Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-09
SECOND HALF YEAR
HAS GOOD START
Business Conditions General
Iy Sound and Plenty Of
Money Is Available.
BY j. G. ROYLE.

Special Dispatch to The Star.
NEW YORK, July 9.-The new
fiscal year Is off to a fine start. This
is evidenced by the volume of money
now available for legitimate COM
mercial and industrial purposes. Bust
ness conditions generally are sound
and there is no reason apparent for
any drastic slackening of activity or
drop in buying power. The purchas-
ing power of the dollar has been i'm
proved through the slight lowering
of the general level of commodity
prices. The latter, however, con-
tinue high enough and steady enough
to protect profit margins.
Agricultural conditions are spotty.
but the general average is good. Some
sections will have splendid profits
but others have been hurt by weather,
insects and floods. The boil weevil
infestation in portions Of the cotton
belt is unusually severe. The weather
still is n major factor in determining
the final position of most farmers.
Textiles Improve Status.
Textiles are improving their posi-.
ton owing to the greater attention
now paid to styling. This is true also
of apparel. Hosiery and sweater man.
ufacturers report excellent forward
orders in many sections. The same
| trend Is noticeable in shoes. Leather
| men say an advance Of 5 to 10 per
cent in the price Of shoes to conform
to higher hide and leather costs is a
! possibility this Fall.
Evidence of decline in building ac-
tivity still is lacking. Contracts ac'
tually let for heavy construction are
| In ha "a
| corresponding period of 1926. Pro
grams have been encouraged by lower
material prices. Wages for skilled
| labor. on the other hand. are as high
| or higher than they were a year ago.
The automobile trade Is in a Sigh
slump at the moment. owing to the
imminence of introduction of new
models. The output of even the most
prosperous manufacturers for july
will be smaller than that OF May or
June. 20
Steel production in the last half
year has been up to the record rate
established in 1926, and although the
usual July decline in activity Is now
than for years. A sharp recovery is
anticipated in August. The strength
Of automobile sheets has been
gratifying.
Copper producers have failed to
reduce outputs to consumptive needs.
and this is reflected in the present
price of the red metal, which is down
around the low level established in
1924. The movement in both lead
and zinc Is dull and prices are easier
owing to the same general cause.
| overproduction.
Oil Output High.
Production of bituminous coal con-
| tinues to hold around S,500,000 tons a
week, and there has been no check
to crude oil output. Until oil produc.
ton declines, no improvement in
prices Is likely. Fuel oil. in conse-
quence of the technical positions of
the coal and oil industries. is coming
into sharp competition with coal.
So far this year, tire production and
shipments have been nearly 20 per
cent heavier than for the first half of
1926 and the rate has not yet begun
to drop. Most companies are optimis-
tic over the outlook, although some
complain that the level of tire prices
IS too low. Despite the seasonal
slackening In sales of radio sets and
equipment, the general total of cleo
trical equipment distribution Is above
that of July last. The manufac-
turers in most instances are so heavily
booked ahead that plant activity is
assured for some months.
Chain stores continue to show in