Arizona republican., 1922-06-12
BUSINESS. CONDITION
SHOW IMPROVEMENT
THROUGHOUT NATION
Signs of Renewed Easing in
Money Rates and Diverse
Crop Conditions Feature
During Past Week

NEW YORK, June 11-Continued
indications of industrial improve
ment, signs of a renewed easing in
money rates, and diverse testimony
as to crop conditions are the features
in business and finance of the past
week. Commodity prices still show
a firmer tone, retail trade Is about
what might be expected at this time
of the year and the labor situation
shows no decided change. The pic
ture continues to be one of gradual
but fairly steady recovery from de-
pression--a recovery exceeding ex-
pectations entertained earlier in the
year.
Recent reports show that steel
plants are still operating at rates
which compare favorably with full
capacity operation before the war.
Steel prices are firm. The value of
building contracts let in 27 north
eastern states during May set new
high record and was six times
greater than the monthly average
during 1914.
Automobile production during May
also exceeded all previous records.
while steel companies report In
creased demand from manufacturers
of agricultural implements. Orders
for railroad equipment continue to be
placed in satisfactory volume. Lat
est reports from the northwest indi-
cate that the prospects are for
good wheat crop. Although late in
starting, recent exceedingly favorable
weather has brought the crop along
very rapidly. The showing is amply
confirmed by the government crop
reports also for June ! which indi-
Gates yield of 100000 bushels of
spring and winter wheat. as COM
pared with an estimate of S30.000.00o
bushels a year ago and an actual
production last year of 795,000,0O
bushels.
Prices of wheat for future delivery
have declined sharply in the last few
weeks. but this was attributed TO the
collapse of the alleged speculation for
the rise in the May option rather
than TO anything disturbing in the
general situation, and liberal sup
ply of grain at fair prices is consid-
cred to hold out better prospects for
general business than a short crop
at high prices.
Cotton prospects are not so encour-
aging. Floods have washed out i'm
portant growing areas in the south
west while the mild winter and wet
spring have aided the boil weevil and
delayed planting. AS a result, prices
jumped TO the highest since last Oc-
tober, the leading futures crossing q
cents.
Whether prices will rise further or
discourage consumption remains to
be seen. 1t is clear. however, that
the consequences Of a short crop will
be mitigated by the effect on the
carry-oyer which has been reduced to
approximately normal proportions.
A relaxation of money rates at
New York during the week suggests
that the tightening occasioned by the
transactions centering around June
had passed and that there is no
change as yet in the general money
situation. Call money on the stock
exchange dropped back to per cent
and in renewing at this figure. on
the exchange set new low record
since April, 1918.
The prices for other forms of
money are still at or close to their
low points of the year and most
quarters believe that the majority of
the decline in rates is over.
Reductions in wages for additional
classes of workers by the railroad
labor board have called forth pro-
tests from labor leaders. 1t has been
indicated however that the railroad
executives do not take strike threats
seriously and the vain gains ground
that the roads viii be able to operate
successfully under the rate and wage