Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-12-21
WHOLESALE TRADE
UNUSUALLY ACTIVE

Freer Shopping Despite
Extraordinary Prices.
The normal period for inactivity in
| wholesale trading and activity in re-
J tail distribution finds rather less of
| the former phase apparent than usual,
according to Dun's Review, and even
| more Of the latter condition obtain.
| ing than during previous years Of a
| record holiday turnover. Relaxation
/ Of the fuel and light regulations i'm
| posed by the recent bituminous min
| ing controversy has permitted of freer
| and fuller shopping at the height of
| the Christmas season, and the extern
| Sive movement Of staple articles, of
| semi-luxuries and Iuxuries and or
| novelties. seems all the more note
| worthy when the extraordinary prices
| are considered. Disaffection over the
extreme prices has not diminished as
! the passing months have failed to
| bring the lowering of living costs
that had been talked of in some quar-
ters. but the general purchasing
| power does not disclose the shrink
| age that might logically have been
expected to develop. and evidences OF
| extravaganza in personal eXpendi
| lures remain conspicuously present.
foreign consumption Of commodities,
| in combination with the restriction
of outputs from one obstacle or an
! other has caused shortage of goods
| that is nearly everywhere complained
Of, and which tends to obstruct op-
| erations in not a few instances.
Competition among buyers to secure
| urgently needed raw materials and
manufactured products not infrequently
results in offers of premiums for quick
deliveries. which sellers are not often
| In position to take advantage of. and
speculative compliments in anticipa-
| ton of still higher prices are by no
means wholly absent. That the existing
| dlsproportion between demand and sup
ply will soon be appreciably reduced is
improbable. for winter has brought
| added handicaps to various industries
storms. both east and west. and the
ending of the recent mining troubles
has not meant an immediate abandon
| ment of all of the limitations on the
marketing and use of fuel. The prospect
| therefore, does not seem bright for ar
early amelioration of the scarcity OF
goods through expansion Of production
| mere, but a measure of relief may be
! AFFORDED in some lines by increased i'm
ports from abroad. Notwithstanding the
| reported economic distress and disor-
ganiZation in Europe.
l
| Following it's recent abrupt fall t.
the previously unknown figure OF
about $3.65, sterling exchange rallied
with such violence this week as tc
! give conclusive proof, though none
| was needed. of the presence of specu-
| latiVe. influences in the market An
| advance of some % cents in the Lon
don rate within a few days did not
| result from natural economic causes
| but was largely the outcome of a rush
| to cover by shorts" that was i'm
PEELED mainly by the passage of the
| Edge bill by Congress. This develop
ment had prompt effect in improv-
ing sentiment in financial circles, and
| was one of the weeks factors in the
retirement in stock prices: So far as
| a permanent correction of the extra
| ordinary exchange position is con-
| cerned. the remedy clearly lies in a
| reduction of the huge excess of Amer
| lcan exports over imports, reaching
| $3.4OO, 100000 in ten months Of 1918
! which has been carried over from the
| war period. That the narrowing OF
| the disproportion between exports and
| imports is already under way, not
outstanding the economic difficulties
| with which Europe is confronted, re-
cent statistics CT overseas commerce
| have demonstrated, and it is only
| through continuance of such a process
|
| normal rates for exchange is to be
expected. All of this weeks early re-
| covery in sterling did not hold: by
| Thursday the rate had fallen back to
| around 1916, or but some 10 cents
above the bottom mark of Decem
Der -.
| Iron and Steel Prices Still Higher.
| AS was not unexpected, another
week has brought still higher prices
Tor iron and steel products and it is
conceivable that the rise may be car
RED even farther. Published quota
| tons disclose additional advances OF
from 81 to 81 in pig iron and of as
much as So IN Bessemer and open
| hearth billets at Pittsburgh, while
iron bars, steel bars, beams and wire
nails are included among the weeks
upward revisions. For the explana-
ton of these price changes it is no;
necessary to look beyond the appreci-
through the strike within the in
dustry itself, and also from the recent
! labor troubles in the bituminous Goa
mining regions. While the govern
ments SO per cent restriction or
coking coal came off soon after the
miners decision to return to work
yet the distribution of coal is still
subject to official regulation, and iror
and steel plants will be hindered in
their operations for some time to
/
furnaces has been avoided, and some
of those that have been idle NAV
shortly resume. but the drawbacks
or winter are at hand, and there
| seems to be little promise of the early
| expansion of output that is needed tc
relieve existing shortages.
Year-End Quiet In Dry Goods,
| The lull Of business in primary dry
goods markets becomes 1lore appar.
emit as the year end draws nearer
though prices have lost little of their
| nrmness, and the evidences of an ar
tive holiday distribution at retail are
! considered encouraging. Slight price
! recessions have developed in .grav
goods at first hands. but it is believed
that If retailers have not overpur-
chased for spring. by duplicating or
! ders with various jobbers. the scarcity
| of merchandise will continue to exer.
else potent influence in maintainins
prices at high levels. That the unset
| Element in foreign exchange is inter-
fering with exports is not to be doubt
ed. and there is, more of the spirit of
caution now manifest among conserv-
! alive interests whose purpose it is to
| conserve credit and lessen specula-
ton in goods. This policy is expected
to tend toward making conditions
| quieter for a few weeks, but extensive
requirements are still to be satisfied,
| and the demands of the automobile
| trade for cotton products of different
kinds remain a conspicuous feature.
Cheaper Footwear Not Likely Soon.
With the yielding Of hide price.
continuing with little interruption
during recent weeks. and running to
|