Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-03
COMMODITY PRICE !:
BOOST FORESEEN
Auto Output Expanding.
Steel Demand Better-BuiId-
ing Keeping High Pace.
BY J. G. ROYLE.


NEW YORK, February 3.-Higher
commodity prices seem imminent. Inc
situation in the last week has shown
tendency on the part OF many com
modities toward an upward move rms
naturally has ccntcred around the steel
industry and the wool and wooden goods
line.
The fourth quarter report OF the
United States Steel Corporation, mace
public this week. was not particularly
encouraging, but this is report OF a
period which now has passed, the effect
of which has already been discounted.
The steel industry is looking to the
present and the future. and there is
every evidence that 1t is looking with
optimistic eyes.
Railroad buying automobile producer
buying. agricultural implement manu-
facturer buying and the demand for
structural steel have strengthened ap-
probably the position of the steel manu-
facturers Steel output is at approx
mately 80 per cent of capacity. the
highest rate reported since the first halt
OF 1927. Moreover, orders are increasing.
Wooden Trade Improvement.
The opening OF the Fall lines Of the
leading wooden textile manufacturer
gives indication of the improvement
which has been made in that indus
try. If further evidence we're needed,
1t lies in the continued volume of buy
ing of raw wool throughout the range
States. This wool is being contracted
for long before shearing time. at prices
which show an appreciate advance
over the levels Of this time last year.
Raw wool is approximately at the high
est point IN two years, and indications
point toward continued advance. De-
spite this fact. however. the WOODEN
textile mills are not operating above
IS per cent Of capacity
Manufacturers of agricultural imple-
ments are preparing for the biggest
season they have had in some years.
The situation of the farmers has been
excellent. AID the latter are apparently
eager and willing to replace their old
machinery with new and improved
equipment.
Auto Output Expanding.
Automobile production is expanding
steadily and there is every indication
that the second quarter of 1928 will
show the highest rate of output ever at
tanned. The automobile parts and &C
cessories manufacturers are stepping up
production to keep pace with the firms
they serve. The tire manufacturers
have benefited not only by increased
demand. but by fairly stable rubber
| rates. Some of them. however. are BY
no means out of the woods
Building has progressed at unusual
rates since January ! owing TO favor
able weather in many sections. The
lumber industry is getting slowly back
70 more normal production schedule
Prices in both the hard and soft woods
| are expected to improve as the Spring
shipments go forward.
The outlook for the paint industry
Is extremely bright. All the leading
manufacturers report a reaction from
the seasonal dullnesS which obtained
throughout much Of January.
Cement production probably will DC
stepped up as Spring approaches. but
the price situation in most sections
seems likely TO remain fairly stable.
Probe Of Coal Industry.
The coal industry seems likely to have
congressional investigation but Jus,
what concrete results will result from
the washing OF the drifting coal linen
remains to be seen.
The statistical position OF the oil
industry shows only minor improve
ment. However. within the next two
months. consumption is sure TO in
crease and 1t looks as though produc-
ton would decrease at the equally rapid
rate
Copper production Is advancing
again, presenting q renewed danger 10
the present price level Nickle is In
greater demand owing 10 the expansion
In the automobile field Tin prices are
showing more strength and are likely
to advance still further, Lead and zinc
are fairly stationary between increased
production and a slightly reduced con-
sumption
The increase in the rediscount rate
by the Federal Reserve Bank OF New
York had little effect outside the
stock market and business men were
not concerned at the action.