The Washington herald., 1921-05-02
PHILADELP LPHIA SEES
IMPROVED TIMES IN
IMMEDIATE FUTURE
Trade Still Below Normal
But improvements
Are Noted. ~
FAILURES DECREASE
Business Mortalities Appear
To Have Reached Zenith;
Absence of Snap Seen.
Especial cerrespendsnce Of The Warrington
Herald and the Evening Post.)

Especial cerrespondence Of The Warrington
Herald and ths Evening Pest.)
PHILADELPHIA, May 1.-Senti-
ment In business and financial circles
swung to the bright side in this
section this week. The change was
largely psychological, and grew out
of the prospective revival in trade
in the fall rather than conditions
as they exist today. The latter are
so conflicting as to make futile the
application of any definite descrip-
tive term to the situation. 1t IL
difficult to find identical conditions
even in the same group Of indus
tries. Unemployment is greater
than month ago, when the last
high mark was recorded. As a re-
suit of this and the lower cost Of
living, ordinary labor can be OBJ
tanned as low as 25 to 80 cents an
hour. Withal, liquidation has not
been as thorough In general busi-
ness as predicted four weeks ago.
Philadelphia is expecting another
cut in steel prices bsfore another
fortnight.
II is not dificult to discern i'm
provements in many important
lines, such as woollen and worsted
goods, silks, shoes and hardware,
but the retail trade, while fair.
shows signs of slackening, due in
part to decreased wages. Payrolls
show a loss OF more than SO per
cent by approximately $50 manu-
featuring concerns in this and sur
rounding territory. Five Of the
largest cities in the state reported
total of 177,645 out of employ
ment up to two weeks ago. This is
an increase of 1o,530 compared with
a month ago. In consequence saw
ings deposits have dwindled, but the
loss is only o.2 per cent since last
October.
Weak Spots Eliminated.
On the bright side is evidence
that business failures have reached
their zenith. A drop from II to So
in Philadelphia was recorded in one
month, but the latter was more
than double the aggregate of q
year ago. Investigation discloses
the fact corporations have SO gen
orally taken inventory losses that
bankers here feel that the weak
spots have been eliminated. The
expectation is that the last half of
the year will bring unmistakable
expansion in trade. Business which
should ordinarily have been receiv-
ed last October came into the mar
kets this week.
There is, however. an absence or
snap in virtually all branches of
business at the moment. and no ex-
traordinary prosperity is anticirat-
| ed. Steel mills tell Of a further
fall in sales and reduced prices on
standard iron and steel products.
This was attributed to the failure
of the building revival to mate
rialize and to the poor financial po-
sition of the railroads. as shown by
| this weeks cut in the Pennsylvania
| Railroads dividend to a per cent
basis, the lowest since 1891.
The Pennsylvania Dividend.
In financial circles this action Is
not taken as an expression of feel
ing OF the directors over the QUIZ
look for future business, but as a
recognition of past conditions,
showing the company had not been
| able to earn fixed charges. Now 1t
| can, without prejudicing its case.
go before the Wage Board in its
plea for lower wages.
Turning from the business to the
financial situation, bankers in this
section do not believe commercial
loans will go below per cent for
months to come. The first indica-
tion of real relaxation. they de-
clare, must come from the Federal
Reserve Bank in New York. Reduc-
tion In rediscount rates there, II
was thought, might come at any
moment. Temporary Tightening may
follow borrowing by bankers par
ticipating in the $230.000.o00 Great
Northern financing, at least pend
ing distribution Of the new Great
Northern Pacific bonds.