The Washington herald., 1921-06-05
Business-Industrial Resume.

liou has been in progress during May.
wha, appears 10 be definite turn for the better
has been taken BY some branches OF indus ry. but
foreign trade is still arrested or depressed The
more hopeful attitude which showed itself among bust
ness men duTing April has continued and some indus
tries are preparing the way for active development
Gains made during the preceding month or two have
been generally retained reaction being only sporadic
Foleign trade continues its movement toward
more nearly equal balance Of imports and exports.
REIMBURSEMENT In wages, which was given special
coasidefation month ago, has proceeded but has
been slow while adjustment between wages and prices
lsspecaly retail pnees)is exhibiting special difficulties
Retail Prices
lfregularity and lack Of uniformity still exists in
marked degree, large sections of the retail price
field and qualified observers forecast serious obstacles
20 the final adjustment Of to permanent levels,
unless retail prices much faster to their final
basis The uneven character Of the business readust
nent ofNhe month is illustrated by conditions in the
various individual Industries. In of the latter an
approach 70 stabilzation has been made.
$50 long as prices are stiI in an unstable coudi-
tion says the reserve board buying for future de-
livery is necessarily retarded in many lines. This
holds good both industries where recoyeries are in
progress and in those which are still declining
.In wholesale and retail trade there has been
recession although such recession has been much
pronounced in the wholesale than in the retail field
rIt is worthy Of note that the month of May
fas between seasons Of major productive activity
In most highly seasonal industries recession naturally
occurs just after the earlier spring Increases This
accounts for current seasonal declines in activity both
in manufacturing and in trading business.
"Tbe anticipated Improvement in the labor market
due to the opening Of spring agricultural activities,
has net proved sufficient absorb the surplus result
ing from the reduced employment attendant upon
present industrial conditions"
Financial Condition.
Financially, the past week has been one Of in
creasing strength and of more prosperous outlook
There has been in various sections easing Of the
demand for funds which has resulted in part from the
acceptance Of lower price levels and in part from the
adjustment Of business in new conditions. Federal
reserve banks have received large accessions of
gold and have in many parts Of the country reduced
their bill holdings and other commitments Rates of
discount banks have been reduced but COM
mercial and market rates have shown only slightly
easier tendency. Foreign exchange rates have been
generally stable and higher corresponding to the hopes
raised by the German reparation settlement.
The business outlook for the time thus continues
on the whole more favorable but with little prospect
Of immediate sharp Improvement of conditions.
Food Prices
survey of food prices in nine cities made public
last week by the department of labor shows that prices
in Washington have been lowered 7o per cent from
those obtaining year ago. on May Is Io2o but that
they are still So percent higher than the eightycar
average from May IS, 1918, to May IS 1921.
New Enterprises Shrinking.
During May 8s7 enterprises were incorporated
under the laws Of the principal states with author
ized capital Of 100000 over representing $6oI,-
$4,000 This is the smallest monthly total In over
three years. In the period year ago O7O con-
Germs were organized with authorized capital Of
$I4rz6Isooo The April returns of the current year
show that LAS companies took out charters with
a combined capital of $oS7 So4ooo Fewer new oil and
gas Iotatons are included in the returns than for
years and the same is true of new shipping enter
prises Corporation heads declare this showing is
closely linked with the prevailing worldwide trade