Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-08-28
BUSINESS BOOM
Of SMALL SIZE
HITS INDUSTRY
Another Period Of In
flation Predicted by
Some Observers.
Wage Increase in Steel
Mills and Reopening
of Coal Mines Cited.

New York. Aug. 26.--(By the AS
Sociated Press. Both indications as
to the trend of business and finance
and opinions as to fall prospects have
shown diversity during the past week.
Settlement of the soft coal strike ls
generally expected TO be reflected in a
sharp gain in production, figures as
high as 100000 tons a week being
mentioned as likely to be realized in
the immediate futurue. On the other
hand it is pointed out that the govern
ment's scheme of priority must remain
in force for some time, particularly
until the needs of the northwest have
been taken care of so that the steel
industry is likely TO feel the restric-
ton by fuel shortage for some weeks
to come.
The 20 per cent Increase in steel
wages meanwhile is interpreted as in
dicating that steel manufacturers ex-
pect to be able to dispose of all their
available production this fall at favor
able prices, conclusion which is re-
inufOrced by the present restricted
scale of operations as compared with
the rate of activity during the spring
and early summer, whether or not steel
prices will rise materially above pres
ent levels, however, remains to be
seen.
Still Look for Peace
AS far as the railroad strike is con-
cerned, financial quarters have not en-
tirely abandoned hope of a settlement
and do not seem concerned over the
prospect of a finish fight. Car load
ing statistics show that the roads are
continuing to move q volume of freight
comparing favOrably with the best per
formances of the year. On the other
hand it is recognized that a car
shortage during the fall is inevitable.
Arguing from the increase in wages
in the coal and steel industries which
are symptomatic of a shortage of COM
mon labor, and the higher prices of
coal and steel products, some observ-
ers conclude that the country is en-
tering a period of Initiation. While
definitions of this term vary consid-
erably, what is probably meant is that
something like a boom, short-lived or
otherwise, is to be bred off a general
rise in commodities prices. Opinion on
the matter is, however, divided. Those
who refuse to subscribe to the theory
point out that the present increase in
prices is due to abnormal situations
arising from the strikes and that as
such the higher prices are likely to be
temporary. Such critics also crticise
the fact that certain commodities, such
as rubber, are cheap and are likely
to remain so. In addition, they main
tain that with tgrain prices at existing
low levels the farmers purchasing
power will remain moderate and CON
clude that no great boom is possible
until the farmer can take part in the
movement. They also point to Eu-
ropes low purchasing power and the
general consumers resistance to high
prices. According to this view the sit
uatIon Is likely to continue to show d
marked lack of uniformity.
High Prices Expected
Shortages and high prices in some
commodities and industries are expect
ed to exist alongside of quiet markets
and moderate prces. The concensus
in the best informed quarters is, per
haps, likely to bring a continuation
of our somewhat ''spotty" business re-
rival on a moderate scale
Sentiment in the grain and cotton
markets has been affected somewhat
during the past week by the adverse
developments in the European situa-
tion and the resultant weakness in tha
exchanges of Germany and the CONT
mental allies. Wheat has lowered lust
above the dollar mark with weather
conditions and crop prospects little
changed.
Little, if any, change has been appar
ent in the money market Rates con
tinue at approximately the low level of
the ear and no sudden change is antici-
pated