Evening star., 1923-03-01
PRICE Of RAW SILK
HIGHEST SINCE 1920
Threatened Shortage Likely
to Push Up Cost of Fin
ished Goods.
BY J. G. ROYLE.

Special Dispat tch to The Star.
NEW YORK, March Raw silk Is
at higher price levels today than at
any time since tho first half Of 1920.
Moreover, the technical position of the
staple threatens a real shortage of
supplies in this country. There seems
every prospect for higher prices for
finished silk products, according to
the best informed dealers and manu-
facturers here.
These facts, however, do not indi-
cate that there will be any check to
manufacture Of silk goods or any fall
ing off in their sale to tho consuming
public. silk men confidently assert.
The advance Of raw silk to we'll above
50 a pound may not be entirely main
tained, because it advanced a little
too rapidly. The position of the COM
modify would seem to indicate full
maintenance of prices.
Japanese Supplies Short.
According to the latest figures avail
able there are now $4,000 bales OF raw
silk in apan. fof which 5000 bales are
under Inspection Z. E. Basch OF A.
brokers, 'iiai said. That lea: leaves T possible
10000 bales for export, stock ma
terially lower than it has been for sew
eral months. In fact. the price Of silk
has advanced since last October in al
most direct ratio to the decrease OF
these Japanese stocks At last. too.
the J apanese domestic demand has
awakened and manufacturers in that
country are bidding for silks against
the foreign consumers. 1t was this lat
ter factor which caused in part the
latest jump in prices"
Domestic Consumption Mounts.
Domestic consumption in this coun-
try in January amounted to 1850
bales and was equally as great in
February. On February there were
in warehouses in this country about
1000 bales. or little more than one
and one-third months supply. Care
full canvass Of the manufacturers in
Paterson. Philadelphia and in other
centers indicated today that few. il
any, of the mills had laid in heavy
supplies when silk was at lower lev
els. The majority have supplies for
little more than month on hand
in that time to replenish their stocks.
The above are the factors which
support the contention that prices Of
finished silk products to the consumer
must advance. However, manufac.ur-
ers are unworried at the prospect
Last year factories all over the coun-
try were closed or operating only on
part time. Manufacturers declared
Now those same factories arc work
ing full time, there is even a short
age of skilled workers and some OF
the makers who before were buying
raw silk only as they received a def
mite order now are running off 500
yards additional on every 1,000-yard
job. feeling sure they can sell the
additional yardage.
Buying Power at High Point.
Dealers point out that cotton goods.
wooden goods. steel copper and other
commodities have advanced material
ly in price since January 1 without
checking consumption and are conf
dent silk goods will follow the same
course so long as consumer purchas-
ing power remains as high as at pres
ent.
AS to that power. the Federal Re-
duction in basic industries has reached
a point equaled only once In the past.
Industrial employment has continued 10
increase, and the rate of turnover OF
merchants has increased decidedly.
Steel prices continued to move into
higher territory. and production rec
ords are being made in spite Of labor
shortage. About 5000 more workers
| could be used in the Pittsburgh district
alone. Advances in oil prices. which
have been general east Of the Rockies.
| is expected in the California fields
| shortly.
! The new telephone rates, which went
| into effect throughout New York state
yield s2.50o,000 additional revenue an
nually to the New York Telephone
Company. are expected to have a psy-
Geological If not an actual effect OF
rate adjustments in other sections.
Copyright. 1921