The Washington herald., 1921-03-13
UNCHANGED TRADE
OUTLOOK FEATURES
new REGIME DEBUT
Commercial and Indus
trial World Apparently
Still Marking Time.
TURN MAY BE NEAR
Past Week Particularly Dis
turbed by Action Taken
by Foreign Elements.

istration has seen no marked I'M
proyement in business conditions IN
this country. The commercial anu
Industrial world Is still marking
time, although there are some oe-
velopments which indicate rnet tue
turn of the road is not so far away.
The past week has been disturbed
particularly by foreign conditions'
including both the Russian reyolu-
tIon and the decision OF the aliieS
to advance their army Of occupa-
tion In Germany The latter de-
cision, taken because Germany re-
fused to meet the reparation terms,
khas had the effect of solidifying
German factions and has increased
the feeling of bitterness against the
Sallies.
Monthly cable dispatches to the
Departmsnt of Commerce indicate
that economic conditions through
out the principal countries Of Eu-
rope show little signs of improve
ment. Business generally Is mark
ing time, awaiting prospects Tor
more favorable future before show
ing signs of advance.
Done.tie situation Critical.
Many bankers regard the in
dustrial situation in this country as
extremely critical. The decline In
prices during the last six months
has been unprecedented in history.
IL has been pointed out many times
that only the operation of the Fed
erai Reserve bank system has pre-
vented a disastrous financial panic.
The extent of the Industrial de-
preston Is indicated to a large ex-
tent by our declining production of
bituminous coal. The output for
the week ending February 26 was
only 7.334.000 tons, or the lowest
for any time within the last four
years except during the coal strike
in October. 1913.
In spite of the fact that actual
business conditions have shown no
improyement. the first week of the
new administration has made a IA
forable Impression on the business
Aorid The officers have settled
down to their new tasks with an
earnestness that Is reassuring. Such
statements as have been issued in
dicate a full appreciation of the
situation under which the country
is iaboring. Secretary Melons an
nouncement that the advance pay
ments of the March taxes have been
UP to expectations is particularly
cheering. The Treasury has large
amounts maturing within the next
few weeks and the Secretary an
: nounced that a new offer of Treas
ury certificates, amounting to S400.-
000,0 BOO. would be offered. dated
Mzfch Is. These certificates are to
be issued in two series, one running
for six months and bearing interest
a.
ing for a year with interest at 5
per cent.
Railroad Situation Serious.
/. The railroad situation continues
to cause serious anxiety among f.
nancial and business circles. Rail-
read earnings for 1920 were the
lowest ever recorded. in spite of the
fact that the gross income was the
largest. The roads last year only
|xarned a fraction of l per cent of
their capital investment. Prelimi-
nary reports for the month of jan
Mary, 1921, show no evidence of i'm
prCyement. In spite of this. freight
rates are now so high as to be one
OF the serious causes of the cortin-
uation of our. business depression.
During the past week numerous
protests were received in Congress
relative to the high freight rates
This has affected particularly the
price of products in the South and
| the West The present scale of
rates is probably higher than the
traffic can bear and still continue
to do normal business. The rail-
roads are seeking their only avenue
! Of relief. namely. that of reducing
expenses. During the week the
Pennsylvania and New York Cen
trsI lines announced that wages
would be reduced as rapidly as pos
sIble. These reductions. IL put into
effect. will reduce the salaries and
wages of more than 250.0o0 men.
The Indications are that the rail-
way unions will fight this decrease.
which probably means prolonged
hearings before the Railway Labor
Board.
shipplnE Board Fleet Idle.
Another announcement dealing
with our transportation system is
that by the Shipping Board. which
kstztes that the number of steel ves-
eeis tied up on March Z amounted
TO 502 with a total dead-weight
[tonnaxe of over 5000. 600 tons. In
addition. 2G5 out of feet of 2s2
wooden vessels are idle. The en-
tfre number of shipping board ves-
ssls now tied up represents a dead
weight tonnage of over 100000
ions. At the same time 1t is re-
(orted that the Shipping Board has
new ships bsilding.
Textile Trades MARX Tine.
No significant Improvement was
shown In the textile markets dur
ing the past week. Reports from
Boston state that the Presidents
Feto of the emergency tariff helped
b clear up the wool situation. and
hat trade was proceeding on a
nore normal basis. Further an
ouncement of prices by the Ameri-
an woolen Company show declines
Il from 30 to 50 per cent below last
ear. Spring announcements in
connection with mems clothing
how further decreases. Most de-
barfment stores show tendency to
eature suits ranging from $50 to
rs. - y
Reports indicate that sales or
otton goods are still unsatisfac-
ory It Is said that there Is an
verproduction of cotton yarn and
many spinners urge drastic eur
hilment OF productiou. The most
Important announcement OF ,ths
eek is that of the Amoskeae Man
racturing Company. showing q
rfce reducfisn or approximately sc
" cent The widely known Daisy