The Washington herald., 1921-06-20
GENERAL BUSINESS
SITUATION STILL
APPEARS 'SPOTTY'
Optimism in Some Lines
Offset by Pessimism
In Others.
PLANTS CUT FORCE
Price Recessions May Con-
tinue; Credit Liquidation
Is Progressing.
PLANTS CUT FORCE
(spscai csrrsspsnAsnos Of Ths washington
: HersN snd IL y, Z, Evening Post.)

Herald and ths y. 4. Eventng Fost.)
, BOSTON, June 1s.-The situation
here may be summed up by the
word 'spotty." In fact. 1t was never
more spotty. If at one moment you
hear a manufacturer say that he Is
doing a little more business, at the
next you hear another say he Is
doing a little less. An industriaiist
in one of our manufacturing cities
on being asked the other day how
things were in his locality. replied:
There has been a marked improve
ment in the last few weeks" Yet,
from an equally important center a
few miles away, came the state
ment that the business depression
was acute.
tween the conflicting opinions now
heard. Where, however. there is
pessimism, it is pronounced; where
there is optimism, it is in almost
every case timid-it is based more
on temperament or on ephemeral
than on any broad
survey OF tne sltudllOh-
Situation Like 1873 and 1893.
The simple fact is that an air
rervades this whole community
quite similar to that which pre-
vailed between 1893 and 1897. In
deed, a resident of one of our lead
ing manufacturing cities said re-
Gently that things had not looked
as they do today since 1873. II un-
employment Is decreasing in some
quarters it Is increasing in others.
This last Is particularly true. one
large machine plant which some
months ago employed 1000 opera
times now has 1000. and this is but
a typical instance. Small machine
shops in lieu of orders have one
after another been closing down en-
tirely.
The depression in general busi-
ness has lately been affecting Office
forces powerfully. Concerns in all
lines are increasingly under the ne
cessity of letting efficient workers
go. These people are not the kind
that parade their hardships, but it
Retailers Differing Stories
Some retailers talk as IL business
was very satisfactory; others do not
hesitate TO affirm the opposite. Un-
doubtedly some merchants, like
some manufacturers, are doing a
very good business, owing. however.
to peculiar circumstances-the now
city of their goods. their more ef-
fective economies, and their more
generous price concessions.
Perhaps some significance may be
attached to what appears to many
persons an innovation. A woman
having an account at a well-known
store, at which she has MT pur-
chased anything fo- several months,
is quite apt to receive a letter re-
her of the fact and pray
ing her to let the merchant know
IL she has any ground for dissatis-
faction. and IL so, what il is. The
natural Inference is that the seller
is now seeking the buyer rather
than the buyer seeking the seller
How Merchants View Prices.
The drop in automobile prices is
only a spectacular exhibition of a
general movement in commodities.
are now among the most
strenuous in declaring that prices
are too high, one and all protesting
an earnest desire that they may be
lowered. When one reduction is
made the merchant holds out the
hope that another may follow soon.
In certain lines customers are prac-
tically assured that July l will wit
ness further recessions.
Labor continues to be n disturb
ing factor, as was indicated Tues
day morning. when every one
opened his morning paper and found
IL diminutive in she and much re-
a rural publication, a
printers strike having unexpectedly
Such occurrences are,
however. regarded as merely the
last desperate effort CT labor to
staye of the inevitable. From now
on strikes for higher wages may be
regarded almost wholly as trading
propositions"
The Reserve Systems Service.
That the general situation is not
worse than it is may be, and uni
versally is, ascribed to the improve
ment witnessed in recent years in
our banking methods. When one
u ctolls "Hdl luiS
try a year ago one is bound to con-
fess that the liquidation of credit
has been much more successfully
effected than could have been hoped.
How much remains to be done in
the way of credit liquidation, no one
is prepared to say. Perhaps we
shall have more light on this sub
ject when all the crops and other
yields of 1921 have been gathered.
Improvement has been made in
the 'frozen credits"
arising from our foreign trade. but
very much still remains to be done.
These frozen credits, it is said. have
been most largely occasioned by
the west coast Of South America,
where, 1t IL said, the Germans are
now fotcing their goods. Indeed, IL
is reported American goods arriving
on order in west coast ports have
haan larlinaI hmf fhAfr