Pueblo chieftain., 1921-08-12
N AND DOMESTIC MARKETS
TRADE CONDITIONS

Mr.. Lloyd George has declared that
he can see the light at tn. end of
the tunnel as regards the poIiticaI
situation in Europe, and much the
same can be said of the trade situa-
ton in the United States Liquidation
10 not vet complete. but the final stages
OF reimbursement are in sight and in
some lines the corner has already been
turned.
Ihe fact that merchants keep asking
LOT renewals on trade acceptances
winch are supposed to be self-liuuidat-
ing at maturity suggests that there
are still large amounts of frozen
loans outstanding and many concerns
are still uncertain whether they will
prove ultimately solvent or bankrupt
IL is true that even in the cotton states
SUBSTANTIAL progress has been made
in credit liquidation. The Reserve bank
loans have declined since last Novem-
per from SO million to 6i million at
Dallas, from 157 million to 125 million
al Atlanta, and from 90 million to rs
million at Minneapolis But despite
this rapid credit curtailment, the gold
holdings have declined from iS million
to % million at Dallas, from ss million
TO II million at Atlanta, and from so
million to SO million at MINNEAPOLIS.
This loss of gold means that these a z
ricultursl regions are still confronted
with debit balance, remitting more
10 the east than they are receiving for
the goods they deliver to the market.
Liquidation is not complete in the
iron and steel industry, where the
United States Steel corporation is nav
ing 81 cents per hour for common labor
while Bethlehem and other companies
are paying from 27 to 80 cents an hour.
The Corporation must reduce, its wages
TO 80 cents or less and make further
cuts in steel prices before liquidation
will he complete. II would seem also
that wage liquidation has not been
completed by the railroads and the
textile factories. There must be a cut
in wages in the building trades and
the coal mines. And If there SHOULD
be substantial reductions in coal and
transportation, the cost Of producing
steel would decline and make possible
still lower levels in the iron and steel
Industry next year There will be un-
certainty as to whether the bottom has
been reached in the iron and steel
business. the building trades the coal
mines and railways until next spring
or summer
This does not mean that there will
not be some recovery in the iron and
steel trade. on the contrary. the crdi-
nary wear and tear OF equipment re-
gulrss that the steel industry shall
Akfl dAH At lAl'lF AAlAA ~ per cent ht
capacity to provide for repairs and re-
placements. The requirements for
steel mSt+ly for maintenance OF exist
Ing equipment win cause some increase
IN orders for steel during tho winter
and the steel companies are going to
get considera bic new bushes before the
end OF the year by drastic price cutting
There can be- no genuine boom in the
steel business or in new construction
work. howeNer. until there Is a more
general belief that liquidation in steel,
transportation and coal prices has been
pretty We'll completed.
The lines which should enjoy sub
stantial recovery during the rest Of tho
year are those which supply the ne
ccssaries OF NE. II has been fully n
year since the beginning OF the buyers
strike and during the next twelve
months there must be a fairly normal
consumption OF textiles, shoes. hats.
rubber tires and other everyday needs.
especially In the things consumed by
women and children. At tho opening
Of the American Woolen company last
week there was better demand FOR
women, dress goods than for mems
apparel Perhaps men may feel Ike
going threadhare TO save money for
business purposes but they viii not
expect women and children to econ
omize to the same extent. And as
uuAlnfnN improves ulElts the winter
we expect even men to become more
liberal in buying the necessaries os
life For that reason We believe that
tohbera and merchants generally are
IN most cases ordering less than they
will actually need, Many buyers who
have come to New York recently havs
provided for only two or three months
ahead and will probably have to come
back for more during the fall and
winter. That. however, Is usually the
way of trade recovery. There are
hand -to-m mouth orders nt first. then
more confident buying for normal con-
sumption as demand RECEIVERS and then
tendency to anticipate the future
the moment prices begin to rise.
Prospects Of General Revival
In President Harding's message to
Congress on the railroad situation. he
states that the two chief factors tend
ing to prolons business depression are
tho low prices OF agricultural products
ard the financial difficulties Of the
railroads. He recommends that
Congress authorize tho War Finance
corporation 70 purchase tho railroad
securities which represent the ohliEa-
tlons OF the companies TO the Treasury