The Washington herald., 1920-07-25
TRADE REVIEW
AND OUTLOOK
An Early Breaking Of Pres
ent Lull Does Not Appear
In Prospect.
MAIN CROPS IMPROVE
Sustained Progress Largely
Contingent Upon Future
Action Of Prices.
MAIN CROPS IMPROVE


An early breaking OF the present
lull in business does not appear 10
be In prospect, but some recent de-
velopments in the situation have
been of a constructive character.
The Improvement in the PRINCIPAL
crops, which are faring better than
had previously seemed probs bic. A.
a favorable augury for the future.
and the railroad wage award. IL Ae-
cepted by all the workers. will re-
move one element OF uncertainty.
and may lead TO quicker relief from
the serious congestion in transpor-
tation. Multiplying evidence Of
price yielding. moreover, cannot be
properly regarded as other than en-
lcoursging, for prices that had risen
beyond all precedent had marked
an unnatural and unwholeson. con-
dition, and could not fail TO uiti-
mately diminish consumptfve buy
ing. While some questioning is still
heard as 70 the genuineness Of the
current price reaction. yet the
downward movement II not en-
bracing every important article. has
steadily gained momentum in such
lines as textiles and hides ana
leather. among others. and Il Is
clear that many prospective custom
ers continue to hold Of for further
concessions. with the sharp redu,-
tion Of demands. and the frequent
cancellations and revisions Of orders
production in various instances has
been curtsiled apprecisbly. some
plants wholly or partially suFpenS-
ing operations. and the freight tie
up is an added factor in hamperinR
outputs. The Limitation Of manu-
featuring obviously tends 70 restrict
available supplies Of certain COM
modities, thus leading 20 some pre-
olctions Of scarcity To follow. hut IL
also serves to lower the public pur-
chasing power. and to make for
economy and retrenchment in per-
sonal expenditures. That the pass
] ing Of summer may bring some re-
viVal Of business. especially II
more adequate relief from the trans
portation troubles is forthcoming.
is conceivable: but il is hardly 10
be doubted. in view Of the tenor Of
reports from different trades and
industries. and from different sec
tions OF the country, that sustained
progress is largely contingent upon
the future action Of prices
Constant repetition Of the serious
ness Of the transportation conEes-
ton is necessary in any discussion
OF the existing iron and steel s!tua-
tion. From time TO time. substan-
tial relief from the handicaps cor
fronting the industry has been in
dicsted. but has not naterisIized.
and only slow Improvement now
seems probable. The railroad uaFs
award is looked upon as a favor
able factor. the expectation being
that II will be accepted. and the re-
turn 10 work Of experienced men
would make for gradual recovery
from the freight tieup. judging
from inquiries and orders received
at steel plants in the Chicago dis
trict. the railroads are preparing
for campaign Of repair and i'm
provement Of their facilities as
soon as wage and rate problems
are adjusted. Meanwhile. the gen
eral price tendency continues up
ward. pig iron being supported by
the extreme price OF coke. and Bes-
semer billets. Pittsbur tea frat
J S65 a ton this week.
A continued large attendance ot
visiting merchants in primary dry
= q
active business. for buyers are still
very cautious. and are not disposed
Ito operate beyond well-defned re-
IQuirements. Readjustment Of prices
is proceeding in silks many cotton
! goods. some woolens. yarns. etc,
and the leading producer Of dress
/ EinGhams named prices for spring
at no advance over the list issued
in January. While wages have risen
since the first Of the year. and coal
has increased moro than 4 fhird.
| these added costs are being absorb
ed in the profit margin of the mills
Recent cron reports. and the 1uE-
mcntcd wages for railroad workers.
] nave led TO more confident express
ions concerning the public purchss-
ing power. and the restriction ot
production is prompting some in
! terests to believe that goods will
be scarce. and prices high. At the
moment however. demand is con-
spicuous chiefly by its absence. and
the price trend is Unmistakably
downward. Illustrating this ten
| dency. some lines Of silk hosiery
have been offered at from % 10 50
I per cent under the top asking price
OF six months ago.
| The recent spurt ~ activity in
/ hide trading soon petcrcd out and
dullness is now one OF the chief
characteristics Of the market. At
tempts to raise prices when demand
| showed signs Of revival prompted
tanners to withdraw. and IL may
require further sizable concessions
before the largest operators will
display renewed interest. Some
what similar conditions prevail In
] Heather. where substantial business
can only be effected by sellers meet
ing the views Of buyers. Such shoe
manufacturers as have resumed
running schedules seem to be in
different about buying leather, as
the footwear situation leaves much
to be desired. It is even clearer
now than recently that the general
public is not disposed to purchase
shoes except at price reductions,
and both retailers and wholesalers
/ in the circumstances, fear 10 com
init themselves extensively on iah