The Washington herald., 1920-05-17
TRADEREVIEW
And OUTLOOK
Sellers Display Some Anx-
iety to Reduce Their
Holdings.
BUILDING PERMITS GAIN
Iron and Steel Inactive Due
To Congestion Of Freight
Traffic.
BUILDING PERMITS GAIN

economic read1uStmenL naNlns sumo
time ago made themselves manifest
and the tendency toward lover COM
modify prices, IL Attended by some
degree of unsettlement, marks
more wholesome aspect Abatement
pf the notable commercial activity
of previous months has been has
tened by the serious congestion In
transportation, and by the back
ward season, but slackening of de-
rnands in many quarters is mainly
the outgrowth Of consumers IN
ereasing resistance to high prices,
and their greater discrimination In
buying. Financial phases, moreover.
are a contributing factor in the
movement toward price reaction,
the pressure of credit contraction
and the opposition to speculative
excesses influencing different in
terests, and there Is more OF the
spirit of conservatism and caution
present than has been witnessed IN
q long period Where goods have
accumulated from one cause or an
other, sellers now display some
anxiety to reduce their holdings
through the medium Of price con-
cessions, and special offerings or
merchandise at retail have become
a conspicuous feature in many
parts of the country. With evidence
Of a decrease of public purchasing
except where stimulated by price
cutting, many dealers are deferring
future commitments, or are operat-
ing ahead within the closest possible
limits, and more is being heard OF
cancellations and reyisions OF or
ders. Such conditions as these are
not unnaturally making an impress
sion on Industrial activities, and not
only has overtime work been aban-
doned at certain establishments,
but some machinery is idle because
of lack of business While prices OF
some commodities are supported by
the DISCRIMINATION of production
and the still greater shortage OF
supplies that have resulted from
the transportation troubles. the
long-expected readjustment is ap-
parently in progress in various
lines.
Building Permits Notably Increased.
notwithstanding the high cost Of
materials and labor, and other re-
straining elements. further expan-
sion in construction activities de-
velops with the advancing season.
Rejecting this movement, building
try's representative cities during
April involved an estimated expen-
diare. apart from proposed altera-
tions and repairs. of $16S,3S5,4l
Not in any previous month this
year. and for a much longer period.
in fact. has this aggregate been
closely approximated, the S135.S52,-
SIS recorded at ITO centers In
March OF this year marking the
largest total since last August,
when S143,713.154 was established
at 1Ol cities. During the war
period. 1t will be recalled, private
construction was sharply restrict
ed, and recent monthly returns of
budding permits have not unnat-
ur3lIy disclosed heavy increases
over the figures of earlier years.
TIE gains, moreover, have been
practically general, decreases in
the large centers of population
1870 to date, with an average of
1O5 cities reporting monthly, the
permits reach a valuation of $685.
794225, or 1903 per cent more than
the S179,71s.390 of the same months
last year.
Iron and Steel HandIeaps Continue.
With freight traffic still seriously
congested, and many manufacturers
working under a severe handicap.
activity in iron and steel business
is hardly to be expected. Little has
recently been done in the way of
making new contracts, efforts CEN
tering on the breaking of the trans
portation tie-up. and sellers are ad-
verse to naming definite prices while
coalitions are surrounded with un-
certainty. Such changes in quota
tions as have appeared. however,
have been in an upward direction.
and the prevailing shortage Of sup
plies, which is intensified in some
quarters through inability to effect
shipments. leads to expectations of
further price advances. Seldom, IL
ever. have consumers so generally
suffered from lack of material as at
present. and the immediate outlook
does not seem to favor an early re-
turn of. normal operations. Among
the interesting developments Of the
week is the reported sale of 1000
tons OF foundry iron to Germany,
the first transaction OF the kind in
years.
Textile Prices Turn Downward.
II is even clearer now than 1t was
a week ago that a readjustment is
under way IN textile markets. The
changed aspects are plainly reflected
In price easing in primary channels
and in more general offerings of
goods at reductions in retail circles,
and the probable extent of the liqui-
dation cannot be readily determined
at the moment. While the back
werd spring, which has greatly re-
tarded distribution of seasonable
merchandise, largely explains the
present situation, consumers grow
ing resistance to high prices has
been one of the compelling reasons
for the recent turn of conditions,
and financial pressure has been a
contributing factor In some quar-
ters. In certain divisions of the in
dustry production is declining be-
cause OF cancellations of orders, and
night work at some of the mills has
lately been abandoned.
Leather and shoe Trades Inactive
From the viewpoint of sellers, the
situation in the leather and shoe
markets has become still more un-
satisfactory, both In respect OF new
business and prices. Reports of
Liquidation OF leather previously
bought on speculation have not
tended to improve the position, of
that market, and bank pressure in
some Quarters has been q factor
making for readjustment. While
trade interests speak confidently of
the future, the present demand is
of moderate proportions, with large
buyers doing as little as possible,
and ursvailfnR duofatfons ara main