HispanicBusiness

As the year 1928 ended, there were more and more positive statements about the economic conditions in the nation as 1929 began. More than 200 businessmen said that the people of the United States were more prosperous than ever before -- unless some unforeseen circumstances developed during the year -- and they expected 1929 to be even a better year than 1928. Many businessmen believed that the election of Herbert Hoover virtually insured prosperity for 1929 and beyond.

However, there were some other economists who did point out some of the flaws in that thinking. One of the naysayers was William Green, president of the American Federation of Labor. "All economic trends point to a very active expansion in industrial development, production and trade markets for 1929," said Green. "The increased buying spirit is strong which will mean demand for more manufactured products."

Government projects such as flood control, building operations and other projects authorized by the U.S. Congress, at that time, would have a stimulating effect on the labor supply, which directed more manufactured goods and supplies for the projects.

"However, it is hoped that the unsound economic conditions existing in the coal, textile and shoe industries would be overcome," said Green. "Also, that a solution for the correction of the unfavorable economic conditions in agriculture will be found. There should be little or no unemployment in 1929."

Another observation made at the beginning of 1929 was that wages had increased which resulted in most of the populace having more purchasing power, which led to an increase in the demand for manufactured goods, which in turn, led to higher employment numbers. Little was said about the cost of everything also going up along with the increase in wages.

"A few feared, somewhat, the enormous expansion of speculation in securities," said Victor Scales, Associated Press financial writer. "A small percentage of businessmen saw little hope for any improvement for industries, which had experienced some depression in 1928. Despite those misgivings, businessmen planned for relief and faith in the future, with no view of alarm among industry leaders."

The oil and gas industry in Texas and Oklahoma had stabilized, was more permanent with new fields discovered. Additionally, there were remarkable advances in refining the oil, drilling wells and salvaging wells that had been abandoned earlier.

Agriculture had the most problems with increased costs of production and overhead expenses that had mounted. Agricultural machinery, commercial fertilizers, building materials and seed prices had all increased. Although the gross income for most farmers had increased, the net income had not which caused a wide disparity between what farmers got for their crops and the cost to produce the products. The interest on farm indebtedness and farm taxes had increased as much as 50% to 150%. In the U.S. Congress, the Farm Relief Bill had not been acted upon, which would help most small farmers. Hog prices were down but cattle prices were up, along with an exceptional growing season for grains and other products.

The West Texas Oil Belt District football season had ended with Abilene High embarrassing Port Arthur in a 38 to 0 contest. Clearly, the high school representing the southern and eastern part of the state was not of the same