The Washington herald., 1920-03-29
'BUSINESSPAIR
FIRSTQUARTER
Considering Elements En-
countered Result Displays
Favorable Analysis.
PRICE READJUSTMENTS
lead Factor Governing Gen.
eral Industrial and Mer-
camille Situation.
PRICE READJUSTMENTS

The first quarter of 1890, which
has been a period marked by un-
usual Inconvenience to commerce.
through transportation delays and
other handieaps, now nears its end
ing with an increase of activities in
various quarters on the favorable
turn id the weather, but with evil
dences of growing conservatism
clearly apparent. With prices and
wages continuing at exceptionally
high levels, and with the enhanced
costs of transacting business, the
prevailing situation is one which in
duces caution in operations, and
some hesitation is prompted by un-
certainty regarding international
political developments, labor condi-
tions and the outcome of the year $
crops.
More than any other single ele-
ment. however. the price factor gov
srns mercantile and Industrial un-
dertakings, and expectations OF
price readjustment to follow, al
though as yet unsupported by any
general market yielding, tend to-
ward reduction in engagements Tor
the future. While not few new
contracts are prevented by the pau
city of supplies that still exists In
different lines. yet shortage of goods
is less of a restraining influence
than previously, with wartime re-
quirements no longer present and
imports from Europe measurably
larger, and accumulation of certain
commodities has resulted from the
waiting policy of buyers. or from
their disposition to commit them
selves only on a basis of a quick
turnover. That some sellers views
about prices have undergone revi-
sion. is indicated by the fact that
remote shipments in some instances
are being offered at lower quota
tions than those named on current
deliveries, and by the increasing eX-
pressions of doubt as to the ability
of retailers to secure extreme prices
indefinitely.
Questionings as to whether con-
sumers' growing opposition to alb
normally high prices, which first
made itself manifest in the East.
and later in parts of the West and
South, may not have become a fixed
policy are being more frequently
heard in dry goods channels and
elsewhere; and the greater discrim-
ination in buying, with demands
Centering more in the lower-priCed
and more staple articles, is feature
commented upon in many dispatches
With purchasing irrespective of
prices. and largely on speculation,
curtailed in leading markets, the
country's business is not now so
feverishly active as forIns but it
bulks heavy in the aggregate, and
has gained in wholesomeness
through the spread of conservatism
and the movement toward lessening
of extravaganza in personal ex-
penditures.
Merchandise Export Excess Reduced.
As was not unexpected, in view
of the shorter month, the further
depreciation of European exchange,
snd severe storms that hampered
merchandise movements, exports
from the United States during Feb
ruary were materially under those
of January, being about N6.000.OO0
smaller Thus. the February ship
ments, as recently announced from
y. - -Ghiugron. reached a, valuation of
S645,769.O25. which compares with
ST22.O5T,7SU in January, and falls be-
low the figures of all months since
last October. when goods to the
value of s631 ,61S.449 were sent over
seas from this country. Like the
expoTts, the February imports dis
close contraction from those of jan
uary, but the decrease is only some
&c. 400 .OOO-from S473.904,053 to S467,-
47O.5O4-and the excess of exports
over imports. which was $24S,l53.127
in January, was reduced to Sl7S.-
29S.52l in February. If continued.
such tendencies as these will serve
to automatically correct the abnor-
NAL conditions in European eX-
change, and ii is significant that
sterling exchange recovered further
this week. rising to about $3.50.
This figure, while more than 81 be-
low parity. contrasts sharply with
the low record level of $3.1S Of early
February.
Iron and Steel Price Premiums.
After a brief halting of price ad
Vances. this weeks list of iron and
steel quotations disclOses several
further upward revisiOns, including
different descriptions OF pig iron,
Pessemer and open-hearth rails,
sheet bars and iron bars. The lead
ing producer. according to trade ad-
=