Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-05-19

in the purchasing power of cotton.
mill operatives. There has been nc
corresponding back-fow to the othel
industries. ~->s
The high cost of building i. re-
fected in rents, which take a larger
proportion of average earnings than
has been usual in the past. Every
such disproportionate demand means
that there must be curtailment in
some other line of expenditures. The
National Industrial Conference Board,
which has recently made an extensive
investigation of housing conditions,
reports that the tendency of rents is
now downward.
The cotton goods situation has eff
fected some reduction of costs re-
Gently, and there are signs of changes
under way in the coal industry. Prop
critics are changing hands, consolida-
tons are being effected, improved ma
chinery y being developed, and it
seems probable that under great stress
and at great cost to individuals the
industry eventually will be brought
down to a more economical basis of
operations, the surplus labor supply
finding employment in other industries.
1t would be better for all concerned
if these changes could be facilitated
by general cooperation. Other neces-
sary readjustments might be named,
but everywhere high industrial costs
are stimulating the study of more eco
nomical methods, and the results are
tending to restore the accustomed price
relationships. 1t is enough to say of
present conditions that they are better
than in any other year since the great
upheaval took place.
OF course complete state of equil-
ibrium never has been known and is
out of the question. The industries
are undergoing constant change, and
where any one is out of line in costs
or prices with prevailing conditions
in the others it is bound to be sub
ject to pressure until . readjustment
Is effected.
Meanwhile complaints that profits
are not what they ought to be will be
heard. Profits are made by the man.
agements which are able to master
for themselves the difficulties with
which they are confronted. 1t is not
a normal state of industry in which
everybody is making satisfactory prof
its. Usually the most enterprising and
successful are making hard times for
the others, which simply means that
industry is always moving upward to
higher levels of efficiency and that in
dividuals must adapt themselves to
this tendency.
The General State Of Trade
In all lines buying is closely con-
fined to immediate needs, and this has
been the rule for so long that it has
become practically an assurance that
stocks in dealers and consumers
hands are light, and that buying must
be continuous unless consumption de-
clines. There is no reason to think
that consumption will decline below
the present level. It is not as high
as it conceivably might be, and changes
should be in the direction of an in |
crease, but there is nothing in sight |
to cause a decrease.
Foreign trade is very large, and
for the nine months of the fiscal year
ended March 3lst exports of the I'M
tied States exceeded imports by $685.
GOO, 900, which compares with an ex-
cess of about $3.50, 100000 in the cor
period of the last fiscal
year. In the three months of 1925
the excess has been over $500, 900.
Gold exports have dropped to low
figures and imports also are light, as
the foreign loans being made here af-
ford the means of settling the trade
balance. There is still an open ques-
hon as to how our exports will hold
up if we cease making loans to Eu-
.ope. The trade and debt situation is
an anomaly, but few people pay any
attention to it, trusting that It will
somehow settle itself. No doubt it
will do this, but possibly in ways
hat will command more attention
han is being given to the matter now.
However, we do not think the situa-
ion presents an immediate menace.
A partial analysis of latest foreign
rade figures is afforded by the fol-
owing table of the principal groups
e ~>~.-nI:x:... /