The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-24

at which some profit taking was INDUCED
In toward the close of a period full of
important developments affecting the
financial and business outlook The
agreement between the steel manufac-
turers and the Industrial Board touching
a reduced price schedule to govern bust
ness during the balance of the year was
| OF great significance not alone to the
| basic industry. but as marking an i'm
portant step in the development OF q
comprehensive programme to promote a
nationwide revival in business Similar
discussions by the Federal Reserve
Board. the Federal Advisory Council and
| tho governors of the Federal Reserve
Bank. in the course of a three day
Washington conference, will be produc-
! tive of a better understanding for intel
ligent action along the same lines. In
that way the most powerful Government
agencies have united with the real cap
tains of industry to promote consump-
tive buying and a genuine restoration of
American prosperity.
An Important Move.
1t would be difficult to overestimate
tho helpfulness of such a movement at
this juncture OF the countrys recovery
from the chaos of war. An immense
potential buying power has been held in
allegiance by the uncertainties of the
readjustment period and the inability of
buyers to tell how much further price
recessions would go. In the building in
dustry especially business has been at
standstill owing TO the disinclination OF
the public TO contract for immense guam
titles of structural steel in falling
market. phe situation has been
strengthened by the action of the repre-
Nd
Iron Institute In consentng to reduc-
lions ranging from 10 to IL per cent. in
steel products, with the tacit understand
ing that no further concessions will be
permitted this year.
The Industrial Board having come to
terms with the steel makers is free now
to push its Investigations of other in
dustries with the idea of promoting a
similar revival in those lines. The
country is heavily short of housing ac-
commodations owing to the stagnation
in building during the war caused by
the shortage OF capital and labor avail
able for purposes not directly related to
the military enterprise. Should 1t be
possible to undertake broad scheme
OF improvement work as a consequence
OF the lowering of steel prices, such a re-
vival In the building industry would in
ftuence thoroughgoing recovery in other
branches and provide employment for
most OF the $4,000 idle men in this
country.
That start toward promoting an Or
derby readjustment OF prices to bring
consumers into the market and cause
an ultimate revival of business has been
highly encouraging. For more than two
years the world has been heavily short
of merchandise intended for civilian con-
| sumption. Mercantile stocks in this
country and abroad have been greatly
depleted and there is an urgent foreign
demand for American produce. raw ma
terial and manufactured goods. In such
, a situation there often develops spirited
buying with a rush to procure needed
supplies at advancing quotations.
The present situation is unique in
| that the rest of the world Is heavily
| short of the things which the United
States has to sell and which only can
be procured in this country in quantities
| sufficient to satisfy an unprecedented
| foreign demand. On that point the ex-
! tremely interesting figures given out last
week covering this countrys foreign
| trade during February are most sugges-
| tive. They disclosed exports of $685.
100000, a total that was 1921. 900. O0O
| higher than the best previous February
| record
The showing was all the more re-
markable in month when shipping ia
| cilities were far from normal and when
| ocean freight rates were still sufficiently
| higher than the pre-war level to add
considerably to the usual cost of deliv-
ering American products to foreign mar
kets. AS a consequence of the extraor-
| binary outward shipments in a month
| when imports were valued at only $685.
| 100000. the margin OF exports. COM
pared with imports, amounted to $685.
O0U, 900.