The sun., 1919-02-01
EXTREME CAUTION
HOLDS BACK TRADE
Nationwide Conservatism In
It's Reconstruction Puts
Quictus on Business.
NO EXCESS OF PURCHASES
Revision Downward of Prices
Is Expected to Act as a
Great Stimulant.
80 EXCESS OF PURCHASES

While prospects for future business
are excellent, present day business con.
tinues to be very dull The extreme
caution which trade the country over IL
displaying in conducting reconstructIon
and transition plans continues to be the
principal damper on business and with
costs of production still extremely high
and conservatism the chief sentiment
manufacturers are not prone to accurnu-
late to large amount of stock In excess
OF the immediate requirements for
orders There are expectations that the
reaction downward of prices may be-
come more widespread and more pro
nounced, and II that reaction takes
place, a great stimulation to business
generally is looked for.
From practically every trade and
centre of Importance says Dur's
Weekly Revie,o, comes multiplying evil
dence that business is richer in promise
than in actual performance. OF factors
presaging future and more stable expan-
sion, there are many clearly apparent.
and the reductions in ocean freights on
both sides Of the Atlantic have
strengthened hopes OF a coming note-
worthy development OF ovearseas COM
merce. Yet various perpleXing problems
and uncertainties have not unnaturally
arisen from the economic transformation
which Is now everywhere in progress
and hesitation and caution continue the
rule while the necessary readtus tInents
arc being effected.
THAT buyers arc confident OF further
downward revisions from the extreme
prices is plainly indicated by their
general policy of purchasing only that
which is Immediately required. and lead
fri Sha .
state of unexampled activity and pros
pcrity to one of increasing unemploy-
ment OF machinery and labor.
with production costs remaining at .
high level. and conservatism the pre-
dominant sentiment, manufacturers are
reluctant to accumulate supplies for
which demand has appreciably dwindled,
and the disposition in retail circlAs,
where weather conditions have militia Id
against full movement of seasonal
merchandise, is to reduce burdensd0ne
stocks through special offerings. Tho
present tendency. in sharp contrast 10
that of the war period. is for the seller
to seek the buyer, and consumers are
now beneiiting somewhat from price con-
ccssions in foodstuffs and other COM
nodities."
pdstreets state OF trade takes q
siV.dr view of the situation. Price I'M
W
lines. it points out, while extremely mild
weather conditions discourage the usual
January buying. The review goes on.
wholesale and jobbing trade is still
at waiting stage, retail trade is less
active. and the industrial pace. pa rticu-
larry in textile and iron and steel lines,
is slower. Even collections are rather
more tardy. and the number of unem-
ployed is officially reported larger. this
llsalg1 Tft1a,.n i
duced active mill. blast furnace and mins
capacity from number OF points. of old
orders running out and of muntion
works turning over capacity to peace
lines.
Price Uncertainty stu Ru,cx.
Price uncertainty still rules nearly
all wholesale lines OF textiles, the mild
est January in the history of theWeath
Bureau discouraging buying OF heavy
winter apparel: an additional bar to
active buying, both wholesale and retail,
and also 10 collections has been set up
at the South by the big January decline
in cotton, ana tho SlowueSs of retail de-
inand and fear Of carrying over large
stocks reaches all the way back to tho
manufacturers. who, in textiles particu-
larry. are finding present or prospective
labor demands an additional discourage.
mcnt to going ahead in lines where price
cuts have been drastic.
When the above is said. however. to
use "A Wall Street phrase, about all OF
the bad news, quite Il budget at that. 10
out Strange as it may seem to Soma
pessimistic observers, there are some
silver edges TO the clouds For ono
thing, food prices have gone down, more
slowly at retail than wholesale, by tho
way; ocean freight rates have been Nor.
cilessly slashed, with resulting improve
ment in feeling noted in the export
branches of the iron, steel leather. mu-
Der and coal trades the open winter
favors more out of door work and liberal
marketing of farm produce, and there
are signs that something like a chnrk
mas been given TO the growth Of the foo
ing mat there Is no bottom 10 prices Of
textiles. particularly cotton and woolrn