The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1920-09-20
BUSINESS
OUTLOOK IS
PROMISING
Panic DOGGY Fades; Prices
Are Declining: Labor
More Efficient
ny JOHN W. hill

like most OF the calamities predicted
for this year. the financial hob
goblin has not materialiFed.
Instead. there have come slightly
easter money and the assurance
that the worst OF the credit strain
h over. This does not mean that
dcflation has been completed. how
ever. II merely shows that the
descent from the dizzy war infla'
ton win he made without violent
shock to general conditions.
COMMODITY PRICE
DECLINES To CONTINUE
The present outlook Is for con
tinued gradual commodity price de.
cilnes. This is due TO a number OF
things. chief Of which II the puhlic's
revolt against war prices In peace
times. When the public stopped
buying. II suddenly was discovered
that the alleged scarcity Of goods
was really, due 90 manipulation
or 10 the abnormal demand.
A. a result. the cry Of over
production Is little heard now.
Shortages OF silk. wool. cotton.
clothing. automobiles. tires. lumber,
building material. sugar and other
products. changed over night into
awkward SURPRISES. This has erv-
ated buyer marke, in mos,
lines.
Business firms. stunned by can.
relations and a slumping demand.
are whesting their axes for orders.
Buyers who were scorned six
months ago are being courted now.
As usually happens In a declining
market. however. buyers are gun
shy. and hand-to-mouth purchasing
b the rule. This Is causing a hack.
Ing Up all along the line. tho the
pinch Is morc severe at some spots
shan In others.
o1sOSPECT Is FOR
ENORMOUS CROPS
An important counteracting fac.
tor. tcnding To SUI tain demand. Is
the. prospect for enormous crops.
According to the governments lat
est report the wheat yield will be
ITO. ooo. 900 bushels and corn 3.f3i.-
90. 900 bushels IL present high
grain prices are maintained. the
farmers win WELD huge potential
purchasing power in the commodity
markets this fall. The late f. n.
Hartman used 20 say that big
crops and prosperity were synony.
NOUS.
Indications that fundamental eco
nomic changes are taking place In
etude: Increasing commercial failures.
declining commodity prices. shrink
ing bank clearings. growing unem.
p1oyment. decreasing exports and
1lGher imports. industrial curtaIl-
ment and stock market liquidation.
Even the iron and steel industry.
which has presented the strongest
front Of all. Is beginning to feel the
pinch OF reduced buying and can
cellations. This II shown by the drop
u more than 3o0. 900 tons In untitled
orders Of the United States Steel
corporation during August
AMERICAN WOODEN co.
uEOPENS MILLS
Reopening Of the mills Of the
American Wooden Co. has attracted
widespread attention. Its quotations
stiIl are about $50 per cent or more
above pre-war prices. This In face Of
the fact that raw wool. drug on
the market, has settled back virtually
70 the pre-war level.
Altho the liquidation In the entire
industry was exceptionally drastic.
the large companies are In better
financial shape now than seemed pos
sible few months ago Production
has been cut and surplus stocks are
being reduced. In the spring. when
the automobile business was boom.
Ing. tire makers geared up their
plants for an enormous output. Deal.
ers were stocked up to the guards.
Then the bottom crashed. Raw rub
Der. which sold around 50 cents a
pound before the war. Is now about
20 cents. Fully $4,000 men have been
thrown out of work In Akron, the
worlds rubber center. They have all
been absorbed elsewhere, however.
An Akron employment manager re
Gently said that when ne wanted to
hire men he had to go out and look
Tor them. Tire prices have held firm,
but recessions are expected before
the end OF the year.
UNEMPLOYMENT
IS INCREASING
survey of % states by the De.
partment Of Labor shows unemploy.
ment Increasing. while absorption Of
surplus labor In decreasing. The coun.
ny Is not facing a serious unempIoy.
Ment problem, however. Principal re-
Guctions In working hours and forces
have occurred in the automotive. tire
and textile Industries.
Following the Napoleonic and Civil
wars, prices declined sooner and
more rapidly than wages. This order
viii obtain now. altho moderate wage
reductions already have been made
a. some automobile and accessory
plants In the country. Labor is dis.
tinctiy more efficient. This IL tending
TO reduce the cost OF production.
Under private ownership and with
labor troubles over, railroad freight
car movements are exceeding records
established at the peak OF the war
pressure In 1918. Az a result. the
congestion Of goods IL melting, 10.
gether with the choicest argument OF
the profiteer. Freight rate advances
have not had the predicted effect Of
raising prices. because competition
and defiation are preventing sellers
from lacking on the new freight
charges.
C>~AA1- M UAIa