The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1922-07-07
MONEY AND MARKETS.

of the World War. Some Industries
have shown moderate gains, in others
conditions have altered but little and
in a few lines a seasonal dizziness has
occurred The unfavorable factors in
the situation are the continued dead
lock in the coal strike and in the tex
tile mills of New England and threats
of strikes by those classes of railroad
labor affected by recent decisions of
the United States Railroad Labor
Board.
Iron and steel output for May
showed further gains, and the untitled
orders of the United States Steel Cor
poration have increased. Automobile
production during May established
new high records. The rubber manu-
featuring industry is sharing in the
activity in automobile manufacturing.
Conditions in the hide market are not
vet satisfactory but stocks are not
large and both tanners and manufac-
turing consumers of leather feel reas-
onably sure that prices of hides ana
skins will not 90 lower. Stocks OF
leather are heavy but the market is
becoming more active for all classes.
In the shoe industry there is evidence
of a slowly improving demand which
is being felt not only in the Middle
West but in New England, where
heretofore the industry has been
especially depressed.
In the textile and related industries,
the foremost problem is whether the
higher prices resulting from rising
costs of raw materials can be passed
on to the consumer. The wool manu-
facture is operating nearly at capac-
ity. The cotton textile industry in the
South is active but strike conditions
continue to prevail in New England.
There is evidence of a slightly i'm
proved demand for broad silks but
taking the country as a whole, this
division of the silk industry is prob
ably at little more than so per cent. of
capacity.
Inc CtIueHl, luluDCl Gnu bAiSh 49,
dustries have met with some difficulty
in satisfying demand because of the
large volume of building and con-
struction under way throughout the
country. The distribution of agricul-
tural implements continues to be fair
ly active, although the industry is still
affected by the curtailed purchasing
power Of the farmer. The June esti-
mate is for a wheat crop somewhat
larger than the average of the five
preceding years. This offers promise
of an improvement in conditions in
those areas where wheat Is the leading
crop. Large yields Of oats, brley and
rye and a heavy hay crop are also
forecast and pastures are excellent
Weather conditions for corn and cot
ton have not been satisfactory thus
far, and both are late.
Conditions in the retail dry goods
trade vary considerably in different
parts of the country. In some of the
strike areas, business has fallen off
heavily. AS yet the improved outlook
in agriculture is not reflected in any
marked increase in buying agricultur-
al betterment thus far being primar-
lily one CT sentiment On the other
hand, a definite Improvement ia re-
ported in retail trade in those cities
where unemployment is benig reduced
distribution in many lines was not
satisfactory during May, but is now
beginning to improve.
In the past month there have been
important decisions affecting the rail-
roads. These are horizontal cut OF
10 per cent. in freight rates, reduc-
ton to 5A per cent. of the fair re-
turn basis for purposes of fixing rates,
and series of wage reductions affect
ing 100000 men. The effect of the cut
in freight rates can not now be gagged
and the reduction in the fair return"
basis is not likely to have any imme-
date effect but tn action of the Inter-
state Commerce Commission is regard
ed in some quarters as indicating a
continuation of it's policy, which has
initiated against securing adequate
capital. Wagesc constitute the most
important phase of the problem of
rates. The reductions ordered by the
United States Railroad Labor Board
are estimated at s100,000,000 annual
ly and have caused much criticism by
railroad labor as being too drastic.
They have caused equal criticism by
railroad officials as being insufficient
in relation to the rate cuts.
The economic unity of the United
States and its future developments are
dependent on adequate railroad trans
portation and such transportation
must ultimately pay its way whether
by freight rates of by taxation. Ex-
periments in governmental ownership,
operation and control throughout the
world during recent years have proved
beyond question that private opera
ton, with all its faults, IL more eco
nomlcal and efficient than public OPP
Grafton and control. Ultimately rail-