The Washington times., 1922-06-27
HAHPe BUSINESS AND FINANCE
Business Comment
Copyright. lsaa. by co.mopolitan News
= Service.)

NNebstasuS Agse, W SosAhekohseh ANs"s
service.)
NEW YORK. June 27.--Most of
the prominent commercial, agencies.
including that Of the Federal Re
serve board, are, beginning to record
another sharp advance in wholesale
prices. For nearly Q year prices
have been either stationary or
moving very slowly In the upward
direction. Early last fall the COM
modify price level was about 20 per
cent above that Of 1918 but with
recent advances II has reached a
point about SO per cent above the
there is a disposition to attribute
lines, such as cotton, wheat. copper,
wool, etc. It remains to be seen
whether retail prices, always quicker
to respond to upward than to down.
ward movements In wholesale
prices, will fortify themselves with
another upward jump before the
summer is over. However dear to
their hearts may be the theories of
the infiationists, they surely cannot
attribute the new advance In prices
to initiation policies Of the banking
institutions.
The local Federal Reserve Bank
held up its cut in rediscounts until
long after loaning rates indicated
the necessity Of such a change.
The directors of the Chicago Fed
eral Reserve Bank, even at this
late date. have refused to mark
down their rediscount rates. 1t 10
to be hoped that this country is
not to be subjected to another era
of prosperity" of the wartime
silk shirt" variety.
There is q sharp line of demarka-
ton between the May statements
of. the railroads in the non.union
coal territory and those which have
suffered a decrease in traffic be-
cause Of the inactivity of the union
coal mines. The. Delaware, Lacka.
wanna and Western for May shows
a net operating income Of $422, $50.
decrease of $647.471; the Norfolk
and Western net operating income,
SS.412,741. an increase OF s2.541. .344;
the Wabash railway net operating
income, $4a2.S5s, an increase of
$l6S,43 the New York Central net
operating income, S3,S33,913, as
compared with $4,5S4.o6s In May,
1921.
The averages, always an interest.
ing study to those who follow the
ups and downs Of stock. are now
within striking distance of the point
at which they were lodged when the
recent and severe reaction overlook
them. The high point, according to
The TimssS average, was registered
on May 20. when fifty stocks sold
at $3.50. From that point they de-
clined sharply to 1882. reached on
June Is. In the meanwhile they
have recovered 4.34 of this loss and
now are back to s1.1S, or within
something like Y OF a point Of the
high mark touched for the year.
Stockholders Of the Tobacco Prod
ucts Corporation and of the United
Retail Stores Corporation will meet
tomorrow to ratify proposals. r11Hde
by the directors of the two corpora
tions for a merger through the ex
change of stock. Sufficient proxies
have been received by the manage
ments of the corporations to insure
the success Of the plan.
In view Of the fact that common
stock Of a number Of the representa-
! tive retail and rnail-order houses are
listed on the principal exchanges OF
Z the country, the current earning rec
ords Of the leading companies is q
matter OF general interest. For the
month of May, Sears -Roebuck shows
an increase Of sales compared with
| ha "a NJ Nf1 4 a
cent. Montgomery. Ward a Co. re
ported gross business In May
amounting to Ss,S77,076, compared
with s5,330,S55 in May, 1921, an in
crease of 1913 per cent. In the first
five months of the year Montgomery
Wards sales incr~nsed 12.2 pe- cent
The Woolworth Company have beer
putting out a list of weekly 'and
month statements that in many rc
spects put their best previous rec
/ ords In the shade. The sales for
May Of this year were 16 per cent
more than for 1921, while the five
months total represents an increase
OF 5 per cent over last year. Simi
lar increases are reported In the
larger companies operating five and
! ten-cent stores and those operating
standard.priced retail establishment
In the Industrial section OF the coun
try. S. 8. Kresge, for example, re
ported an increase In May of 1s pei
cent, 3. II. kress of 10 per cent, the
McCrory' stores Of % per cent over
May, 1921.
According to those who are in a
position to know, business as usua
will be the program Of the stocl
exchange on the day precedine
July 4. OF late II has been q com
paratively easy matter to secure q
vacation on the exchange wher
such day fell conveniently be
tween Sunday and q general holi
day With the high rate Of business
on the exchange, the governors are
more loath to grant q hiatus ir
business. They say that inasmucf
as their business 10 closely allied will
that Of the banks and other finan
cial institutions, they should remain
open whenever the banks are open
The gold output Of the Rant
fields for Nav was e2s.7s6 ounces
valued at f2.876,090 at the standard
price Of 35c per ounce. The pro
duction there 'is almost back to the
level maintained before the strike
in the first four months Of the
vaar Nav outptit fjo,res cor,n y,a rf