The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-03-26
Mooney AND MARKETS.
Business Conditions.

or elsewhere. Employers and work
erS who are unwilling to face present
conditions frankly and courageously
arc retarding resumption of normal
business and working against their
own interests. Prevailing wage scales,
which under present conditions are OF
little real advantage to the workers.
ere an absolute deterrent to the low
cred costs which must be establish
Cd before the prices of coal and steel
can be lowered and freight rates al
tered High wage rates are purely
lIlusorN IS long as widespread unem-
ploylnent or/part time work reduces
real income and inpairs purchasing
power.
The primary and wholesale mar
kets, which for time showed a spot
ty Improvement, have in many lines
again become dormant. Steel output
has fallen to less than one-half of mill
capacity. Railway traffic and earn
ings are decreasing week by week,
production Of coal has fallen to the
lowest point in four years and build
ing operations lag far behind the to-
lal of new construction known to be
in immediate demand. Slow and mod
crate liquidation of borrowing from
the reserve banks is reflected i'm the
slight but steady improvement in the
reserve ratio of the federal reserve
system. although the fact should not
be overlooked that a substantial part
of this Improvement is the result of
gold importations. which have con-.
tinued uninterruptedly for many
months. There have been further
marked declines in wholesale prices,
but coal and steel, while lower, are
still out of line with the general price
level Buyers remain unwilling to
contract for other than immediate ne
cessities, which are at a minimum.
Money Rates. "a,
The reserve ratio of the federal re-
serve banks has in the period under
review risen from 49.6 per cent. ON
February IL to 500 per cent. on
March II, but the general situation
has not materially changed.
There is little basis for any eSpec-
tation that borrowers in general will
secure their requirements at lower
rates for some time to come. Nemi-
nal market quotations. however, may
give an appearance of easier money
conditions.
Production.
There is a growing recognition OF
the necessity for lowered freight rates
on heavy tonnage items which can
only be effected when there have been
corresponding reductions in the wage
scale both Of railroad employees and of
labor in the basic Industries. The steel
industry as whole is reported to be
operating at about 40 per cent. of ca
pac:ty. Price reductions on the part
of the independent steel makers have
not resulted in large orders. 81.
a further decline in the price OF
cotton has somewhat affected demand
for many classes of cotton textiles,
but orders for immediate require
mcnts continue to be placed. In GER
tain staple lines there has been inn
provement. Ginghams have moved
well following drastic price cuts
made several months ago by the large
producers. Cotton consumption for
February was 395. $50 running bales
as compared with 366,270 running
bales during January. Silk and wool
manufactures, which were first to feel
the effects of liquidation. have shown
a measurable degree of Improvement.
There is distinctly better movement
in tires, and automobile inquiries
and sales have increased encouraging
ly.
Building.
Although there have been reduc-
tions in the price of many building
materials. high wage rates and work
ing rules which make economical em-
ployment of labor impossible. togeth-
er with high freight rates. have pre-
vented r1aterial lowering of construc-
tion costs. AS a result building has
been restricted almost entirely to
absolutely necessary work. The L. w.
Dodge company's review of building
and construction activity during Feb
ruary estimates new contracts award
ed in the states north of the Ohio
and east of the Missouri at S100,7S9,-
600 as compared with contracts for
$216,663,000 awarded I'm February,
1920. A considerable volume of In
quiries indicates that there is a po-
tential demand which will make itself
felt as soon as and not until cost OF
labor and material are lowered to
what the public regards as reason
able. Meanwhile, the disinclination
of labor not only to accept lower
wage rates but to give adequate re-
turn for wages paid will continue to
restrict new housing, thus directly
a reduction in rent which,
next to food, is the largest single item
Of the workingmens living expenses
Railroads.
Official statements indicate that
both gross receipts and net earnings
of the railroads. fell off sharply dur
ing the month OF January, In spite OF
the slight improvement which took
place in many lines of business fol-
lowing the first of the year! Esti-
mates of railroad earnings for Feb
ruary and the first two weeks OF
March indicate further decline in
traffic. Reduction IN operating ex-