Norwich bulletin., 1922-03-04

similar work in another industry sit
uated in the same territory Therefore
a REIMBURSEMENT IS almost inevitable. t
Much of the trouble that comes when I
rates of pay are changed comes from
lack Of differentiation between of pay /
and actual weekly earnings. When
commodity prices are going up the !
earnings of labor tend to qeep pace
with the rise of retail prices; but |
when commodity prices are declining I
and industrial conditions are dRpress- |
ed. earnings depend on what industry |
can pay.
Production of cotton textiles, in this /
district was declining even before the
strike started, Cloth was not selling
well, because buyers anticipated that
lower prices would prevail as soon as
the expected wage reduction had taxi
en- effect. On the other hand, mill
agents claim that the reduction is nee
essary in order to sell cloth ON even
the present basis.
The other branch of the textile in$I
dustry, wooden and worsteds, has also
curtailed operations during the past
few weeks. although 1t is running at
a higher rate of capacity than the cot
ton industry was before the strike
started.
The recent trend in retail trade is
another adverse factor in the situation,
but this Is largely attributable to sea-
sonal influences. Net sales of Boston
department stores during January were
but slightly more than half as large
as in the preceding month, and were
about nine per cent. lower than dur
ing January, 1921. Department stores
in other New England cities expert
enced nearly as large curtailment.
During the next few months retail
trade should increase, as is normal
during spring, although 1t will not be
surprising if it is not as large as dur
| ing the same sesfon last year. Mer-
chants situated in textile centers have
| suffered considerably from curtailment
! caused by the strike and by rumors Of
wage reductions in factories not yet
| affected, for workers have naturally
! become more cautious in their spend
| ing.
There are. however, several favora-
Bile factors in the situation tending to
offset these adverse ones. One of these
is the fundamental improvement in
the building being constructed at the
present time is less than it was last
Rsummer, due to the natural slacken-
ing during the winter months never
theless the decline has not been as
large as Is usually experienced. The
! value of the contracts being awarded
and permits for new building being
issued indicate that there will be a
considerable increase in building oper-
atoms this spring Building costs have
decreased now to such a point that
they bear approximately the same re-
lation to rents as they did in 1913. II
| other words, the owner of a building
constructed at the present time car
| receive nearly as large a return on hi:
| investment as he did before the war
! There still 4amains en- insufficient
amount of mortgage money to finance
large volume of building although
this is seemingly being overcome.
i Conditions in two other prominen
New England industries-shoes ant
I Paper-have improved since the frs
of the year. Production in the shoe in
! dustry has increased, partly in anti
cipation of Easter and partly for reg
> ular spring delivery. Output durini
;, January. judging by returns made t.
. this bank, was larger than during an,
J month last year. The paper industry i
making Roadway rather slowly, to b
sure, yet prices are firm and the nun
Der Of small orders calling for immedi
;, ate delivery indicates that stocks il
distributors hands are smaller tina
normal.
The status of the farmers purchas
y Ing power is a topic which has bee
treated so often during the past yea
:, that it has ceased to be as seriousl
= considered as it should be. Practical
every depression Is preceded by
4 marked reduction in the farmers pur
1 chasing power. 1t is certainly true c
e this past one. Within the last fey
= weeks there has been a decided chang
= in the fundamentals underlying thi
d situation. There has been a very rapi
Il Increase in the price of farm product
|. amounting in several cases to an i'm
e provement of so per cent. or more fror
the low point. Although this rise ha
I occurred at a time when the farme
e has very little of last years CROP
e still on hand, nevertheless it is highl
d important. If any considerable porto
u of the increase is retained until tn
l, next crops are harvested. the farmer
II purchasing power should be so enhanc
: ed that there should be a decided slim
illus to business.
e Notwithstanding that the price
products in the primary markets in
y creased during January, retail foo
e prices the country over showed a mod
d Grated decline. In assachusetts tt
e cost of living receded to the lowe!
u point reached so far although it sti
is remains 81 per cent. above the 49,
!e level after having declined % per cen
Is from the high Of July, 1920.
n The credit situation in New ,Englar
er changed but little during February II
81 terest, although credit is still reIativ,
nj ~ easy to obtain. There has been 7
: change in the rediscount rate of Il
l. Federal Reserve Bank of Boston sin,
November, the rate remaining i
is per cent. for all classes of loans II
N Government must refund notes al
l. bonds coming due in the next fiftet
Is months. This, of course, may opera
l. to keep money rates firm during II
Mt major portion Of that time Credit col
to ditions throughout the country ha'
lc improved considerably of late throue
: the liquidation of loans in the agricu
raj districts of the west and sout
ly Under the circumstances, the mont
~ and banking situation in New Englan
IN as well as in the country at large
Of considered satisfactory.
IN The present recession in busine
y activity should neither shake the fai
D. of those who are looking forward
". somewhat better times later in the We
n. nor confirm the opinion of those WI
m expect poorer business. 1t is too mu
1t to expect that, after such a severe d
ep preston as we have been through, t
ch recovery should be rapid or even co
er. tinuous. There are bound to be inte
he ruptions such as the present one. Flu