New-York tribune., 1918-01-02
General Business
Begins to Reflect
War; Economy
Federal Reserve Bank of
New York Notes Depres-
sion i'm Certain Lines

Busieness developments during the
last month have been along the line of
further curta;lment of industries re-
garded as non-essential, with continu-
ance and increase of intense activity in
the essential lines, according to the
monthly report Of conditions in this
district issued by Pierre Jay, chairman
Of the board Of the Federal Reserve
Bank of New York. Emphasis is laid
on the fact that the increasing practice
of economy on the part of the people
is beginning to be felt in many lines.
"Activity in lines doing war work,
says the report, ~has led to the ready
absorption of labor released in lines
which show decreasing output, and the
general level of business activity can
hardly be sold to have changed. as 1t
has for moalths past been at full ca
pacity. In many cases factories nave
been able 10 change their product to
adjust them selves to the war situation,
a noteworthy instance being found IN
the automobile industry. where COM
panies making both pleasure cars and
trucks have concentrated their efforts
on trucks and are running to fullest
CAPACITY. WIN OEUCIS DOOhSN iCA hA'SoN,
80 that their output is in excess OF the
pre-war production. Other manu1act-
urers. whose products are Of charac-
ter likely to be considered non-essen-
tial, are considering ways and means
of changing their output to war sup
plies or goods of an essential charac-
ter.
The Spirit of Economy
"a tendency to economy is now dis,
tinctly manifest. Business in several
lines which have been active during
the fall is now reported ss slightly
depressed, particularly in such lines
as jewelry, cut glassware. clothing
drygoods, ETC., quiet period vs. re,
ported in the theatre business. ascribed
to the public's realization OF the ne
cessity for conservation of resources
and energy A natural reaction has
been the neglect of the theatre.
"The effects of the economy move
ment. however, are not uniform
among the lines that at first thought
would aprear to be Injuries. Dealers
in confectionery. for example. report
! excellent business up to date and lack
Of sugar alone has prevented heavy
/ increases in sales of candy. Dealers
in groceries. wines, liquors, etc, re-
port excellent business. Sales OF
wines and liquors to dealers have
shown abnormal increase, ascr!bed to
their desire TO protect themselves
prior TO the imposition of war taxes
and to higher prices caused bi' dis
continuance OF distillinS ond import
of highly alcoholic liquors. Chain
stores report steady increase in
business during the year. despite in
creased costs of merchandise and
shortage Of labor.
Shoe Sales Fall OF
"Salos Of mems and women's clothing
have fallen of distinctly. and the num-
ber Of pairs of shoes being sold is cstl-
mated at 20 to 25 per cent less than q
year ago. though the money volume OF
sales holds up
''In the drygoods line lessencd ac-
tNity is reported. particularly III silks
and woollens, though sales Of cotton
goods continue strong. with large or.
in price to The same relative extent as
cotton and wool and is being bought as
substitute, but, in spite Of this and
the larger number Of transactions III
the volume Of sales in dollars than
ever before, the vardage sales are
smaller than last year Silk produc-
tio1 now appears to be in excess of
consumption. and the price has dropped
There is feeling Of depression in this
line here, though sales are reported
better in the West. Middle West and
South.
"In the metals trade activity centres
on government work. The demand fer
lead and zinc appears to have fallen
below the supply, and business is ouics
in these lines. Steel stocks during the
last few weeks have shown an increase
ascrbed to ocean and railroad en-
, bargoes, which have permitted the com
pletion Of domestic business instead Of
supplying export tonnage. BY far the
greater portion of the business re-
ceived By the steel trade is due to the
activities OF this government and Tax
Allies. Though production Of pig iron
is being pushed 10 capacity. scriou:
randcaps are encountered through the
difficulties OF transporting raw ma
terials, particularly coke. while tie coke
manufacturers, owing to labor short
age and inadequate car supply, are un
able to ship anything like their full
capacity. shortage Of pig iron dur
ing the next year appears imminent"