The Washington times., 1923-06-04
NATION SCRED|T
GOOD, SAYS
EXPERT
Business Outlook Justifies
Nothing But Optimism. Writes
Association Secretary.
BY j. III. TREGOE,
Secretary Treasurer, National AssO'
citation Of Credit Men.

BY j. HI. TREGOE,
ry-Treasurer, National ASsO.
citation of Credit Men.
written for Cosmopolitan News
service.)
NEW YORK, June 1.-THE credit
situation today Is absolutely sound
and there is justification for moth
| ing but optimism as to the future
of business.
A nationwide observation shows
clearly that in production there 10
still considerable activity In many
basic commodities, but with a, tend
ency to slowing down. A decreas-
| ing consumption is reflected in the
smaller retail business in many
parts Of the country, and there 30
a consequent decrease in wholesale
business.
Labor was taking every advan.
tage to exact its full price on the
construction field, and because Of
high wages there, dissatisfaction
spread into other fields. Legiti.
mate building enterprises must halt
under these conditions, with the
cost of building abnormaily large
and prospect Of the heaviest kind OF
depreciation in years to come.
Burden on wage EafnOrSs
In the other fields, the bidding
for labor, with the increase of the
wage, was raising the prices to
higher and higher levels and In
creasing the spread between the
prices Of the commodities the
farmer has to buy and the prices
he obtains for his products. This
| tendency also imposed similar bur.
dens on salaried workers. In the
past year clothing has advanced
about 90 points, building materials
about % and metal products about
35. while the increase in the prices
of the farmers produces has not ex-
ceeded points.
Aside from these major causes,
we must take into account that the
Easter season fell early this year
and the purchasers, in anticipation
of that season, increased the vol.
unes of trade in March which
otherwise would have spread into
later months. The Easter trade
also led in March to some heavy
| imports of women's apparel and
other commodities that could be
produced abroad at a cost that
was attractive despite the tariff.
The season as a whole has been
1
ing apparel.
The happenings Of 1920 are still
fresh with us. There il q fear of
high prices. Though on the one
hand demands are insistent for a
higher wage, yet, on the other
hand, the Increased prices, caused
largely by the increased produc-
ton cost, would not be paid. Thus
both ends were worked against the
middle.
If we produce cautiously and con-
troll costs, there is no need Of
fear. Good judgment exercised will
carry the enterprise through safely
Hesitation IN Textiles.
In textiles there is hesitation
now, where 1t might better have
existed some little while ago. The
present years cotton crop. Is hav-
ing its effect in this particular
field. The world will need approx.
mately 2O,0oO,0 900 bales of cotton
this year. The production IN 1922
was approximately 100000 bales.
A larger acreage by perhaps 10 per
cent has been planted in the South.
Our estimated crop centers
around 100000 bales, and 1t is
fair to expect there will be a pro-
duction the world over equal to
the worlds needs this year. There
is no carry-over. however, but on
the opposite side of the sheet,
climate conditions, the boil weevil
and the heavy migration Of labor
from the cotton fields to the in
dustrial centers, must be reckoned
with.
Throughout our entire borders.
while we discern a lowering produc.
ton and consumption, yet in most
lines there is a marked increase OF
both as compared with 1922.
We find also collections are
measuring up generally to expec-
tations.
There will be a wedding out of
weak enterprises. but aside from
this failures will not exceed the
normal expectation. There are no
surplus stock so far as we can dis
cover. Credit has been granted
with exceeding care by most of our
banking institutions and mercan-
tile credit departments.
Placing the favorable against the
unfavorable, we see no reason for
the indulgence Of pessimism nor do
we see Justification for any atti-
tude but one of constructive opti-
n1ism.