The midland journal. (Rising Sun, Md.) 1885-1947, 1940-04-05

the big spending program of that
year started another upward spiral.
Cause of the current upset, ac-
cording to government experts, is
inventory liquidation" - that is,
hating of production in order to
work off piled up goods.
Key signs of this Oppressive trend
are: (D the heavy drop in steel
production, off 80 per cent in Febru-
airy and in many steel plants al
ready under so per cent of capacity;
(2) an equally marked curtailment
in textiles; and (3) sharp slowing
down in the durable goods indus
tries. Also the construction bust
ness is back in the doldrums.
Root Cause.
Root cause of the present situa-
ton, the experts tell Roosevelt, goes
back to the flush 1862 period when
manufacturers "over produced"
The huge inventories built up then
were only partially liquidated in the
1888 pickup, and when the facto-
ries, under the war stimulation of
last fall, got into high gear again,
inventories shot back up.
Coming Slump.
Basis Of the experts forecast that
the federal reserve index will sag
to 80 by July is that there are no
important factors on the horizon to
halt the tailspin.
They concede that exports, total
ing So, 100, 900, 900 last year, will rise
this year. Their estimates range
from $500, 100000 to $1,5O0, 900, 900.
But they contend that even if the
maximum is reached, this will not
be enough to offset the inventory
liquidation which will run at around
$4,000, 5000 for 1910.
In other words even should the
pace of war orders accelerate, it
would not be sufficient to induce
return to high production for many
months to come.
Roosevelt's economists also point
out that whatever war orders do
materialize will be limited to few
specialties-aircraft, chemicals, ma
chinery, COLONIAL with a relative
ly small employment range. They
will net large profits but won't give
"high consumption spending power"
This is where the New Dealers
argue hardest for new government
spending program. They contend
that only by spreading money out
widely, through farm benefits, WPA
and PWA, can the slack be taken up.
MURPHY'S MYSTERY
There's big mystery about bach
elor Justice Frank Murphy. He will
have a birthday next month, and
the question is-how old will he be?
There's a lot of confusion about
1t. Some say AZ, others SO. The I'M
certainty arises because recent BIZ
ographies, including Who's Who,
give 1893 as the year Of his birth.
Earlier records fix it in 1890.
The question was raised by Uni
versity of Michigan professor who
once taught Murphy, and who read
an article about Murphy stating that
he had graduated from Michigan in
1914 at the age of Fl.
investigating, ne Iound tnat the
original date of birth was 1890 and
that later it had been altered to 1893,
spending three years in the s'Lit''
department and then transferring to
Law, where he took a three-year
course and was graduated in 1914.
Note-The age of Supreme court
Justice is most important, since it
fixes the date upon which he can re-
tire at a pension Of $4,000.
|, No Roosevelt Announcement.
/ You can write it down in the book
that Roosevelt win make no an
nouncement regarding third term,
probably not even five minutes be-
fore the Democratic national con-
Eention opens July Is.
Probably only after the question
of his candidacy has gone to the floor
bf the convention will he indicate his
willingness or unwillingness to run
for third term: And those closest
Do him these days are betting their
money that his answer win be "Yes."