| Show TIlE DAILY NEW NEV TORE TORK F Fi Financial n a Written v ln t for The Th Whirligig r By JAMES McMULLIN 1 NEW YORK New York experts predict that the recovery machine js is likely to hit rough going going go- go ing by June and that the drIver in the White WhiteHouse House House will need all his skill to keep it from stalling Two factors arc quietly wearing holes in the hi highway hway First is IS the point that government money and initiative have provided most of the motive power for recovery to date Motor manufacturers manufacturers have graphic evidence to this effect The fhe records show that car sales in various sections or of the country are practically in direct ratio to government spending in each section Now the federal fuel supply has begun to taper off and the replenishments in sight ight are too modest to maintain the momentum That puts the answer up to private indus indus- which try raise the second point Private in in- according accord ing to inside opinion opinion-isn't ready to shoulder the burden The real spring rise ought to be in full tide now and April business will show gains over March but not so great as estimated a month ago Doubts in Business How come this loss of pep pcp when first quarter earnings show Industry generally hitting on all eight The gist of it i that industry hasn't yet adjusted itself to functioning under re regulation and once again has doubts about the future future- doubts which the prolonged debate on exchange regulation and the Wagner Vagner bill have intensified The profit incent incentive ve spark is too feeble ignition at the moment And of course the threat of labor troubles troubles' has also served to dampen initiative and induce hesitation Its It's the sum total of many coupled with the slackening of federal which outlay arc likely to cumulate in a critical critical crit- crit ical impasse as summer comes Many financiers and industrialists especial especial- by in the he heavy industries have spent busy months plumping for modification of the securities securities act actS S as the one cure all to free business of its colic and set it soaring But the wisest ob- ob while servers conceding this will help cr dit say problems it will no more solve the fundamental fundamental fun fun- employment question than lotions will cure a cancer No Cause for Alarm But dont don't get the idea the country is headed for the rocks because of these difficulties The same authorities who make the forecast agree there is no cause for serious erious alarm Washington Washing Washing- ton still has an arsenal of stimulants to use as asand asand and when occasion requires Theres There's rio no telling yet what precise form these stimulants will take The best local opinion believes they'll be monetary in probably part along devaluation and credit expansion lines lines- not outright currency inflation But you can bet all the metal in Montana they'll be applied i if needed Gold Brick Keen local dope it out that the Federal Fed Fed- oral eral Reserve System has as much old or more accurately gold certificates in Its possession as it had bad before devaluation and that the treasury's treasury's treas- treas ury's profit from the official shrinkage of the dollar has been kept in cold storage instead of being used They hold the country has been sold a gold brick in that psychology has been substituted for an actual push with fresh dollars But informed neutral observers dont don't see it that wa way They point out out that the treasury still has n a huge hug reserve intact around three billion dollars with which meet to-meet emergencies that might arise but haven't yet They cant can't cantsee cantsee see any crime in that No one can say now how this reserve may maybe maybe be employed But its it's distinctly a reassuring thought to know th that its it's there Transatlantic Ernst the German was aviator even busier during his sta stay in the United States than indicated in this column recently Authorities are arc aware of the fact that he has been working closely with the German aviatrix aviatrix-Anthonie who has been shuttling back and forth across the Atlantic on confidential missions mis- mis Lions for Air Minister Goering In c connection with these visitors its it's worth noting that tIme the Sperry Gyroscope company has been selling a lot of bomb sights and other peaceful aviation instruments to a European corporation known as Inc is isa isa a dummy corporation jointly operated by the German war and aviation ministries Want Vant Action on Silver If you think the New York are pleased with the prospective compromise calling for foi permissive silver legislation instead of m mandatory guess again Those boys want action action ac- ac tion for their theu money Now it looks as if they would have to wait until the next session of congress to get it They have no illusion that the president would use his permissive powers in any way that might benefit them Local sponsors of the sil cr drive are arc working working work work- ing overtime trying to p congressmen that a mandatory bill is necessary to S save WC the country But some of them privately admit that the president has o outsmarted them once more Mcclure I |
