The Frontier
D. H. Cronin, Editor and Proprietor
Entered at the Postoffice at O’Neill,
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NATIONAL AFFAIRS
By Frank P. Litschert
Officials high in administration
circles at Washington, as well as so
called economic experts, are said to
be seriously concerned by the fuilure
of wholesale commodity prices to rise
as was expected of them. Wheat, corn,
grain, cotton, copper and other basic
products have not risen in price as it
was hoped they would rise under the
government’s reconstruction program,
and the price of livestock, of course, is
a big disappointment to the farmers
as well ns the agricultural experts.
In other words, prices of raw mater
ials have not developed the strength
and the elevation that has come to
finished goods. A great deal of the
present dissatisfaction in farm com
munities is due to the fact that the
farmer finds that the thing he buys,
under the NRA have gone up much
more rapidly in price than the things
he has to sell. This dissatisfaction
was in large measure responsible for
the wave of inflation demand which
swept the country a few weeks ago,
and it will doubtless raise another
wave of inflation talk when Congress
convenes, if the prices disparity does
not right itself in the meantime.
Most of the business indices have
shown a steady if slow decline during
the past few weeks, and a great part
of this, many economic students be
lieve, has been due to the failure of
the price of raw materials to rise to
the occasion, as well as the fact that
general buying power has not increas
ed as rapidly as the price of finished
products. With respect to this latter
reason, Senator Wagner, of New
York, said, in an address recently be
fore the American Federation of Labor
convention:
"Fay rolls are still 48 per cent be
low the 192(1 level. They have lagged
so far behind industrial activity that
production, which rose 05 per cent
from April to August, lost one-third
of this gain in the single month fol
lowing. There has been a gain of 17
per cent in the purchasing power of
wages but retail prices have mounted
rapidly. The increased volume of
total wages is due almost entirely to
gains in employment and to rises in
the minimum scales. Due to the high
er cost of living there have been some
actual reductions in real wages.”
Just what will be done or can be
done to remedy the disparity of price
between raw materials and finished
goods remains to be seen. Some friend
ly critics of the government's recon
struction program, while admitting its
many good points, declare that the
improvement would have been steadier
if the program had not attempted to
do too many things at once. They
seem to feel that more attention
should have been paid to the founda
tion of the structure, by which they
mean the stability of basic commod
ities, and less to price fixing. They
maintain that improvement must be
gin at the bottom, and that once the
basic commodities show a healthier
condition, price and wage improve
ment would come as a natural result,
with the increase in the price of fin
ished products coming last. Thus they
maintain retail prices would be the
last to go up and there would or should
be no perceptible rise in them until
the wage volume had improved enough
to justify the higher prices.
While on the subject of price fixing
the comment of Ernest O. Thompson,
member of the Texas Railroad Com
mission, on Secretary of the Interior
Ickes’ action in fixing the price of
crude oil at $1.11 a barrell is interest
ing. In talking of controlling pro
duction and prices, he mentioned the
celebrated Conroe oil field, where in
one instance the earth opened up
under a well and swallowed it, leaving
a veritable crater in the ground. Then
he added: ‘The crater alone la pro
ducing 6,000 to 10,000 barrels daily.
We can’t go down there and read
Ickes’ te egram to the crater and ex
pect It to stop flowing.” Then he ex
pressed the opinion that a veritable
army will be needed to control oil
production in Texas with its 47,000
wells, but like a good American, prom,
ited that Texas would do what it
could to cooperate with the federal
government. That is one satisfying
thing about the whole reconstruction
scheme. Nearly everyone regardless
of his political or economic views is
cooperating, and if the plan does not
succeed in its entirety it will be no
fault of the American people them
selves. Regulation of production, con
trol of prices and wages, is a big un
dertaking, however, and the old econ
omic laws of supply and demand can
not be left entirely out of the picture.
ECONOMIC HIGHLIGHTS
Industrial activity, in spite of the
appearance of some downward tend
encies, is continuing at a comparative
ly high rate. In August, production
was more than 50 per cent greater
than in August, 1932. In July, pro
duction reached its peak, when it was
equal to the 1923-1925 average.
Prices advances, which started with
the first manifestations of recovery,
continued thru September. The cost of
living has accordingly risen. An ex
ception to the general trend is farm
prices, which have declined. One of
the best of recent signs is that the
wide discrepancy between production
and consumption, which confused the
outlook a short time ago, is narrow
ing.
Latest information concerning basic
industries shows:
Domestic Trade—Both wholesale and
retail increased in August, in both
volume and value. Department
store sales were well above the Au
gust, 1U.‘!2, level.
Km ploy ment—Though production de
clined somewhat in August as com
pared with July, payrolls and em
ployment continued to improve—
the advances being carried into
September. It is estimated that
7f>0,()00 persons found work in Au
gust, and the September experience,
when detailed, may be still more
favorable.
Commodity Prices—The advance in
prices, with the exception of retail,
slackened in August and Septem
ber. Retail prices rose 8 per cent
between August 1 and September
1—the greatest monthly advance in
a decade.
Credit—The most significant recent
chnnge in the credit situation is that
open-market purchase of U. S. Gov
ernment securities by the Federal
Reserve has increased. Purchases
rose to a weekly rate of $35,000,000
as compared with $10,000,000 pre
viously. The Federal credit expan
sion drive, which includes liberating
of ussets in closed banks, is apt to
work sudden and unexpected changes.
Securities—Market action has been
confusing and unpredictable, gen
erally speaking, stock prices have
fluctuated with exchange quotations
on the dollar. Among bonds, high
grade domestic issues have stood up
well, and issues of foreign gold
standard countries have advanced.
Foreign <4'rade—Exports have declined
and imports increased. The outlook
for increased exporting is not bright
at the moment.
Construction—Contracts jumped 28
per cent in Augpat, due principally
to public works and utility under
takings. Building activity, however,
is lower than it was last year or the
year before.
! Transportation—There was a contra
seasonui decline of 6 per cent in
freight traffic in August, und the
decline continued thru September.
However, comparison with the
month preceeding July, und with
1932, are still favorable.
Automobiles — Production schedules
dropped in September, but less than
was anticipated. The decline in re
tail sales has been less than season
al trends would have indicated. De
mand at end of September was hold
ing up well. Tire output in August,
while smallest in five months, was
at the highest August level since
1929.
Power—Steady and continued ad
vances in electric consumption have
been registered in practically all
parts of the country.
Chemicals—Activity has been affected
by declining production in the major
productive lines which constitute
the market for chemicals. Demand
was dull so far as paints and varn
ishes were concerned, with a seas
onal increase in alcohol orders,
have been firm.
Farm—The August wheat movement,
because of the short crop, was com
paratively slight. The months re
ceipts were down 27 per cent as
compared with July, and wholesale
wheat prices declined. Corn pros
pects were slightly better. Hog
receipts were much higher than be
fore, ami sheep and lamb receipts
likewise showed improvement. But
ter receipts showed the usual seas
onal decline.
Food — Production in the food proces
sing industry declined 8 per cent in
August, with allowance made for
the customary seasonal change.
However, activity was 8 per cent
above a year ago, and employment
und payroll levels are encouraging.
I.umber—Curtailment In receipts of
new orders has caused an increase
in stocks on hand and a lessening
of production. Prices continue to
advance, as do payrolls and em
ployment.
Iron and Steel—Steel production de
clined during August, and a still
sharper drop followed first half of
September. Orders have come in
slowly. Unfilled orders of U. S.
Steel at end of August were lowest
since April.
Textiles — Though production has
slackened, August production was
the best for that month since 1929.
The Textile code has produced sub
stantial gains in pay rolls and em
ployment.
THE RETAIL CODE
State Journal: The provisions of
the new retail code have been made
public. The effective date is Oct. 30.
Between the present and the effective
date merchants will be given some
time to study the provisions laid down,
to learn what it will do to their busi
ness, and how best to apply it.
Whether the merchants liek it or
not they have the code. They now see
an organization being perefected to
enforce its provisions. Much of the
power of enforcement is locally placed.
Those violating the code will have their
first troubles, if any, with their home
people. The right of appeal is theirs
nnd complaints may be carried higher.
A major change announced is in line
with a suggestion made by Keith Ne
ville of Nebraska, altho somewhat
modified. Mr. Neville suggested that
the code be not made to apply to em
ployers with less than ten employes.
The administration cuts that number
to five in cities of 2,500 or less. It
makes the code applicable to chain
stores everywhere, even cities of 2,500
and less. These modifications of a
code that was expected to include all
merchandising in all cities, regardless
of the number of employes, will affect
a great part of the business of Ne
braska. While Mr. Neville made no
announcement as to his future course
in the matter, when changes were
called to his attention, he is quoted
as saying that they will help but that
they do not go far enough. Provis
ions banning prison made goods are
held suspended for ninety days, pend
ing a study of the situation.
If enforcement does not result in a
local spy system that becomes intol
erable, if it is handled in all commun
ities with fairmindedness and a proper
understanding of conditions and re
quirements, enforcement may reach a
reasonable degree of success. The
arguments made so loudly and at such
length against efforts to enforce pro
hibition may be heard in relation to
this. In fact they may become more
general unless the government guards
every step made.
“BULL DOG" WEAVER
Nebraska City News-Press: Give
Art Weaver credit for being the most
persistent champion of the middle west
Not satisfied to count the gain made
when $14,000,000 was allotted for Mis
souri river work, Weaver goes right
back to the war department for enough
money to complete the Fort Peck,
Mont., reservoir. Hd is rebuffed by
Secretary lekes who, like our govern
or, says the west is “greedy” in that
money has already been given to it,
and then he marches over to the white
house and lays the plans on the presi
dent’s desk. The president looks them
over and tells Weaver and Senator
Clark of Missouri he is favorable to
the proposition. Within a day or so
Ickes begins to talk about the Fort
Peck enterprise. Weaver realizes he
has a lot of competition in Washing
ton; that a thousand otheer projects
are being discussed and planned. If
he is to keep his river projects alive
he must work hard for them, argue
continually and keep right on fighting
the middle west’s battle.
CORN AND HOG PRODUCERS
COULD BENEFIT $34,712,000
State Journal: A. E. Anderson,
state and federal crop statistical!, es
timated that if all Nebraska corn and
hog producers agfee to come under
the national hog-corn production con
trol program, they will benefit approx
imately $34,712,000.
Of this amount, approximately $13,
582,000 would be received as benefits
under the corn program announced
by Secretary Wallace and $21,130,000
would be derived under the hog pro
gram.
Figuring the estimated annual av
erage corn production for the last
three years at 220,300,000 bushels,
Anderson assumed each farmer would
agree to reduce his acreage 20 per
cent and thereby get a benefit of 30
cents a bushel on corn land taken from
production to reach the estimate of
$13,682,000.
On the hog program he took as the
average annual estimate the average
for the last two hog crop years which
end Sept. 30 and asserted that altho
the figure for the last year which
closed several days ago, were not com
plete, estimates were made to produce
a figure. The average annual produc
tion was estimated at 5,635,000 head
of hogs marketed. Anderson explained
also that approximately half a million
hogs are butchered on farms each year.
Assuming that all Nebraska hog
raisers will sign agreements, he es
timated adjustment payments would
be made on the basis of 4.226,000 hogs
which at $5 per head would total
$21,130,000.
Nebraska administrators of the ag
ricultural adjaustment act are await
ing orders from Washington as to
exact details of the program. Word
from C. W. Warburton, head of the
extension service in Washington, to
W. H. Brokaw, director of the Nebras
ka agricultural college extension ser
vice, indicated organization work for
the new program would follow the
same general lines as the wheat cam
paign which recently closed in this
state. Brokaw assumed control as
sociations would be set up in each
county under the new program.
“Since the welfare of the state de
pends to a great extent upon the re
turns which farmers get for their
hogs and corn, there is much inter
est manifested throughout the state
by producers,” Brokaw said.
CHURCH NOTES
M. E. CHURCH NOTES
Next Sunday we are to have our
Conference Director of Religious Ed
ucation with us at all services. The
Rev. F. I. Finch will preach at both
services and hold special sessions with
the Sunday school. We bespeak a large
attendance at Sunday school and
church.
F. C. Aucock, Pastor.
FIRST PRESBYTERIAN CHURCH
Sunday School 10:00—R. M. Saures,
Superintendent.
Morning Woship 11:00—“Inward
Certainty” will be the subject of the
sermon.
Young People’s C. E. 6:45.
Evening Service 7:30.
We expect to have special music for
the above services. We invite you to
attend.
H. D. Johnson, Pastor.
Maybe it would be a good idea for
the administration to get Carl Hub
bell to pitch a few innings against the
depression.
The reason they call it hard liquor
is that it takes a hard man to be able
to drink it successfully.
An Italian the other day flew at the
rate of 393 miles an hour in his air
plane. The only person who can beat
that is Dame Rumor.
Speaking of a minimum hour week
under the new recovery act, wouldn’t
it be terrible if mother went on a six
hour day, with Saturdays and Sun
days off?
Remember the good old days when
the fellow who owned a horse and a
cow was considered well off ?
Red Cross Appeals for Members
•T’HE 1933 poster of the American Red
* Cross, distributed nationwide, is an
appeal for an enlarged membership.
Resources were never more vitally
needed than in this fourth year of eco
nomic distress.
Memberships, which cost one dollar
or more, are used to support the unem
ployment relief work of chapters and
national organization; nationwide dis
aster relief work; health work in hun
dreds of communities, with special ref
erence to preserving the health of
mothers and children; safety work
through teaching first aid and life sav
ing; welfare work through six million
school children who are members of
the Junior Red Cross; and one of the
most important tasks ever to face the
Red Cross—keeping up the morale of
veterans of our wars, and handling
their problems of compensation pay
ments, arising from changes In govern
mental regulations.
One hundred twenty disasters en
gaged the financial and personnel
forces of the Red Cross during the past
year. More than a million dollars was
spent in relief of families who lost
their all in hurricanes, storms, fires,
earthquake and other frightful calami
ties.
President Roosevelt has said: “I can
be counted on to foster and aid in every
way in my power the great work your
organization (The Red Cross) must
carry on.”
Can any citizen of the nation fail to
do likewise?
Join as a member of your local chap
ter during the roll call.
I In The WEEK'S NEWS!
P RE DICTS
DEPRES
8I0N“HANG
OVER” — In
created In
sane asylum
and jail popu
lations twen
t y years
hence will be
,the toll exact
ed on the com
Ing genera
tion by the de
pression, it Is
predicted by
Dr. M. 8. Tay
lor, noted so
ciologist. Dr.
iTaylor, wide
ly known to
the country as
the Voice of
Experience,
conducted an
ex ha ustlve
survey In
company
with two
other noted
scientists.
STRIKERS, DEPUTIES
CLASH—Labor troubles In
coal, steel and auto Indus
tries were being adjusted
as NRA program entered
new stage of development.
Photo shows deputies fir
ing on embattled pickets at
—-Ambrldge, Pa.
\ ~ / / .
A HINT FOR
FALL Is this wool
ensemble compris
ing gray and white
plaid coat and
dark gray frock
worn by Lona An
| dre> screen star.
FOOTBALL STAR —,
Hueston Harper, who
N gained fame as a shot
put star last spring,
shows that he Is aa
agile as he is muscu
", lar, as he dives for the
ball as tackle for the
”| University of 8outh
j ern California.
SETS NEW RECORD —
Major Alexander P. deSev
ersky, veteran of the Rus
sian Imperial Air Force,
who lost leg In the late
war, sets a world's rec
ord In an amphibian plane
of his own design at aver
age epesd of 180.3 mltee an
hour.
CLIMBING STAR—“Will a torch song
raise the temperature?” This la what
petite Vera Merahe, star of “Take A
Chance,” tried to find out at the Havollne
Thermometer when she played hookey to
visit A Century of Progress. Photo shows
her on her lofty perch at the bulb of the
world’s greatest thermometer.
