Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-03-05

New York. March I. (By A. Ply
continued strength in commodity
and security prices and additional
indications of great industrial ac-
tivlty have featured the past week
IN finance and commerce. Firmness
IN commodity prices was in the main
reflection of the strong industrial
situation. steel prices again moving
toward higher levels and the non.
ferrous metals, particularly copper,
making a material advance.
In steel, buyers are still anxious to
obtain places on the manufacturers
books and the makers have now
raised their rate of operations close
to 80 per cent of capacity, while
prices of finished steel products
nave risen SO that the Iron Ages
index stands at s27.49 as compared
Win $3.50 year ago, there now
seems to be healthy disposition
on the part of producers to scrutin-
ize new orders with care and to
eliminate those which appear to be
OF speculative character. Some
observers believe that the rise in
prices is likely to halt in the near
future. pointing out that an actual
shortage OF steel is unlikely with
production maintained at the pres
ent high rate.
cotton is another commodity
which displayed remarkable strength
during the past week. New high
records were achieved, the May flu
ture reaching 1854 cents. Here
again the movement is partly a re-
Election of large scale industrial ac-
uNity the census bureaus report on
mill takings during January having
established the fact that high prices
have not prevented an extraordin-
AIRY rate OF consumption. Meanwhile
reports on stock OF the commodity.
both at southern points and at the
ports. confirm other indications of
a strong statistical position and
reinforce the conclusion that sup
plies will be scanty before the new
CROP comes into bearing. 1t is es-
tlmated that a crop OF something
like 100000 bales. which is
100000 more than that of the past
year. will he needed to restore the
supply situation TO an approximate
Il normal basis.
Railroad car loadings continue TO
add their testimony as to the bet
ter state OF business. Current fig
urcs exceed all previous records for
the season Of the year. condition
which has persisted Tor the past
four months Publication Of a fair
proportion OF the carriers earning
statements for January reflect this
better traffic and suggest that De-
cember's showing, when net earn
ings on valuation amounted to SIS
per cent will he eQualled. Thus
the first 80 roads to report for Janu-
AIRY show a net of over Sti.00o.00o.
which is nearly double the amount
earned By these roads in January
Year ago. when net on valuation
came 10 o.69 per cent. There are
indications. meanwhile. that the bet
ter rate OF earnings is enabling the
railroads to continue the rehahilita-
ton OF their transportation 1aciii-
ties.
\ consideration which is causing
concern in some quarters is the pos
sihilIty OF a shortage Of labor when
out-of-doors work increases in the
Spring. Labor supplies already are
short in the steel industry and there
is talk Of further increases in wages
Nor IS this condition limited TO the
stee, industry. There is a DISPOSE
ton however. not TO magnify the
difficulty and 10 hopc for reason
able attitude or the part Of both Ia
tor and capital. the feeling beng
that the manner in which this PROP
len, is met Will go far towards de-
ternlining the character OF business
during the rest OF the year.
Following the moderate rise in IN
te-est rates which preceded and ioi-
lowed the lifting OF the Federal Re
serve Bank rate at New YORK. the
money market has settled down on
the new basis. The bank returns
indicate that the action Of the New
Work and Boston banks in bringing
their rates in line with those at ths
o-,,sr reserve institutions resulted
in a shrinkase CT re-discounts al
Tie former institutions II also IS
considered significant that these
hanks gained largely in their pro,
no-tjoua.e holdings q the tecerai
Deserve systems gold settlement
f,,-d Taken as whole. however.
tha banking situation appears 70
have undergone no marked change'