Evening star., 1929-06-30

increased. the demand took care of the
added volume offered. The industry is
expanding its plants, but production was
hampered to some extend by the textile
strikes in the South.
The silk trade has found an excellent
demand for printed silks. Raw silk
prices have fallen to low levels. The
danger from overproduction still is
hanging over the industry, however.
Shoe sales have. been fair and makers
have benefited from the low prices for
hides and feathers. The latter are now
apparently In a strong position, but tan
ners have had disappointing year. It
is estimated that about Ito, 100000 pairs
of shoes were produced in the last six
months.
Food Products Situation.
The food producers have had a mixed
year. The Gamers and preserverS have
done we'll and SO have fruit and vege-
table growers in sections. Others have
found their profits seriously curtailed.
Stocks in general, however, are not
heavy. The baking companies have
benefited by the low cost of wheat,
which has been reflected in flour and
made higher profits. Soft drinks, candy,
chewing gum and similar products did
a decidedly larger business than in the
previous year and benefited from low
sugar prices
Dairy products, especially ice cream,
provided an outlet for farm products,
which was a big boon to the agricul-
tural districts Consumption of dairy
products is expanding steadily and so
are distributing companies. Mergers
have taken place in many of these.
The meat packers had in the main
a satisfactory year, although high
prices curtailed the demand for beef
to some extent. At present the hog
corn ratio Is in favor of the feeder.
Live stock breeders have done well and
through most of the year have been
favored by high prices for animals.
Sheep continued profitable despite ex-
panding production.
Production increased faster than
consumption of sugar and the industry
did not have favorable year, as prices
were at extremely low levels. Some
of the refiners did well, however, and
so did producers in the island pos
sessions.
Chemicals in Good Demand.
With industry at high pitch of
icals was strong This was apparent
especially in industrial alcohol, the
Insecticides and in the chemicals used
in mechanical refrigeration. The paint
companies did a huge business, aided
by building activity, automobile pro-
duction and the development of new
products. The fertilizer concerns were
affected adversely to some extent by
weather conditions in the South and
depression in the West.
The non-ferrous metals had a good
year. It was a banner period for the
copper companies, for the red metal
advanced to about "a cents a pound,
and while it has dropped back some
what, it still is at figure which as
sures generous profits to producers and
refiners. The records for production
for all time were broken in the fiscal
year and profits of most companies
were extraordinarily high even for the
high-coSt producers. Activity of the
mines was general and employment at
a high rate, both as to numbers and
wages.
Lead and zinc both acted well, but
not so Sensationally as copper. The
production of each was high, but earn
ings of mine operators improved.
The Fuel Situation.
The coal companies have improved
their situation somewhat, owing to lower
scales of wages and active industrial
demand. The anthracite producers did
better than the bituminous coal prop
critics, and the latter still have a long
way to go to get satisfactory basis,
although they did better than in the
previous year. The anthracite industry
is spending millions for new and up-to-
date equipment, and the bituminous coal
men seemingly will have to do likewise
The potential production of oil is
hanging over that industry like a dark
cloud, but demand has improved to
such an extent that oil company profits
have been at far better figure than a
year ago. Stocks are lower, prices are
firmer and the outlook seems to be
Frightening.
The paper industry was aided by the
establishment of news print prices, but
the industry, like some others, is over
milled and even curtailment of Cana
dian plants to 80 per cent under agree
ment is expected to raise profit margins
but little
Cigarette sales are maintaining a
steady growth, being about 10 per cent
higher than for the last fiscal year. The
industry, however, is in the throes of a
competitive war between the tobacco
chain stores and the grocery chains.
The wholesale price has remained
steady since the cut in the Spring,
Profits of the manufacturing concerns
have increased. The trend in cigar con-
sumption also has been upward, espe-
cially for the moderate-priced machine
made cigars.
The moves in the cigarette war illus
trate the changes taking place in the
retail sales field. Retail trade, with the
greatest holiday season on record to its
credit, has been at tremendously high
levels. Buying power has been high
and prices reasonable, with few sharp
advances. Profits have been exceed
ingly good, but to make them good the
merchants today are combining in their
buying and going into new and untried
side lines. For example, the cigar stores
in some instances are moving into the
restaurant. drug store, toilet goods and
other fields, while tobacco manufactur-
ers are venturing into the food distribu-
, ton area.
The greatest gains have been made by
! the chain stores and by mail order
houses which have opened retail stores
and the department stores are forming
similar chains. Gains by the mail order
houses have risen as high as 35 per cent
in some months above the 1928 level for
the corresponding period.
High Money and Bank Mergers.
Bank consultations of both big and
small proportions formed the real fea-
| ture of the banking year. These mergers
; took place in all sections of the country
! and were necessary in order to handle
. the tremendous natural and orderly ex-
! pansion in American industry and
trade, as we'll as to handle new lines
Of banking business. The banks went
: extensively into the trust and invest
! ment banking fields and broadeneo
| their activities materially from the old
| time commercial banking lines.
Another feature of the situation was
! the advance In money rates due to the
activity of the call money market and
the volume of trading In the speculative
markets and the efforts of the Federal
Reserve Board to curb the volume ot
! brokers' loans. These factors had a
! psychological rather than an actual ef-