davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1921-03-13

Finance Act, 1914, empowered the
Governor in Council, "in case of war,
invasion, riot or instruction, real or
apprehended. and in case of any real
or apprehended financial crisis" by
proclamation to authorize the making
of advances from the Department Of
Finance TO the chartered banks, by the
issue of Dominion notes upon the
pledge of securities deposited with TIE
Minister Of Finance, such advances TO
be made under conditions to be pre-
scribed by. the Treasury board.
This provision was embodied in the
proclamation of September s, 1911. and
in 1919 was continued in effect until
the end of two years after the cor
clusion of peace on the termination cf
the present war between Great Britain
nnd Germany. but Canadian govern
ment authorities appear 70 hold that
peace was not concluded until peace
treaty with the last belligerent Wa
ratified. Unless terminated at an
earlier date by goverpment action,
legal authority for Treasury redis
counts will remain, therefore. until w 0
years after ratification Of the Deace
treaty with Turkey.
The privilege Of rediscount with the
Department of Finance has proved of
decided national advantage under war
and reconstruction conditions, and ad-
dresses at recent annual meetings o.
several of the Canadian banks indicate
recognition that some such emer-
gency arrangement is desirable as a
+ permanent part Of Canadian financial
organization. In this connection I
4 H.
1914, has not been repealed and. while
intended primarily to meet war condi-
tions. it still provides rediscount ma
chinery if the privilege should agan
be required BY the Canadian banks. AL
that is needed is a proclamation OF the
Governor Council; after such shall
have been issued the Treasury Board
would have wide powers OF rediscount
Sir John Arid, general manager OF
the Canadian Bank Of Commerce. has
expressed the opinion that such redis-
count provisions as now are in effect
are sufficient and that Canada has no
need of either a central banking insti-
tuition or a bank Of rediscount He
added that. while the finance act. 1919
was primarily a war measure. the prin-
clples which it mbodies may we'll serve
! in times of peace.
John Gait, president Of the Jnior
Bank Of Canada, after stating that the
privilege Of rediscount for the Domin
ion government proved of the creates
service, continued:
SIT has enabled Canadian banks tt
take care of the country's trad,
throughout the period when high price!
involved the employment OF the vastl,
greater amount of capital than form er
ly, and to finance all legitimate require
ments. This privilege does not appear
TO have been abused, and if continued
would afford all the necessary fnan-
ciai elasticity for period Of expansion
and would be quite the equivalent OF
the Federal Reserve Bank system now
in existence in the United States The
New-York tribune., 1921-03-13

RAPIDLY travelling the road back to
normalcy is the general character
izat'on that retail merchants are Civ
ing to the present economic process.
Prices, they agree, arc not fully sta
olllzed in all lines, but this feature Of
VIC situation Is giving the retailer
small concern, since for the last six
months he has been liquidating stocks
ana making new additions, with tho re-
SUIT that retail stocks day appcar
10 be lower in comparison with the
volume of business being done than
ever before.
Inc advantage of being in this posi-
tlon Is twofold. First, it eliminates the
r'sk OF large loss through depreciation
IN case prices decline still further.
second, 1t places the retailer in posi-
ton of being able to take advantage
OF any remarkable bargains that may
be offered in the open market. as most
o. ms departments are understocke ed
and can readily take care of additional
merchandise.
The retailer to-day is comparing him
self to an "in-and- in the stock
market. He is buying style, rather
than price. When he detects popular
demand for merchandise he stocks up
moderately. If the demand continues
when this stock is exhausted he buys
again, but is exceedingly careful not
to overbuy. "Never place the last re-
order" is the policy that one of the
most successful retail shoe merchants
in New York has issued to his staff of
buyers. In this manner he obviates
the danger of becoming overstocked
New-York tribune., 1921-03-13

II hAs been impossible to resume the
old normal standards Of production.
rcrma, distribution and normal values.
Instead. condition OF economic under
production. disorgsnixed distribution
and monetary imitation is faced Trade
balances between nations have been
inset. The whole economic machinery
> fthe world has been thrown out Of
sesr. As yet no practical solution Of
tae problem has been found.
Business. however, has at last come
% realize that permanent reconstruct
tlon turns on two basic factors of the
1resent situation: Production and CO.
operation. Among Englsnd's leading
bankers there is unity Of belief in
these points:
Piecemeal reconstruction is i'm
IL possible. The nations of the
world are economically interdependent.
A policy of national sauve qui peut
cannot succeed. No one nation can
prosper while another suffers economi-
cslly No scheme of reconstruction is
practical that does not provide eceo-
nonc prosperity for Russia, Germany
.nI Middle ElrOpe
New-York tribune., 1921-03-13
Special Dispatch to The Tribune

PITTSBURGH, March L. Steel cor
poration mills in Pittsburgh and
Youngstown districts continue 10 show
decreasing ratios OF operation. while
Independent mills show no material
declines and some gains, notably the
Cam brla steel plant OF the Midvale
Steel ana Ordnance Company al Johns
town. which is reported operating a.
70 per cent of capacity. an increase Of
10 per cent over last week
As the average Of the steel corpora
tlon mills is around 90 per cent, this
puts Cambria ahead of the corporations
the first time an Independent plant has
passed the corporation since the re
ductions in selling prices in Novem-
Der. 1t is anticipated that this condi-
tlon will be more marked by the end
of the month and that by that time
both corporation and Independent mills
VIII be operating about on equal ratios
OF capacity, after whicn date il is ey-
pected that the independents viii pull
ahead OF the corporation When this
moment comes. 1t Is believed here, the
Steel Corporation VIII come forward
with an announcement of a reduction
in selling prices and possibly follow
that by announcement OF wage adjust
ments.' such as the recent rearrange-
ment Of hours constituted. which VIII
amount practically TO Il reduction in
wages. although possibly no general
cut in the rate of paw viii be made.
The fact that Ebert II. Gary has
gone for a three weeks outing is taken
here to mean that everything had been
set up now for an announcement Of
policy about the first Of April, and
great hopes are being entertained in
this district that thereafter the buyer
will come To flock to the bargain coun-
ter and place orders for mis- require
ments in steel products.
Tendency Toward Resumption
Among the operating activities noted
during the week are several which indi
cate q tendency toward resumption
The Canonsburg Steel and Iron
Works, employing about $50 men, re
sumed operations in some Of its de
departments Monday following shut
down of more than two months. At
the time the plant was closed wage
reduction Of 30 per cent was announced
The men refused TO accept the cut. At
a conference Saturday, March 5, a COM
promise was reached whereby the re
duction will he approxim atey 20 per
cent below the scale paid last year
Owing to unsettled conditions in tn.
steel business the mill Will not operate
full for several weeks, the company s
officials announced.
The Cambria Steel Company plants
at Johnstown, Pa, are operating at q
decided gain this week. there being q
10 per cent increase over the operation
Of last week. Cambria is now opera t.
ing little short OF 70 per cent of it,
normal basis. 1t is understood that
there are approximately 10000 mer
row at work Cambria has between
$4,000 and $4,000 men working when
operating al normal basis.
The tube mills of the Midvale Stee'
and Ordnance Company. at Coatesville
Pa. will resume operations at SO pei
cent capacity. employing 600 men
Eight hundred men have been taker
back by the Lukens Iron and Steel
Company.
Statements Of iron and steel manu-,
New-York tribune., 1921-03-13
1uo Kinds OF Initiation

Mr. McKenna holds that there are
two kinds Of imitation. The imitation
with which we have previously been
-smiliar has been brought about by
oHertrAding and speculation. This Is
temporary thing, and can easily be
clsed by q high bank rate and tight
money. But the root of the present
sVil IS deeper. Europe's present IN
Hation has been caused by & reduction
ei commodities, which was not accom-
panied by corresponding reduction
o. money or purchasing power. On the
cohErarv most countries have IN
creased their purchasing power by the
ia5ue OF paper money. This situation
$ mere or less permanent, and Mr'
Nckcnna believes that it will be a
eng time before the problem is solved
'1d exchanges return to their old
ratio.
Dcfation is necessary, but it will be
..Mcn!t to bring it about without caus-
'ng distress. The first effect of an
attempt to force down prices by none
.sfy deaation must be to cause severe
Fade depression
"A declared policy of monetary de-
nation rs q public warning to the
sIaaer that he must be prepared to lose
VIZ every contract for future delivered
seods,' says MIR. McKenna. A policy
a. a. gradual monetary defstion, but de-
nselon so guarded is not to interfere
~.'h production, IS a policy impossible
" execution We have to rec
.snize the fact that trade is carried
gu Tor profit, and that if business men
now now that loss is inevitable they will
'ss,rict s.,t their activities to the utmost.
i ~ must not be overlooked, however,
,.s .ass detiation can be obtained in an
ssusr way. II we increase the COM
os'. mvoltaes available for purchase with
~ sas any increase of purchasing power
T. "a snail debate and prices will fall.
New-York tribune., 1921-03-13
Trend Toward Steel Recovery
Readjusment in Industry Expected To Be Renewed
in Few Weeks; Cary's Return
May Be Signal

iacturers Of the Shenango Valley re-
garding the outlook for business are
1t variance. While number are op-
.imistic others says they can see Tie
change for the better Tor several
months One Of the leading steel men
said to-day that things are looking
better and THAT more interest is being
shown than for many months"
The independents are operating a.
about 80 per cent Of capacity
The Sharon Steel Hoop Company has
Just issued s5,000.00 twenty-year
per cent bonds and ii is said that the
entire issue was acquired Immediately
by some of the leading banks Of the
country. The money is to be used for
retiring 81 10000 Of funded indebted
ness and TO provide additional working
capital According TO d recent sp-
praisal. the value Of the industrial
properties of the company is $4,000
0o0 4 meeting of the stockholders OF
the company viii 5e held on May
10 approve an lncrea1e IN the Indebted
ness OF the concern from 5 .20000 to
10000 0OO
Mills Fairly Active
The mills Of the United States Steel
Corporation at Farrell are fairly active.
tarnesie Company, next week, will
operate one blast fur ace, twelve open
hearth furnaces, all Of the finishing
f.iliS and about 100 coke ovens. The
tlnplate, sheet and wire and nail mill
work three days "A week. The National
Malieaeie Casting plant viii continue
TO ~ork steadily on eight-hour turns
Steel production at the rate of 40
PEI cent OF capacity indicates the
stump winch has overtaken the mar
Het, alfect'ng not only the indepeud-
ents, but the Steel Corporation sub-
sldlary plants as we'll. Blast furnace
operation continues UNCHANGED. AT ii
per cent Of capacity. AT 32 per cent
sheet mil schedules are somewhat less
than the weeh before.
ncertain Of Effect
Independent iron and steel man,,-
3acturefs are uncertain as - vha.
effect adoption Of the eight -nour dav
by the Steel Corporation would hav.,
upon their operations
80 many new conditions would he
aeveloped that they would have to be
hanoied as they presented them selves. -
stated one independent. 1t appears,
however that the suggested action by
the leading interest would not mean the
immediate Introduction of the shorter
day IN lndependen. mills Manufac-
torers see IN the steel Corporation in
yestieation OF the subject explanation
Tor its delay in revising wage scales
and prices OF it's products. They b.
lleve the corporation has been investj-
eating costs for some time 10 see wiar
it could do. aud that it has about
reached a decision.
Independent mills believe that f they
retain the longer working day there is
likely to be Il drift Of workers to their
plants because Of the larger earning
capacity. 1t is well-known fact in the
industry that the forei gn- born en-
ployes, who constitute the bulk Of COM
mon labor, prefer the longer ho4r-
Many Instances are on record during
the past few years where common la
bogers in certain plants have requested
longer working hour, complaining that
employees IN competitors plants en-
loyed the advantage Of larger earnin
powrs.
New-York tribune., 1921-03-13
Soft Coal Demoralized
Contracts Being Contested to
the Last Penny Now

Generalization in the soft coal spot
market is reported by the Wholesale
Coal Trade Association Of New York
in its weekly resume. Contracts. nor
mally entered into at this time Of the
year, arc being contested to the penny
by commercial buyers says the re-
sumo.
The lack Of demand for anthracite
coal has caused many Independent min
ing concerns to decrease and in some
instances cease production. This in
dependent coal took another price
tumble this week and dropped twenty
live cents under the company coal
listings which continued at 1910 fob.
mines for stove and chestnut.
There is little change in the export
Sltuatiou' -
New-York tribune., 1921-03-13
Improvement in Silks

Continued improvement in the silk
manufacturing industry is reported by
most of the large producers. who as
sert that they are increasing their op-
erations as a result Of the fairly strong
demand. Buying is still in small guam
titles, it is said, but from such q wide
spread source that the number Of or
ders more than makes up for the small
size of individual purchases.
One of the healthiest factors in the
trade at present, say the manufacture
crs. is the small size OF stocks in the
hands OF retailers and jobbers, to-
eether with the permeation of the low
priced movement to the ultimate con-
sumner. The general public, 1T is felt.
is satisfied with the prices that retail
ers are charging for silk goods at pres
New-York tribune., 1921-03-13
Ask Action on New Contract

Joint action on a new form of con-
tract to be used in the purchase of silk
goods by dress and waist manufacturers
will be asked by joint boards of the
Associated Dress Industries of America
and the United Waist League Of Amer
ica, Of the Silk Association of America
Contracts already have been ratified by
the silk councils of both garment man
ufacturing associations, to which num-
ber of silk houses belong. Further
ratification by the silk association is
desired.
New-York tribune., 1921-03-13
HOLIDAYS This Week

Monday-In Italy half holiday.
Tuesday-ln Salvador.
Thursday-In Newfoundland, New
Zealand. Queensland, United Kingdom
Ure!andl.
saturday--In Argentina. Brazil Estate
of Rio Grande do Mort Dutch East
Indies, Fernando Pc, Guatemala, Mex
icos Peru.
New-York tribune., 1921-03-13
December Jewelry Exports

Jewelry exported during December
was valued at 5,422, according to the
Bureau of Foreign and Domestic Com
merce. Canada was again the chief i'm
porter. having taken s52,077 of the total
valuation. Mexico was second, being
credited with s8.404 and Sweden third.
with s2.94o. Brazil imported during
the month Anne jewelry valued at
$3.50 and England and Siam both 81
nO0
New-York tribune., 1921-03-13
Need World Readjustment,
Is English Banking View
International Scheme to Increase PRO.
duction Discussed by Financial
Leaders
By Otis Peabody Swift

LONDON by Afal).
TIME and passed since the svnn, @ tho
armistice have shown sr
into powshares is far difficult believed The neo
which followed of hostits soon
ed The time came when the world should
sound economic basis Two passed. and the situation
grown rather than be
New-York tribune., 1921-03-13
Hosiery Prices Reduced

A price cut of from to Is per cent
from the levsls announced at the close
OF the year has been placed in effect
by the Durham Hosiery Mills, accord
ing to letters now being circulated to
the trade. Under the new prices retail
ers will be able to buy women's and
children's cotton hosiery for as low
o. &l.2O a dozen.
New-York tribune., 1921-03-13
May Continue System of
Rediscounts In Canada
Emergency Act of 1914 Made Credit Ex-
pansion Safe and Efficient,
Ii Is Felt
Special to The Tribune

TORONTO March
ME banking system negotiated creay the
the of s
than
the Dominion Treasury
in Federal Board Of
tho ITrted
New-York tribune., 1921-03-13

or before the banks would call their
loans. Some of this merchandise al
ready has gone on the auction block
and more is coming in the near future
according to the auctioneers. The pres
sure on the iobber, forcing him to
llquldatc, is stronger now, say the auc-
tion men, than at any time since the
trade depression began.
Not all the goods that are finding
their way to the auction block reach
that place through the desire to lqui-
date. Some companies with strong
enough financial backing to carry mer-
chandisc indefinitely have openly re-
sorted to auctions as a method of find
ing price level when all other means
Of reaching this much desired basis
have failed. This explains the action
of some mills and large jobbers who
have called in the auctioneers for the
first time in the last few months.
1t is notable that the opening prices
for new seasons goods in the overcoat-
ing field and the carpet industry fol-
lowed fairly closely the prices estab-
lished in the open bidding at auctions.
1t is stated on high authority that the
desire to allow buyers to determine for
themselves the maximum prices they
would pay for goods actuated one of
the country, with business history of
close to century, to place goods on
auction for the first time in its career.
Vho Buys Goods?
Who buys goods put up at auction :?
The same old class Of ustomers that
has always patronized auction sales
the popular priced retailer, both large
and small, and the smaller iobbers
The latter have found the auction
rooms sources of great profit for them
in the last six months. Because of
their limited capital and credit the
very small jobbers, even in the boom
period, were not able TO carry large
stocks. Consequently their losses in
the price decline were small. They
We're among the first to run 10 cover
and liquidate before the large and
slower moving concerns got into ac-
ton in the unloading process. Con-
seQuently they found themselves longer
on capital than usual and short on
stock and were able to absorb some of
the goods that went to new low levels
in the auction sales. A quick turn
over at small profit enabled them to
dispose Of the goods they had bought
in this manner and come into the next
sale for more.
One of the strange features Of re-
cent auction sales has been he fact
that auction prices in many cases have
been better than the original holders
Of the goods could obtain for them
This is explained by the fact tnat the
auction sales draw large number OF
prospective buyers. whereas the mill
which wants to dispose of a certain lot
Of surplus merchandise invariably tries
to sell it to one single customer. who
is willing to absorb it only a. great
sacrifice in price. Ii some cases sec
onds at auction have brought as much
as the mills were getting for first class
u merchandise.
New-York tribune., 1921-03-13
Rubber Trade Looks to Orient
Great Potential Field for American Automotive
Products Expected to Aid BUSINESS;
How Industry Has Grown

USI American
hope for business increased
Of rubber goods foreign especially
the Orient and Antpodes great
New-York tribune., 1921-03-13

tires There arc possibly 1000 of these
vehicles in use there.
The total value Of the net import. Of
tires for automobiles in 1919 was over
ten times as great as in 1913 in this
consular district, and nearly fifty times
as great as in 1918. the reeXports from
Shanghai to other Chinese ports in
1918 decreasing materially the net i'm
E,orts. This indicates the development
of the tire market in this district. in
this connection it may be stated that
there are numerous service stations
and garages in Shanghai where tire
changes, adjustments, etc, are per
formed as skillfully as in the United
Staroa
New-York tribune., 1921-03-13
Big SURPRISES Gone

Liquidation. inspired purely from
the desire "to get out from under in
falling market, or the pressing need
for ready cash, has about run it's
course, in the opinion of an official Of
one Of the best known textile auction
houses. From what ! know of the
textile markets." he said. 'the large
surpluses have been cleaned out Mill
stocks have been worked down, either
through consigning goods to the auc-
ton houses or direct sales forced by
price cutting. Six weeks of regular
buying would stiffen all the textile
markets considerably and actually
would advance prices. The long period
Of mill curtailment has had d definite
effect upon the supply Of goods
With mill liquidation running to a
close the auctioncers are looking for
ward to leaner business. A new class
has come into the auction field. how
ever. that Will keep the sales running
for some time to come. The new source
from which the auction houses are now
drawing their supply OF goods to be
sold consists chiefly Of the wholesale
iobbcrs, many Of whom have been
hanging on to fairly large stocks of
merchandise in the vain hope that the
market would take al upward swing ii
time to permit them to unload their
goods before pressing bills became due
New-York tribune., 1921-03-13
Jobbers Turning to Auctions
Most OF the Big Surplus Stocks Held by Mills and
Manufacturers Already Liquidated;
New Class i'm Textiles

The process Of liQuidating stocks of
textiles and similar merchandise left
IN the hands of manufacturers and lob
bers because of the hold-off attitude
Of regular buyers has turned largely
to the auction field
Auction houses prominent in the
textile field are selling from four to
hve times the amount of merchandise
that was sold last year at this period
The trade depression has doomed the
auction business, but it must not be
deduced from this that the auctoneers
"re coming money. They admit that
their commissions are larger than last
year, but when it is considered that
prices are 1t least half, and in some
cases scarcely third, of what they
were year ago. it is seen that more
goods have to be sold to bring the
auctioneer's income up to last years
mark
When the regular channels of dis
trlbutlon closed practically all classes
of manufacturers and wholesale dis
trlputors turned to the auction rooms
rs an outlet for their burdensome
stocks of merchandise. As the Official
OF one auction company expressed it.
= list of our consignors would make
a good Who's Who Of the tex
tile trade" In most cases the names
OF the consignors to the auction sales
are kept confidential, for the reason
that report to the effect that GER
tain prominent mill was selling it's
goods at auction would impair its
standing with its regular customers
who had goods on order. The extent to
which textile mills have used the auc-
tion rooms in the last six or eight
months can only be revealed by
perusal of the auctioneer's private
cooks, and it is not likely that it ever
will be known.