Evening star., 1928-03-09
FARMER IN STRONG
BUSINESS POSITION
Rail Heads Optimism Re.
fleets Good Outlook in
Outlying Areas.


Special Dispstch to The Star
NEW YORK. March e.-The largest
retail customer In the United States
the farmer. finds himself today in excel
lent condition. In consequence the
remainder of the industrial and COM
mercial- world is losing some OF the
pesstInistic viewpoint with which II has
regarded conditions for the last few
weeks.
Weather has been propitious in many
sections and the present price trend OF
agricultural products is such as to
indicate no lessening Of buying power.
Canada. the Northwest and Texas seem
likely TO have excellent grain crops
although the weather is still deter
mining factor. The cotton growers are
optimistic OF prices. provided acreage is
held down.
Live stock growers and feeders have
done well and seem likely to do equally
well for some months to come. Wool
Is yielding satisfactorily. Although the
Shearing season has Just begun IL the
Southwest money for this crop shortly
Will begin 10 roll in.
Railroads Feel Effects.
The railroads are the frs: to feel the
strength OF the agricultural situation
and this is clearly perceptible in the
statements this week by executives who
have recently returned from tours of
the Middle and Far West The agri-
cultural implement demand is improv-
ing even more rapidly than was hoped.
but the expectations OF the fertilizer
manufacturers for heavy sales in the
South have not been entirely realized.
Stability has marked the situation in
Iron and steel. Ore shipments have
not commenced 10 flow from the head
OF the lakes yet. but demand seems
likely 10 be higher than year ago. The
steel mills are working at the same
high rate of capacity as in the first
week of March. and some units are
At 100 per cent. Prices are firm. II
the steel industry were not in excellent
condition, ii is not likely that the pro-
posed merger between the Youngstown
Sheet & Tube Co. and the Interna-
ticnal Steel Co would have fallen
through yesterday.
The automobile trade is spottv, al.
though total production and total en-
plcyment are improving. Not all the
concerns. however. are making the
profits which General Motors and
Chrysier have shown in their reports.
Crude rubber is down. and tire COM
panies are facing additional inventory
losses.
Building Is Gaining.
Building Is getting under way for its
Spring drive. but the movement has not
yet taken on anything like its fun pro-
portions. The building material manu-
facturers. however, are preparing for
increased demand
The soft coal industry is groaning
and creaking in every joint and making
little progress. The same is true TO a
Lesser degree Of the petroleum indus
try, although the output OF crude Is
sowly diminishing. The print paper
situation is showing some slight weak
ness despite the fact that national ad-
veriissrs in the last year spent s225,-
o00.0 900 IN newspaper advertising.
The automobile companies. the larg-
est advertisers. are increasing the space
used this year. The food companies.
which come next. are maintaining about
panes are spending a tride more than
D ye2r ago.
More Money Available.
The business situation has been
strengthened materially by the volume
OF money available for all commercial
purposes Much Of the total which has
Gowed in from dividend distribution
this month vill 90 into stocks and
bonds. but the fact that the banks are
full Of money viii bolster up the COM
n1ercisl and industrial position.
The mines OF the country are turning
out non-ferrous metals at o rate which
seems unlikely 10 allow any marked ad-
vances in metal prices for the moment
The Wholesale trade In apparel Is
picking up day b7 day. and the volume
Of business recorded In their annual late
Winter furniture sales by department
stores has been especially gratifying.