Evening star., 1921-06-25

(Diapatches marking the progress
Of the dehation and readjustment
process in business throuEhout the
country, giving the conclusions OF
special correspondents, who have been
Instructed to present conditions and
indications n they really exist, arc
printed daily in The starr.
NEW YORK. June 25-State of mind
rather than the state Of business Is
the dominant factor in the present
business outlook. There is no doubt
that depression has been overempha-
sized. Accurate reports and business
dispatches received here within the
fact that gloomy aspects Of the eco
nomic and industrial situation are
more imaginary than real.
Improvement in the financial condi-
tion Of the country has Offset any
sees some hole in the industrial fabric
mended. Readjustment of the redis-
count rates by the federal reserve
banks has been a decidedly helpful
factor, and deposits both IN checking
and savings accounts have increased.
try are estimate to havo increased
materially in volume over last week.
The buying power Of the public has
not noticeably diminished. There
every section OF the country. In the
tail and wholesale purchases when
business is sought instead OF await
ed. Statisticians estimate that even
in times Of panic the buying power
In this country has never diminished
more than 1b per cent. Many busi-
ness men recognizing that fact. are
seeking the more than IS per cent
Of business with increased energy
and success
Trading at Variance.
This has been marked in nearly
everp section Of the country. In the
same territory and in the same lines
some concerns are running at ca
pacity under the urge of an active
others are almost at q standstill.
content to bemoan what it is feared
may happen to business II the worst
comes to the worst
Many are complaining not Of de-
preston and business disasters. but
Of uncertainties. The prices Of basic
materials gradually are reaching the
stage of stabilization. The woolen
mills are running within 10 per cent
Of total capacity and the wool and
ssGen ss2ensh Without are
crops are good. and with the harvest
the purchasing power of the farmer
is increasing. Thousands of men in
the building trades returned to work
this week and builders are sounding
the banks on loans In anticipation OF
building revival Investment oppor-
tunties when sound, safe and profit
able have not gone begging.
Some Lines Active.
Shoes. dry goods. millinery and
clothing are moving in satisfactory
yolume in most sections. AT least
three automobile manufacturers have
set their production standards at fg.
ures which represent more than nor
nal output. Tire manufacturers have
increased their forces. Inquiry for
vessel charters has increased.
Steel. coal. oil and cotton .. ana 40 me me
weak spots in tho business fabric.
The steel business was among the
last to be affected by depression ana
probably will be among the last to
recover from It g.
the first six months Of the year ex-
ceeded that Of last year for = similar
period and the export demand showed
decided increase this week.
t. Curt,ilrnent ExpeetationS.
curtailment Of production and in
creased demand resulting from low.
cred prices are expected to take care
tember. The statement has been
made that the drop in the price Of
cotton has curtailed the buying pow
er of the south $150.O00.0o0. but any
such curtailment has been on paper
only. for the farmers have not sold
their crops at prevailing figures. Met
ais are admittedly dull. but existing
stocks are gradually becoming ex-
hausted and the copper. lead and zinc
markets may be counted on to read
lust themselves in due time.
The close Of the fiscal year, closing
Of accounts. taking or inventories ana
| the shutdowns for the holiday proba-
jbiy will have . temporarily deaden.
ing ,effect on business for the next
fortnight, but these factors. together
with the midsummer lull, are present
each year at this season.