Evening star., 1922-08-26
BY j. C. ROYLE.

special Dispatch to The Star.
NEW YORK, August 26.-Purchas-
ing power of the public. the dominant
factor in the merchandising and busi-
ness situation Of the United States.
has increased by millions of dollars
within the last week, and can be
counted on to increase still further.
To begin with, hundreds of thousands
of miners have gone back to the
slopes and the tipples Of the soft coal
fields at wages which satisfy them
and with which they can purchase the
necessities and some Of the comforts
Of life.
The 20 per cent increase granted to
the employees of the United States
Steel Corporation alone added over
$50,000.000 a year to the purchasing
power Of the country, and the jump of
one-f1fth in the pay rolls of the in
dependent steel companies added more
than as many millions.
Furthermore, many of the textile
workers of New England are return
ing to work, not at the reduction of
20 per cent, against which they struck,
but under an agreement which makes
the old wage scale operative from Sep
tember l on.
Fair Profit for Farmers.
Finally the farmers Of the country
are being paid cash for their crops.
and while their complaints are loud in
the ears of every agricultural com
munity. the fact remains that they
can buy and are buying and are pay
ing cash. There is every evidence,
from reports received from all sec
tions within the last twelve hours. that
the farmers of the country not only
will be amply supplied with funds for
the necessities, but will complete the
year with a fair average of profit.
For these increases in income and
in purchasing power, the tremendous
development of building operations
throughout the country is largely re-
sponsible. Building trades have abb
sorbed the surplus labor of the other
industries and the disappearance of
unemployment has created demand
and it has required wage advances
to fill.
These increases in buying power
can be counted on to empty shelves
of the retail stores, to crowd the or
der books of the jobbers and manu-
facturers and to increase the pace of
the producers of raw materials. The
factors which produced them can
also be counted on to increase costs
Of production and a general. although
not excessive, increase in prices may
be expected.
Steel Production Lively.
Such advances, have already begun
to make their appearance. Steel
prices have shown advances this
week and those advances have by
no means reached the top of their
swing. However, condition exists
which makes deliveries for the mo-
ment of equal Importance with price.
and additional furnaces are going
into commission as coal production
makes it possible.
Industrial plants all over the coun-
try are clamoring for power to en-
able them to meet requirements A
dozen representatives Of even the
either coal or oil for fuel. were
scurrying around New York today
begging and buying current from
each other to supply customers at
points all the way from the Missouri
river eastward where streams and
water reserves are at their lowest at
this season of the year.
cars at top speed. although some OF
the smaller makers. lacking quantity
production. are being hard nut TO
1t to meet recent price cuts by the
quantity producers and still mainta IN
a margin of profit. Tire manufac-
turers and parts makers are having
difficulty in moving their products
into the auto factories fast enough.
Cotton Prices Stfnen.
Cotton deterioration in the fields is
stiffening the market for the raw
staple and this condition has been re-
flected in some degree in the prices
still are marking time until the re-
suit of the House and Senate confer
ences on the tariff bill are deter
mined, but the woolen manufacturers