Salt Lake Telegram | 1928-01-01 | Page 1 | No Slump Seen in Business as New Year Dawns

N NO SLUMP SEE N IN BUSINESS A AS ASNE NE NW YEAR DAWNS DANS Stability Is Dominant Note in Industry Hooi Hoover r Says J CREDIT IS AMPLE t Most Sections Section of Labor World at Pe Peace c WASHINGTON Dec 31 AP AP- AP The phenomena usually accredited as premonitory of a slump are absent ab sent and the United States enters the New Year with the forces of oT stability dominant In n the business world Secretary of Commerce Herbert Herbert Herbert Her Her- bert Hoover said Hoover said today in a statement state stateS ment regarding business prospects for 1928 Mr Hoover explained however that s such uch industries s as LS agriculture textiles bituminous coal and some metals still tag lag behind others He held to have hav a an important bearing on the future the decrease in wholesale wholesale whole whole- sale prices of ot nonagrIcultural products prod prod- pointing pointing- out that the great extent to which In industry has ac- ac itself itself to the the- decline makes for a sound sounder r- r for forthe forthe forthe the ensuing year I CREDIT AMPLE There is is' is isan isan an ample ample- supply of gf credits at low rates Mr r. r Hoover Hoovel said aid the som somewhat J arr r er stoc stocks gO w ere t- t lri d during g the summer aie are b being h g r re reduced duc d the there e Is no consequential speculation in in commo commodities tl the t crops have hate be been J abundant wag wages waga a aare 1 are at a high level we are recover recovering cove cove- ing from s some me partial employment t especially in the automobile indus indus' industry indus indus' try to There Is Is' Is peace in most sections of f the labor world except bituminous inous co coal l there ere is more mor peace Inthe in inthe inthe the international world than at anytime anytime anytime any any- time since th the w war r th the foreign world is Js recovering its e economic strength strength- and buying pow power X therefore there therefore therefore there there- i fore our tOL foreign ign t trade ade is steadily te dily I increasing increasing- The ph phenomena I usually lly i ac accredited as pr premonitory i of a slump are therefore absent Of Ot the changes changes' in prices which he characterized as as- Important shifts In our ur ow own own economic c mic world Mr 11 Hoover s said said i ti i- i PRICE lAN CHANGES S f- f While the average wholesale price of ol all commodities g at at about t 50 per cent above prewar r is today the same same as a a- ye year r ago g yet yett If we divide them Into agricultural and nonagricultural go goods ds It will be bet t found und that th the av average price of products has fallen fall in the twelve months from about 60 p pet per f cent cent- above prewar to 51 percent per percent percent cent prewar while th the average average of ot agricultural Pl products ducts ducts' at central markets has risen n from about 35 per cent above prewar pre to about bout 53 per per cent cent prewar however prices on the farm show only a rise rise- of from about 30 per cent above to about 39 per cent above prewar Manufacture re and distribution have by savings and diminished profits accommodated d themselves to to this situation of decreasing prIces pi Ices without reduction in iii the average aVerage average av av- and th therefore level of ot wages in the n national l buying p power hv r. r But the great extent to which industry has accommodated itself to to lower ower prices by decreased costs makes for fora a sounder condition for tor the ensuing ensuing ensuing ing year Despite decreasing pr prices ce production and consumption of ot manufactured ired commodities l haye have aye been maintained upon tipon a high level as shown by by- car loadings of of- t this is class of goods which have have- been been- about equal to those hose of ot last year