The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-01-02
FAST YEAR'SCLOSE
QUIET, WITH SIGNS
OF IMPROVEMENT
Period Has Been Marked
BY General Economic
REIMBURSEMENT.
LULL PRONOUNCED
Much Has Been Accomplished
In Strengthening Funda-
mental Position.
LULL PRONOUNCED

A year which has been marked by
general economic reimbursement
comes to its closing with quietness
in business the prevailing condi-
tion, but with promise Of improve
ment to follow. While the season
al lull has been somewhat more
pronounced than usual. much has
been accomplished in the way o,
strengthening the fundamental sit
uation, and the outlook is for
further gradual commercial recov-
cry.
Crop Estimates.
Final estimates of crop produc-
ton emphasize the reduced pur-
chasing power in agricultural COM
munities, smaller yields and lower
prices having a far-reaching in
fiuence. and unemployment in
manufacturing and mere antile
channels sccentuates the restriction
of public consuming capacity. The
volume OF retail holiday trade,
however, was heavier than antici-
pated in various places. and offer
ings OF goods at more attractive
prices. which are beginning to ap-
pear in different quarters, may be
expected to accelerate distribution.
With depleted merchandise stocks
in many instances, a large potential
demand Is indicated, and buying for
replenishment purposes is already a
factor in some lines. Despite con-
tinued irregularity, the main trend
Is still toward Increasing stability
of Wholesale markets, and a belief
that the point of extreme depres-
sion in most prices has been PASSED
serves to encourage operations for
the future. As no departure from
the policy of limiting commitments
to well-dehned requirements has
been witnessed, revival at mills and
factories comes slowly in nearly all
cases; yet comparison with indus
trial phases early in 1921 discloses
a decided betterment.
Building Activity.
Activity in building work in not
few sections, with the probable
ity of greater expansion with the
ending Of winter, is favorable
augury. while placing of deferred
contracts for railroad equipment
may enter as constructive ele-
ment next year. Discussion of
prospects for 1929 is not being ur-
dertaken with a disregard for the
unsatisfactory features which con-
tinue evident, nor is there a dis
position to minimize the unset
Ting effects Of the economic tran
sition.
Statistical Records.
The statistical record of the past
year differs sharply from that of
1920. Without exception. the va
rious barometers reflect the influ-
ence of the far-reaching readjust-
ments, and the failure exhibit is
distinctly adverse. The effects Of
smaller mercha ndise movements are
seen in the reduced figures of bank
clearfngs, railroad earnings. and
foreign trade, while the contrac-
ton in stock and bond sales on
the Stock Exchange partially dis
closes the changed conditions in
that quarter. Yet there was not an
entire absence of constructive de-
velopments, and the precipitate fall
in wholesale prices, u causing I'M
settlement, has a favorable bear
ing on the future. Strengthening
of the banking position was one of
the years encouraging features,
with the Federal Reserve ratio ris-
ing far above the highest basis OF
1890.