Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-06-13
General Business Conditions.

The bullish sentiment that was more
or less rampant in the business iiell
carly in April has been dampened con
siderably of late, and there is not as
much talk about the danger of run.
away markets. The conservative Gle.
ment of the country viewed the rapid
rise of industrial costs with distrust
and was indisposed to stock up heav-
lily at the higher level Of prices. The
cold weather also has been a factor,
affecting retail trade in the textile and
clothing lines. Department store sales
were disappointing in April, but there
is no reason to believe that it was for
any other reason than the unfavorable
weather. The season has been a good
deal like that of 1920, when the cam
collation. that inaugurated the slump
of that year began. A few cancella-
lions have occurred, and symptoms of
uneasiness have been manifested in
some quarters over the slackening of
orders and price reactions, but the
general situation is very unlike what
It was in 1920. The state of activity
has not lasted long enough to load
the country up with goods; buying
has been from hand to mouth so long
that dealers have little to go on. This
is true not only of finished goods but
of raw materials. The price advances
that have taken place since the bot
tom of the depression was touched
have in large part represented nat
ural recovery, and although some
signs of excessive stimulation were
visible in the early spring buying,
there has been no such protracte,!
movement as that which preceded the
slump of 1920. Moreover, in general,
the situation is not such as to pro-
fduce or render possible serious re-
action. Credits are so little expanded
that no pressure has been exerted for
the curtailment of business on that
account. The price advances which
have occasioned some. concern have
scarcely reached consumers, and no ac-
tual loss of buying power has taken
place.
+ The wage-advances in the steel and
textile industries, the signs of a |
competitive situation over labor in
the building trades, and numerous in
dications of higher prices, evidently
have impressed the country unfavor-
ably. Conservative opinion does not
have confidence in a prolonged pc
Iriod of prosperity on a higher price
basis. A slow spring trade has helped
Ito make merchants cautious, and with
prices receding, buyers have with
held orders, as they always do.
sa The Situation Stronger.
II The feeling in conservative circles
lis that the situation is more satisfac-
tory because of this check. The pace
lin March was too fast to be maintain
ed. Confidence had recovered to such
an extent that merchants were in a
mood to order freely to replenish
stocks, and degree Of congestion and
labor shortage developed which was
q menace to stable business. It is
very desirable to have full state Of
and production to the
of the industries, but wage ,
advances that cannot be maintained
and that only unsettle industry are ,
harmful instead of beneficial.
) The energetic revival of business
in the spring showed that the country {
had been restraining itself. It had {
been in a state Of timidity, uncertain
about the price situation and as to
the extent of the influence OF Euro