Newark post., 1922-06-14
BUSINESS CONDITIONS IMPROVING

during the past month has been mark
ed and sustained, and the situation
generally is much better than at any
previous time in 1922. Industries thai
reported little or no demand durine
the first four months of the year have
received many new orders, and manu-
facturers in industries that heretofore
have reported slight increases in buy
ing now state that activity has broad
ened considerably. AS indicative Of
the changed business sentiment anc
of the return Of confidence in the
future, attention may be called to the
increase in the number of orders fo1
forward delivery. After many months
Of only hand-to-mouth buying, this
change is distinctly encouraging. Most
other signs, too, are favorable.
Betterment in the iron and steel
business has been more pronounced
perhaps than in any other. The de.
mand for all products has increased
operations have expanded, and en-
ployment is greater. The coal strike
is dominating the iron and steel sit
uation and is in large measure res
ponsible for the heavy buying. A po-
tential demand for iron and steel
products has existed since early last
fall, but actual buying was delayed
in the expectation of freight re-
duction on January /. When this was
not Forthcoming, consumers decided
to refrain from buying until such
time as the reductions should be
made. But after the coal strike had
been in progress for a few weeks,
and it was realized that the contro-
versy might be long drawn out and a
shortage in coal might develop
freight reductions were forgotten and
orders in large volume were placed
Indeed, consumers have endeavored
to place orders for distant delivery
but in many cases producers have
refused to accept this business, since
they too are unable to foretell the
probable duration of the strike. This
continually expanding demand has re-
suited in increased prices. No rapid
rises have occurred, but quotations
have gone up steadily. Automobile
manufacturers, owing to the marked
| betterment in their business, have
been large buyers of steel plates and
parts. The present call for auto
mobiles is far beyond the expecta-
ton of either producers or dealers
and owing in large part to public con-
fidence in present price levels, the
automobile situation this spring is a
complete reversal from that of 1921
when the business was stagnant. The
used car market, however, is still
dull and prices continue to fall.
Conditions in the coal industry are
by no means so dull as they were ex.
pected to be during the strike period
Sales. of domestic sizes Of anthracite
at the mine are exceptionally small
it is true, since consumers, in the ex.
pectation of lower prices, are laying
in little OF no coal for next fall. But
steam sizes are in better demand, anc
the call for bituminous coal is much
larger and is growing. Stocks in the
hands of consumers are still adequate
to meet current needs, but since the
duration of the strike is so uncertain
supplies are being replenished as con
sumed. This increased demand has
resulted in a sharp advance in prices
and present quotations are 80 per cen,
above those of last month. The de-
mand for coke, too, is large, ane
prices have almost doubled since
April 1.
Activity in the construction indus
tries continues to expand. Building
permits issued during April were
more numerous than during any prev
ious month of the year, and actua
construction is steadily increasing
Several large hotel and building
operations are under way, but thu
building of houses still predominates
AS result of this activity, sales o.
all building materials have improved
considerably and are much ahead o:
those of last year. The call for bricks
is exceptionally strong, and producer:
are finding it difficult to supply thu
demand. Some manufacturers, il
fact, have reported that they are sell
ing bricks hot from the kilns. TIL,
lumber business is not quite so &C
tive as this, but there is goot
steady demand. Sales Of paints ar,
still slightly below last years, blu
are much ahead of last months. Elec
trical contractors, too, report increas
ed business. Prices generally ar,
firm, and some slight advances hav
IL