Evening star., 1927-10-12
GOOD FALL IS SEEN
BY RETAIL TRADE
Cheap Credit Available.
New England Section Hav-
ing Excellent Season.
BY j. c. ROYLE.
Special Dispatch to The Star.


NEW YORK, October 12.-Retail
trade throughout the country promises
to be better than in any Fall and early
Winter for many years. This trend
has already made itself apparent to
many merchants, who are taking steps
accordingly. A survey just completed
of the larger trade centers of the
country shows only few spots where
the sales prospects are poor or only
fair. while the large majority of dis.
tributing points anticipate good busi-
ness.
There are two reasons why dis
tributCrs are confident of the general
trend. One is the weather, which re-
Gently has been favorable, both for
sales and for the Strengthening of
farmer buying power. The other is
the fact that credit conditions are
definitely easier this year than a year
ago. Loans, discounts and investments
of the member banks of the Federal
Reserve system are nearly a billion
dollars larger now than at this time
in 1926. Money rates are comparative.
ly low for commercial paper, ruling at
u to / per cent under the rate at this
time last year
Cheap Credit Available.
Cheap credit. has been available for
commercial borrowings. This has en-.
abled merchants to take advantage of
opportunities for increase of trade.
The cheap credit would not have been
available II bankers in close touch with
each section had not anticipated a fine
volume or business for the borrowers
In addition to loaning the merchants
money, the banks have added to the
buying power Of their customers hv
extension of large credits through their
investment accounts. This has dis.
trlbuted sums amounting to S4O8. 900.
OOO above those put out at this time
last year.
The weather has put the agricul.
tural districts in a position to lead in
seasonal trade expansion this Fall
consumer purchasing power for the
country as whole is estimated to be
approximately II per cent higher than
a year ago, while the farmer purchas.
ing power will exceed that of last wear
by a range of 10 to IL per cent, ac.
cording to territory. Distribution has
slowed down somewhat in the South.
owing to the recent decline in cotton
prices, but still Is we'll ahead of that
or last year. The position of the live
stock man and of the corn grower has
been improved by the strength shown
in live stock prices.
The improvement has not been so
marked in the industrial districts. but
1t Is visible, none the less. Steel
scnedules are rising, although they
are under those of last October. 1t
Is likely that output for the fourth
quarter will be under that of October,
November and December, 1926. Build.
1c IL.
basis in Eastern and Midwestern Stat
es, building materials are subject to
severe competition, however. The au-
tomobile industry will not get to it's
maximum activity until Ford gets his
production. However, the general in.
dustrlal activity is well above long
term normal.
Good New England Season.
The New England States seem likely
TO have an exceptionally fine season,
except In those cities where the fate
OF certain old-time textile concerns
stiil hangs in the balance. The gain
as compared with last year is con-
servatively estimated at Is per cent.
In the Middle Atlantic and South At.
lantic States gains of only to per
cent are anticipated. The Western
and Southern States are still some.
what Of an uncertain quantity, but
most reports from those sections as.
sumo that the improvement will an.
proximate 10 per cent. Nebraska,
Kansas and the Dakotas are expected
to register specially favorable condi.
tions.
The gain in the East, North, Cen.
trail and West North Central groups
may reach 10 per cent also, while in
the South Central group IL per cent is
counted on. The intermountain region
has not yet discovered what can be
counted on from the sugar beet yield.
but trade there should be as good as
in 1926. On the Pacific Coast the sales
quotas are expected to run Is per
cent higher than a year ago.