Evening star., 1922-06-17
BY J. c. BOYLE.

Special Dispatch to The Star.
NEW YORK, June 17.-Nobody ever
went broke taking profits. The truth
of that old adage Is unquestioned. but
thousands have gone broke discount
ing profits before they were hatched.
There lies the chuck hole in the road
today. Business. hurled against the
hard wall Of adversely. has rebounded
with tremendous force and the prob
lem now Is to keep that rebound
within bounds.
Crops are good. but not extraordi-
nary. They may turn out to be better
or worse before the season is over.
Prices for crops are good. but they
may rise or fall. according to the un-
failing ratio Of world supply and
demand before next autumn. Manu-
facturers are in better condition.
Factories are increasing production to
meet the constantly growing demand
and more men are going on che pay
rolls every day.
Retail and wholesale trade Is ex-
periencing a remarkable betterment.
Unemployment has ceased to be a
factor in industrial and business life
and the purchasing power OF the na-
tion Is on the increase.
Business Morale Acts.
But the morale of business has
bounced back faster than business.
Business dispatches received within
the last twenty-four hours indicate
that there is a Widespread tendency
developing to discount improvement
and profits that have not yet made
their appearance. Cotton growers
with satisfactory returns in sight at
the present prices of the raw staple
are talking of still higher prices and
a world shortage.
Wheat growers are counting on
even greater returns with their fields
springing up with the early grain.
Wool producers are holding rather
products are over double what they
obtained a year ago. Steel makers
with their books crammed with orders
have held of from announcing prices
spotty demand. boosting wages in
some sections Is ceasing to balance
production costs against its demands.
Business is back at normal. but It
likelihood that it will be. In spite
Of the rapid increase in construction
activity. in demand for laborers in
the harvest fields and factories and
lumber mills there Is no boom" in
Far-sighted business men are rec
ognizing this and are waving a
warning, but in the meantime signs
of improvement and encouragement
for normal prosperity are not lacking.
Working mt Top Speed.
Producers of building materials are
working at top speed and still are
failing to keep pace with demand for
lumber, cement, steel, roofing, glass.
paint, brick and other commodities.
Consumers of steel products are
having difficulty in securing enough
supplies to meet their needs.
Demand for jewelry and automo-
biles, regarded as a sure measure of
surplus money and purchasing power.
is increasing steadily. Sugar. one of
the basic comm odities. which has
been in the dumps, has risen to levels
where profits again seem certain. and
the demand is so great that refineries
are working day and night.
in better condition. with ample water
and good feed. and herds are fatten-
ing and increasing at a rate which
has smoothed the wrinkles from the
brows. of the cattlemen. Wool prices
on the ranges. however, have ad
vanced to a point where they threat
en- to stifie demand or make available
large supplies of foreign wools. but
no weakening in the stand for fur
ther increases is being shown by
growers.
Cotton goods are in demand even
at the present high prices. hardware
manufacturers are working at capac-
ity, furniture stocks are being re-
pIenished, and the leather markets
have shown big improvement.