New-York tribune., 1918-08-04
Prosperous West
Has Enough Money
For War Demands
The Large Consumption of
Goods Makes Trade Brisk
in Granger States

Especial Correspondence Of The Tvibune)
CHICAGO, Aug. 3,-Business condi
tions throughout the Middle and West
ern states may be summed up as gen
orally satisfactory. Crop conditions
are fairly good, though some grains are
little backward. Wheat is moving
somewhat earlier than usual. Of
course, this part Of the country, like
the rest Of the United States, has felt
the financial drain Of the war, though
probably less than some districts. But
thanks to the prosperous condition Of
the granger states during the last four
or five years, they have been placed in
position where they can meet the de-
mands upon them with relative ease.
Economy that has been so persistent
ly preached by the Federal authorities
as war necessity has in q way In
creased business rather than decreased
it. There is an absence of large or
ders and big individual lines Of buying,
but this has distributed consumption
more evenly and caused little change
in tho total shipments.
The sales Of Chicago wholesale dry
goods companies approximate $780,
00o, 900 year. It is believed that bust
ness now being contracted for by these
Arms will make the total for thu COM
ing season, fall and winter 5000 900, 900.
From all parts Of the West managers
of the Chicago Wholesale drygoods
firms report good trade. Only one or
two districts will show sales less than
last year. One Of these is Montana,
where there has been too much dry
weather and the crops will be materi-
ally off, lessening in ratio all pur-
chases. There is just little district
shading Of cotton in some parts of
Texas, but crops as whole are good
in that state, and It's purchases will be
above last year.
War Affected Import Trade
The war has prevented importation
Of great many lines Of goods, but sub
stitutes are being rushed forward, so
that the total sales will be ahead Of
previous seasons, because many Of
these substitutes are being bought in
larger quantities than were the goods
for which they were substituted. For
example, very little linen is being I'M
ported now, and as result the demand
for cotton goods has increased.
In the mining countries business is
booming-that is, wherever coal, sill
yer, copper and every other mineral
except gold are being mined. Mining
districts are heavy spending districts
The one thing that is back is gold
Gold is cheapest Of all metals to-day in
the West. Its price is so low com
paratively that mines in some instances
are lying idle because they cannot get
miners to work at the wages they can
afford to pay. Gold mine owners can
not compete with the high prices paid
by silver and copper mines for labor.
Many Of the minea in the Deadwood
district working low grade ore are idle,
and this reflects or affects the business
conditions of the territory. On the
other hand. most Of the manufacturing
towns are buying heavily for fall ard
collections are reported as entirely
satisfactory, though the high cost Of
goods requires bigger payments. but
the retailer, in turn, maintains the
ratio by higher prices. 1t is fact.
however, that retail merchants through
out the West who have goods stocked
IN large amounts are offering bargains
to the public and are selling their
wares In many cases at less than they
could be bought for now. Of course.
when their whole stock is used up the
bargains must cease. In this way the
retailer is often doing better, compare
lively, than the mail order house. be-
cause the mail order house must charge
the current prices.
High Money No Restriction
High money rates have had no effect
on purchases of goods by retailers. be-
cause the heavier the sales and the
higher the prices the more interest the
merchant can and is ready to pay, and
If the rate does not exceed per cent,
as 1T does not in most Of the big buying
west, the more money a retailer bor-
rows the more he makes
Wholesale drygoods trade has lost
heavily in the draft Of travelling sales
men. One of the big Chicago drygoods
wholesale firearms had it's force depict
ed by 1900 through draft and enlist
ment The manager of one of the oldest
and largest mail order houses in Chi
cago says that business this year will be
ahead of last year--just how much he
does not indicate in figures. The two
largest Chicago mail order houses last
year did about $250,oOO,000 worth of
Notwithstanding more than the
combined business Of the wholesale
drygoods firms Of this city. The mail
order increase, with the increase of the
drygoods firms of this city, should
mean total business Of between
$600,000000 and S700OO0,0O0 for both
classes of merchandise.
The big business of the mail order
houses will come from farmers or
other independent classes of the rural
population that will have cash to spare.
This wear there will be more of this
cash than ever.
FRANK q. Wetmore, president of the
First National Bank, says that the de-
mands for money are heavy, and he
looks for good business throughout the
West this year. He adds that he does
not believe money rates will go above
per cent, and that increasing them
does not necessarily stop borrowing.
but places a hardship on those who
must have money for their business
John J Mitchell. president of the MI
nois Trust and Savings Bank, thinks
money has reached the top, regardless
of the great demands Business
throughout the West he saws ia GOOD