The Washington herald., 1920-06-21
TRADE REVIEW
AND0UTLOOK
Business Abatement Gen
eral-Price Reduction
More Pronounced.
BUILDING PERMITS OFF
Volume for Last Month Falls
Far Below That Re-
ported in April.
BUILDING PERMITS OFF

The influences that have recently
made for abatement of business ac-
tivities remain conspicuously In ey-
idence, and existing conditions at
ford a sharp contrast to those which
prevailed at the beginning of last
summer. Whereas the earlier peri
cd was featured by a commercial
revival, following a lull of several
months duration. that subsequent
ly set new precedents in magnitude
OF transactions and in high price
levels, the present situation Is
marked by a progressive contrac-
tion of operations in various quar-
ters, and by clear signs OF price
reaction. The latter m0cement, the
genuineness of which has been
questioned by not a few people, has
gone farther in some lines than is
commonly Imagined. and proof that
a readjustment is under way does
not lie wholly in published quota
lions, or in current compilations of
index numbers.
teThat some commodities nainraih
an appearance of firmness. or are
but little cheaper, is only because
suff1cient demand TO establish
trading basis is lacking, and the
significance OF the changed attitude
of many sellers does not every
where escape notice. While resist
ance to price declines is still prac-
'ticed. and although predictions or
later advances are not absent, yet
buyers waiting policy, the fore
ing of liquidation through financial
pressure and other causes, and the
enlarging imports from abroad form
a combination Of, factors that Is
steadily making a deeper impression
upon sentiment, and Is reflected Ia
the offering of different classes OF
goods at concessions.
With cancellations and 'revisions
of orders of more general occur
renee, curtailment of manufactur-
ing is spreading. and the resultant
reduction of employment. which has
reached considerable dimensions in
some industries, is not unnaturally
tending to lower the public buying
power. 1t is this condition. in con-
Junction with the lessening OF ex-
travagance in personal expenditures
and the growing opposition to ex-
treme prices, that Is promptins
merchants to proceed cautiously in
anticipating forward requirements.
Whether the high costs of produc-
tion. and the Limitation of available
supplies through decrease in out
puts. will operate to maintain prices
as Is intended by some interests,
will depend upon the future pur-
chasing ability and disposition of
consumers.
Gains in Building Permits Reduced.
Recent indications of abatement
of building activities in some Sec
tions of the country, due to high
costs of materials and labor, and
40 other causes. find some reflection
in the May statistics. With ninety
nine cities making returns. last
months permits for new construc-
tion reached an estimated valva-
.tion Of s112,294.sS6. as against $685.
3S5.413 for 104 centers in April.
This difference of some S55, 900, ,00U
in the totals is too large to be
wholly accounted for by the smaller
number OF cities reporting. and a
comparison of the figures at vari-
Gus leading centers discloses sizable
reduction in the amounts involved
by the permits issued. In Greater
New York, for example, the May
aggregate of S19.05S.350 is not much |
more than half of the S36.664.737
recorded in April. when compari- |
son Is made with last years show
ing, however, considerable expan-
sion still appears, the May permits |
involving about $26.000,000 more |
than those of that month of 1919.
Iron and Steel Production Variable. |
Considering the existing draw
backs, of which the railroad situa-
tion is the most prominent. it is not |
surprising that production results |
in iron and steel are variable, and |
that shipments are still irregular. |
High temperatures in some districts |
have added to the difficulties in |
manufacturing. but operations are
maintained at a higher rate than
might be expected in the circum-
stances, and the May output of steel |
fngots rose about 10 per cent above