The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-10-26
Money and Markets
Review of Conditions Issued
by the National Bank of
Commerce, n. Y.

characterized by slowly improving
sentiment and by some expansion
of production. The most marked
gains have naturally been in those
lines where recovery has been the
| longest delayed Bituminous coal
production is increasing, and
while partially seasonal, this to
some extent is due to enlarged
operations in the iron and steel in
dustry, which is now running at
about 40 per cent. Of capacity.
There has been less change in the
rate of production Of other lead
ing industr trieS, but gains made since
midsu ,ne have SO far held. Ac-
tivity IN. The building trades is we'll
maintained.
Autumn buying is reflected in an
improved retail dry goods trade.
1t is noteworthy that this better
meat is more marked in rural dis
tricts than in industrial centers.
This is clearly the result Of the
mark keting Of cotton and grain
crops at fairly satisfactory prices,
and affords grounds for confidence
that the extreme depression in the
agricultural industry of the United
States has definitely passed.
Wholesale prices of number of
raw materials have advanced since
September Is, while the markets
in several lines have been some
ba
part of the wholesale trade has
served to keep the volume of man
ufac.urerS' advance orders small,
but frequent repetition OF orders
for immediate delivery has thus
far served to render the present
basis Of operations fairly stable.
There is no doubt that the i'm
provement which has thus far TAX
en- place is more or less seasonal
| in character, but it is nevertheless
true that the progress made toward
normal business is sound. Such
temporary setback as may occur
after the autumn buying should,
therefore. bring no discourage
ment. Viewing conditions as a
whole, the facts justify conserva-
tive optimism as to the future.
Foreign Versus Domestic Markets.
Exports of wheat, cotton, copper
and other raw materials have
placed the United States in q doni-
nant position in the world COM
modify markets. Natural resources
and modern methods of production
have enabled the United States to
produce more commodities Of those
classes than the domestic market
could consume at prices enabling
the American producer to meet
competitors in the international
markets.
The United States is not suffi-
GENTLY dependent on foreign mar
kets to justify belief that business
recovery in this country must await
recovery abroaw At prices deter
mined in the international mar
kets American raw materials for
export will find an outlet. By fa:'
the greater part Of the entire man
ufactured product Of the country
has always been sold at home and
as price adjustments are complet-
ed, the domestic market will again
absorb the major portion of our
production.
1t is true that the buying power
of the domestic consumer has
been much curtailed High taxes
have cut heavily into the sums
which might have been spent for
clothing, furniture and all those
articles which have made the life
of the average American family
so rich in comforts and luxuries.
Declines in the prices of agricul-
tural products and widespread un-
employment have reduced the buy
ing ability of a large part of the
population, and high rents. high
! fuel costs and high transportation
charges have operated in the same
direction Many of these items
represent temporary maladjust-
ment, and their effects will grad
ually lessen and tend to disappear.
Another factor of great signiti-
canoe which cannot be overlooked
is the growing spirit Of thrift. In
| the United States, as elsewhere,
much extravaganza undoubtedly
resulted from the period Of high
wages and high profits. 1t is nev-
ertheles true that large sections Of
the public took advantage Of the
opportunity to establish savings
accounts and to begin the pur-
chase of homes while the wide
! distribution Of Liberty bonds ia
miliarized many With investments
| in securities. Except in a few
areas the widespread and severe
unemployment has not materially
reduced savings bank deposits.
while in some localities steady
gains in such deposits have been
made throughout the period Of de-
preston Sharp curta;lment Of in
come has impressed the necessity
/ of saving on many who failed TO
take advantage Of temporarily
higher incomes. Economy has be-
come fashionable The time has
passed when any considerable sec
ton Of the public will buy regard
! less of cost Sales policies based
on belief that buying can be
stimulated by artificial methods and
that another era OF eXtravagant
buying can be induced under pres
ent conditions Will not succeed.
Thn- a merican consumer how