Evening star., 1927-05-07
SOUTH IS STAGING
STRONG COMEBACK
Auto Trade Continues Spotty.
Construction Gains in
Middle West.
BY j. {. ROYLE.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. May Business IN
the last few days has been ahgilhe
for orders. 1t knows the orders are
there and that they Will ne lanoeu
eventually. but at the moment as
fisherman would say, the nsh are run
aing small. The total volume OF pusi
ness has not suffered particularly out
buying has been in small amounts
and for quick deliveries. This Is u
natural trend. always to De eNpec'eo
about this time of year.
Whether the manufacturers rea
the effect of the floods or not, me
housewives of the nation do. Inc
latter have been paying about douole
for fresh fruits and Negetaoles
shipped from the South. compared
with what they were paying 1ort-
night ago. The season, however, is
working northward and soon VIII
find production centered north OF the
affected zone.
Not for a moment has there been
doubt rs to the ability of the South 10
come back" Since the levee below
New Orleans was shot the stores OF
that city have been full of customers
and it's industrial plants nave oeeh
running at full speed. The same ap-
plies to those other sections where the
immediate danger is passed. New
Orleans had the best retail Aprli IN
it's history.
Uncertainty Manifest i'm Steel.
The uncertainty was specially mani
fest in steel. 1t persisted despite the
admission by big steel men that the
check to buying was minor feces-
sion. The stability of prices for steer
and iron reflects this view. The TACT
is that consuming industries are
carrying zero inventories In ofder
to cut production costs to the oone.
This is not conducive to the comfort
of steel manufacturers. although they
are adjusting themselves to 1t.
The automobile industry continues
spottv The situation is well shown
hv the statement that of 10 con-
Germs are doing better than A year
ago and are doing worse. The re-
entry of Graham Brothers into the
active manufacture Of motor vehicles
has ironed out some wrinkles In the
situat ton.
Construction is running about the
same pace as was maintained during
the first part of 1925. Building costs
have dropped slightly as compared
with last year and with last month,
although there Is a. tendency toward
higher wage levels in the skilled
trades. The gratifying fact is that
building has increased in general In
the Middle and Intermountain West.
Nonferrous Metals Dull.
The nonferrous metals have been
duh. Copper has done less than at
any time for three years. while snip
ments from refineries were large. The
price was held steady by fair foreign
demand As a result Of dullness, lead
producers are booking orders we'll
ahead at current prices.
Demand for wooden goods is alb
normally slow and the raw wool deal
ers and producers have had this fact
impressed on them. However, about
81 per cent of the woolen mill work
ers in New England are now employed
and consumption Of wool is higher
than year ago by Is per cent. Raw
wool prices are fairly steady.
Cotton textiles are in slightly better
position. although some mills are not
showing profits. Shoe production has
increased as compared with 1925, and
leather prices are firm. hut retailers
are waiting now for definite inforna-
ton on Summer style trends before
placing orders. Hide prices are up.
Demand for sugar has improved.
The coal strike now promises to be a
long affair but non-union mines are
turning out almost enough for all de-
mands each week. Figures on oil
production show the petroleum indus
try still has far to go before the stu
alton Is corrected.