The Washington herald., 1921-01-24
BUSINESS OUTLOOK
REPORTED BRIGHT
In DUN'S REVIEW
Prospects Encouraging
Despite Unavoidable
Conditions.
SEE PURCHASE TIME
Unemployment, One Unfavor.
able Aspect, Has Been Ma
terially Checked.

"ulCn stlll prevail business COnQl-
tions are somewhat more encourag-
ing. Sharp contrasts continue in
different trades and industries, but
there are more points Of gain than
formerly and clearer evidence that
the price readjustments are work
ing toward a revival of demand. The
recent favorable turn in textile
branches has been extended, with
mills in New England and elsewhere
expanding operations as orders be-
gin to flow more freely from dis
tributors, and the leather and foot
wear markets are experiencing a
gradual and moderate recovery.
Similar indications are developing
in some other quarters and strength
ening of prices is noted in certain
instances, though a comprehensive
list of wholesale quotations again
discloses an excess of recessions.
Where the price yielding has ap-
parently not yet ended, as in iron
and steel. the waiting attitude OF
buyers persists, and this serves to
emphasize the irregularity of the
present situation. The main trend
OF late, however, has been in the
direction of improvement. and the
charging attendance OF merchants
in many of the leading centers, and
their increasing disposition to pur-
chase, is a phase which gives rise
to hopeful expectations.
Must RepIenish Stocks.
With important commitments long
deferred, stocks of goods are begin
ming to require replenishment in
various places, and the clearance
sales in retail stores are preparing
stFe way for requirements at the
lower prices current in primary
channels. While the heavy buying
when prices were advancing went
beyond the actual need for con-
sumption and made inevitable a Pc
riod of reaction, the readjustments
Of recent months have enhanced the
prospects for subsequent progress
along conservative and sounder
lines. The rather extensive unem-
ployment and the increased COM
mercial mortality are among the un-
favorable aspects, but the spread of
idleness has been checked in some
industries and the larger number
of failures is not an unnatural de-
yelOpment.
LiduidatIng Contracts.
There is little. II any. buying
movement in iron and steel, and
current requirements are not suffi
cient to materially affect present
producing schedules. Reports of a
few of the idle Dig-iron stacks re-
suming operations are heard, but
the mills of all but the leading in
terest are operating on about a IS
per cent of capacity basis. Buyers
are apparently Withholding orders
in anticipation of further conces-
sions in the price Of fuel and pig
iron and finished lines are dull. In
all instances untitled tonnages have
been greatly reduced, and existing
contracts are being liquidated stead
lily. Rail orders for fair tonnages
have been placed recently, but auto
mobile manufacturers are still out
of the market. and special steels
show considerable irregClarity. On
the other hand. certain manufac-
turers of high speed tool steel re-
port but few cancellations and are1
still in a position to operate to al
most full capacity.
Silk Market Firm.
In dry goods. production in the
mill districts is increasing steadily |
many of the large cotton mills hav-
ing resumed full time operations |
Large distributors report that the |
volume of business done so far this |
month has been above expectations |
and in some cases they have made |
cash offers for prompt deliveries |
of standard staples. The number of |
buyers of dry goods in New York |
at present is larger than for many |
years at this season, and in some |
instances selling agents have deem |
ed 1t advisable to withdraw their |
offerings of standard cotton goods |
after having sold ahead for sixty |
days. Sales of print cloths at Fall |
River during the past week were |
heavier than at any time during
the past six months. Knit goods |
manufacturers report better demand |
for their products and a consider |
able Improvement has been noted
in the silk trade, the raw silk mar
ket being firmer as result.
Hides Sell Well.
In the hide and leather markets
a well grounded belief prevails that
values have at last reached a level
that will permit of no further re-
ductions. Larger sales of hides were
reported during the past week and
calfskins continued to show
strength. In regard to calfskins, |
however, it should be noted that |
during the slump in the market |
these showed a drop in price out of |
all proportion to other competing
grades. At one time calf was on
almost the same level as its artifi- |
cial substitute. Shoe manufacturers |
Independent tanners are inclined to |
talk somewhat higher prices. Lea
ther stocks are still reported to be |
fairly large, the majority of orders |
placed by shoe manufacturers being |
for small quantities needed in FILL |
ing small orders that have already |
been booked. Shoe manufacturers |
still hesitate to produce for stock |
and 70