The gains have neon suustanlial enough to put
an end to the inference that the recovery has been
due to the depreciation of the dollar on the world
markets. It is now firmly believed in a number
of quarters that direct inflation may never be needed
to bolster the prices already rising, thanks to the
actual improvement in business conditions and, in
the important case of grains, to natural causes.
Improvement in the lumber business in the
Pacific Northwest, following nearly six years of acute
depression in that industry, and in the coast agricul
ture is also benefitting from improved conditions. The
advance in prices in the wheat belt has ameliorated
substantially the financial situation in the farming
community. In the East and South industrial gains
continue.
All the important indices continue to advance,
and may be expected to reflect further improve
ment due to growing gains from the lifts in pur
chasing power resulting from re-employment, wage
increases and general activity. Conservative ten
dencies in major industries indicate that the ad
vantages are not to be over-pressed during the
Summer. A corresponding determination of re
tailers to continue prices as low as possible until
higher costs of materials force an advancing gives
further indication of the soundness of the restorative
influences. Naturally, with higher commodity prices,
there must be a corresponding rise in living costs.
To meet these, the plan of the Administration, as
announced by Gen. Hugh S. Johnson, Director of
National Recovery Administration, to bring employ
ers into voluntary agreements to advance wages
and limit hours is timely and should benefit capital
equally as much as it does labor.
GAINS IN WEALTH.
