APPOINTMENT OF WALTER HOPE

THE PRESIDENT. I have one appointment today. We have drafted an outstanding attorney in New York, Mr. Walter Hope, as the Assistant [p.355] Secretary of the Treasury in place of Mr. [Henry H.] Bond, who has resigned.

THE BUSINESS AND ECONOMIC SITUATION

All the questions I have today--or most of them--are on the business situation.

The fundamental business of the country, that is, the production and distribution of commodities, is on a very sound and prosperous basis. The best evidence is that although production and consumption are at a very high level, the average prices of these commodities, taken as a whole, have shown no increase in the whole of the last 12 months, and there has been no appreciable increase in the stock of manufactured goods. Therefore, there has been no speculation in commodities. There has been a tendency for wage increases and the output per worker has increased, all of which indicates a very healthy situation.

The construction and building material industries have been somewhat affected by the high interest rates induced by the New York speculation, and there has been some seasonal decrease in two or three other industries, but these movements are of secondary character when they are considered in the light of the whole situation.

The temporary drop in grain prices sympathetic with stock exchange prices usually happens, but, as the Department of Agriculture points out, the overriding fact in grain is that this year's world wheat harvest is 500 million bushels below last year, and will result in a very low carryover at the end of the harvest year.

And that is all I have today.

Q. Is that for quotation ?

THE PRESIDENT. Yes, it is for quotation.