The Washington herald., 1920-04-12
TRADE REVIEW
And OUTLOOK
Railroad Strikes Drawback,
Causing Embargoes and
Delaying Shipments.
STEEI. FAVORABLE
COMMODITIES Reach New
High Record, Dairy Pro-
ducts Decline.

prevent q record Easter business,
but have since retarded retail dis
tribution Of spring merchandise, and
have somewhat hampered outdoor
activities. Railroad strikes in the
West and elsewhere have been an
added drawback, causing renewed
freight embargoes and further de-
laying shipments at time when
transportation obstacles were be-
ginning to be surmounted. and
when manufacturers were making
headway in reducing accumulated
contracts While production re-
suits. notably in the great iron and
steel industry, are more favorable,
maximum outputs are not possible
in many instances. owing to short
age OF help or inability TO secure
adequate supplies of materials, and
tardy deliveries of goods act as a
supporting element in the price sit
uation- That the general level of
Wholesale quotations attained a
new high level on April 1 is a
striking commentary on the holding
power of prices. and producers who
are booked well ahead, or dealers
whose stocks are unequal to pres
ent requirements, maintain an inde-
pendent position >on the price ques-
Yet the buying disposition of con-
sumers in practically all parts of
the country has lately undergone a
distinct reversal, with evidences of
extravaganza diminishing, and the
fact is not obscured, despite the
sustained firmness of many COM
modities, that some markets are
yielding, and that certain influences
are operating toward price deflation
In the future. The policy of pur
chasing mainly for immediate and
well-dehned needs, which no longer
appears only in the East is partly
the result OF uncertainty regarding
domestic and foreign political de-
velopments, but is more largely a
reflection of buyers belief that
prices will later decline, If gradu
ally and irregularly, and many re-
visions OF forward orders are re-
ported in the mems wear trade,
where resistance to high prices has
been especially noticeable. With
the continued recovery in sterling
exchange, which crossed 81 last
week, export prospects have become
more promising: but imports are
increasing steadily, and their ulti-
mate effect on prices here. with
home demands less urgent may not
be inconsiderable.
The rise of the general COM
modify price level, to a new high
record on April 1 came after a
slight recession of a month previ-
Gus. Whereas February had
brought price yielding in various
quarters, the following month was
featured by augmented strength in
some important markets, and the
present index number figure of
S257.s01 represents an advance of a
little less than 20 per cent. over
the March 1 total, and is 1.6 per
cent. above the former top point of
s253.74S of February 1. With a
sharp upturn in the price of corn,
and a similar movement in some
other cereals, breadstuffs disclose
the widest alteration, being Sc per
cent higher on April 1 than
month earlier, and increases also
appear in the meat, other food,
clothing. metals, and miscellaneous
classes Tho dairy and garden
group, In fact alone show a de-
crease, and the decline is only mod
crate
The moro favorable production
records in iron and steel find re-
dection in the pig iron statistics
for March In that month, accord
ing to The Iron Age, the daily av-
erage make OF iron was at the
highest point since the end Of 1918,
being 10S,9o0 tons, and the aggre-
gate March output exceeded 3,S75,-
900 tons. Comparing with Febru-
ary of this year, last months daily
rate increased fully 5000 tons, and
312 furnaces were active when
April opened, or more than were
in operation a month earlier. The
industry was handicapped this
week. however, by the switchmen's
strike IN Chicago, which resulted in
railroad embargoes, and thousands
of tons of finished steel have been
backing up on the mills. Some in
dications are beginning to appear
of an increasing disposition on the
part Of the larger independent mills
to sell more freely. but there are no
nsns of price yielding in actual
transactions
Where further price alterations
have occurred in cotton goods, or
where new quotations have been
named for fall. the changes have
been In an upward direction, thus
demonstrating the sustained firm
mass Of the markets. The light
stocks Of merchandise carried in
many places reuect the Irregular
deliveries caused by transportation
difficulties. arriving jobbers telling
of goods delayed many weeks on
the railroads, and the restricted
supplies not unnaturally have q
tendency to provide support to
prices Yet It is significant that
buying for fall has not been as ac-
tive as in some previous seasons,
and evidences accumulate that the
continued high prices are limiting
consumption. In the main. busi-
ness is still good. but there are
unmistakable signs of hesitation in
some channels, due partly to bank
pressure or tight money, and revi-
sions OF future orders are more
frequently heard of in mems wear
circles. Selling agents state, how
ever, that mills have enough bus
iness in hand 20 keep them en-
ployed for 4 long period, and exist
ing conditions are the more whole
some from the fact that much of
the former speculation has been
eliminated.
NATIONAL LEAD 60.