Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-05
MEN AND MONEY
BY NJ. S. Ruleeyser.
(CopyriRht. 1927

by M. ). Ruheyser.
(Copyright. 1927
In the folklore of Gotham, the story
IS related about a man who tumbled
from the top of the Woolworth Tower.
AS he passed the thirty eighth story
In his rapid descent. he alphabetically
said to himself. well, I'm all right
so far"
1t is perhaps premature to begin to
check up on forecasts for 1927, but
an examination of business activity
since January / indicates that the
country's trade has been "all righ-
so far"
AS a matter of fact. pessinistic
forecasting about speculation and
business has been knocked into a
cooked hat since the wide-open col
lapse in the stock market in March,
1926.
An optimistic economist of high
standing remarked In private CONVEX
sation that he believed 1928 would
be year of rampant speculation.
by the end of this year" he conf
IDENTIFY predicted. "the prophets of pes
simism will have been so discredited
that the public will no longer follow
their advice Of caution"
Business Money Demand.
The recent moderate increase In in
terest rates on commercial paper in
dicates a seasonal increase in the de-
mand of business for money, suggest
ing a healthy trade expansion in
anticipation of Easter retail buying.
Thus far this year there has been
an increase In steel operations and
the rate Of production OF automobiles
has been we'll maintained.
In spite of Mdwinter hesitation in
some manufacturing lines. hitherto
depressed industries, especially cotton
textiles and leather goods, were active.
The boom in cotton textiles was in
part precipitated by the bargain
prices at which raw cotton became
availa BILE. particularly in view of the
fact that the shelves of merchants
and manufacturers of textiles were
bare. The Association of Cotton Tex
tile Merchants of New York reported
that sales of standard cotton textiles
had'reached an unprecedented volume
in January. Sales totaled ass 900, 900
yards, compared with an output OF
227, 0o0, 900 and shipments of 25O.0OO,-
900 yards. Accordingly. stocks on
hand declined 10 per cent In January.
when untitled orders increased about
AZ per cent. Because of this situation,
cotton textile prices were higher rela-
lively than raw cotton quotations.
Wool textiles also have participated
in the recovery.
Leather Stocks Reduced.
A recent squirt in leather production
reduced the stocks of leather, both
finished and in process, to the lowest
figures on record.
On the other hand, the Harvard
index of production Of basic materials
declined from ITO in December TO
los in January, the lowest figure
reached since last July, in spite of
slight increase in pig iron output.
The slump was chiefly in the output
of cement and lumber, and IL taken
TO signify a slowing down In construc-
ton activity.
The momentum Of the decline In
commodity prices. which was substan-
tial during the last half of 1925, has
been checked. The recent average
trend has been moderately downward,
however, as a result of the break iii
crude oil prices. other commodities
have f1uctuated within narrow area,
and cotton, cottonseed oil. silk, rubber,
leather and zinc have recently shown
a disposition to move upward. Cattie
prices also have advanced, but iron
and steel. bituminous coal and oil are
among the important commodl.le
which have declined.
In spite of the threat OF bituml-
nous coal strike on April /, there is
no tendency at present to bid up coal
prices. Coal quotations were abnor-
mally high during the second half OF
1925, on account OF the British coal
strike. Since that time most OF the
gain has been wiped out.
Roads Buying Reserves.
The present market has been sus-
tanned by heavy accumuiatlons OF sou
coal by the railroads and public utility
which wished to be
ready in case Of a strike.
Inasmuch as about 81 per cent OF
the soft.coal output now comes from
non.union mines, there seems to be
no fear of an acute shortage.
And there Is still the possibility,
some Industrial consumers seem to
feel. that the United Mine Workers
will make peace with mine operators
in some districts. IL not in all.
William z. Ripley, professor OF eco
nomics at Harvard, who became
front page headliner by attacking GER
tain financial practices OF public uth'
anpears in the role of defender OF the
railroads, urging higher rates.
1.-THE outlook for the railroads.
saws DR.. Ripley. who was retained by
the Interstate Commerce Commission
to draw up. tentative plan for rail-
road mergers, in his new book. Main
Street and Wall Street." was never
so bright as it Is now in 1927. 1t has
been no mean achievement to bring
these properties UP to their present
high state of efficiency. Only two re-
ouirements remain to be fulfilled.
namely, slightly more generous rate
level, here and there, and a vigorous
and consistent attitude toward con-
solidation. Those things accom-
plished, and our railroad matters
would seem TO have been firmly estab-
lished on a secure and lasting founda-
ton"
The Harvard economic sage. 1t
should be noted. Is a member Of the
board of directors Of the Chicago,
Rock Island & Pacific Railroad.
The force of his recent criticism Of
certain financial abuses was height
ened by realization that he 10 innately
conservative and by temperament and
disposition friendly toward legitimate
business.