Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-01-30
MONEY AND MARKETS

The real basis for confidence IN
the course of business in 1922 IS now
clear. Notwithstanding the severe
depression during the past year, pur-
chases by the American people IN
terms of physical volume were sui
fcient to absorb to large extent
accumulated stocks so that grad
ual increase in output Of many clas--
/ ses of manufactures may be expected
Future needs must be supplied prl-
arlly from current production. ms
means greater business activity and
explains the expansion in manufac-
lures which has taken place III re-
cent weeks.
The general tone Of business during
the first two weeks of January has
been encouraging. The total physical
volume of retail trade is good. Sales
in agricultural districts continue
slower than in cities, with trade IN
southern California cities better than
in the remainder of the country. Ne
cessitics are selling much better than
are Injuries, and this was character
istic of the Christmas trade. AL
though it is generally recognized that
BUYERS in all lines will wisely con-
tinue to be cautious as to future
commitments, it seems probable that
there will be a moderately well sus-
tanned distribution of goods into
wholesale as well as into retail chan
ncls.
Unemployment is unqucstionably
widespread, but probably its extent
has been somewhat over estimated.
Special measures undertaken to les
sen it, particularly public works, are
doing much to alleviate its worst Tea
lures. The major part Of the pro
ductive energy of the country is ab-
sorbed in clothing, feeding and shell
tering the population. Farmers Ger.
tainly will not buy heavily, but they
must have such foodstuffs as are not
produced on farms, as well as neces-
sary clothing. They must buy some
farm implements, for even with the
more careful repairing which IS in.
creasingy practised, certain pro.
portion of farm machinery steadily
becomes unusuable. They will buy
some fertilizer, and they will buy artI
cles of convenience and even OIL lux
ury to some extent.
Railroads have made notable gains
in economy of operation, and I'M
proved credit conditions have detl-
nitely bettered their outlook, al
though traffic is at present d!sap-
pointing in volume. The heavy de-
cline in tonnage, serious as 1t has
been, has primarily been the result
of lcssened shipments of coal, iron
or head similar heavy commodities.
Reasonable buying of rails, cars, To-
comotives and other equipment may
be expected during the current year.
The year opens with promise OF
active building construction. with
gradually declining yields on all
classes of investments it may DC ex>
pected that funds heretofore una
valuable to the mortgage market VIII
be turned into construction projects:
Labor has not been liquidated and
building costs therefore are still far
above prewar levels, and are out of
line with prices generally. This con-
dition operates especially against
building and constructor for produc-
ton of income, but not so heavily
against individual enterprises for
personal occupancy, or pubic bulid'
ings and public works.
Consequently the field OF residences
building and public construction Of
fers the greatest promise. Inc