The Washington herald., 1920-06-07
.TRADEREVIEW
And OUTLOOK
Opinions Differ but Current
Tendencies Continue
Downward.
CONGESTION RELIEVED
Transportation Tie-up a Re-
straining Element in
| Many Directions.
CONGESTION RELIEVED

Existing differences of opinion re-
garding the probable future trend OF
prices do not obscure the TACT tnat
current tendencies continue mainly
downward, and that many buyers
are still holding of for further cos
tcessions. Such a situation naturally
makes for shrinkage OF business
transactions, and the congestion In
transportation. IL now somewhat
less serious than recently remains
restraining element in many d.
rections. The difficulty or imprac-
ticability of securing prompt deliv-
cries of raw materials and manufac-
tured articles embarrasses both pro-
ducers and dealers. and some ma
chinery at mills and factories is idle
because essential supplies are not
readily procurable, or because labor
conditions are such as to prevent
full operations. Not all of the pres
ent curtailment of output in va
rious industries, however. is due to
these drawbacks, for some plants
are reducing running schedules for
no other reason than that old orders
are being worked off and new con-
tracts of volume are lacking. and
the increasing imports from abroad
are coming into sharper competition
with some domestic products. While
surplus holdings of merchandise are
yet the conspicuous exception, ac-
cumulations are reported In some
lines, and depletion of stocks, where
1t Is being successfully effected, is
chiefly resulting from the offering
OF price Inducements by sellers.
That the phases of extravagant buy
ing and of urgent bidding for goods
that had become so familiar during
war times are now disappearing. or
are being steadily modified, is evil
dent; and business is gradually re-
turning, not without some degree
of unsettlement, but thus far with
an absence of general disorganiza-
ton. to more natural basis.
Whether the price readjustment
that has lately occurred in retail
| channels, and to a lesser extent in
wholesale circles, definitely marks
the beginning of the long-awaited
decline, is for the future to deter
| mine; but it is significant that GER
tain commodities are available for
forward delivery at lower quota
| tons than those ruling on spot
| shipments, and that recent banking
! developments, in conjunction with
consumers resistance to extreme
| prices, and the backward spring
season, have forced liquidation in
not few quarters.
Recovery in Pig Iron Output.
! Recovery in pig iron output has
| come after a decline to the lowest
point of the year, daily average
make rising from 1897 tons in
April to 96,415 tons in the month
just ended. The May increase oc-
Cured in spite of the serious con-
gestion in transportation, and the
rise in the number of active fur
naces from PSI on May l to PCS on
June l is an especially encourage
ing feature. Production results.
however. are still better near the
raw material end than in other
quarters, though manufacturing
conditions in finished steel lines
are also improving. and shipments
are going forward more freely. For
causes that are as yet undeter-
mined. there has been a noticeable
reduction in demand for nearly all
forms of finished iron and steel,
and prices, while holding steady,
show no indications of going
higher. Yet the change of buying
| disposition, whether due to dis
couragement over delays in deliv-
cries, or to growing conservatism
regarding the future, is apparently
not causing, concern to producers,
many Of whom are booked several
months ahead.
Hide and Leather Price Weakness.
Neither in hides nor in leather
has there been any noticeable re-
vival of trading, and the down.
ward price movement of recent
weeks has continued. Certain of
the big Chicago packers lately
effected chance sales of heavy ma
tive cows ahead to an automobile
leather tanner in Newark. but this
business Is no criterion of the
actual market. as most buyers are
just as disinterested as ever. The
belief prevails that liberal conces-
sions would be made to move ac-
cumulated holdings of native
steers and cows, but there is hardly
enough demand for these to estab-
lish quotations. and prices on about
all kinds of hides and skins are
| largely nominal. There is no mis-
taking the general weakness of
the situation, however, and further
declines in calfskins have lowered
prices to practically a normal level
As against the top basis last year
of $40. s$11 and s12, New York
City skins are now ruling around
$3.50. $3.50 and $3.50.
Continued Caption in Dry Goods.
While a greater measure of con-
fdence in the future is reported
In idry goods channels, following
the unsettling events of recent
weeks. there has been no lessen
ing of conservatism and caution
within the trade. The substantial
price reductions at retail. not a
few of which have extended to
staple goods, have stimulated over
the-counter distribution, but job
bers. IL not cancelling orders, are
very prudent in many of their
operations. The wooden and worsted
goods trades are Quieter than they
nave been in a year or more, with
many fall orders cancelled, and 1t
Is freely predicted that lower
prices will have to be named fer
the Spring, 1921. season.
Further unsertlement in the silk
industry has resulted from another
fall In raw silk at Yokohama, and
by the wide publicity given to ex-
pectations of lower prices for fab
rlcs and garments. and many of the
SILK mills are shut down altogether.
SILK hosiery is much cheaper. and
/ aTaW =