The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-03
TRADE DISPLAYS
SIGNS OF CAUTION
Current Business Movements
Feel Strongly Effects Of
Price Situation.
DEMAND STEADILY GROWS
Cost Is Secondary Usually If
Needed Supplies Are to Be
Had Immediately.

Current business movements are feel
ing very strongly the, innaence OF the
arica situation, the weekly trade reviewa
,nd,cote, many signs showing q display
~ caution in numerous branches OF busi-
.ass as n result of continued high quota
.,~ns for materials. It is declared TO
ssye been remarkable that business has
hosp maintained at It's present pace. with
a steadily growing demand despite high
prices.
is,r (which becomes more extraordt-
nary with each weeks passing, compels
wider attention and even exerts an IN
crsasingly potent influence on current
Business movements AT prices that
would ordinarily put an abrupt check
an expansion, many commodities are
.anted in uuexampled volume because
che reouirements OF the REIMBURSEMENT
sro are so pressing or still higher levels
seem to be foreshadowed and where
urgently needed supplies are available Tor
Immediate delivery the matter OF cost
Is usually of secondary consideration
with buyers Yet signs are not lacking
of a decided tendency toward caution In
some quarters as leading markets ad-
vance almost without interruption ana
reach unparalleled limits, and the ques-
tion of the probable ultimate effect on
consumption of the extreme and rising
urices Is one which IL not being disre-
rarded in conservative circles.
"For the present such abatement of
activities as Is apparent results more
from seasonal factors than from the ele-
ment Of high prices, and IN many trades
and industries In widely separated sec
tons of the country the customary mid
summer hating Is conspicuous only by
r Ar0n0niG
conditions that exist are demonstrated
In various ways. Commercial failures
r In July we're fewer in number than In
any other month of which there Ia record,
and bank clearings we're heavier than
ever while latest returns OF foreign
commerce diclose az export total run.
ming far beyond all precedent. Yet the
distinction between volumes and values
is not to be overlooked. in analyzing sta
tistical comparison, as here the influences
of the high prices enters largely.
Foreign Exchange Situation.
That the price movement has been
. almost continuously upward since the
elimination of the reaction that fol-
lowed the armistice is evidenced by the
fact that for eighteen consecutive weeks
Dun,s List of wholesale Quotations has
shown a preponderance OF advances.
"The significance of the foreign ex-
, change situation has been more forci-
. bly, impressed on the general. business
community by the pronounced unsettle-
ment in sterling and some other classes
Of remittance. No repetition Of the bot
tom quotation of s4.26 for sterling, es-
,ablishAd on July 16, has been wit
messed but checks on Paris this week
. fell to the previously unknown figure
Of 1877 and even now 1t cannot
4, be said with certainty that rates on
leading European nations have reached
the absolute minimum. Recognition OF
, the need for corrective measures ex.
tends beyond purely financial circles.
but the balance Of trade is still running
, strongly in this country's favor as DEM
onstrated by the phenomenal growth OF
, June merchandise export, and the prob
, lem OF restoring the exchange market
, TO a moro natural position Is not one
, which is easy OF solution.
"a bill authorizing the Federal incor-
poration OF 'one or more concerns to
handle the composite comnlercial-hnan-
cial business OF the American export
trade was recently introduced In the
Senate and has since been favorably re-
ported by the Banking and Currency
Committee"
while the wire edge Of demand fol
and raw wool, seems q trihe blunted,"
says Brddstreet's State Of Trade, "and
~ buying Of interior jobbers and whole
salers at Eastern centres seems lesi
eager the consensus OF reports Is that
d. trade as a whole is stin very active
for a midsummer period. Industry, par.
ticularly the big basic lines, such al
iron, steel. lumber and coal, SCENT
; stronger, with prices hardening. Re
ports that textile mills are crow isd with
orders well up to the close of The yea,
are repeated. Trade reports seem t.
grow better as the surplus crop produc
ing areas are approached, ard com
plants are still numerous thlt mills
Eastern wholesalers and other Urge pro
ducers are slow to fill orders
Trade Influences Unfavorable.
ut might be repeated here that tn,
trend OF happenings ordinarily affecting
trade and distribution are not as favor
able as some months ago. Crop re
ports notably winter and spring wheat
oats and cotton. are not so favorable Al
some months ago. and the early predic
tons as to winter wheat have beei
greatly reduced, though tho prospect II
still possibly equal to the best OF pas
years. Corn crop prospects have bright
ened this week ,-as a result OF badl.
needed rains falling In leading States
but so prosperous are the agriculture
communities that reduced crop estimate
seem to be almost ignored. as the con
tlnued unsettlement, with some new loy
levels, of the exchange markets. whicl
should have a bearing on export trade
and the disposition of labor. as for IN
stance in Chicago, to ride roughshod Il
the matter of wage demands.
The quieting down of the stock mar
ket after record sales for July, du
I largely to increased tension and highe
: rates for money, is really a reflection O
activity In trade, because trade opera
Tons and crop moving needs are evi
IDENTIFY limiting supplies available 70
stock speculation. There is very gen
eral agreement that high prices do nc
seem to be checking demand for goods
remarkable manifestation of tn
strength Of demand regardless OF pric
: was had this week at New York. whe
. large quantity of cotton goods wa
sold at auction by the War Department a
higher prices than were originally pal
oy the Government-traditio
prodigal buyer n year or less ago"
New England Securities.
BOSTON, Aug. 2.-SAles Of New Ens
IAnd Manufacturing and other nacuritie