Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-12-14

Settlement of the coal strike this
week, while a favorable development
of far-reaching significance, un1ortu-
nately does not mean an immediate
sustained by business through SIX
weeks, according to Duns Review
which says:
measures of fuel conservation. inn
PEELED by conditions that had daily
grown more serious, will not be aoan.
doned with the return to work OF
many thousands of bituminous work
ers and some time must necessarily
elapse before various important IN
dustries and trades will fully recover
from the deleterious effects OF the re-
cent controversy. shortened hSurs IN
have been forced in a season when
the early activities Of Christmas shop
pers have been a conspicuous feature,
and production and transportation
have been further impeded at a period
when the call nearly everywhere IS
for more goods with which to satisfy
current extensive requirements Low
Temperatures over a wide area, Win
severe weather in parts OF the West'
have been a sharp reminder, more
over. of the obstacles that invariably
arise with the coming Of winter, ana
the outlook 10 not promising for the
expansion of manufacture and dis
tribution of commodities that IS SO
urgently needed to relieve the ex-
isting shortages and bring read3ust-
ment in prices. While prices of GER
tain articles that are in accumulation.
such as hides. have yielded abruptly
from previous top levels. yet the main
price trend, with demand In most
quarters outstripping supply. is stlll
decisively upward, and December
opened with another new high record
in Dun's index number of wholesale
quotations. That the existing price
situation which has partly resulted
from settlement of labor troubles
holds disquieting possibilities. Is
fact that is being more generally rec
ogniZed. and conservative business III =
terests are increasingly prudent IN
entering upon forward commitments.
How soon prices here will begin TO
reflect the influence of increasing I'M
ports from abroad and interference
with domestic export trade caused by
the decentralization in foreign eN.
change is problematical. but that
price reaction must ultimately follow
is scarcely to be doubted
Foreign Exchange Decentralization.
depreciation of foreign exchange
rates obviously cannot continue in
definitely, but talk of $3.50 for sterling
was heard this week in local banking
circles. Not long ago. predictions OF
q Qecllne 10 "a LOT lllS CLASS VI iC-
mittances were not everywhere seri-
ously considered; but on Thursday of
this week the rate on London broke
to $3.67l4, and no one can now say
with certainty that this quotation
represents the absolute minimum.
With sterling nearly 25 per cent under
parity. the situation would be suf-
ficiently extraordinary even if abnor-
NAL conditions did not prevail else
Uh IN ha hpt
records We're again established this
week in exchange on all of the princi-
pal countries of Europe, with the
German mark falling below the two
cent level. For the weeks further
severe decline. the statement Of a
prominent English authority regard
ing financial aspects in Europe was
said to be partly responsible: but the
fundamental causes are seen in the
returns of foreign commerce, which
still disclose a heavy excess of do
mestic merchandise exports over i'm
ports, and in the strained credit pO-
sition in Europe.
Shortage of Pig Iron Supplies.
1.-THE ending of the coal strike means
much to many branches of business,
and is particularly welcomed by iron
and steel interests. who were first in
convenienccd by the strike with their
own industry and then by the btu
fHlnOuS mining troubles. Yet the ad-
verse effects of the curtailed output
and distribution of coal will not soon
be eliminated, and the Iron Age says
that the iron trade is face to face
with much more serious shortage
than that which has been a matter of
concern for weeks" With the using
up of reserve stocks of coal. and with
winter bringing with it the possibility
of snow blockades, the outlook for
recovery in iron and steel manufac-
ture is anything but promising, and
sharp advances in pig iron prices are
of weekly occurrence. All of the
larger iron and steel producers are
reported TO be declining the premium
prices now offered, being more set in
their refusal of new business, because
of the conditions resulting from the
coal mining controversy.
Conditions in Dry Goods Quieter.
"A lull in primary dry goods mar
kets is customary at this period, and
this year has provided no exception
to the usual condition: but in some
quarters of the trade abatement OF
activity has resulted from other than
seasonal influences. The measures OF