The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1922-07-29
RARs0N EXPECTS PRICES To
CD HIGHER STOCKS ALSO
FOLLOWING STRIKES, STAFLStA-
CLAN RELIEVES THAT busANGSS
WILL IMPROVE FAST
GENERAL, RUSH TO BUY - Thmfo
RARY SCARCITY-MERCH
SHOULD STOCK UP

wellesley IiiMs. Mass, July ~
When interviewing Roger w. baDson
regarding the railroad and coal strikes,
Mr.. Rabson did not seem SURPRISED
with recent developments. lie "eIleESS
that things are working on, IN natural
way and all interests are doing the De i
they can with a bad situation. What
seems 70 interest Mr.. Babson most 10
the possible effect on prices n genera
#; following the strike settlements. Dis
GUESSING this possibility. he says:
/ The strikes while In progress natu-
rally nut a general damper on business.
! They have a dlshcartening effect on
producers iohhCrS. and retailers. wage
, workers have less To spend and manu-
, facturers are less Interested in pushing
J their business All OF this tends to
. hold up trade. In general. Yet during
! this period Of strikes people are living
| eating. and dressing just as If no
! strikes existed Houses are deter!orat-
! ing. young folks are getting married
: children are being born. clothes are
wearing out. and merchandise IN general
: Is being consumed. II deterioration ana
! consumption were suspended DURING
, the depression OF labor strikes. then
/ strikes might be good for tho country
Mt times Unfortunately. however, the
deterioration md consumption goes on
even though retail purchases decline.
This means that after strikes are
settled there IS a general rush to buy.
! The wage workers when returning I"
work again feel prosperous They and
! their families rush to the stores and
purchase goods The group Of indus
tries which have been involved in the
strike Immediately receive an avalanche
Of orders They In turn feel prosperous
and order new machinery and quaint
. tics of supplies This sudden increa Sc
, In business from both wage workers
/ and employers IS quickly felt by the
! jobhers who In turn pour in orders upon
! tho manufacturers.
| Temporary Shortages
! The immediate effect Of this is Ia
cause temporary scarcity of goods
which In many Instances results In the
raising OF prices. Therefore. I should
not he surprised 10 soc an increase IT
the Wholesale prices of many products
this fan. In some sections OF the
! country there will be a distinct short.
age in some lines OF goods. Merchants
therefore. are justified in stocking VI
now for fall and winter trade. Those
who have contracts to I'll should see
that these contracts are well covered
, When business is so dull as II IS az
present 1t is hard to believe that few
. months can see a radical change IN the
! situation Such IS possible. although
! price Increase may be more or less OF
Temporary nature. I say temporary
because after the next squirt in com.
modify prices. there will probably be
another break which will make the gen.
erai price level even lower than Il is
At present, After this next upward
/ movement, the general trend Of com.
modify prices may he downward for
some years TO come
Some Of the basic commodities or,
already showing an upward tendency
: Sugar FOR example. which has beer
, such drug on the market during tht
J past two years. has already begun L
, strengthen, and people are well justified
IN again buying sugar by the barrel
; Linseed oil !s flrmer. The demand ha'
! greatly improved and tho outlook |!
very much brighter | predict furthcI
! advances for linsoed and should not b.
surprised to see raw linseed oil sell 20
| one dollar or over. This Is the genera
result Of the large amount OF bu!ldns
| now in progress and the coHscqucn
, demand for paint. Cotton Is still
| strengthening. Tho recent cstimat
published shows that the 1922 crop vii
scarcely he sufficient for the world
needs Sun higher prices for cottol
may he expected. Steel prices are flrn
with rising cost of production and
flIr increase In demand. Both Goa
~m1 .r'," prices arc strong. Pig iron I
Z, demand and strong. inc is NOR
90. e, while prices are low they ar
firm. The same applies to tin and es
pecially copper. Copper ia the las
metal to feel the effects OF price move
ments and copper Is sure 10 sell h!ghc
during this coming year following tn
strike set. ements. The basic commod
tiles which now look weak in the marke
are lead. rubber and probably petrol
cum. Petroleum Is IN q very interestin
position. The market is controlled an
there never was a time. even during IN
palmicst Standard Oil DAYS when tn
oil price situation was SO under tn
Rhoslutc control OF few men. on tn
! other hand. there IL tremCndou
amount OF oil IN storage and stRtlst'
ally the oil situation IS weak. Al
/ though cannot get anyone 10 aGrc
with me-. | believe that oil Is at an
time liable to break In price.
tho Stock Market.
What will this mean To- the stoc
market 1t looks to me az II this wou'
be a beneht. especially to the indus
3 trials. The clean UP Of the strike sit
! ration should help the whole market
However, any stocks purchased no'
should be selected with great discrin
nation, only after careful study an
consultation: Statistics. however, clear
~ indicate that we are sim In bu
market and the break OF tho pats fe'
weeks was only natural action IN
general upward movement which wi
not eliminate for some months yet"
General business as reflected In IN
Rahson chart stands at llrc below MOI
NAL. an improvement of 20 since las