The Birmingham age-herald., 1922-06-19
BUSINESS OUTLOOK K RITTER RFP0RT
 FOR WEEK SHOWS
Steel Production Exceeded Best Rate Attained Previous Iy This Year-Automobile
 Industry Prospering
ny Associated Press

New York, June 1S.--Industrial and financial conditions in the last week presented a generally favorable as- pect, notwithstanding the reaction ary tendency in tho securities mar ket, which apparently was connected with the technical speculative posi- tion.
 Steel production exceeded the best rate previously attained this year More coke plants were started and more blast furnaces blown in. Coal production was greater and some ob- servers believe that plants were in preparation for reopening union mines in the Pittsburg district.
 Detroit employment figures showed another increase, thus confirming statements of automobile manufac- turers as to the continuance of satis- factory business.
 Railroad car loading figures con- tnued good. Although the absolute number reported during the week ended June was smaller than In the previous week, the rate was higher. if allowance be made for the Me- morial Day holiday.
 Gain in Cotton Consumed
 A similar calculation showed that the gain in the absolute amount of cotton consumed by mills during May as compared with April was not ac- counted for merly by the greater number of working days In the later months. Mays takings corresponded almost exactly to the average for the last 10 months. which in turn were 23 per cent greater than those in the corresponding period a year ago. If the present rate of consumption Is continued during June and July the total for the crop year will amount to nearly 6,000.00o bales. Exports dur ing the same interval will have drawn slightly more than another 5000, ,000 bales from our supplies. As the act nal yield of the last crop totaled only S.S00.00o bales. 1t was believed the carry-over will have been reduced by approximately 4.000,0O0 bales. It will be, In fact. somewhat less than nor mal. Prospects for full crop in the coming year, meanwhile. remained doubtful. and operatives in New Hampshire textile mills were reported 10 be showing greater disposition to return to work.
 This week. which brought unusuai- ay large financial transactions by tho treasury, passed without creating any disturbances in the money market. These transactions which centered on June 15, include the collection of Ss00,o0o,0 900 in income taxes, the pay ment of SIPS, 5,O0o.o 900 in interest on Liberty bonds, the paying off of s3s0,o0o,000 in maturing certificates of indebtedness, the redemption of s25o,o0o,oo0 in Victory notes and the flotation of s25o,ooo,ooo in new cer- tificates
 Rate on Call Money
 The rate on call money, the most sensitive index of the markets con ditionJ ruled at per cent through out the week and at 2A per cent touched what was virtually a new low since october, 1917. The re- serve system receded slightly but this was directly due to an increase in government deposits, which in turn may be traced to the transac- tions of June IS. Both note circula- tions and discounts were lower, dir- cumstances which suggested that there was still no change from the tendency toward monetary ease.
 Grain prices showed further weakness. The reaction coincided with those in securities and in some quarters were considered to have oc- cured in sympathy with the latter, or to be due to the same underlying Causes.
 Reports from the middle west in- dicated, meanwhile the farmers im- rroved their position materially and tbat they will make out fairly well with prices at a level corresponding to $: bushel for wheat at the primary markets. Competent observ- CTS believe the farmers are not dls- posed to market wheat as rapidly as last year and if the price drops be- low $l the grain movement will De slow. In that case, buying of gen erai merchandise in the farming dis tricts is expected to be correspond iagly delayed. which will exert a re- flex influence on the activities of country merchants and country banks.
 The trend of grain prices as har- vesting of the new crops progresses will have accordingly a considerable effect on department both In tho money and the condition of trade.