The Washington herald., 1922-10-02
BUSINESSCOO
Best Conditions Since
War Are Now
Prevailing.


highest point of Industrial activity
for the year was attained in Phila-
delphia this week. when prodrcton
increased to approximately so per
cent. 1t would have gone higher In 1
mills and factories been able to get
more skilled labor. With the broad
ening of scope a rising trend or
prices has developed. attende.. by
scarcity of materials in basic lines.
condition which is expected to be-
come more acute as the fall season
advances. Enough business Is in
hand to carry general trade forward
for at least six months. Cost of pro-
duction is increasing and. while
neither business men nor bankers
are contending the country Is In a
period of imitation. tfrey agree in de-
ciaring that I'VE may be going 'utt
It,"
An idea of the extent of the al
tered situation in this section may
be obtained from a comparison CT
unemployed in the State at the peak
Of last December. At that time ap-
proximately 900 were idle. To-
day the official figures in six leading
cities outside of Pittsburgh indie ite
less than $4,000 The latter repre-
sent those who fit from place 20
place at all times. In other words.
nobody willing to work Is out of
job in Pennsylvania or surround.rs
territory. This has made for in
creased purchasing power and is
having a tonic influence on retail
lines. Curiously enough, this state
Of affairs Is not bringisg otu much
of an inclination of merchants to
buy for the more distant future.
The immediate delivery prlicy IS
being adhered to In most cases.
whether this indicates an under
lying feeling that a rea"'ion NAV
be in store is conjectural. Cpon ihe
surface confidence Is deeply rDoted.
Foreign Iron Imported.
One does not have to search far for
a foundation on which this feeling Is
based Instances were cited by one Of
the greatest railroad equipment con-
Germs in the country to show II could
count on years business with 10000
men on - payroll. yet its operations
are only ~ a 20 per cent basis. This
corporation. together with railroads
direct. are calling upon steel compa-
nies for urgent shipment Of iron and
steel. Great confusion prevails In the
latter industry. Difficulty is being
encountered, in getting coke from the
Connellsville region because nonunion
men are not returning to work. No
furnaces have been blown In In this
section since the strike ended except
one at Coatsvile owned by Midvsle
Steel. To meet this situation heavy
imports of foreign iron are taking
place. They are coming In on a basis
of $40 to 1872. against S32 to S34 for
No. . Y foundry I'm this market. II
it were not for this aid. the trade de-
cIared pig iron would be selling at
vastly higher figures. Nobody knows
what the domestic cost will be fort
night ahead. For that reason there Is
hesitancy about taking future orders.
Inquiry runs well into 1928. with con-
sumption far exceeding production.
Much complaint is heard over what
is termed maladJustmet OF production
Some contend this may retard the
course Of recovery. There is a dispo-
sition to blame the wage advances to
curtailed supplies of labor. and this
in turn is attributed to restriction of
immigration. A case was brought to
light today showing that It was with
great difficulty that some plants were
holding their labor force together
This raises an interesting problem
because corporations have taken con-
tracts on the present reduced scale of
overhead and to raise wages under
these circumstances would greatly un-
settle business.
Try to Hold Down Prices.
There is no tang BILE evidence az
yet of increased retail prices due
to operations of the new tariff. bu;
there are indications this IS not
far distant. A hint of possible
increase in costs of various m
ported articles was seen in local de-
partment store advertising stress
ing the fact that imported goods
would be sold at unchanged prices,
because they had been imported
during the old schedules, the in
ference being the case would be
reversed II stocks had to be re-
plenished. AS a national measure
the tariff is regarded by many as
Sravely defective; first, because It
does not take proper account of
our pos .tion as creditor nation
and therefore will make settle
ment of the allied debt problem,
on which the restoration of in
ternational stability depends more
difficult: secondly. because il ap-
pl es the protective principle on
a wholesale scale to agricultural
products in a way that may un-
duly increase the cost of living
and thereby stimulate labor dis
satisfaction.
Local observers of condit,o ,ons
overseas have seen little reason
for serious concern over the Near
East issue. despite the several in
cipient war scares." AS the mat
ter Is viewed here. European nations
have neither the will nor the means
TO hight now. The upset in the
Balkans. however. is deplored as a
menace to future peace. but tbs
reparations and the war debt issuee
are regarded as matters of more
immediate concern to US financially
and economically.
Effct of Near Eastern News.
In the security market the Turk
ish situation has exerted a restrict
i've Influence. Many foreign bonds
have been placed with investors in
Philadelphia and the holders are
loathe to make new commitments
in new flotations as long as the sit
uation remains clouded. Large
syndicate operations looking to fio-