Evening star., 1925-12-31
BUILDING HAS BEST II MONTHS
SINCE CIVILIZATION STARTED
Farmers Realize Good Profits, Few Out of Work
Costs Reduced and Sales Increased, and Every
body Seems to Have Well Filled Pockets

as strong when the year closed a.
earlier in the season.
Rubber manufacturers showed large
profits despite the terrific increase IL
crude rubber prices. Coffee and tea
were higher than in 1924 but sugar
reached low levels. None. the less. one
OF the largest refiners was able TO re
sumo the dividends, and beet growers
and Louisiana cane growers We're nor
entirely disappointed at their show
ingS.
Coal was one commodity which did
not show great improvement. The
strike checked anthracite profits and
it is still evident that productive ca
pacity in the bituminous fields is fal-
higher than consumptive demand. The
non-union soft coal mines benefited
however.
The change in the petroleum situa
ton was for the better. This also was
true of cotton and wooden goods manu-
tactureS, while makers of silk and
rayon fabrics had a wonderful year
Clothing profits were only moderate
Excess production menaces the prin-
paper field. but has not yet had a ma
terially damaging effect.
Fine Prospects for Spring.
Few obstacles are visible along the
road of business progress in the early
part of 1926. Purchasing power in all
parts OF the country probably i
higher than during any previous
peace-time period. The Industrial stu
alton is OF ii stable basis Activit-
prevails In most productive lines with
sufficient demand in sight from for
ward orders to sustain it for months
TO come.
Comparatively few industries are
Iz
there are some sections where farm
( incomes have not been so great a.
last wear. general rural buying power
I is unimpaired.
These facts tend toward The conclu-
sion that the first quarter Of 1926 viii
show production. distribution and
sales fully equal 10 the correspondents
period Of 1925.
Credit Positions Strong
Indeed, there are strong Indications
that the period Of healthy prosperity
will be maintained throughout the
second quarter and even longer. with
/ uninterrupted employment and high
wages. The Winter building program
, Il the highest on record The steel
industry IS assured Of being able 10
maintain rate OF production around
s. per cent of capacity for months.
Automobile makers are orierin-
freely for 1925 requirements. The ten
tile and shoe industries are getting
on more stable basis. with opera
tions and profits expanding Ample
funds are availa BILE 10 finance legiti
. mate enterprises. The cost of Dor
rowed money is al a comparatively
low level. Merchants are entering
the new year in a fine credit position
These factors afford the utmost en-.
couragement over the outlook Busi
ness men are entering the new period
with the utmost confidence But the
counting of unmatched chickens has
ceased TO he faVorite amusement
They know that business is surround
ed by uncertainties. and that two
years like 1925 in succession are
scarcely to be expected.
Building May Decline.
Building may he expected 10 fall
off somewhat, owing to tn. filing Of
needs for certain types of construc
tion. This Is indicated by the with
drawal of one Of the largest life IN
suranCe companies from he building
loan field. With an automobile 10
every family in some States. the au
tomobile manufacturers are prepared
to snap into other fields of mechan-
] 3
demand makes il advisable. The crops
may prove less satisfactory than now
! appears probable. Weather conditions
may exert a powerful influence. All
danger of labor troubles has not been
entirely obviated
With these things in view, the far
sighted business men are declining
to accept unequivocallv the Pollyanns
attitude thar ''all's right with the
world and will remain So Any slump
in activity after midyear would not
I be unexpected and would not catch
I them unprepared. They are issuing
warnings against raising Of prices to
a point which would check consump-
I ton. against imitation of credits and
against accumulation of finished goods
/ In other words. they are anticipat
! ing the best and preparing for the
worst. That in itself is calculated 10
assure a safe and sane business year
/ In 1925.
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