Evening star., 1926-11-06
BUSINESS ACTIVITY
/. SLUMP IS NORMAL.
Collections Slowing Up, But
Money Is Not Tight-BuiId-
ing Holding Up.
BY j. G. ROYLE.

special Dispatch to the star.
NEW YORK, November 6.--Collec-
tions are slowing up. There IS plenty
of money available. Merchants and
manufacturers are in excellent po-
sition to pay their bills. There Is no
tightness in money. But the volume
of bills being discounted has dropped
off, according to information tele-
graphed from various sections Of the
country.
This is not due to slackening Of en-
ployment, sharp declines in industry
or diminution of buying power. 1t Is
the result Of a determination to pro.
ceed with caution. This trend has
been brought about partly by the de-
sire to determine finally the situation
in the agricultural districts as 1t will
affect the remainder of 1925 and the
Spring of 1927. 1t also is largely sea
sonal. 1t is customary for business to
halt a bit at this time rather than en-,
danger the records of the current year
or imperil the prospects for the com
ing year by too precipitate action.
Retail Trade Good.
In general, retail trade, that most
reliable of business barOmeters. Is
holding up well. Building activity
has been maintained at a far higher
pace lIldT WAS anticipated Dy IILOSt
authorities. The steel industry Is
splendidly supplied with November
December orders. This fact was en-
phasized by the optimistic statements
of one of the Nations big steel men
during the week. although men In
other lines are prone to discount TOO
much optimism from big basic com
modify producers.
Trade authorities say. also. that No
vember nearly always shows business
activity about 5 per cent smaller than
in October. so that some recession IN
trade activity is normal and expected
Automobile production continues TO;
show a slight downward trend. al
though some factories are on capaci-
ty basis. More soft coal is being mineo
than for many months. prices nave
jumped as high as $10.50 ton In
New England, wages have been ad
vanced sharply in PennsylVania'
Maryland and Virginia and West VIZ
ginia. fields, and demand still con
tinues from abroad.
Petroleum Position Weaker.
The position of petroleum has weak
ened. Production has been extraor-
dinarily heavy, and new fields, sucn Us
the Spindletop, Seminole and Fan
handle, are producing at ABOUT tne
peak of the year. Consumption
heavy. and stocks are smaller than a
wear ago. but gasoline and crude
prices have been cut this week IN
some localities.
Demand for clothing has shown I'M
proyement, and the volume of sales
is large. This extends even to goods
for next Spring. Naturally this, along
with cheap cotton and wool at present
prices. has stimulated the textile
trades in many sections. Repeat or
ders, especially for mems wear, are
now coming in from retailers In fine
volume.
Lead and Zinc Firmer.
Lead and zinc have commenced to
show strong resistance toward further
price reductions and the position OF
each has been aided by good sales
and active demand.
Copper is still in the doldrums since
producers are not anxious for bust
ness at present prices. Building per
mits have slumped in volume, but
there has been no diminution In con-
tracts let or In work on present prof.
ects. Lumber production and EN-
ployment Is dropping somewhat in the
Northwest.
Cotton stored at New Orleans and
other Southern ports Is piling UP
aiarmingly, owing to lack of vessels
to carry it abroad. All warehouses
are expected to be filled soon. The
beet harvest is about over and sugar
factories are shipping, but the returns
to farmers have not been all that was
desired. The Louisiana cane crop
will be in full harvest next week and
growers have contracted to sell large
quantities of sirup at prices shade
higher than obtained last year. The
crop, however. is the smallest ever
produced.