Evening star., 1921-06-04
FEDERAL AGENCIES CONFIRM
TRADE REPORTS OF BUSINESS
Outlook More Favorable Than It Has Been
for Long Time-Basic Conditions Are
Better-Profts Are Narrowed

Even the most conservative asen-
cfes Of the United States government
are agreed that the national business
outlook Is on the whole more favor
able than It has been for a long time
There lis no expectation Of q sudden
or sharp jump In the improvement,
but rather the prospect OF q slow but
sure building up.
In taking this view of the business
outlook, the government agencies are
but confirming business dispatches
received during the last twenty-four
hours from various sections OF the
country.
Commodity conditions are sounder.
perhaps, than during any spring since
the country was plunged into war.
Basic conditions are better. and this
is particularly true in all lines where
it is admitted that deflation has been
carried out. It was only the pur.
blind business man who thought that
the inflated conditions of the war
period could In some miraculous man
ner be continued for an indefinite
time.
Far-SeeinE Trader Fortunate.
Happy today is the merchant or
the manufacturer who foresaw earlier
than his competitors the trend of the
times, for he is enjoying a volume OF
trade that is entirely satisfactory, as
his wares are priced at their replace
ment value rather than cost at the top
of the market.
The fact that business ia moving in
large volume Is shown by the report
Of the research committee Of the Ma
tional Dry Goods Association, which
declares that returns from nearly 3VO
department stores in all parts Of the
country for the first four months in
dicate a falling off Of only slightly
more than per cent in the dollar
value OF sales as compared with the
retail prices are from 30 to 40 per cent
lower in most sections than they were
at this time last year is a clear fndi-
cation that there has been an increase
rather than a decrease in the volume
of department store trade. Dispatches
from various sections of the country
during the last two months have In
dicated that this was true, but 1t has
remained for te statistical depart
ment of the National Dry Goods As
ISOLATION to prove the case.
Price Reductions ut Variance.
There still is some question as to
whether or not retail prices have kept
pace with the decline in wholesale costs.
to trace the trend of wholesale than of
retail prices. The wholesale market is
comparatively limited, while the retail
market reaches far and wide. 1t has
been shown, for instance, that some re-
tailers have reduced prices properly in
one community and not in another The
wholesale markets are governed more
closely by general or national condi-
tions.
Little or no complaint is heard today
Of wholesale prices. In the case of cot
ton, hides and non-ferrous metals con-
stability has been reported and prices
are showing slight increases over pre-
vious levels. The liquidation in the raw
materials has been more complete than
in any other branch Of business, with the
result that raw materials in many lines
prices.
Some Price Levels Still High.
Decline in spot prices Of bituminous
coal has been spectacular. but the
present level Is still as high as in
1919 and during the first months of
1920. and at present the tendency Of
these prices seems to be toward high
er levels. Pig iron. petroleum and
leading building materials are still
being reduced in price, but the pres
ent levels range up to and above
twice the pre-war levels. AS condi-
tons improve In the manufacturing
lines demand will undoubtedly in
crease for these commodities, and 1t
is impossible to say whether these
factors will be stronger than those
making for lower levels.
It will be seen, however, from all
current reports that business is not
desirous Of . too literal return to
normalcy, or, to be more exact, to
pre-war price levels. The real desire
is that there shall be . readjustment
Of prices within the various indus
tries in such a way as to bring about
a more normal relationship of various
commodities and various goods to one
another. Profits in certain lines have
been narrowed down to such a point
that readjustment of this sort is es-
sential to future business.
Notes.
NEW YORK Iupe 4-Aecoading to