Evening star., 1926-12-05
INVENTORY MAKERS
BEGIN WRITING OFF:
Cotton Mills, Copper and. Sill
yer Producers and Others
Cutting Down.
BY j. C. ROYLE.
Dfkpatch to The Star.

NEW YORK, December 4.-Con
servative business men began this
week to use the pruning knife. not on
wages or production but on tnven.
tories. The inventory season is ap-
preaching and those who set high
store on technical conservatism OF
position are writing off items with
both hands. This Is a specially no
ticeable tendency in the textile trades.
Cotton mills wrote off considerable
sums on the stock Of cotton bought
and carried at figures high above the
present market price, which broke
through II cents this week.
Copper and silver producers In some
cases took similar action. Silk prices
have fallen from under the headers
of considerable stocks. The inventory
period apparently had more than q
little to do with the curtailment at
the Ford plants in Detroit. The sit
uation in that center illustrated again
the spottiness Of the automobile trade.
for some factories are not only at
top speed, but are planning expan-
sions and improvements, while others
are cutting down activities sharply.
No Write-Of In Oil.
The drop in crude oil and gasoline
prices has not yet assumed proper
tons which call for inventory write
Offs but production continues at q
high rate, while consumption neces-
sarfly Is being curtainel by the recent
cold snaps. On the other hand hold
ers of reserve coal supplies are in a
strong position so far as price is con-
cerned, although the quotations for
bttumtnouS are weakening.
Steel operations are fairly steady
and promise to continue so up to the
end Of the year. The volume Of build
ing contracts is sufficient to maintain
the position of the building materials
markets with little danger of drastic
declines, and the outlook for the next
three months is most encouraging de-
spite repeated assertions that the
building peak is past. The same as
sertions were made year ago, but
some $6.25O, ,00O,0 900 has been spent in
construction since that time.
The farmers are casting up ac-
counts and are deciding in many
sections that they made more than
they anticipated. The larger volume
of wheat raised has compensated for
the drop in prices from the 1926 level.
Corn prices have been near or below
cost of production. but, marketed in
OI pOIh, COIu IldS lOu5hL llLAO
returns. Dairymen have had a fine
year.
Big Christmas Trade.
Christmas trade gives evidence that
it will surpass the totals Of 1925, one
of the best years retailers have ever
experienced, Toy makers are already
laying out production schedules for
next year and producers Of Christ
Nd o1roo6U God on
orders for the holiday trade of 1927.
The retail business is being augment
ed by we'll planned and extensive ad-
yertising campaigns.
Rubber manufacturers have taken
steps to do in a body what rubber
dealers have urged that they do in
in the past, that is, buy sup
plies for the future when market con-
ditions are, advantageous. Supplies
of rubber promise to be adequate for
the next six months. despite the 20
per cent restriction now in force by
the British Government on Straits
Settlements shipments.
The most favorable factor of the
work was the final fiZzle of the Britt
ish coal strike. This labor dispute
has aided shipping and bituminous
coal, two weak sisters among Ameri-
can industries, but it has initiated
against agriculturists and producers
of manufactured goods sold abroad.
In general, business men here have
found that it does not pay to have
ones best foreign customer put out Of
business, even If a temporary advan-
tage in world markets is gained.
Refrigerator Ships Planned.
Several Pacific Coast shipping COM
panies are working on plans for re-
frigerator ship service which would
enable dairy producers on the Pacific
Coast to compete in Eastern markets.
The annual supply Of Christmas trees
has now been cut and will commence
to arrive at market centers in few
days. Many thousand itinerant work
ers are still busy collecting holly and
mistletoe.
The advance in wages to certain
classes Of railroad workers had a
psychological effect on the position
Of some carriers. but news of the ad-
vance had been pretty we'll dis
counted.