Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-05-19
BUSINESS DECLINE
LESS PRONOUNCED
DURING PAST WEEK

New York May 1S.-(By A. PIN a
week during which uncertainties re-
gardifg the legislative situation at
Washington reduced speculative activi-
ty to a minimum reports concerning
current industrial operations added lit
tie In the way Of definiteness to judg-
ments Of the business outlook. In the
main the story was one of a continued
decline in production although it was
pointed out that the slackening is now
becoming less marked than in recent
weeks. Perhaps the most commonly
accepted theory is that which holds
that over-production during the early
months of the year rather than any
marked falling off in consumption is
responsible for the present recession.
Those who subscribe to this theory be-
lieve that the situation as between de-
mand and supply gradually is Fighting
itself.
One index which went against the
general trend was that embodied in the
statistics of railroad car loadings. Aft
er having fallen away for about two
months and after having shown a
slight gain in the previous week load
ings increased rather smartly in the
week ended May 3 and reached a total
OF 1900 cars. With five exceptions
this total is the highest for the year.
While the total Is $4,000 below that
for the same week last year, the de-
crease is entirely explained by the
slump in coal traffic. Loadings Of mer-
chandise and less than carload freight
continue to run ahead of n year ago.
In the steel industry production still
Is falling off, though current curtail-
ments are comparatively small. The
mills are not stocked with products
and the steel which has been delivered
during the last few months Is believed
to be going into consumption rapidly.
There are as yet no signs that the iron
and steel markets are about to turn.
On the other hand. it is realized that
manufacturers are less inclined to go
in for general price cutting than be-
fore the war, for the reason that large
existing capacity would make 1t more
difficult to advance prices once they
have been lowered.
Automobile production during April
resulted in n total of $4,000 passen-
ger cars, this comparing with 34S,O00
in March and $4,000 in April OF last
year. Truck production held up some
what better. The figures confirm pre-
vious reports of curtalments in the
high schedules which were adopted
early in the year. Taking the first four
months as n whole, 1872, 900 more pas
sengers cars were produced this year
than last. Competition for sales is
keen but some manufacturers are talk
ing of increasing prices to compensate
for their lower production schedule.
The cotton textile industry the Gen.
sus bureaus report on mill consump-
ton during April shows that the cur
tailment Of earlier months has con-
tinued. The reduction is not, however,
as large as some reports suggested.
Aakings I'm April amounted to $780,
bales, which is only 1000 bales less
than those of March. They compare
with $4,000 bales in April of last
year. The price of the staple itself
has remained fairly steady, moving
principally in response to the lead fur
nished by the Liverpool market and to
weather reports from the south.
Commodity prices as a whole con-
tinue to display an easy tone. The bu-
reau of labor's index for April declined
IL per cent. as compared with March
1918 average. A year ago its was So
per cent. above the pre-war.
Money continued plentiful and cheap.
dropping to 3 per cent. on the stock
exchange and being obtainable at 4
and Ia on time. The federal reserve
statements revealed a further contrac-
tion in discounts and fresh additions
to gold reserves.