The Birmingham age-herald., 1922-08-28
MANUF FACTURERSOF
 5 Il EXPECT B|G
 BUSINESS IN r A 1 1
Financial Quarters Have Not Abandoned Hope of Rail Strike SettIement-Car
 Shortage Inevitable
Ky Associnted Pre.s

New York, August 27.-Indieita tions as to the trend of both business and finance ond opinions as to fall prospects have shown marked diver sity during the past week. Settle ment of the soft coal strike is gen orally expected to be reflected in sharp gain in production. 9,00O,000 tons a week being mentioned as likely in the immediate future. On the other hand. 1t is pointed out that the governments scheme of priority must remain in force for some time, so that the steel industry is likely to feel the fuel shortage for some weeks to come.
 The 20 per cent increase in steel wages meanwhile is interpreted as indicating that steel manufacturers expect to dispose of their production this fall at favorable prices, con clusion which is reinforced by the present restricted scale of operations as compared with the rate of activity during the spring and early summer Whether steel prices will rise mate rially, however, remains to be seen, since coal prices have touched scar city levels and some observers antiei- pate decline as the scarcity is re- lieyed.
 Are Not Alarmed
 Financial quarters have not en- tirely abandoned hope of a settle- ment of the railroad strike and do not seem alarmed over the pros poets of finish fight. Car loading statistics show that the roads are continuing to move volume of freight comparing favorably with the best performances of the year n ha xsA t. that car shortage during the fall is inevitable.
 Arguing from the increase In wages In the coal and steel industries, which are symptomatic of a short age of common labor and the higher prices of coal and steel products, some observers conclude that the country is entering a period of in flation." While definitions of this term vary considerably, what is prob ably meant is that something like boom, short-lived or otherwise, Is to be bred of general rise in commod- ities prices.
 Abnormal Situation
 Opinion of the matter, however, is divided. Those who refuse to sub scribe to the theory point out that the present increase in prices is due to abnormal situations arising from the strikes and that as such the higher prices are likely to be tenn porary. Such critics also emphasize the fact that certain commodities such as rubber, are cheap, and are likely to remain so. In addition, they maintain that with grain prices at existing low levels. the farmers par ticipating power will remain mod crate. and conclude that no great iC l.1 take part in the movement They also point to Europe's low purchas- ing power and the general consumers resistance to high prices.
 The consensus in the best informed quarters is. perhaps, that the sall is likely to bring a continuation of our somewhat "spotty" business re- vival on a new scale.
 European News Adverse
 Sentiment in the grain and cotton markets has been affected somewhat during the past week by the adverse developments in the European situ- ation and the resultant weakness in the exchanges of Germany and the continental ollies. Wheat has hoy- cred just above the dollar mark with weather conditions and crop prospects little changed In cotton. hot dry weather In the southwest and boil weevil damage in the other growing areas have induced private crop estimates to place the condition at about 60 per cent. and the prob able yield at about 1l.0O0,000 bales. which Is some 500,000 boles below the last government estimate. The next government report will be published on September 1.
 Little. if any. change has been ap- parent in lha money market.