Evening star., 1922-07-15
by j. C. ROYLE.

BY j. c. ROYLE.
Special Dispatch to The Star.
NEW YORK. July 15.-The block
signal has swung up in front OF the
business special in warning that the
track Is not clear ahead. In conse-
quence, business is proceeding cauti-
ously and under full control. There
seems little prospect that business
will be wrecked or suffer disaster or
even serious delay. but the track rs
not clear and will not be until the
present labor controversies are re-
moved from the right-of-way. When
that is accomplished there is every
reason to believe that business Will
make UP lost time. For the demand
is there and business usuaiiy Hiah-
ages to meet demand.
The coal, rail and textile strikes are
serious obstacles, but business history
has shown that while labor disturb
ances cause month toSmonth irregu-
larities they merely retard rather
than prevent business expansion. Inc
textile strike has not the broad sig
nicance of the other two, as 1t is AZ
fecting only the New England mills.
To prove the effect of the coal strike
is a simple matter of arithmetic. The
country is burning S.OO0,OO0 tons
week more than ii is producing. IN
dustr,es already are feeling the de-
pletion of surplus stocks II the
trouble is adjusted speedily however
the effects will not be keenly felt.
Credit Conditions Eased-
Money rates are lower. credit conol-
tions have eased and the banks are
in snIendid shape to take care OF the
reasonable demands of business Tor
evnansion once labor controversies
are out of the way. TINS VIII oe
aided by the upward trend OF prices
for basic commodities. the exceilent
prospects of the cropgrowers. ana the
broaGeninr demand for manufactured
products.
Railroads are preparing to ask for
bids on tens of thousands OF new
cars. They are in the market 1oI
locomotives and other eauipmenss
which will cost scores of millions of
dollars Building activities have
been only temporarily lessened steel
mills are falling further behind their
orders with buyers clamorlng TOT
deliveries. The automobile INDUSTRY
instead of experiencing the usual MO-
summer slump. is proceeding at rec
ord production.
One Significant Trend.
Perhaps one of the most significant
trends apparent at present in the
business world is the decided 'mf-
provement both at wholesale and re-
tail in the demand for clothing.
Hats caps, shoes, shirts ana liaoef-
dashery are booming, and manufsc-
turers are adding to their working
forces.
The use of electric power and gas
consumption are on the increase. and
utility companies are expanding
capacity. More paints. varnishes and
oils have been made and sold than
for many years. The sales OF farm
implements have nearly doubled The
totals at this time last year, and the
influx of money to farmers from the
harvest has hardly begun to make it.
self felt as yet.
Fruit is perhaps more likely to suf-
fer from effects of the rail strike
than other commodities. but at least
a large part of the crops can be eX-
peditiously moved by boat and motor
truck Some of the markets have
been flooded with fruit. with con-
sequent severe drop in prices, but the
yield has been profitable in most in
stances.
Lumber Not Curtniled.
Lumber production has not been
curtailed in the northwest, and there
again water transportation Will take
care of the larger part of the output.
The demand for metals has set the
mines to rushing production. lrcn
ore shipments are rapidly getting
back toward top figures. and four
teen-cent copper and better prices
and demand for zinc are aiding pro-
ducers and smelterS.
Live stock quotations are rising
and growers are on more stable
financial basis. Packers are doing
more business, both at home and
abroad, and the markets for hides and
leather continue to record gains both
in prices and volume.
Tire production is being maintained
though not augmented. but manu-
facture of other rubber goods is
gaining steadily. Furs are fairly
active and higher prices are pre-
dicted. Department store trade has
been affected somewhat by weather
conditions in various sections, but
this slump is regarded as merely
temporary. Lower prices for crude
oil are forecast.