Evening star., 1927-03-09
MEN AND MONEY
BY NJ. S. Rukeyser.
Copyright. 1879

Midwinter trade hesitation was
promptly reflected in Cleveland. whose
industries are highly diversified, in a
sharp curtailment of production sched-
ules and In some unemployment.
The downward swing started in
November. and the current level of
production in that important lake port
is at the lowest ebb in the last year
and a half.
tThe swiftness with which produc-
ton was adjusted to- reduced buying
is illustrative Of the new method OF
doing business in the United states
Merchants buy on hand'to-mouth
basis, and manufacturers are tending
to work only on orders where feasible,
instead of piling of stocks of goods In
authorization of future demand. Thus
| business is liquid, and is ready for
whatever happens.
j. w. Vanden Basch, Industrial spe-
calist of the Cleveland Chamber or
Commerce, in a special canvass OF the
situation made for this column, re-
ports:
Prospects for Spring trade Is favor
able, so far as we know. There has
been some unemployment since No
vember last, but, If this Is overcome
In the near future. the purchasing
be seriously impaired.
Volume Somewhat Lower.
I'VE know Of no obstacles to con.
tinued prosperity. Cleveland indus
tries are. we believe, In shape to re-
sumo higher production schedules on
short notice and a few weeks of good
employment, If not too long delayed,
WILL in all probability. restore most
NJ n a
little below
1.-THE current volume of business Is
somewhat lower than at the cor
responding time in 1926 and about the
same as in 1925.
business sentiment is reasonably
cheerful"
Mr.. Basch's investigation indicates
that the building boom has passed the
peak in Cleveland, which advertises
itself as Americas fifth city.
There is rather definite evidence"
declares MFR. Basch, that the building
construction industry has passed it's
peak. There are a reasonable number
of large projects under way 0nc1uding
the Van Sweringen new union devel-
opmenO and prospects for a good
home building year. However, the
speculative building of apartments
and small neighborhood commercial
structures seems less likely to reach
large proportions as in 1924, 1926 and
part of 1926"
Wages Are Stable.
Concerning wages, Cleveland re-
ports: 1.-THE labor supply is plentiful
in all lines. Industrial wages are
stable. Building trades crafts in this
section are organized. Several agree
ments expire this Spring and negotia-
tions are under way for renewal. Car
penters are asking for an increase in
their hourly rate"
The city also reports most active
interest in the question Of starting
| new industries in Cleveland than at
any time for year or two.
The experience table of city like
Cleveland Is likely to be more repre-.
sentative of the nations business than
that of a city like Detroit, whose in
dustries are far less diversified. Near
iy half the output in Detroit is in the
nature of motor vehicles and parts.
The fixing of Babe Ruth's annual
salary at $4,000 may encourage de.
| mands for upward revisions in other
directions. For example. the president
Of the largest university in the cour.
try gets only $4,000 year.
Banking Casualties.
OF the $50 American banks which
suspended operations in 1926, only
100, about Is 2-3 per cent. were mem
bers OF the Federal Reserve system
The average bank included among
these casualties had a capital of only
S35 900 and deposits of $500 900. Thus
though numerically the mortalities
were larger than in any previous year
In American financial history, the eff