Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-12-31

idtlOn between buyer ana seller IN
most departments of trade, and vel
withal, no suggestion of another such
buying movement as that of 1923
which. for three months. gave a tire
mendous push to Wall Street opera
tions and wound up in a sudden ana
violent collapse.
But while fundamental conditions
are strong and it is hard to foresce
any period Of depression. commodity
prices are low, and the fact remains
that no trade boom and no Wall
Street boom has even been founded on
low prices. There may lie Il change
in the price situation later on. But az.
ricultural prospects have not been
bettered by the happenings of 1926
Efforts to bring about larger return
for the farmers are still looking to
ward artificial-that is. toward Iegis
lative-means rather than toward nat
ural means.
ReyerSes i'm Grain and Cotton.
The propag anda To diversity crop
planting in the West has not accom-
pliShed much. Wheat farmers had u
larger acreage in 1926 than in 1925 Or
1924. There was a slight reduction ~
compared with 1923 and "a fair-sized
decrease as compared with the three
years preceding. But then again the
1926 area under wheat was larger
than the average of the years 1918 L.
1918, inclusive.
In II word. the farmers have COntin-
ued to plant about as much wheat az
they have been accustomed to plant
i'm normal years in the past. The re
suit has been low prices as compared
with Il year ago. The same is true OF
animal products. The wheat grower
and the beef and hog raisers have nn
cause to congratulate themselves for
what has occurred in 1926.
Then there is the almost tragic sit
uation in cotton. Spot cotton sold a.
high as 24.23 cents a pound in Sep
TENDER. 1925. II went down practl-
cally continuously until. late in 1926.
the price was almost cut i'm two. The
1925 production of slightly more than
l6.O00,0O0 bales was largely in excess
OF requireme utS. On top of this, with
the aid of the most favorable growing
conditions known in a generation, thu
1926 crop has piled up a probable total
of well over 1S,50O,000 bales.
Up to Cotton Men.
Are the cotton planters of the South
going to do what the wheat planters
OF the West did not do under similar
conditions and divert n substantial
part of their area to other crops?
This is a question upon which a
good deal depends for the outlook i'm
1927. The only way out Of the de
pressed condition i'm the cotton trade
is either through restricted production
or through a shortage in the new crou
which VIII mature next Autumn In
the meantime the assumption seems
reasonable that those who have been
hurt by the cotton slump will have tn
cut down their outside purchases. and
that this Will affect demand for gen.
eral merchandise. This point is en-
phasiZed, along with the lowered farm
prices elsewhere. by those who look
for some sort of a slowing down i'm
the general trade movement i'm 1927
Motors Outlook More Favorable.
The outlook for the automobile in.
dustry is more favorably regarded at
the close of the year than il was two
or three months ago. Then there was
a good deal of talking about increasing
competition, necessitatiug price cut
ting and reduced profits. This proved
to be much exaggerated. y few com
panies did not make a good showing
in their semi-annual and third quarter
reports.
at the automobile centers i'm the Al.
tumn and early Winter was TO be an
praised as mainly a seasonal reaction
In the closing weeks of the year new
orders were on the increase.
Record Rail Tonnage.
Through the greater part of the Fail
railway tonnage broke all records i'm
the history of the country This was
rejected in unusually large gross rev
enues, and, because of the return L.
normal maintenance expenditures. il
showed also quite strikinglv in net
earnings. Numerous dividends were
increased in the course of the wear
and a still more liberal policy regard.
Ing the distribution of railway profits
Is looked for in 1927. provided gen
erai business keeps up. as is expected
20 at least something like the present
volume.
The DELAY in the Nickel Plate case
mas apparently held IN some of the
merger prospects in other fields. The
Nickel Plate experience has been a re-
nlnder to big interests in these pro
POSED consultations that they are not
Ilkely to find it easy dealing with mi.
lorities. Still. as 1927 begins there
s every reason to believe shat The
program of railway constellation will
make substantial headWav during the
ear. This il the wish of the heads OF
ne Government, of the railway. labor
ma shipping interests, and finally OF
many OF tn" railway executives them.
elves who at first were opposed.
L. 5. SteeI's Stock Dividend.
The United States Steel's 40 ner
ent extra stock dividend was an cpl.
-
or trade conditions in general. except
o permit of the conclusion that no
uch extraordinary step would have
cen taken had there been any doubt
bout the continuance of good times.
ne steel Corporation simply finds
self IN the position, after years OF
avlng and blowing back surplus
nto property, where it can safely can.
Ialze part OF these accommodations for
ne benefit of shareholders.
During the war the huge profits of
nc period were recognized as abnor-
lal, and United States Steel paid nart
{ these out, but in Il form where f,,,.
ner payments could readily be stonned
that is. the form of extra cash divi.
elldS. Now. however, the situation is
ute otfferent. The corporation is adj
istlnS Its capital account to an i'm.
redSed earning power in fun belief
nat this increase has proved itself
ornament. And also il is adjusting
'sIe7H OIL lsBI oul u! SuInI0JG slessG
insB7dl pue SanIGA lusTd poSJgIus
lshouJouo Sql OF 1unoo0e IelIdBo s1t
Europe Makes Big Strides.
While here and there exceptions
re TO be noted, it will he generally
greed that the financial and eco
omic rehabilitation of Europe made
satisfactory progress during 1926 IL
'as in April, 1925, that Great
'ritain resumed gold payments and
nat the pound sterling returned
irtually to parity with the dollar.