Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-12-31
and manufacturers closed the year in
splendid Dosftion

ana manufacturers closed the year in
splendid position.
Future Prospects.
Business will enter 1927 with a ire.
mendous momentum behind It. 1t
seems almost beyond question that
this momentum will suffice to carry
most lines forward at an undimin.
ished pace for some months to come,
even II the motive power is cut down
There Is no indication that there Will
be lack of new impetus, and any
sharp decline in sales or Industrial
activity Is unlikely at present. 1t Is
almost as hard to break a benign
business circle as vicious circle.
Money is plentiful. production is
continuing at high pace in most
lines, employment is general and
wages high. This means that buy.
ing power Is tremendous and that
goods to supply the buying urge will
not be lacking. General prices are
somewhat below the level which OBJ.
tanned year ago, and this in itself
should stimulate sales.
The favorable signs for the future
are unmistakable. The unfavorable
signs are as yet only possibilities
The railroads are in better position
physically and financially than at the
beginning Of this wonderful year. A
turn for the better in the affairs of
many Of the automobile and tire com
panies already Is apparent, with pros.
poets for additional increase Of activ.
ity around January 10. The char.
acter of present operations in steel
is such as to show executives that
their mills will be we'll engaged in
the first quarter.
1t has been repeatedly said the
crest of the building boom had passed
Even If 1t should prove true this
year. the volume Of construction now
under contract is sufficient to keen
demand for men and materials at a
high point. Demand for power for
industrial purposes is undiminished.
Industries Well Fortified.
Tho conditions in the basic indus.
tries indicate that the prospect for
the early months OF 1927 are well
fortified. On the other hand, there
are undoubtedly some unfavorable
factors. 1t is impossible to overlook
the effect of the huge cotton crop.
The situation and buying power of
the farmers might be a lot better.
Trouble looms in coal. Production
has been proceeding at such ire
mendOus pace in some lines that II
would be but a short step to cross
the line to overproduction.
The most comfortable assurance
that the first half of 1927 will be a
thoroughly prosperous period lies in
the fact that the American business
man Is watching his step. He Is not
giving three cheers and throwing his
hat In the air unless he is sure 1t
Will not come down in a mud pud-
die. American business of al char.
acters is more intelligently managed,
and more efficiently equipped, man
ned and run than ever before. This
gives the most adequate assurance
possible that, even If the trend OF
trade should be downward, the drop
will be of extremely small proper
tons in the next six months, since
there has been no imitation.
Business will meet the conditions
of 1927 like n skilled boxer facing
an opponent he has never seen per-
form. 1t is prepared to advance, to
smother opposition under a whirlw1nd
attack. 1t Is prepared to give ground
warily If conditions make it neces-
sary. It Is set, If need arises. to
stand toe to toe with the opposition
and swap punches to a finish. 1t
is on it's toes and no development
is likely to take 1t by surprise.
The prospect, therefore, is for six
months of exceedingly good business
and prosperous conditions, which,
however, probably will not be as
good as those OF the first two quar-
ters of 1926. After that time weather
and crop conditions will join with
other factors In dominating the sit
uation for the last half of the year.
Copyright. 1920