Evening star., 1924-12-31

dominating effect on physical produc-
ton this year, but business men have
come to realize that prosperous for
eign customers are a necessity if
Americans are to continue prosperous
producers and merchants. 1t is ex-
pected that the working out of the
plan will have an even greater bear
ing on business prosperity in 1925.
There is no question but that some
business men misjudged their mar
ketS. This was strongly apparent in
the automobile and textile industries.
Bur even so. few of them rushed into
their mistakes with sufficient reck-
lessness to make it impossible for
them to retrieve their position before
the year ended.
The buying public. was cautious.
Even the farmers, with unwonted
prosperity in their grasp, gave keen
consideration to their purchases.
There was no orgy of buying such as
took place in the imitation years. On
the contrary, strong buyer resistance
developed in every price advance. AS
consequence, competition was Sc
we're, and retailers and wholesalers
alike began to demand that their
sales forces should be statesmen, not
order-takers.
Credit Structure Solid.
1nese conditions naQ STRONG and
salutary effect on the credit structure
of the country and on the condition
of the banks. The latter seldom have
been so strong. Midwest institu-
tfons, which were on the ragged edge
FOR some years, have more money at
their disposal than they can place
Crop movements have been financed
amply and without difficulty There
has been no lack of funds for war
ranted industrial expansion. Inves-
tors placed their funds in hundreds
of millions of dollars in foreign and
domestic bond issues. In no field was
this more marked than in public util-
ties, where necessary financing was
accomplished to a heavy extent with
out difficulty.
The year was remarkably free from
startling commodity price ffuctua-
tions, but toward the end of the an
nual period prices in many lines
turned definitely upward
Commercial failures increased some
what during the first three-quarters
OF the year. But money was easy, and
interest rates on commercial paper
and time loans was held to a low
level all during the period
Railroad Efficiency High.
Railroad efficiency contributed large
ly to the successful results of the
year. Car loadings were heavy, al
though somewhat under those of 1923,
but the roads were well equipped
and they increased the loading of cars
and the tonnage per train and de-
creased delay in transit and at termi-
nails. As result, merchants were
able to continue the policy which
they have found so successful of
buying frequently in small quanti-
ties rather than stocking supplies for
months in advance. Actual and pros
pective railroad consultations PLAYED
an important part in the situation of
the carriers, and will continue to do
SO in 1925.
The express companies did a record
business, and parcels post shipments
were tremendous. The moment cleo
ton was over the railroads branched
out in programs of replenishment and
expansion for equipment, which piled
up huge volume of orders with
steel and lumber concerns.
Passenger travel was extraordinar-
lily heavy. Tourists In droves visited
the national parks and Fairgrounds
of the country, and yielded a tre-
menoous revenue to the sections in
VOWED. This movement was aug
mented and sustained by a regular,
systematic and weighty volume of
railroad, municipal and State adyer-
Using. AS result, the construction
or hotels and accommodations for
travellers was at high rate. To this
fact the foor-covering manufacturers
owe much of the volume Of their 1924
business.
Building Fails to SIacken.
Building construction again pressed
close upon the $4,000. .00O,0 mark. 1t
mas become evident, however, that
the housing shortage in some of the
more populous centers has been filled
TO considerable extent. The trend
of construction now is turning toward
the rural districts and the smaller
cities. A distinct shortage still ex-
lists in general, however, and this is
not likely to be overcome in 1925.
An enormous volume of repairs and
new buildings are needed on the
farms, and building material men an
tlclpate no falling Off in demand, In
view or the expansion necessary to
accommodate normal growth.
Taken all over the country. wages
in the building trades were slightly
higher than in 1923, but wage scales
nave been well stabilized by con-
tracts between employers and en-
ployes which have more than a year
to run. Costs Of building declined
sl1e htly, due to cuts in building ma
terials. Rents showed Comparatively
httIe nuctuatfon. The open Fall and
adoption of improved methods of Win
ter construction served to keep the
volume of building high until the
turn of the year.
Fortunes in Real Estate.
There was a remarkable increase in
real estate values in cities all over
the country Fifth avenue propertv
In New York sold at the highest rate
ever recorded in the city-s3O4 a
square foot. On the other side of the
continent transfers of 10 pieces OF
downtown property in San Francisco.
selected at random, showed profits of
$l,9Ss,0O0 on investments of s637. Ono
returns on individual parcels of land
In the city range as high as 136 per
cent. BUT even larger fortunes have
been piled up by transactions in su-
burban property and the opening or
new residential districts in scores ~
cities. VI
Ihls advance in values has followed
an exodus from the cities of those do
sirous Of owning their own homes
Many OF the most successful operators
In suburban real estate have been
women Activity in farm land sales
higher.
The insurance business has had
another remarkable year. In life in
surance the number of policies fell
somewhat below that of 1929. but the
total amount for which the policies
were written showed a gain. The in
crease In new buildings favorably
affected the volume Of fire insurance.
and the volume Of Industrial and
group insurance also increased.
Hotels Are Proxperous.
Few complaints issued from the
hotel owners and operators during
the year. Prices were on a stable