Norwich bulletin., 1922-04-01
BUSINESS CONDITIONS m NEW ENGLAND.

There have been some Significant
changes in the industrial situation dur
ing the past few. weeks-new trends
which, if continued. may mean a consfd-
cradle slowing down of business activity,
in New England at least, writes Frederick
H. Cuftiss, chairman and federal RESERVE
agent Of the Federal Reserve bank of
Boston in his monthly review. The
leading industries of this district are cot
ton and wooden textiles and boots and
shoes, and they are not in as good POI
sition as they were short time ago. The
strike in the cotton industry started two
months ago, and even now it looks as
though 1t might be prolonged for some
time. Already it has cost both the cot
ton mill employers and employees large
| sums Of money in lost business and wag-
es and is having a serious effect on trade
in many other lines In the other branch
| of the textile industry, woolen and wors-
| teds, there has also been a slowing down
Of production. Furthermore the wage
| problem has spread to part of this indus
| try. The wooden goods market is not &C
| tive. particularly on mems lines, and wor-
steds especially are selling poorly. Some
| II not all, of the recent slackening in the
boot and shoe industry in seasonal. but
| the outlook for the immediate future Is
not particularly good. Statesmen are on
| the road, and, under ordinary circsGn-
stane would be taking orders for deliv-
cries to ibe made in the autumn Retail
| merchants however, are in no mood to buy
on this basis, and practically all the or
ders taken are for immediate delivery.
These industries manufacture goods which
Quickly feel the effects OF decreased pur-
chasing by the ultimate consumer; there
| fore they are particularly sensitive to fun
dafiental changes in the business sltua-
| lion. They were among the very first y
feel the effects of the depression which
started in 1920 and likewise recovered
| rapidly during last year at time when
many other industries still felt the re-
| dilced demands.
These unfavorab1e changes may be off
set of course, by favorable ones in other
| directions. There is Enthusiastically. for. in
1 stance, an improvement in the building
Situation, and there is ground for tile be-
lief that it will be even more tpron ounced
| during the next few months. Also the
number of cars ioade1 with freight on
| the New England railroads has been in
creasing consistently since the first of the
| year. Some increase would normally be
expected toward the emu of winter but
this year the gain was more than usual
The output of the iron and steel industry,
a time-proven index of countrywide
production, has likewise been Increasing
very rapidly during the past few months.
However, it is not at all certain that The
iInproYedn ent in carloadings and iron pro-
ductien has not been brought about
through the desire to prepare for possible
changes in the situation as the effects OF
the coal strike become felt. This gatter
in itself, while it may not be menacing
Immediately following April /, If pro-
tracted for any considerable length OF
time. has potential possibilities which are
not apt to improve business sentiment
On the whole, 1t must be admitted that
business conditions in New England did
not Improve durine March. and the trend
should be watched very closely.
Business conditions are often 50 con
fusing that it is Cifficult to ascertain
whether manufacturing activity, taken ali
in all, is really increasing or decreasing