The Washington herald., 1920-06-14
Political Activities Play
Small Part in General
Business Conditions.
PRICES CHIEF FACTORS
Transportation Problem
Also Dominating Business
4 Feature at Present.

While national political uncer-
tainties and the near approach of
summer have imposed some further
restraint upon business activities,
price considerations and trans
! portation difficulties remain the
dominant factors in the situation.
Relief from the traffic congestion
has continued. but does not come
quickly enough to permit of full
. freedom in mercantile and indus
trial operations, and divergent
views on the price question are still
/ the cause of much of the present
{ policy of hesitation and waiting.
The wide publicity given to the re-
duction sales at retail counters has
! seemingly created the impression
among some interests that in prac-
! tically no other quarter has there
been evidence of price yielding: yet
certain important commodities have
weakened appreciably in Wholesale
lines, and others are distinctly
easier, and some quotations that
are either unchanged or little al
tered would disclose sizable de-
clines II sufficient trading were
3 being done to really establish n
market. That conditions are turn
ing more strongly in buyers favor,
broadly speaking, is made clear by
current dispatches. and expectations
of additional downward price re-
visions chiefly explain the prevail
ing disinclination of many prespec-
tive purchasers to commit them
selves extensively for the future
. and partly account for the frequent
reports Of cancellations of orders.
While a parallel has been drawn
between the existing lull In bust
ness and that which developed
after the signing of the armistice
late in 1918, and which was fol-
lowed by great commercial activity,
some phases are now apparent that
were absent or were not readily
discernible during the earlier pc
riod. including the growing oppo-
sition of consumers to extreme
prices, the forcing of liquidation
through financial pressure and the
closer control of credit, and the fact
that the steadily enlarging imports
from abroad are tending to lessen
the shortage of domestic supplies,
and are making for a return OF
sharper competition in selling. The
ultimate effect of these elements
cannot be plainly foreseen; but they
are having no incoasiderable inhu-
ence upon the immediate situation.
and merit more than passing notice.
A narrowing of the margin of in
crease in bank cleRrings, moreover.
is not without significance, and
cannot be wholly attributed to
shrinkage Of transactions in specu-
lative markets.
Iron anh steel Trades Hesitant.
Rather more hesitation than has
lately been witnessed Is now seen
in iron and steel markets, and Is
not wholly due to the transporta-
tion troubles. The railroad strike
seems to be gradually wearing
ftself out. conditions permitting of
freer shipments in some districts.
and reports of progress toward re-
covery in manufacturing are some-
what more encouraging. From a
buying standpoint, however, the
situation presents an apathetic ap-
pearance. and there has been some
reversal of opinion regarding the
probable future trend of prices.
While higher levels on certain
grades OF pig iron are considered
likely. the impression is gaining
ground. according to Pittsburg
dispatches, that the peak of most
iron and steel prices has been
passed, and that the main trend
will be downward when the freight
congestion is further remedied.
That the weakness which has de-
veloped in some other commodities
at wholesale may have Influenced
this view, Is not improbable.
Hide and Leather Prices Unestab-
lished.
When enough new business de-
velops in hides and leather to
really establish a market, ii will be
interesting to note the price that
sellers will accept to move accu-
muIated holdings. Another week
has passed with little trading In
these commodities, which are diff
cult 90 quote in the circumstances,
and there does not now seem to be
any prospect of an immediate gen.
eral revival of activity. The weak
ness of the situation is clearly evil
dent. and the depression in calf
skins is one of the outstanding
features. Whereas at the top levels
last year New York City skins
commanded as high as $40, sll sl2.
offerings were last made at S3.25,
s4.25 and s5.25, respectively, and
the market is not regarded as
being over SO, 81 and IS today.
The appreciable break in prices of
hides and skins. accompanied by a
pronounced reduction of demand
for shoes and leather goods. has
resulted In a large surplus Of raw