Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-29

| insect pests ana raw sugar prices WeAe
low owing to the Cuban stocks. Bu
improvement took place before the enc
of the year due to the flood losses II
Louisiana, the Cuban governmental re
striction of output and the prospec
for heavy use for preserving.
Earnings of both cigarette and cigar
manufacturers took a definite upward
trend Cigarette sales are at least
ner cent higher than at this time last
year and earnings of manufacturers
show q corresponding increase. ClSal
consumption is holding better thar
steady, owing to the improved demand
for machine made cigars. The stu
alton OF the growers was no worse
than in the 1926 fiscal year.
The chemical companies have maze
larger earnings this year altnougn
prices have been lower. Output has
been steady and profit margins sufti
GENTLY wide. Alcohol advanced owing
to floods in Louisiana and sulphur Is
at or near it's high for 4 long period
Machinery and machine equipment
sales have been largely for replace
ment needs but leading manufacturers
have been doing better than average
Business in newsprint paper has been
of record volume and while prices nave
not advanced output has been main
| talned III d way WHICH Ai"0 A"" w
costs.
The street railway companies have
carried more than $50, 000.000 pepole In
| excess of the passengers OF the l92t
fiscal year. They have improved their
| Dosition by taking over many or the
bus lines and operating them In con
junction with the rail routes and by
steady increase in purchases or new
equipment.
Retail trade in late 1925 was as
| heavy as any ever known. and fuli re-
turns are expected to show the last
| six months volume of business equal
to that of the record breaking first SIX
months of 1926. Profit margins of dis
tributors are being we'll maintained
costs have been cut sharply and news
| paper advertising has been vigorous
| The chain stores seemingly did the
best business although the mail-order
houses and department stores were
but little behind.
| Wholesale distributors who have re-
vamped their methods to modern poll
cies have done we'll, but those who
have not done this have had hard
times in making ends meet. The flood
undoubtedly had severe erect on
retail trade. It's effect on the agri-
cultural situation is still uncertain.
Decline in Crop Values Unlikely.
The farmers of America did not
make as much money from their held
! crops in the crop year of 1926 as IN
1925, but they were. up until last FAN,
| in better financial situation than many
| of them had been for years. There is
| no reason to believe that there will
| be a serious decline in crop values
| this season, despite late planting, ad-
verse weather and floods. me
weather still Is determining factor,
| but farmers who raise fair volume
stand to make as much or more
| money as last year through higher
| price levels.
This means that the post-harvest
purchasing power will be undiminish-
ed. Winter wheat will fall below the
| 1926 yield, but Spring wheat, despite
a. late start. is likely to be almost 10
per cent larger than year ago.
The corn crop is likely to be smaller
and prices for that grain and wheat
already have shown marked advances.
Live stock is in a position to benefit
the farmer largely, and even growers
of grass cattle are in excellent posi-
ton. This is also true Of producers
of lambs, and while hog prices are
down from the top they still present
profit opportunities.
The dairy industry will bring in a
huge volume of profits. since more
farmers than ever are turning atten-
ton to dairy products. Potatoes are
yielding adequate returns in many dis
tricts and the outlook for fruit profits
is bright. Packers have done excel
lently.
Fertilizer companies have had a bad
year. Competition is keen, produc-
ton has been too high for consump-
ton. the flood has reduced purchases
by cotton planters and prices and
profit margins have been low. Sales
of tractors and combined harvester
| threshers have been unprecedented in
some sections and sales of all types
| of farm equipment are believed to
| have been up to the 1926 level. The
| foreign sales have been far heavier.
Outlook Is Bright.
The outlook for the remainder of the
| 1927 calendar year is bright. But wise
| business men are refrain1ng from
counting their chickens until they are
Matched. They are prepared to take
advantage of all the openings com.
merce presents and to protect them
selves against a decline in prosperity.
They know that about the only Ger.
| tainty of business Is that II Will
| change.
The weather is the dominant factor.
There is scarcely line In which 1t
will not have an effect. The prospect
is that agriculturists will receive fully
as much for their crops as in 1926.
| This means they can and Will have
| something like nine billion dollars to
spend. But unfavorable weather may
cut this decidedly.
| If buying power diminishes. 1t will
affect retail trade, which now is at a
high level. This in turn will mean
lower manufacturing schedules, re-
sulting from a smaller demand.
Weather will have effect on building
and it's associated industries and on
road and highway construction and
ipublic works.
There are few lines in which price
levels seem bound upward but mar
gins of profit should remain constant
enough to assure adequate returns in
most instances.
All in all, the indications point to a
continuation Of high employment at
good wage levels, to fair retail trade
high industrial production, easy money
and continued prosperity during the
remainder of 1927. This does not
mean a boom or a period Of imitation
or wild buying. In fact, the better
business men are taking every pos
sible means to prevent such conditions
and to keep business with it's feet on
the ground. They are as eager to
prevent undue expansion and over
production in the more prosperous
lines as they are to help the weaker in
dustries back on their feet again.
| Copyright. 1927
/