Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-06-02

Boston, June 1.-The monthly re-
view of the Federal Reserve Bank Of
Boston, issued tonight, while noting
the falling off in new business in sey-
efal industries in recent weeks, says
tfat there is much underlying OPP
tlmism and that many competent OBJ
servers cannot foresee more than a
temporary setback to business.
New England production statistics
Tor April" the review says, while
showing large volume of output.
give concrete evidence of the recent
change IN conditions, and although
May production results are not def
nitely known, there is little doubt
that they will be lower than those Of
April in many lines.
ANOTHER significant factor in the
present situation is the condition Of
retail trade. Complaints have been
heard for several weeks from lner-
chants in practically all sections Of
New England that trade has not been
what it should be. This condition
has frequently been attributed to the
weather, which was undoubtedly in
a large measure responsible for it.
Some consumers, however, has post
pCned certain seasonal purchases so
indefinitely that they will not be made
during the current selling season, and
to that extent there has been an al
most permanent loss to trade.
The current setback has shown
that manufacturers are determined to
curtall their production schedules
practically as fast as the falling off in
new business warrants. They are
determined not to build up stocks, if
that is possible and at the same time
retain their organizations.
fortunately, there is a great deal
of underlying optimism all through
the business world, which a period of
fine seasonal weather should tend to
stimulate to activity. Even accord
ing to the latest reports received dur
ing the last few days in May, the
wave of excessive caution and fear
was showing some signs of Subsiding.
In fact, many competent observers
cannot foresee more than a tempor7
airy set back to business, while stocks
OF merchandise are comparatively
low. credit abundant and cheap and
labor well employed at high wages
with consequently a large Purchasing
power.
1T should be remembered. on the
other hand, that consumption is al
ways subject to the influence of COM
modify prices, and under ordinary
conditions it is believed that the pro-
ductive capacity of this country in
many industries is somewhat in eX-
cess of the normal consumptive ca
pacity plus the export trade. From
present appearances, manufacturers
infpn1 II fhai> c1ntl, 10
their orders, rather than to maintain
production and build up stocks with
the possibility of later having to re-
duce production, with resulting in
creased unemployment"
The chief losses to New England
manufacturing activity in April, the
review says, came through curtailed
production among boot and shoe,
paper box and silk manufacturers.
Only G5 per cent. of the boot and shoe
manufacturers eff Massachusetts were
operating on full time in April, as
compared with IS per cent. during
March. The volume of production,
however, when compared with year
ago, shows gain of about 35 per
cent. Net new orders received by
these manufacturers in April were the
largest this year.
Lie lOldl value Oh all contracts
awarded for building in New England
during April was the largest of any
month this year. Out of a total of
S34,000,o00. approximately s16.O00,0O0
worth was involved in residential
building.
Cotton spindle activity in New
England during April gained about
one per cent. over March, although
the actual consumption of raw cotton
was seven per cent. less than in the
previous month. Employment in both
clothing and general cotton manu-.
featuring declined from two to seven
per cent. in April in both New Eng
land and the total United States.
The activity of New England
fCundries and machine shops in
creased during April. with over 80
per cent. on a full time basis. Prac-
tically 95 per cent. Of the paper
manufacturers in New England were
operating on full time schedules dur
ing April. Nearly 8 per cent. Of
wooden and worsted manufacturing
concerns are operating on full time.