Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-12-30

Boston, Dec. 29.-The impetus
given to general business by the ac-
tivity in the building industry this
year in all probability will continue
well into the coming year. says the
Monthly Review of the Federal Re-
serve Bank of Boston, issued to-
night.
1.-The majority of business men
and bankers in New England" the
review says. ARE looking forward
hopefully, vet cautiously, to 1928, es-
pecially the earlier part Of the year.
Manufacturers, jobbers and retail
merchants alike have operated on a
hand-to-mouth basis throughout the
past year, keeping their stocks as
small as possible. Actual consunip-
ton of goods. on the other hand.
has been large and is at present ex-
ceptional, as is shown by the enor-
nous total of holiday purchases.
with retail merchants stocks
low and their outstanding orders
small it would seem that merchants
must call on Wholesale jobbers and
manufacturers for large quantities of
goods during the next few months.
This in turn would result in a high
rate of manufacturing activity.
The year 1922 will go down in
business history as one of excep-
tional building activity. Judging by
the large number Of contracts
awarded the building industry
should be busy again next Spring.
1t is difficult to estimate how much
impetus this boom has given to
other industries. but it must have
been large. Recent activities have
tended more to residential construc-
ton than to factories and business
buildings and that in itself may be
construed as healthy sign.
There is a shortage of building
mechanics in many sections of New
England as in some other parts of
the country and wages are consc-
qucntly high. The building industry
will probably have to watch con-
struction costs more closely during
the next year than it has in 1922.
because they are considerably high
or than they were a year ago.
The year ends with money rates
firm and higher than in mid-sum-
mer although not high enough to
cause any apprehension nor to
check business expansion. Indeed
the improving volume Of business in
III caused no strain on the credit
resources of the country, but rather
induced a healthy increase in the
volume of loans of banks to their
customers. There remains both with
in the banks themselves and in the
reserve system ample credit for the
requirement of business during the
coming months.
Merchants still report that the
public is more than usually avefse
TO paying higher prices. The rise in
wholesale commodity prices during
the past year has been rapid. To
this is added that very important
factor that was so apparent a year
ago-the lack Of balance between
the prices of the major groups of
commodities. The NAL djustment
is not as severe now as it was at
that time, but the great body of
farmers remains at a disadvantage
in purchasing the goods they need
when compared with most other
groups of buyers. Next to the for
eign situation, if indeed, it is not
more important. the commodity
price situation warrants the closest
attention because it is a major fac
tor in the outlook for domestic bust
ness during the next year.
Looking ahead into 1923 the
prospects seem to be good, contin-
gent among other factors. on the
Willingness and ability of merchants
and consumers to buy merchandise
at the higher prices necessitated by
creasing wholesale quotations. and
also on that other important fac
tor. the foreign situation.
Undoubtedly one Of the most op-
timistic factors in the whole situa-
ton is the sound condition of the
banking system of the country"