The sun., 1919-02-22
PURCHASERS STILL
MAINTAIN CAUTION
Unusual Idleness Causes Retail
Trade to Be Abnormally
Dull Generally.
STRIKES AFFECT BUYING
Business Expansion Is Said to
Depend on Still Lower
Price Levels.

"ShasSts tHrOuBnout tho country
still are maintaining a very cautiou, at
ttude in placin~ orders, and therefore
business conditions did not improve to
any extent during last week, according
70 the trade reviews. Not only is pro-
duction much hampered under existing
circumstances but retail buying is
greatly behind normal because of un-
usual idleness. accompanied by frequent
strikes in lines endeavoring to 20 ahead
with all possible speed. Reaction in
price levels is seen as the brightest spot
In the whole situation, because It Is de-
clared that business expansion hinges
on lowering prices from abnormal war
levels.
While no evidence appears" says
Dun's Revtetc, that general business 10
emerging from its state of repression,
indications of improvement are now less
oiHcult OF discernment. A change for
the better in some quarters this week
has been mainly one OF sentiment, al
though gain in actual transactions has
come In lines where price reductions
nave been sufficiently drastic to awaken
buyers interest, and there is more tangi-
Bile reason to anticipate economic revival
as market denation continues.
That trade recovery is gradual and
checkered, with no sign Of II In various
branches. Is not unnatural, considering
uncertainties OF the period, and no de-
parture from the policy of purchasing
cautiously and almost wholly for i'm
mediate necessities has been witnessed.
Peace Orders Not Up TO War Needs.
While a slowing down process has
occurred throughout the country since
the inauguration of peace time readjust-
ments, the least satisfactory news is still
that which comes from the larger indus.
trial centres. where development of civil
ian orders has fallen far short Of filling
the gap left by the suspension of war
activities, and where multiplying unem-
ployment OF machinery and labor has
resulted.
This condition Of idleness. intensified
by the frequent strikes, Is not without
effect on retail distribution, which has
been curtailed by continuance of remark
ably open and moderate weather In many
sections, with a consequent accumula-
ton of seasonable apparel. Yet there
are moro bright spots in the commercial
situation than existed a week ago.
TT is noteworthy that buyers, II oper-
ating conservatively. are visiting the
leading markets In increasing numbers
Inasmuch as business expansion hinges
on further reaction from the inflated
price levels. 1t Is significant that Duns
list of wholesale quotations for the thir-
teenth consecutive week discloses more
recessions than advances and that re-
visions are extending more generally to
consuming channels"
That there is a more cheerful attitude
toward conditions generally. especially
west of the Mississippi River. Is the
opinion of Bradstreets State OF Trade,
which says:
Western Cheerfulncss Holds Up.
while reports as to trade and indus
try have not greatly changed, the more
cheerful feeling noted last week, par
ticularly In the territory west of the
Mississippi. is fully maintained. and In
addition there are reports from larger
eastern centres that price reductions in
textiles have seemed to bring about freer
trading. Proof that talk OF enlarging ex-
port trade has had a really good and
sufficient basis is at hand In the excellent
export statement for January.
"Contributory TO the spread OF better
feeling has been sustained and accen-
tuated strength OF the stock market,
which has witnessed the retreat OF a
rather extended short interest. moved
thereto by the favorable tenor of re-
ports from the Peace Conference and the
prospects that the movement for Gov
eminent operation or ownership or the
railroads has been checked. Liberty
Loan bonds have been aided by prospects
OF a change from long to short term is
sues
Improvement at western markets has
not been great. the improved demand
taking the form OF numerous rather than
large orders for dry goods. clothing and
other goods for spring, a good deal OF
this business, by the way. being on a
basis of guarantees that buyers of goods
will be protected up to time of shipment.
Aiding this, are reports of abundant
moisture. which found western soil I'M
frozen In wide areas, with much pres
ent and prospective gain to the record
breaking area In winter wheat South
ern advices are a shade better. but most
Improvement IL reflected in surplus grain
growing areas Of the West, Northwest
and Pacific Coast States