The New York herald., 1922-04-10
BUSINESS REVIVING
RAPIDLY since 1924
Steel Leads Nationwide I'M
proyement With Sharp
Rise in Buying.
MOTOR ORDERS GROW
Stndebaker Production IN
;creased 143 P. c. Over
Last Year.
FARMERS ON UP GRADE
State Governors Wire Optimis-
tic Reports; Leather and
Rubber Gain.

IN the first three months OF this
year business generally, throughout
the country has improved markedly,
with some rather spectacular recov-
cries here and there, and compen-
sating weaknesses in otEer indus
tries, which, however, bid fair to fan
in line before long.
Careful canvasses of the leading in
dustries reveal that the revival has, In
most cases been up to the expecta- (
tions Of the leaders of industry, while
in some cases the anticipations OF the
midst optimistic have been exceeded
I'M agriculture, too, the farmer ap
pears to have turned the corner"
and to be, in many agricultural States
Mt least, well on the road to NORMALLY
prosperous times.
Specific industries of which inquiry
was made by THE NEW York HERALD
REPORT substantial Improvement OF
conditions over the conditions prevail
ink a year ago, with production in
creased and unemployment decreas-
ink. This has led to a renewal of con-
fidence reflected all the way down the
line bringing increased buying in re-
tail markets and a still somewhat ,un-
even state Of affairs in lines where
rehdjustments are necessary.
Speaking generally almost every line
ofI Industry and business has succeeded
during the first three months OF 1922 in
overcoming the severe injuries caused
by the depression Of last year. but 1t is
inl such lines as steel, automobiles
leather. oil rubber. &C.. that the most
auparcnt advances have been made.
Rail Buying n Factor.
The steel industry. the leading indus
try of the country, has gone forward at
= remarkable pace in the last month.
Fbr the first two months OF the year
the Improvement in this industry was
marked and important but gradual. In
March. however. there was sudden re-
sumption of buying on broad scale
which brought about a sharp increase in
= the rate OF operations in practically all
1@< the steel mills Buying OF equipment
BY the railroads, long delayed, was an
especially potent factor
in the case of the United States Steel
Corporation operations at the low point
last year were down around 20 per cent
OF capacity. BY the end Of February of
this year they had climbed gradually up
to' better than so per cent. Then came
the sudden squirt in steel buying and the
corporations operations jumped we'll
above 20 per cent. of capacity. This Is
s.f -f~ IL 81 1,a
lact that the present rate of operation
IL considerably over 100 per cent. OF the
capHcity of the company prior to the
war
Price Cutting I'm Motors.
In automobile lines the Improvement
has been sharpest. There was probably
nofindustry more hurt and none was in
more serious condition at the low point
OF the depression OF last summer. What
long series of price cuts failed to do
was done by sudden revival of con-
hdence on the part of the public. Driven
alrnost to distraction by their Inability
to sell automobiles last year. manufac-
turers launched on a campaign of price
cutting in the hope thus to stimulate
business. Orders from automobile buy
ers began to pour in and many COM
paxiles are now finding IL difficult to
keep up with the new business and are
cot<tantly expanding their rate of opera
tidiis.
The Studebaker Corporation, which did
not suffer as greatly last year as did
the others, has shown the biggest in
crease in business so far. As early In
the year as January II the company an
nounced that its plant at South Bend.
lnd, was operating at full capacity.
This was followed n little later with a
production schedule for the first quar-
ter OF 22.3o5 cars. The company is
planning to produce 100000 cars this
year. whereas last year total sales were
6G6sS. Production in the first quarter
ythis company increased 143 per cent.
and, sales 100 per cent. over the same
period of last year
The Chandler Motor Company had a
IiSt Increase in business likewise or
ficials OF that company report that it's
business In the first three months OF
this year was about 81 per cent greater
than In the same period year ago.
Lower shoe Prices Helm.
IN the leather Industry there has been
big Improvement also. Officials OF the
Central Leather Company and of the
American Hide and Leather Company
have declined TO give out any figures ir
advance of their quarterly reports, out II
~ knoWn tnat thelr business has ad-
vanced gradually and impressiveiy
Lower rates for shoes have had a SUB.
rthntial benefit for the leather bust.
ncsS-
THE rubber industry has kent pace In
Improvement TO some extent, with The
autofnoble business The manufacture
and sale Of automobile tires is a yer,
big proportion OF these companies bust
ness. and any marked Improvement il
automobile trade was bound to be re.
fietted in the rubber industry. The
United states Rubber Company. an ex.
ccIlent index OF the industry. has shon.r
n slow but very steady revival all this
year. In the mechanical department
which reflects general business condi.
ti6sfs with more or less accuracy. each
n month this year has been better than tho
others. Rubber packing and similar
pryuucts which go into sundry lines show
n VERY material Improvement The tire
bHsincss has jumped 40 sharply that
officials OF the company anticipate a
possible shortage Of tires by the middle
of the summer. A price advance is al
rcedy being discussed as to tires.
IN special lines. where individual in
auiry was made by THE New YoRt
HERALD, tho situation, judging from tn.
re&Ifcs~ has. biprvvcd 10 the satisfaction
of@he .rn~nagemcnt The Victor Talking