HOOVER’S REVIEW

Hokitika Guardian, 29 October 1929, Page 6

HOOVER’S REVIEW

BUSINESS SOUND AT THE BASE. (United Press Association—By Electric Telegraph—Copyright). i NEW YORK, October 26. In a statement bearing out the earlier declarations of the Treasury officials and industrial leaders that business declines were in no way responsible for m Thursday’s stock break, President Hooover asserted that the fundamental business of the country is on a sound, profitable basis. . .. Simultaneously the Federal Reserve Board has issued a detailed analysis of the business conditions, pointing out that the industrial production is this year far above last year’s level. However, neither the analysis nor Mr Hoover’s statement referred directly to the market break. The President referred to declines in other industries as “movements of a secondary character when considered in the whole situation.. He says: “The best evidence is that although production and consumption are at high levels, the average prices of commodities have not increased, and there has 'been no appreciable increase in the stock of manufactured goods. Moreover, there has been a tendency for wages to increase, and the output of the workers 'in many industries shows an increase, which indicates a healthy condition. A temporary drop in grain prices sympathetically With the Stock Exchange prices, usually happens, but as the Department of Agriculture points out, an over-rid-ing fact in. grain 'is that this year the world wheat harvest is estimated to he five hundred millions bushels below last year’s, which will result in a very lpw carry-over at the end of the harvest .year.”

President Hoover added that the construction and building industries have “been to some extent affected by the high interest rates that have been induced by speculation.”