Evening star., 1928-04-13
TRADE EXPANSION
FUNDS ABUNDANT
Steel Production Good and
Utilities Firms Are Grow.
ing Steadily.
BY ]. G. ROYLE.
,necla, pispa,ch 10 The Star.

NEW YUM, ApEll To- IltlC diV
ample funds available for the financing
of business. agriculture, building and
other activities, on a scale which Will
assure adequate production and con-
tinued prosperity. Calls for funds are
being made today incident to seasonal
expansion in score of industries and
the response is such as to relieve all
anxiety as to the credit situation.
This is specially satisfactory to the
farming communities and Is taken to re-
fleet the improved position OF land
values as well rs bright prospects for
crop yields and profits. Demand for
commercial funds. however, has not
gone to excess and borrowings are be-
ing held down to avoid any excess eX-
panSion. This. of course. is entirely out
side the increase in speculative credits.
with which only the speculative mar
kets have to do.
Continue to Expand.
The utility companies continue to ex-
pand their services and the increase IN
demand for electric current continues
steadily. Building construction is active
and the volume of funds expended so far
this year is sharply in excess OF that for
the corresponding period Of 1927. Some
of the building material producers,
however. are still finding 1t difficult TO
maintain an adequate margin of profit
in the face of strong competition. This
is the case with some Of the cement and
lumber companies.
Steel production is still showing slight
expansion, although in many producing
districts 1t has settled down to steady
pace, which none the less is turning
out huge quantities of steel products.
Undoubtedly the extreme activity of
the automobile manufacturers is help
ing the steel men. who are also reap
ing fine orders from the agricultural
implement producers.
The business Of the automobile access
sorry manufacturers is taking sharp
jump which promises TO return much
higher profits than were earned In 1927
despite active competition.
Auto Mergers Rumored.
More automobile manufacturers are
doing well than was anticipated a
month ago. but there are still some
merger rumors In the air. The tire
men are turning out a large quantity
of castings and tubes. but 1t is believed
none OF them is entirely satisfied with
the situation In crude rubber
The non-ferrouS metal producers are
more optimistic today than for some
time. There are also rumorS of alb
sorptions and consultations among the
copper concerns, but most of the latter
are making money with copper above
II cents pound. Markets for lead.
zinc and tin have been quiet.
The improvement in the petroleum
industry Is apparent, but is exceedingly
slow. Producers are sttli trying to cur.
tail excess production, with only par tial
a lYV0a nf
prices has not done much TO spur de-
mand and soft companies are in the
same unfortunate position they have
occupied for over year.
Textiles Are Spotty.
The textiles continue spotty, but there
Is tremendous volume Of cotton goods
being used today. Laundry owners are
making strong effort TO secure stand
ardization OF textile products by manu-
facturers. declaring they have been
assailed by many complaints about
damage to fabrics In washing which
would be avoidahle IL certain uniform
standards we're observed. Wool con-
tinueS strong.
The strong advertising and sales pro-
motion campaigns instituted by the
tobacco companies are bearing fruit.
Tie sales OF cigarettes have been very
heavy in late weeks and there are indi-
cations that total distribution for the
year will be Is per cent higher than In
1927. Sales Of machine e-made cigars
also are active. The production of
bright leaf cigarette tobacco Is expected
TO be heavy to supply the demand. The
purchasing power OF the public is so
high that retailers anticipate a fine
trade and, what Is better, continu-
alton Of heavy sales well into the SUM-
mer months. Sales quotas are being
set about per cent above those for
this time year ago. Stocks, however,
are being held down to reasonable pro-
portions by merchants, who are taking
no chances on changes nj style trends.