The Washington herald., 1920-07-12
TRADE REVIEW
NDOUTLOOK
Much Work Still to be Done
To Offset War Time
Restraint.
DECIDED LULL NOW ON
Duration Depends Upon
How Soon Price Reaction
Becomes Widespread.
DECIDED LULL NOW ON

EARLY July. with its vacation in
terruptions and inventory-taking.
Is not ordinarily. q period featured
by general and conspicuous activity
in business. and there are special
reasons this year why operations
should be limited. Constant reiter-
alton of the Importance of the price
question Is required in any discus
sion of the existing commercial sit
uation. and the elements of finan-
cial restrictions and transportation
drawbacks have lost-none Of their
significance. Where price read
justment has gone far enough to
rekindle buyers interest, as in GER
tainA kinds of hides and leather. re-
vivaf of demand along conservative
lines has been Witnessed, ana
transactions that are being held in
allegiance in some other quarters
might be- consummated IL the nee
essary concessions were forthcom-
ing. The fact that sellers no long
er dominate about all markets is
r1ade clear by each succeeding
weeks dispatches. and the desire to
move goods is more pronounced In
channels where the changed atti-
which doeS>Enot now purchase so
extravagantly as int the past. or
with so little regard 10, prices. Is
fully appreciated. The develop
ment of such phases as these had
not been unexpected. and the. dura-
tion of the present ~full in busi-
ness will depend. largely upon, how
soon the price reaction becomes
widespread and to what extent 1t
is carried: That much work is yet
to be done ito Offset the wartime
restraint upon private enterprise,
is not to be dopbteds but prices
thata are stills FAR abeses sthe t91s
levrFare; nlfseon6ucsSt 3d 3us taiffed
mercantile and induStrisf activity
under peace conditions. as the
many cancellations and revisions
of orders have demonstrated,
Commodity Price Reaction Ex-
tended.
Observers of economic conditions
have not failed to detect signs or
price reaction in reports from va
rious markets. and some further
evidence of the readjustment ap-
pears in current compilations of
index numbers AS measured by
DunB record, which is based on the
estimated per capita consumption
of many essential commodities, the
general level of wholesale prices
was about OF per cent lower on
July l than a month earlier, and
IL per cent undcr the high record
of May !, this year. After an ex-
treme rise of nearly 120 per cent
above the 1914 basis, the recent de-
cline seems trivial. and prices are
still more than 5per cent higher.
on the average. than they were
when tho present year opened. Closer
analysis of the figures. however,
discteses the fact that the sustain
ed ffmness of most foodstuffs has
. alone prevented a larger recession
] in the index number. and that the
yielding in the clothing class has
already made considerable prog
ress,S With a reduction OF food
costs. which cannot be indefinitely
postponed if present prospects for
abundant grain crops are realized
the price situation will assume
more favorable aspects from the
consumers viewpoint,
Further Recovery ir Iron Output.
Considering theemany, cofnpIainf.
of rerarded operS3f1ap hsSrHatI sfas
congestion in Jtfansportxffon. sttis
statistics of JLtne5 mig Iref output,
issued this week. are UNEXPECTEDLY
encouraging. Evidently the net
result of all the turns in the rail-
road situation was favorable for
las months iron Production of a.
043,540 tons. according to the Iron
Age. represents a gain of about
$500 tons in the. daily ave, -e
and seven furnaces We're added to
the active list. making '3O2 in blast
on July l. Yet latest advices from
steel-maHpfactAxi7eS. cenfersf. .indf-
cate that suspefrsaon OF work for
ten days or two Weeks Is threats 7, :
ed at some mills. by the car short
age, and stocks of finished materiar
awaiting shipment in the Pitts
burgh. Youngstown, and Shenango
districts are estimated at>around
100000 tons. The disorganization
Of freight movements. moreover. is
largely responsible for the -contin-
ued high prices of coke. and this
condition finds reflection in a firm
pig iron market. although basic
iron, delivered eastern Pennsylva.
mia, has receded 81. =
Textile buyers Coming to Markets.
Favorable comment has been oc-
casioned by the fact that arriving
buyers are becoming more numer-
Gus in the dry goods markets but
1t Is observed that these interests
for one cause or another, are an
DrOachinR thair fall onarat;an. to