Evening star., 1923-01-10
RAW SILK SUPPLY
NEAR DANGERPO|N7
Only Enough Material on
Hand to Last Mills Here
for Two Months.
B1 j. c. ROYLE.

Special Dispatrh to The Star
NEW YORK, January 1o.-There is
only enough raw silk in the United
States to last manufacturers tlyu .
months at the present rate OF pro
duction, in spite OF the tremendous
imports which have arrived in thi.
country in the last few months. That
fact was emphasized today by promi
nent silk men in explaining the firm
ness Of raw Silk prices in the face o.
large arrivals in this market
Continued heavy importations. they
added, cannot help but affect the
prices down slightly temporarily.
These reductions. they indicated.
might be passed right down the lima
through dealer, manufacturer. whole
saler and retailer 10 the ultimate con-
sumer, but they agreed that any
slump would be slight and predicted
that in general strong prices would
prevail for many months to come.
buyers Strike Hit silk.
Improvement in the silk industry
has been largely psychological and
ment, manufacturers declared.
Perhaps 10 industry felt more
keenly the results Of the so-called
buyers strike" than silk. Through
out the early part of 1922 manufac-
turer's if they did not close down
their plants al least in part, ran on
part time with reduced forces. They
asserted they could not operate at Il
profit, although raw silk at that time
ranged around s. pound, whereas
today some grades are We'll above tat
$40 mark.
The cnauge vas due, silk men star.
10 the fact that consumers tifIdNH
became convinced that they must pay
higher prices for silk goods. aud tra
higher-price levels were justified
When that attitude became felt b.
manufacturers. even those who had
held back their production schedules
with silk a 81 were encouraged 10
increase output. The increase IL
many other lines of industry, stimu
lated sales rather than diminished
them.
Again Waking Profits.
As 10 whether silk manufacturers
are operating at d profit. there St.l.
is some question III isolated cases
Some producers continue 20 compla;
in this respect. but the majority vi
doubtedIy are operating on the rigl.-
side Of the ledger. Some Of Jhe high
cost manufacturers are working .,
narrow margin Of profit. but ar
holding up net earnings through Vol
ume production. The great major:I!
however, are making e fair return
As consequence, mills arc speeding
up ard they are absorbing readily
the. shipments arriving through Seat
tie. Portland and San Francisco,
which in the case of Seattle alone
reached nearly $3.50, 100000 in value
in 1922. Consumer demand for silk
goods has shown no sign Of diminish
irg since Christmas. and the trade ir
general looks forward TO q prosper
Gus year.
Upward Price Trend.
The general trend upward OF prices a.
widely varied commodities is well eX-
emplifieG by the new catalogue just is
sued by Montgomery Ward, one of the
leading mail order houses. steel mills
throughout both the east and middle
west are booked solidi, throughout the
first quarter and many have orders
running well into tie second.
The danger which tile south feels -
threa ten IL through lack OF labor III
the cotton fields is held in many sec
tions to be reflected in the bill intro
duced by Senator John Sharp Williams
Of Mississippi. providing for the adj
mission of 100, 900 Armenians above the
regular immigration quota.
cided effect on demand for Office furnt
ture and equipment. and sales OF these
commodities have increased perceptibly
since the first of the year.
! copyright. 1929