Evening star., 1937-06-27
Press Reports Reflect Widespread Advance
in Industry as Nation Starts Buying In
stead of Rafting Coins in Pocket.

''for us to make scientific studies Of
conditions surrounding normal and
abnormal supply and demand; to
ascertain whether demand is resulting
from normal needs. such as increased
purchasing power of the people and
to what extent these demands a-e
prompted by abnormalities in trade
All Of US need to cooperate in thought
and action to safeguard against a
depression resulting from an abrupt
let-down following excessive temporary
buying.
Early in the Spring Of this year
attention was repeatedly called by
the Department of Commerce to
danger signals along these lines. To
me 1t is gratifying that they have
been needed to some extent. Had
they been ignored 1t Is not unlikely
that We would be facing, for the third
quarter of this year, downward
trend in business. AS it is, I believe
we are more normally safeguarded for
stabilized business for the remainder
Of the calendar year"
The Secretary Of Commerce believes
that the chief deterrent now on the
horizon to ultimate business safety is
"the temptation to stray in business
planning because OF temporary orders
or infationary production schedules"
AS part of business planning to
make our prosperity secure. Secretary
Roper states it should be kept in mind
that the consumer must be adequately
protected.
Increase in prices" he adds.
must be kept consistent with bona
flde increases in actual production
costs. If prices are such as to create
an ultimate price level out of reach
Of purchasing power. the entire econ
omy will be affected and the inter-
dependent structure endangered"
The Secretary of Commerce believes
that the business curve Cannot be
expected to continue permanently up
ward, but will be marked by some
leveling. and the outlook Is encour-
aging at the present time. 1t should
be recalled that at this time last year
soldier bonus payments gave unusual
buoyancy to business conditions
THE present momentum of business
and industry, the Secretary points
out, Is stimulated to some extent by
the absence of top-heavy inventories,
and points to moderately sustained
t{vHt th.eV1rkN,,f thu G,ueNeAP hor.
ring prolonged labor disturbances
The tendency to resist seasonal re-
cessions is supported by the increased
purchasing power Of wage earners, by
splendid crop prospects with the
financial expansion that will be nee
essary to move these crops. To this
may be added increasing industrial
dividend payments"
Reviewing the fiscal year now on
the wane, Secretary Roper recited
the statistical showing" Of the first
part Of the year. Factory employ
ment, he asserts, thus far this year
has averaged about one-seventh above
the like period in 1886, and lately
has approached the 1929 level. In
dustrial production during the flrst
five months of 1887 was about one
NTH larger than in the corresponding
period of 1886. The same compari-
son shows gain of is per cent for
freight car loadings, II per cent for
department store sales. l6 per cent
for automobile production and II per
cent for steel ingot production.
National income produced in the
United States was estimated at 63.8
billion dollars in 1895, Is compared
with 4 revised estimate Of IS billion
dollars In 1888. according 10 com.
pdlst4ons made BY Robert r. Nathan,