The Washington herald., 1920-06-28
TRADE REVIEW
And OUTLOOK
Retarding Business Factors
More Numerous Than
Ip Previous Periods.
PRICES ARE FALLING
Lower Tendency Continues
As Consumers Refuse to
Place Commitments.
PRICES ARE FALLING

ness. yet SEASONAL INN uenCcs PARTLY
explain the contraction of operations
that Is evident in various quarters.
Retarding factors at Spresent do
not appear most conspseuously in
weather conditions or in vacation
Interruptions. as Is sometimes the !
case at this period. but rather in
transportation difficulties. which are
intensified by fresh labor troubles
in some localities. and in monetary
restrictions and price uncertainties.
These are elements that have lately
combined, with some other phases,
to appreciably curtail commercial
transactions, and the prevailing lull'
in view of it's causes, may prove
TO be more than a passing develop
bent. That fundamental economic
changes are in progress. differing at
bottom from those which have been
witnessed On previously occasions
since the wars ending. is not only
demonstrated by movements in some
leading trades and industries, but
also by the reversal of sentiment
among both sellers and buyers, and
by statistics of bank clearings and
failures. The business readjust-
ment. moreover. is not confined to
any one section of the country, al
though perhaps more apparent In
the East than elsewhere. and the
price declines which are part OF
IL are clearly not limited to the
reduction sales at retail. That the
main trend of wholesale markets
is also downward is evidenced by
Dun's list of quotations, which again
discloses more recessions than ad-
vances, and the continued disinclina-
ton OF many interests to commit
themselves extensively for the fu-
ture is largely based on expectations
of further price reaction to follow.
While the sudden and sharp fall of
prices of some commodities. as of
raw silk and raw wool, may not be
duplicated in other lines, yet each
week adds to the indications OF yield
ing. which may later extend to food
products il present prospects for
abundant grain crops are realized.
Increase in Domestic Merchandise
Exports.
That the SIS. 900 increase in
May domestic merchandise exports
over those of April. and the s65,00U,-
0"0 decrease in imports, foreshadows
definite reversal of recent foreign
trade tendencies, as was promptly
inferred in some quarters upon pub
lication of the official statistics. is
open TO question. Subsequent month
ly statements will shed more light
on the matter. but il seems not un-
probable that the May exports in
GUIDED some goods destined for ship
ment overseas in April, but held up
through port congestion, and not en-
tered in that months record. Ger
tain IL is that the May returns are
at variance with the reports from
different sources of abatement OF
export buying, and a clearer insight
into the general trend of foreign
commerce is obtained by examining
the eleven months figures. From
July 1 last to the end of May, this
year. the exports rose about IS per
cent above those of the similar pc
riod of 1852. or from S6.304 900. .O0C
to s7,474, 900. 900. whereas the imports
Increased from s2-S03, 200. 900 to s4.-
6S6. 900, or 81 per cent. Such a
showing as this is obviously oi
greater significance than a single
months exhibit, and it will require
more than the May statement tc
demonstrate that the narrowing OF
the excess of exports over imports
which has been in progress for some
time past but which was checked
last month, has definitely come tC
an end.
Iron and steel Industry Handi-
capped.
At a time when good progress
was being made in lettering the
transportation situation fresh rail-
road labor troubles have further
handicapped -he iron and steel in
dustry. The difficulty of securing
needed materials, accentuated By
the weeks developments, hamper:
the movement toward recovery in
production. and fuel shortage ha!
forced some pig-irOn makers to pay
record prices for coke, as high a:
SIT having been established. A new
feature in the coke market to whicr
the Iron Age directs attention /:
the inquiry coming from Soutf
American and European sources
but the scarcity of supplies and ex
treme prices in this country ar,
expected to prevent any heavy ex
ports. An order that all coal carr
be sent empty to the mines. anC
that none be held for reloading will
other freight. Is an added draw
back to steel interests, and nearl!
all of the leading companies repor
falling off in mill shipments, witt
no apparent prospect of immediat
improvement. Generally. producer
and consumers alike are more o.
less seriously inconvenfenced by ex
listing conditions. and not a littl
business that might otherwise b,
consummated is of necessity bein,
held in abeyance.
staple Textile Prices Tend Down
1t is no longer to be doubted tha
the general price trend in primar,
dry goods markets Is downward
even though published whoIesal
quotations as yet disclose compar
atively few revisions. More signifi
cant than any changes in curren
prices are the offerings at conces
sions, and the growing expectation
of further reductions in the futur,
While talk of a shortage of good
to follow persists in some quarter,
consumption has been restricted b
and by other factors, and the stead
enlargement of imports froI
abroad, as shown in the official sta
tistics, makes for increased compe
tition in selling. An abundance @
raw silk and raw wool is availabl,
assistance having been asked
financing the new clip of wester
wool now coming on the marke
and the outlook for the new cotto
crop. although not such as to sug
gest a large yield. has recentl
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