Evening star., 1926-06-12
GENERAL BUSINESS
SITUATION IS GOOD
Steel Industry Holding Its
0Wn-Some Money Is
Reaching Retailers.
BY j. G. ROYLE.
Special Dispat N 10 The Star

Special Dispatch to The Star.
NEW YORK, June 12.--The reser-
voirs Of purchasing capital in the
United States are gradually filing up,
but so far only small streams have
begun to trickle over the spillways
into retail trade. The harvest is on
and the buying power OF the agricul-
tural communitla3 is growing, but the
main portion o. the flood today is
going to pay of debts and clear old
obligations. None the less, the mer-
chants Of the country have benefited
appreciably in the last week from an
additional flow OF money.
This Is specially noticeable in the
South ana Southwest. In the Spring
wheat States the Government crop
estimates did nothing to dispel pes
sinlsm or a resentment over the farm
finance situation, which Is usually
supposed to find expression in refusal
to buy manufactured articles.
The steel industry is holding it's
own, aided by construction activity
reflected in the letting OF actual con-
tracts for big work calling for ex-
penditure Of between $75 900 900 and
$50 000.0 during the week. Lumber
prices have been remarkably steady in
decreases in new business and con-
siderable stocks accumulated at GER
tain Southern distributing points.
Used Car Situation.
The used car situation is the dom
inant factor for the moment in the
automobile field, and it is now def
nitely determined that many large
manufacturers are looking to foreign
rather than domestic business to
bolster up sales figures for the fu-
ture. 1t is notable. however. that the
company which made the latest price
cut had the most active April and
May sales in it's history, approximat-
ing 33,500 cars each month. The
introduction of one OF the new "bug"
models next week will be closely
watched as indicating the genera
trend Of public demand during the
remainder Of the year.
Cotton textiles are exceedingly dull,
with mills preparing to stretch vaca-
ton periods over a longer space than
usual until orders catch up. The raw
wool market has shown Improvement
both at home and abroad and many
keen judges believe prices are on the
rebound. SILK manufacturers are con-
Quoting operations on a sharply re-
duced scale. This does not apply to
makers of full-fashioned silk hosiery,
who are well engaged. Rayon opera
tions have been sufficiently heavy to
absorb American production of raw
material.
Lake shipments have done their
share to spur coal production, but the
fuel situation is still in most unsat-
isfactory state, with many mining
mergers in negotiation. The oil out
look Is bright, and pipe for oil and gas
well use stands out as the most active
product in the steel market.
Furniture Trade Checked.
There has been fairly well marked
check to activity in the furniture
trade, and the response to Fall open
ings of rugs and carpets has been
slightly less active than in the last
two years This is attributed largely
to the change in character Of new
construction. which has involved
larger building for industrial pur-
poses.
Consumption of news print paper
has been at extremely high levels. and
while low contract prices have tended
to reduce paper company profits, the
volume Of business this month prob
baby will exceed that Of any June Of
history. Kraft papers have done ex-
cellently. This is true also Of compost
tions composed of sugar cane fiber.
The manufacture Of cellulose for films
and other purposes from rice hulls, .
waste product Of rice mills, now IL
planned on q big scale.
Strength in London has stiffeneo
both copper and zinc prices, and leaA
buying has been active at present
levels.