The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-05-31
CONSTRUCTION IS
BEING HALTED BY
P RICE ADVANCES
Slowing Up In Business Is
Caused BY Uncertainty,
Reserve Bank Says

RICHMOND, Va, May 30.-(By As
ISOLATED Press.) "A slowing up OF
business during April as compared
with the-previous month, due in part
to "a hesitancy and uncertainty
about business prospects" and rec
objection of the experiences of 1919
and 1920" was pointed out by the
Federal Reserve bank of Richmond
in its monthly review of business
and agricultural conditions in the
Fifth district made public today,
Part OF the decrease was seasonal. it
added, a dull period naturally fol-
lowing the pre-Easter weeks.
Many thoughtful observers" the
review said, believe that the expan-
sion in industry and trade and in
construction lines. has been too
rapid. and lately advancing prices OF
labor and many commodities have
not only caused concern but have
resulted in holding up some con-
struction plans. The experiences of
1919 and 1920 have not been forgot
ten by either sellers or buyers.
Noted In Building Industry.
The first determined resistance
against mounting costs appears to
have been made in the building in
dustry, in which advances have been
perhaps greater than in other lines.
This resistance has taken the form
of indefinite postponement of the
erection of number OF buildings
that doubtless would have been
built if prices of labor and material
had not advanced SO rapidly and tc
such high levels. How far this re-
tot uyil
ticipated, nor to what extent, if any,
it will flow over to other fields In
addition to the building industry"
Seasonal increases in outstanding
loans to customers, decreased
deposits, and increased redis-
counts in order to provide the
needed accommodations for their Gus
toners are shown in reports from
member banks, the review continued
Savings in commercial banks show a
slight decline for the first time in
many months, but savings reported
by savings banks show a continue
ton Of the steady increase that has
been in evidence since 1920. The
number of business failures in the
Fifth district in April was the lowest
in the district since September. 1921
being 41.9 per cent fewer than dur
ing April, 1922, and 2o.9 per cent less
in the aggregate of liabilities in
volved.
Labor In Scarce
Labor is scarce in all lines except
clerical help, farmers and contractors
finding it especially hard to secure
the help they need.
Coal is being produced in sufficient
volume to meet all needs, but there
have been no recent changes in prices
to consumers.
Textile mills are receiving very
few forward orders but they are busy
filling orders previously received and
the managers believe the present lull
is here.
Cotton prices have declined sharp
ly during the past month, but 1t Is to
be noted that very little cotton re-
manned in the hands OF the growers
Cotton consumption In April was less
than in March, but was 80 per cent
above consumption in April. 1922.
Tobacco markets closed during
April, only a little low grade tobacco
having remained to be sold. The new
crop is being planted, but cold
weather has damaged plant beds to
a considerable extent.
Marty all crops are getting a late
start this year because of unseason-
ably cool weather, and 1t is yet toe
early to form an opinion Of crop con-
ditions.
New construction work for which
permits were secured in April broke
all previous records for both number
OF permits and estimated valuation
but many projects have recently been
postponed because of high cost. and
the outlook for the building industry
has become uncertain.
Retail trade was good In April
considering the date on which Easter
fell and wholesale trade was consid-
erably ahead Of the April. 1922 bus
mess.