The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-05-21
BUSINESS TONE IS
STEAD|ER DURING
WEEK JUST ENDED
Speculative Markets Firmer
With Pressing Liquida-
ton At End

NEW YORK. May 2o.-(By Asso-
ciated Press.)-A steadier sentiment
| was apparent in financial and bust
ness quarters during the last week
For one thing it was evident that the
| principal speculative markets were
i displaying a firmer tone. liquidation
of pressing character having ceased
and short selling having considerably
| improved technical conditions. AL
though extreme quietness prevailed
during the greater part of the week
total sales on the New York Stock
| exchange amounting to only about
half a million shares on Friday, this
condition was considered to be nat
| ural result of recent weakness and
some signs of a rallying tendency
We're noted
For example, the copper market.
which has been quiet for some time
and has been sagging in sympathy
with prices at London, stopped in its
decline and strengthened appreciably.
Some quarters maintained that this
| market now is in good position to
respond to a resumption of buying as
old contracts run out. According to
| this view, the general reaction in
| prices is an entirely normal reflec-
ton of a halt between buying move
ments. Such observers expect COM
! preparations are made for the fall
trade. In general, however, the feel
ing is that it is still too early to
Judge whether the recent reaction
has quite run its course.
Index Is Unchanged
That the effect on general level of
the falling prices which have been
holding the attention of the business
community will be less than might
be expected is argued in the basis of
the behavior of the index published
by the department of labor. The de-
partments index for all commodities
during April is unchanged as COM
pared with March. Aside from a re-
action in coal prices and in those of
farm products all of the individual
groups OF the index We're higher. 1t
was pointed out that increases have
taken place in those commodities in
which labor costs play large part
and it was assumed on this basis that
recent wage advances will be a
sustaining factor. In fact, it is
claimed that it is raw materials
prices which have reacted and that
these reactions have come in re-
Spouse to uncertainty over the eff
feet of higher wages.
Production meanwhile is being
maintained at a level which approx
absolute amount of cotton consumed
by the country's mills during April
was slightly smaller than the high
record of March. When allowance is
made for the smaller number of
working days in April, however. the
rate of consumption in the two
months is approximately equal. Some
curtailment of operations by New
England textile mills has been re-
ported. But it is thought that this
tendency will not become general as
most of the mills have contracts ex-
tending into the summer. BY that
time the uncertainty regarding the
character of the new cotton crop will.
| it is expected, to be considerably re-
duced.
Mill Activity Continues.
No let up in activity at the steel
mills is apparent. Production is, if
anything. higher and the products are
stated to be passing directly into
consumption. Consumers are re-
ported to be taking all the steel that
the mills can turn out and the pres
ent rate is confidently expected to
be maintained during the third quar-
| ter of the year.
New buying remains light, but
prices are firm.
Railway car leading statistics con-
| firm the other evidences of intense
industrial activity. Although the total
for the week ended May 5. which is
$4,000 cars. is some 5000 smaller
than the high record of the previous
| week, it easily breaks all records for
| corresponding week in any other
| year.
Considerable attention was given to
the figures for March imports pub
| lished by the department of COM
merce. The total value of 100000,
600 is the largest in any month since
August, 1920, and is $146.000. 00C
greater than in March a year ago
The large total is considered to re-
fleet in part the intensity of our do
nestle prosperity, which is calling for
large supplies of foreign raw ma
terials. 1t is also considered to be