Evening star., 1920-02-01
1920 SEES TRADE
| ACTIVITY CONTINUE
Bulletin of National City Bank
of New York Makes
Comment.


demand for money, without relaxa-
ton, which usually follows the turn
OF the year. Payments through the
banks. as shown by the reports to
the Federal Reserve Board, have been
IN about the same volume as in De-
Cember, although a moderate reduc-
1ion in the volume of federal reserve
notes in circulation indicates some
falling Off in retail trade.
In commenting on general business
conditions. the bulletin of the Ma
1ional City Bank of New York says:
The jobbing centers report buy
ing on a large scale. with general
confidence in the maintenance Of ex-
listing prices or advances therefrom-
Textiles have been very strong. but
IN the latter part of the month some
Weakness was noticeable in cotton
goods, with greater willingness on
the part of producers tc sell ahead
"WoOlen goods for fall delivery
Will be apportioned to customers on
The basis of past patronage, which is
= situation which virtually precludes
controversy over prices. Outside of
his distribution there will be some
''npetitive bidding.
The iron and steel situation is
tight. with the United States Steel
Corporation adhering generally to
IN" scale of prices made last spring.
lut early deliveries command premi-
n0S in the open market. The strike
has been officially declared off by the
leaders. Who had insisted to the last
onoment that they were winning
There is no occasion for cor gratu-
1ation anywhere over the strike eX-
"ept in the fact that the great body
Of -Nneriean-born workers refused to
have anything TO do with it. The
ftoppage cost great deal of money
To the workers. the employers and
The public. 1t came at most inop
Fortune time, with the whole world
reeding iron and steel. and has been
lanentable factor in retarding in
dustrfal recovery everywhere.
Wages and Prices.
state of underproduction exists
all around the industrial circle due
largely to labor discomfort, and the
effect is 10 make the cost of living
higher and cause more discomfort.
There is much complain int from en-
l'loycrs that higher per diem wages
and shorter day are accompanied
hy reduced production per hour. \
&. " idespread. persistent. we'll financed
campaign of propaganda is being
carried on to instill suspicion and
dIscontent among the workers. Wage
increases. of course. accomplish moth
ing in the face of diminishing pro-
ducton- An actual scarcity of neces-
sary goods exists the world over to-
day. which means that the average
consumption per individual must be
less 1t follows that the person who
insists at this time upon having as
much for consumption as in normal
times is insisting upon more than
his share of the existing supply 1t
j. something more than a question
between employers and employed; it
Is question of fair distribution of
the consumable goods. The whole
argument that wages must be ad-
Nanced to cover the rising costs of
living, although plausible, is falla-
Cious. because it assumes that each
individual is entitled to have as
much as though there was full
supply. The effect of rasing wages
under such conditions is to increase
the demands upon the limited supply
, OF goods and raise prices. There are
Two remedies for the situation. and
only two, viz: % Personal econ
omy-let every person reduce his pur-
chases as much as possible: (2) in
creased production-let every person
do his part in his own way to re-
1ieve the existing shortage and get
the world back into easy conditions
again.
Influences Reviewed.
Pointing out the effect that the ac-
fion toward credit defation is having
On the general business situation,
Dun's Review says:
Recent outstanding economic fea-
-tures have not appeared in Industrial
or mercantile developments but
rather in the significant movements
IN money and exchange markets. Ac-
ton toward credit defation of which
the raising of rediscount rates and
the tighter control of banking funds
have been reflection, has a highly
important bearing on the general
business situation, present and future.
and the continued Decentralization in
foreign exchange, resulting partly
from the process of financial liquida-
ton. Is also far-reaching influence
with the currencieS of leading Euro
pean countries deprecated beyond all
precedent, commercial intercourse be
tween nations is rendered difficult
and In some instances impracticable
and complaints of interference with
American export trade are not un-
common While the prsdominating
condition with dome1is producers
and distributors remalns one of in
ability to fully satisfy all require
>nents. yet signs Of hesitation in
forward commitments ara not wholly
absent, and the question is being
more frequently asked as 70 how
much longer the rising price trend
- likely to continue, and whether
elements are not now at work that
may before long bring the inevite Ils
reaction. That adva ances in Dun's list
Of wholesale quotations this week are
1ewer III number than last week is
NOT necessarily an Indication Of q
refinite check to the upturn. and i,
IS conceivable that prices Of some
commodities for which the demand
largely exceeds the available supply.
such as iron and steel and textiles
may GO still higher Yet a price OF
some SIS q pound for raw silk. to
cite one conspicuous example of in
Jatlon, has not been established with
out causing an increase of uncer
talnty and conservatism amonf, man
ufacturerS of finished fabrics and
counts are expressed in other quar-
1erS where production costs have
heen further enhanced as to the abil-
>tF OF the retail trade to pass on to
consumers even more extreme prices
1han have lately been witnessed.
Foreign Exchange DemOraIized.
That recent predictions of quota
lion OF S3-50 for sterling EXCHANGE
were not without foundation. the
vents OF the week have demonstrated
ne remittance rate on EngIanI hrol, 9
through that basH on Wedneedav
touching sS.49A, and the currencies
Ci otner leading European countries
also Tell to new low records viii
french francs at 1912 and italian lire
lraorolnary figure of 1.0I, which con-
1rasts with Il par of 23S. was estah-
1ished. The further sharp decline in
rates on the various centers abroad
Was attrlputed to urgent selling in the
J|onSon market. as well as to the re-
cent action of banking officials here
10 effect curtailment of credits. and
talk of stiil lower levels for exchange
) not uncommon. At the bottom
9olnt or the week sterling was fully
sS per cent below the parity of s4,s665.
DAIRY MARKETS.
NEW YORK. January 31.-Rutter--
Strong; receipts, 4,4l7 tubs. Creamery
higher than extras, s416a65: extra (qo
score). 631za6f; firsrs, 5S12a63; pack