The Washington herald., 1920-03-15
TRADE REVIEW
And OUTLOOK
Gold Imports Steady Ex-
change and Feeling Is
More Cheerful.
TEXTILE PRICES GAIN
Iron and Steel Production
Shows Increase Due to
Better Weather.
TEXTILE PRICES GAIN

with characteristics abruptness
fnancial sentiment has undergone
reversal. becoming more cheerful
on the further improvement in for
eiSn exchange and other construc-
tive Developments. and moderated
weather conditions have had Q ia
vorable influence In commercial
channels Recovery OF productions
and distribution of goods from the
disorsanizing effects of repeated
storms Of unusual severity II In
progress, though serious transpor-
tation handicaps remain In some
sections and encouragement is de-
rived from the accumulating indi-
cations that the high point OF some
commodity prices has at last byen
witnessed While q decline of only
about 3 per cent in Dun's Index
Number as Of March / seems trivial
In comparison with the preceding
extraordinary upturn, tits signifi-
cant as rejecting a change in the
main price movement, and may con-
ceivably be the forerunner of q
gradual, IL irregular. downward re-
adjustment Specifically, some food
stuifs, hides and leather. some tex
tiles. and pig iron. among leading
articles. have reacted more or, less
from the recent top levels. and not
a few buyers, although momentarily
disregarding the element OF cost III
their needs be especially urgent
are largely limiting commitments
TO actual and we1l-dehned require
ments. on the theory that such q
policy will prove to be advanta-
reous. Supporting the belief that
continued price defiation is in pros
pect Is the growing resistance to
present prices in retail circles. such
a phase appearing somewhat con-
snicuously in clothing lines. and
signs OF a curtailment of extrava-
gance in purchasing are seen In the
shifting Of demand in more fire.
quent instances from the costiiest
to the more moderste-priced mer-
chandise. II operating to reduce
the volume OF transactions>1n GER
tain directions. such tendency as
this plainly makes for more whole
some and natural conditions, ana
serves to place business on a more
stable basis.
Gold Imports strengthen Exchange.
While more gold has been with
drawn from New York for shipment
to Argentina, Sl.250.o00 of the yell
low metal is reported to be on the
way here from England. local
bankers having secured the weekly
South African consignment laid
down in London, and 100000 has
come in from Canada The not un-
natural result of the beginning OF
gold imports from Europe, which
are expected to reach large proper
tiens. has been q further extension
Of the sharp recovery In sterling
exchange that began late last week
on rumors of an impending gold in
fux. With noteworthy fspidity.
though not without temporary set
backs, sterling rose this week to
s3S2h, against last months low
point Of about S3.19. and the whole
market, went up with this class of
remittance, German exchange being
one of the strongest features. II
thus appears that sterling has rail-
lied some So points from the bot
tom level of February, and predic-
tions of continued Improvement are
becoming common. While -specula-
tive operations have been a factor
in the recent movement. yet the
fundamental reason for the strik-
ing advance in rates appears in the
prospect of heavy gold imports, and
the actual start of the inflow.
Iron, and steel Outputs Recover.
with the moderated weather, re-
Coyery of iron and steel operations.
which had been greatly hsmpered
by the severe storms of the winter,
has now reached the poitn where
production is at the highest rate
in more than a year. Transports.
ton service. while yet far from
normal. is gradually improving, and
the industry is making good prog
ress in working out of the diff
culties to which il has been SUBJ
jected. while the Chicago district
reports some urgent inquiries for
car building msre erials and other
equipment. yet there has thus far
been no general rush of railroad
purchasing, and more conservative
attitude is exhibited by certain
classes or buyers in committing
themselves ahead at present prices.
In the latter connection. il is sig
nificant that The Iron Age says that
further signs appear Of the reach
ing OF the peak in pig iron prices"
and that some resale iron has fig
ured in Pittsburg territory. where
weakness In such iron continues.
More steadiness In Textile Prices.
Responding to the better weather
conditions, the improved prospects
for exports, and other factors, the
primary textile markets developed
more steadiness this week, follow
ing the recent evidences of price
yielding. Some of the late declines
in cotton goods prices have been re-
covered. print cloths being restored
TO 2212 cent basis, and both retail
and jobbing transactions have dis
closed some quickening in quarters
where dullness had been manifest.
Yet many Jobbers are slow to oper-
ate ahead into the fall. political and
crop uncertainties. the probable con-
tinued pressure OF high money rates
and high taxes tending toward con-
servatism, and tho growing reluc-
tsnce of consumers to pay present
extreme prices for merchandise does
not pass unnoticed. Moreover. i'm
ports OF textiles continue of sizable
proportions, and buyers look toward
these arrivals of goods as a possible
source of relief from the high prices