New-York tribune., 1917-12-03
Business Readily
Adapts Itself to
War Organization
Activity and Prosperity Not
Disrupted, Reserve Bank
Report Indicates

Substantial progress in war organi-
zation without serious disruption OF
business or diminutlon of general ac-
tivity and prosperity is indicated by
reports received by the New York Fed
cral Reserve Bank.
with the exception of numerous
complaints concerning transportation
and labor conditions. the general com
ment from our correspondents indi-
Gates active and prosperous business
says Pierre Jay, chairman Of the board
Of directors.
agricultural implements are SELL
ing we'll at prices substantially higher
than normal. Activity in machinery
manufacture continues undated, sup
ported largely by government orders.
Demand for railway, mill and mining
supplies is lesening slightly. Build
ing trade materials are purchased only
for limited immediate requirements.
The absolute necessity, however, Of
increased housing facilities in factory
and shipbuilding centres has led to
special efforts toward construction Of
ness in rubber products continues
amony private buyers.
Clothing Industry Active
Sustained activity is the report
from the textile and clothing indus
tries. Mems and womens clothing is
selling freely, in spite of sharp ad-
vances in prices. The hosiery and
underwear trades arc fairly busy, with
government orders an important fac
tor. Manufacturers of cotton textiles
are hampered by difficulty in obtain
ing raw cotton promptly, and partic-
ularly by the problem of labor supply.
Buying demand is excellent, with a
tendency not 10 question prices, buy-
ers trading for hnonths ahead. Silks
are selling readily and with no sign
of diminishing demand, orders being
placed ahead both for actual wants
and in anticipation of future needs.
This fact, taken with the report of
active business in furs and other
clothing. appears to indicate that the
public is not stinting itself in the
matter of clothing. Further evidence
of the absence of rigid economy is fur
nshed by TIE heavy volume Of sales
of jewelry and watches.
"As a result cf high prices and Of
cverstocking last year, the volume of
business in mems shoes is not quite
up TO the usual standard. A tendency
on the part of retailers to order in
smaller quantities and more frequent
ly is noticed.
High Prices Breed Caution
"Interior decorating and housefur-
nishing companies report a recession
of business. with buyers cautious and
conservative. and as prices have ad-
vanced TO the maximum which il is
thought the public will pay further adj
vances in the cost of raw materials
will mean curtailment of business.
"The paper manufacturers are hav-
ing u good volume of business, though
with narrowing profit, because of in
creased cost of labor, fuel and wood.
Pulp wood now costs twice as much as
three years ago. while the cost of labor
in this industry is reported to have
increased 90 per cent. There is con-
siderable unsettlement in the drug and
chemical lines, with demand better
than supply.
Conditions in the metal trades are
uneven. Practically all of the copper
produced in this country is now being
taken by the government, and the sup
ply has been much below the demand.
Production Of lead, on the other hand,
has outrgn consumption. Exports for
last year were 225,000 tons Of pig lead
and lead manufactured articles. or ap-
proximately 35 per cent of the entire
production. The exports this year have
been trfing in amount, and have been
practically Offset by imports from Mex
leo.
"The oil industry reports an upward
trend in prices of lubricating and fuel
oils, but no recent change in the price
of gasolene or burning oils. Burning
oil is reported TO be a drug in the mar
ket, and fuel oils are bringing prices
as high as those obtained for the re-
fined product.
Conditions in relation 10 foodstuffs
continue little changed. buying being
careful and for immediate needs only.
with prices steady at levels considered
high By the trade. For the last six
weeks there has been n serious short
age of raw and refined sugars in this
market, and although temporary relief
has been found in the distribution of
supplies heretofore purchased for eX-
port TO neutral nations and now used
TO supply the home market. 1t IS eX-