Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-06-15

Tile industries there is 1ar-reachlnB
shortage of raw materials and a de-
creased production, arising from
strikes and shorter working days,
causing the output to lag far behind
the actual need of the people for
clothing and wearing apparel of all
kinds. Retailers in most districts.
still pressed increasingly by consumers
for large quantities of merchandise
of every nature, are yet handicapped
by relatively small stocks. This
nationwide condition of empty
shelves is looked upon as an indica :
ton that prosperous conditions may
be expected to continue.
Foreign Trade Retarded.
Just as a scarcity of goods is linn
scarcity of merchandise and also the
absence of credits are retarding for
eign trade. Henry T. Davison's plan
for co-ordinating American industrial
and financial resources for assisting
Europe as business proposition in
dicated the way active trade Yela-
tons with the old world may be built
up. The program suggested by the
partner of j. p. Morgan provides for
the treatment of European neeos. as
a whole. through the unifying by ma
chlnery to be created of the demands
chinery and foodstuffs are generally
regarded as necessary to get the peo-
pie of Europe back to work again.
For the first time since the federal
reserve system was established, the
reserves of the banks. which are
members of the New York clearing
house, this week fell below the legal
requirements. Government withdraw
ais for the payment of an installment
or federal taxes, and huge loans on
stock exchange collateral caused the
condltion. which is soon expected to
right itself
Twelve Per Cent Rate on Calls.
Rates on call money last Friday
reached II per cent, for the first time
in twelve years. and the prices of
securities on the stock exchange
slumped notably. Most market OBJ
servers agree that the first phase
OF the bull market, which began in
February, is now definitely over. The
exp anation for shortage of funds is
to be found fundamentally in the fact
that the banks are still heavily load
ed up with the billions of dollars in
government certificates of indebted
ness and bonds and notes: stock eX-
change borrowing has greatly in
creased. and quarterly income tax
instailments due Monday were being
for money from business is still small,
though it has been increasing. This
increase is ascribed to revival in
business.
The lack of borrowing has not been
due primarily to poor business, as is
usual in normal times. but to the re-
markable cash reserve of business
firms built up through the profits of
war years. enabling business now
to carry on fair volume of activ-
ity without resorting to the banks.
Only when this business is still
larger will a borrowing wave set in.
Commercial Paper Feature.
The most notable feature of the
commercial paper market of the week
was the flrming tendency. Rates moved
gradually from a ga per cent to a So
per cent basis. At the beginnin of the
week there was still a little per cent
money offered. This has now COM
pletely disappeared. Then it was only
the names not so well known that
passed at a 5R per cent; now it is
tional names will command 5A per
cent.
Main Industries Reviewed.
A survey Of conditions in the main
sales of wooden and worsted goods for
fall use were confined mainly to the
jobbers this week, the mills, for the
most part being unable to offer goods
because their production for coming
months is sold. The leading feature
of the week was the opening of bids
for more than 100000 yards of navy
blue fannels by the Navy Department
Clothing manufacturers and cloth
jobbers participated in the bidding
and good prices resulted, the highest
reaching 1925 yard for one lot of
the f1annels of the unfinished worsted
grade. On the whole, it is thought the
government will realize an amount
only slightly below what it paid for
the goods when wartime peak prices
were in vogue.
Spring Wooden Offerings.
Spring woolens made their appear
ance in limited offerings of light
weight serges by William Whitman,
Incorporated, and the Cleveland
Worsted Company. SergeS are in good
demand. and the two companies had
no difficulty in booking orders
Mill agents predict a greater short
age OF woolens for next spring than
exist in fall woolens at present and
far in advance of present fail prices.
Deliveries of cloth to garment
manufacturers are slow, although
cloth for women's wear is being pro-
duced in better volume than fabrics
destined to go into mems suits and
overcoatS.
Cotton Textiles Sales.
Jobbers and converters sold consid-
cradle quantities of cotton goods last
week. But the volume of business with
mill agents decreased, mainly because
Of the fact that the mills are sold as
far ahead as they care to go at present
Retail dealers were in the market plac-
ing orders for all classes of goods. job