compared with 48.8 per
cent u year ago. Car loadinzs are run
ming from IS to 30 per cent above last
year. Passenger revenues in July were |
20 per cent higher than in the same
month of 1885 and per cent better |
than in June Automobile production |
is slowing down with the approach to
the Autumn shows.
Building construction IS more ac-
tive. In the New York area in the |
first seven months of 1886 the value |
Of contracts awarded was so per cent |
greater than In the January-July Pc
riod of 1885. In the Philadelphia dis
trict the six months gain was As per |
cent. A number of the Southern CEN
ters report more building than since |
1929, or in the earlier boom in the
middle of the 1920-1930 decade.
Housing Needs Emphasized.
From several sources this week have |
come statements emphasizing the |
growth of the building boom and the |
need for new dwellings. The Federal |
Home Loan Board reports the June |
building figures the best for any |
month since 1929. They were I25 per |
cent above those of the same month |
in 1885. The American Federation |
of Labor again estimates the construc-
ton needs at 100000 homes annu-
ally for the next nine years. Its in
terest is in finding employment for the
l SOC, 900 workers, who have long been |
out of jobs due to the slump in the
building trade.
The factors permitting an expan-
sion in building are not only the small |
supply, in proportion to the demand,
(See SPEARE, Page ~