Evening star., 1922-09-22
RY J.. c. ROILE.
Special Correspondent OF The Star.


NEW YORK, September 22.-The
effects Of the new tariff rates. which
went into effect early today. nave
been pretty well discounted in ad-
vance. Extreme price changes as
result of the operation OF the new
law were few today and confined 10
individual commodities. such as pea
nuts. which fell $40 a ton in Georgia
when the law became operative
Radical increases in prices are not
Expected in the ma jor industries, ac-
curding to telegraph dispatches from
producing centers throughout the
country received within the last
twelve hours. But general. If mod
crate. readjustment upward may be
looked for, in which the tariff will
play a part.
Bonded Warehouses EmptIed.
a tremendous volume Of goods has
been removed from bonded ware
houses in the last week in order to
take advantage of the emergency
tariff rates in effect up to today.
These goods may prove to be factor
of considerable immediate Importance
In many commercial lines. as they
will come into competition with cur
rent fall and potential spring SUP
plies. Such goods. however. prom
ably will be marketed quickly. It
is estimated 100000 worth of
imports has been withdrawn from
warehouses in the last few days and
formally cleared, but importers were
forced TO go to the banks for aid
lin financing these removals and Will
be anxious to get these goods off
their hands and the loans, which have
been at a fairly high rate. repaid.
\ gootlly proportion of these goods,
however, will be re-eXported by their
holders for redistribution in other
countries. A large percentage of the
duties paid on such goods Will be
returned to the holders and they VIII
not come into competition with
domestic products.
Price Strengthening Later.
When the flood of imported goods
on the American markets has
dwiudled. however. it is indicated by
business men in every section that
the new tariff rates will have the
effect of strengthening prices Oh both
imported and domestic products.
That effect will be aided by the
general wage increases and higher
costs of materials in this country.
The textile trades are expected espe-
cially to reflect these tendencies.
Speculation as to whether this
tendency toward advancing prices
would develop into another period
: imitation was widely heard in busi-
ness circles here today. but the better
informed business men are discount
ing that theory. They pointed out
that while many industries are con-
fronted by heavier costs of labor and
material rising prices do not mean
initiation now because they have not
been accompanied by overextension
of credit.
Moreover. the price moves have
been caused more by increased pro-
duction costs than by widened de-
mand of the buying public, and the
sturdy resistance of buyers to higher
figures may be counted on to keep
quotations well within bounds.
Dealers and manufacturers declared
today that the laws of supply and
demand would continue to be far
more potent than the. artificial regu-
lations imposed by the tariff law.
They pointed to the wool industry
as sustaining this view.
Millions of Pounds of Fine Wool.
There are millions of pounds of
fine foreign WOES wh'cn ri nc go
leased from bond under the new law.
This might seem to portend lower
prices for such grades. but it is
pointed out that there is a shortage
of wool throughout the world which
tentled inevitably to keep prices fair
ly level.
One immediate effect of the signing
of the new law will be to stabilize
prices and conditions. Producers and
dealers in every line, with uncertainty
as to rates removed, will be far more
ready to make large commitments for
future needs within the next three
months.
Reopening of the Ford factories in
Detroit after a four-day shutdown
brought joy to $4,000 homes in that
city today but the loss of the sus-
pension to business men is estimated
at $4,000. 900 according to dispatch IN
from there today.