The Washington herald., 1920-05-10
TRADE REVIEW
And OUTLOOK
Abatement Of Demands
Reflected in Movement
Toward Deaation.
FAILURES INCREASE
Monthly Exhibits Still Ea-
vorable--April's Show
ing Best.


kdded evidence Of slacksnips OF
business activities appears in last
weeks dispatches. and abatement Of
demands from one cause or another
Is being more clearly reflected In q
movement toward price ds1ation.
While May I brought new high
price Lowell Subsequent market
tendencies have GiAiaiY suggested a
lsssenisg rf She !OsE-coulinued
buoyancy Of some important COM
uoditieS. and progressive weaker-
ink OF prices has developed In GER
ta;E wholesale cnanhsls- The re-
atss manifestiuz itself in retail Of
fsringS Of goods At price rs>IGcticns,
has partly resulted from weather
and lsocr coalitions, but is more
LARGELY ;hs outcome GE consumers
disinciination or inability 10 linden
n.teiy meet ths sxfr1na prices, and
70 the growing practice OF economy
and rstrenchp.at. Purchasing OF
the more expensive classes OF mer-
ehAndIss, II stiIl bc;Eing heavy in
the aggregate. Is rJr Of the previous
magnitude. tho lcwcr-ccst articles
now finding more popular favor,
and the policy Of many dealers Is
one CT caution in anticipating fu-
turs requirements The contraction
OF forward cDsratious is, in fact, one
OF the outstanding features OF the
present situation, advance ordering
for fall being apprveiably restricted
IN some loading lines. and cancella-
tfons or rsVisions OF contracts are
not Of infroauent occurrence. Re-
nsctinE these phases, curtailmeIt of
production has been forced in some
directions, while idleness at
other manufacturing establishments
through lack OF essential materiafs
due to delays in transportation, is
likewise an influence in lowering
the public buying power. with the
dghtneSS OF money rates, and the
smaller distribution OF commodities,
rather more complaint of Hardness
in collections Is heard of, and it is
significant that credits are being
scanned more closely. That busi-
ness has entered upon the expected
era of resdjustment, recent develop
ments would seem to indicate: and
conditions will ultimately be the
more wholesome IL the price reac-
uon that now appears to be in mo-
ton is continued in a gradual and
orderly manner.
Favorable Failure Exhibits Continue
Notwithstanding a tendency to-
ward increase of failures in some
parts of the country, the monthly
exhibits are still notably favorable.
With little more than 500 defaults,
the numerical showing for April is
the best Of saysmonth since last Oc-
tober. excepting the 492 reverses of
the short month of February, and
not in any previous April has the
commercial mortality. as measured
by the number of insolvents, been
SO moderate. The 543 failures of
April, last year. marked the lowest
monthly record up to that period,
and the present statistics disclose
only a moderate decline from those
figures. N Yet a narrowing of the
margin of reduction in number Of
failures from those of last year,
when the comparisons were consid-
cred conspicuously favorable, is not
unexpected, and it would not be sur
prising IL some increase over the
1919 defaults were to be shown dur
ing some subsequent months this
year. The April record of liabilities
is not SO satisfactory as the nu-
nerical statement, last months
S13.ooo.o00 of indebtedness being
the heaviest OF any month in more
thar = year; but totals of liabil-
ides are frequently distorted by q
few reverses OF exceptional magnI-
"A NJ Aa
are pf greater Significance.
Pig Irss Output Sharply CartiIed.
As-was not unexpected, in view
OF the transportation troubles, tse
April output Of pig iron was greatly
:ssssne5. At little more than 81 100
tons. LAST -Do7th's daily average pro-
duction 10 the smallest of any
month since last December, and the
reelection from March OF this year
approxfmates 1880 tons. The ne,
loss Of IL In the number Of active
furnaces brought the total down to
ISL On May !. ard these furnaces
were producing At a rate Of only
5s.tte tons daily against 1os,5S5
tons per day for the 3l2 furnaces In
operation a month earlier. The
past week, however, has seen some
road shipments. and there have been
some assumptions Of work at plants
which had been forced TO shut down
through lack OF essential materials.
Yst manufacturing il stin much
aisorEanixed with some establish
msnts not running above 20 per
cent Of capacity. and some time
must gtfli siRpse before anything
RpproachiuE normal conditions win
bs witnessed. That prices, On the
vhoie maintain their nrmness, Is
natural In the circumstances: but
elonng Of the gap between the
prices Of the leading producer and
those et the independents Is !ndi-
Gated
Uas1aSAs 0-y Gssas Markst..
Wlth vastio onsriegs Of merchan-
Ess n sabstAaitAi price reductions
= siSui1cant eura came In the drv
<oods xitnation last week. and mar
kss now etspisy seme Instability.
Eghtls he isrEs AnboYnI CT goods
held NJ th-onEh transportation con-
Resttor partly expiairs the prevail
log Ahssooe os activity Ia wholesaIA
ctrelsk Hs4 rhough this Is normally
= drtss prtnA. yes 8, Is clear that
this prtes aasstIon. moro thar any
other single factor. Is tending to re-
strict new 6asinsa. Both johbers
and retailers are keeping out OF the
markets as much a. possible, not
VfthEranding that many Of them arr
sh0rt OF sappliea ana cur.sIlment
OF pro6uction In being forced in
sons quarters hy causes srowlnc
ozt 0: res:sioas ot orders. Price