Norwich bulletin., 1922-06-12
Improvement in
 Industrial World [
A Gradual But Fairly Steady Recovery From Depres-
 sion is Indicated in Busi- ness and Finance.

New York. June 11-(By the A. P)- Continued indications of industrial i'm, provement signs of renewed easing in money rates and diverse testimony as to crop conditions are the features in bus mess and finance of the past week. Com modity prices still show firmer tone, re- tail trade is about what might be expect ed at this time of year, and the labor situation shows no decided change. AL together the picture continues to be one O. gradual but fairly steady recovery from depression-a recovery, in fact, which op the whole exceeds expectations entertain ed earlier in the year.
 From the industrial field, recent reports show that the steel plants are still op- erating at rates which compare favorablS with full capacity operations before ths war-even if those rates correspond t' only 75 per cent. of present capacity : Steel prices are firm and most of tho companies appear. to be making modest profits. The value of building contracts let in twenty-seven northeastern state ! during May set a new high record for all time and was six times greater than the monthly average during 1914. Automobile production during May alsJ ! exceeded all previous records. while thu steel companies report increased deman
  plements Railroad car loadings rose il the week ending May 27 to level com parable to that prevailing before the coal strike, and the movement of merchandise I was Is per cent greater than in the sam week year ago. Orders for railroad equipment continued to be placed in sat | isfactory volue
 Latest reports from the northwest in dicate, meanwhile, that the prospects ar, for a good wheat crop Although late in starting, recent exceedingly favorabl weather has brought the crop along very rapidly. The showing is amply confirmed
 by the government crop reports as O
 June 1, which indicates a yield of S55,
 0o0,o0O bushels of spring and winter wheat
 as compared with an estimate of S30,0 ,00o. 900 bushels a year ago and an actus production last lear of 795, ,oO0, 900 bush els.
 Prices of wheat for future deliver!
 have to be sure, declined sharply in tn, last few weeks but this is attributed il most quarters to the collapse of the at tempted speculation for the rise in tn May option rather than to anything dis
 turbing in the general situation. In am event liberal supply of grain ata fai prices is considered to hold out bette prospects for general business than
 short crop at high prices.
 On this basis cotton prospects are no l SO encouraging. Floods have washed ou
 important growing areas in the south west, while the mild winter and we 1 spring have aided the boil weevil and de
 layed planting. Further rains during tn tpast week in many parts of the belt caus ed something resembling a crop scare. A
 result, prices jumped to the highes |, | act ha crossing 22 cents.
 Whether prices will rise further on dis
 courage consumption remains to be seer
 It is clear, however, that the conse quences of a short crop will be mitigate
 by the effect on the carryover, which ha
 been reduced to approximately norma proportions. Liquidation of this carrJ over at existing higher prices should ere
 ate considerable added volume of pun
 chasing power.
 !. A relaxation of money rates at Ne l York during the week suggests that th tightening occasioned by the transaction , centering around June 1 has passed an that there is no change as yet in tf general money situation. Call money c
 the stock exchange dropped back to
 per cent and in renewing at this figure c } | the exchange set a new low record sint ApIll, 15lo-
 U The prices for other forms of none are still at or close to their low poin ! of the year. Most quarters believe tn; D the major part of the decline in rates
 over; but the better trade which h;
 been apparent during the last few montl . is making but slight demands on Il . money market and this demand is not e, pected to increase during the early sur II mer.
 = Reductions in wages for addition
 classes of workers by the railroad lab
 board have called forth protests from l e bor leaders. It has been indicated ho' T. ever, that railway executives do not tai y strike threats seriously and the vie II gains ground that the roads will be al s to operate successfully under the ne
 rate and wage schedules.
 Almost no change is apparent in t l- coal strike situation. A long suspensi le was anticipated by the operators, who - policy seems to be waiting one. Due A the large stocks accumulated befo S April 1, the reduction in output has h little effect on production in other indr s tries. It has, however, stiffened t
 prices of steel products in addition
 those of coal and coke.