Evening star., 1923-05-12
CHECK UPON SALES
! 9PARTLY SEASONAL
Business Caution Spreads,
But Production Is Still Run
ming at Top Speed.
ny j. G.. ROYLE.

Special Dispatch to The Star.
NEW YORK, May 12.-The motive
/ power which drives business has been
cut down to some extent since May 1.
The business machine, however, is
still running at top speed on the mo-
mentum already attained. and 1t may
be expected to continue to do SO until
early autumn, If not later.
The check to sales has been partly
a seasonal one. such as is to be ex-
pected at this time of year Consump-
tion is still Of record proportions. and
production in reality Is still several
months behind deliveries owing to
the heavy volume of orders placed
earlier for future delivery. Costs are
high and prices also have advanced.
There are few indications of the ra-
duction of either this summer.
Nevertheless, producers. distributors
and consumers are moving cautiously.
The movement to induce consumers
to cut down the use of sugar had only
a temporary effect on the sugar mar
ket. for world supply and demand
was more potent factor.
Yet. the case with which the move
ruent gained momentum gave pause
TO producers and merchandisers in \
SCORE of other lines. who read into it
an indication that undue advancement
of prices at retail might readily be
followed by resentment on the part
of consumers which might assume
proportions of d buyers strike. Some
merchants declared today that price
reductions this autumn might be nee
essary TO stimulate sales
! Abandonment of many large build
ing programs because of the increRs-
ing costs Of labor and materials, also
has had d similar effect on other
lines.
Sugar Prices Maintained.
The technical position of raw sugar
has been improved rather than i'm
paired by later estimates and by the
lncreasing European demand. Only
fortytwo Cuban mills are still grind
Grated this year. Their reports indi-
cate that preliminary estimates of
production were high rather than
low. Sugar beets already are break
ing through the ground in the west
ern states. where weather was favor
able to early cultivation, and reports
of over planting Indicate the farmers
are determined to make a record crop.
Field agents of the three big sugar
companies of Colorado and states in
acres have been contracted for. con-
Siderable increase over the area plant
ed last year.
Commodity Prices Below Peak.
Many of the basic commodities have
recorded decided drops in price Cot
ton is fuctuating in q way not ex-
perienced since the civil war. Some
of the cotton goods manufacturers,
having nearly Caught up with back
orders, are reducing working sched-
uleS. SILK has Slumped steadily from
the records attained in recent weeks,
affected sympathetically by the cot
ton market and the dullness in
Japan.
Wool continues at the top on the
western ranges. and the mills are
busy. Sales continue to be made at
from so to 55 cents pound in the
grease. This is accounted for by the
fact that manufacturers have dealt
direct with the producer and cut out
tho dealers profits.
Metals Productions Steady.
Steel mills are working at capacity
but the payment of premiums Is be-
coming the exception instead of the
rule and some price reductions are
expected. Coal is soft despite the
opening Of the lakes season. Petrol
cum and its products have not yet
begun to feel the stimulating effect
of output curtailment.
Throughout the entire Industrial
situation runs continued demands for
higher wage scales. In the majority
of instances these are being granted.
On next Tuesday. for example, 10000
maintenance of way men of the Great
Northern railroad will begin draw
ing increases ranging from 1884 to
$40 a month.
Copyright, 1921