The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-06-17
BIZ ]. C. BOYLE.

Consolidated Press Correspondent
: New York, June 17.-Nobody ever
went broke taking profits. The
truth of that adage is unquestioned
but thousands have gone broke DIS
counting profits before they were
Matched. There lies the chuckhole
in the road of the American bust
ness situation today. Business;
hurled against the hard wall OF ad-
versity, has rebounded with ire
mendous force and the problem
now is to keep that rebound within
bounds.
Crops are good but not extraor-
binary. They may turn out to be
better or worse befor the season
is over. Prices for crops are good
but they may rise or fall according
to the unfailing ratio of world sup
ply and demand before next au-
tumn. Manufacturers are in better
condition. Factories are increas-
ing production to meet the con-
stantly growing demand and more
men are going on the payroll every
day. Retail and wholesale trade Is
experiencing a remarkable bettr-
mnt. Unemployment has ceased to
be a factor in industrial and busl7
ness life and the Purchasing power
of the nation is on the increase.
Morale BOunces Back
But the morale of business has
bounced back faster than business.
Business dispatches received with
in the last "a hours indicate that
there is a widespread tendency de-
veloping 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 while their
fields spring up with the early
grain. Wheat producers are hold
ing rather than selling although
bids for their products are over
double what they obtained d year
ago Steel makers with their
books crammed with orders have
reid off from announcing prices for
the next quarter and labor, with a
spotty demand boosting wages in
some sections is ceasing to balance
production costs against its de-
mands.
Business is back at normal but
it is not abnormal and there is lit
tie likelihood that it will be. IN
spite of the rapid increase in con-
struction activity, in demand for
laborers in the harvest fields and
factories and lumber mills there is
no boom" in prospect. The pub
lie has an ample amount of money
to spend but there is a tendency to
spend prospective profits and to
gamble on future betterments which
is a real menace to commercial sta
bility.
Business Waves Warning.
Far sighted business men are rec
ogniZing this and are waving a
worning but in the meantime signs
of improvement and encouragement
for normal prosperity are not lack
ing.
Producers of building materials
! are working at top speed and still
are failing to keep pace with de-
mand 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 and are worried over
! the failure of the manufacturers
| to name prices which will enable
| them to plan for the future.
The demand for jewelry and au-
tomobiles, regarded as a sure meas
ure of surplus money and purchas-
ing power, is increasing steadily.
| Sugar, one of the basic cOmmodi-
| ties which has been in the dumps,
| has risen to levels where profits
again seem certain and the demand
is so great that refneries are
working day and night.
! Ranges in Good Shape.
The livestock ranges of the west
never were in better condition with
ample water and good feed and
herds are fattening ana increasing
at rate which has smoothed the
wrinkles from the brows of the cat
tie men. Wood prices on the
| ranges, however, have advanced to
point where they threaten to stife
demand or make available large
supplies of foreign woods but no
weakening in the stand for further
increases is being shown by grow
ers
Cotton goods are in demand even
at the present high prices. hard
ware manufacturers are working at
capacity, furniture stocks are be-
ing replenished and the leather
markets have shown big improve
ment.