Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-10
WHOLESALE BUYING
ON LARGER SCALE
Activity Resumed as Cor
porations Prepare for Re-
neWed Production.
BY ]. C. ROYLE.

Purchasing is still active, but the
center of interest has been transferred
from the retail counters to the whole
sale and manufacturing departments.
The retailers wound up the year with
a burst of speed, and since they were
disinclined to allow the heavy piling
up of inventories, their shelves on jan
uary were pretty well cleared. Now
they have begun to lag in stocks for
immediate needs, and the manufactur-
ers are feeling the effect. Wholesale
buying is still in small lots, but manu-
facturers no longer are afraid Of that
trend. They know that even If the in
dividual orders are small, the total
volume Is undiminished.
The automobile show undoubtedly
has been the outstanding business event
of the week, since the automotive in
dustry Is the leading manufacturing in
dustry of the country, so far as value
of products Is concerned. The results
of the show have been satisfactory
and factory production is being speeded
up in consequence. The effect of this
on other industries can scarcely be
overestimated, since the automobile
business absorbs almost quarter Of all
the iron and steel made in the United
States. The industry uses IS per cent of
the rubber manufactured, Is per cent
of the copper, 81 per cent of the plate
glass and other materials in similar
proportions.
Building Shows Progress.
Building Is progressing satisfactorily
with good volume of lumber, cement.
steel and hardware being absorbed. So
far as municipal building and construc-
ton is concerned the trend is on the
increase as shown by present volume OF
municipal financing. Both lumber and
cement are IN somewhat precarious sta
tistical position so far as supplies are
concerned, but prices are steady.
In the manufacturing lines, mergers
still are In prospect, since competition is
severe and producers are chary of ad-
vancing prices, for fear such a move
would check buying. This is apparent
in automobile, steel and rubber divi-
sions. The non-ferrous metal mines are
still on sharply curtailed production
schedules, and 1t is evident that most
producers desire to keep them so until
stocks are materially reduced Textile
mills also are on reduced schedules.
This is seasonal tendency as we'll as
attributable to lack of buying demand.
Rural communities seem likely to be
in strong position during the Spring
and Summer. The corn crop was not
perhaps as large as hoped for, but
the price is advantageous to the grower
who markets his crop in the form of
meat and the livestock men are look
ing forward to a good year. AS to
cotton, some States had a successful
season and some did not. Prospects
seem favorable for the wheat growers
for 1880, while the potato producers
have had favorable conditions as to
prices and markets.
Agricultural implement manufactur-
ers are not only working at a high
capacity rate, but have prospects for a
profitable export trade season. This Is
true also of machinery and machine
tool manufacturers, with few indica-
lions of drop in domestic demand.
Manufacturers, however, are dubious as
| to the situation of some of the coffee"
republics in Central and South Amer
| lea, where the fate of the coffee crop
| Will have q major effect on credit
conditions.
Airplane makers are overstocked
| The difficulty seems to be rather with
the small planes rather than large pas
senger and freight carriers.
Mergers in Radio Field.
There has been no lessening Of I'M
| filled orders on hand in the electrical
equipment industry. The replacement
OF obsolete power plants seems likely
to be more extensive in 1880 than ever
before. Radio manufacturers have fair
stocks on hand. Mergers still are be-
ing talked Of In the radio field.
(Copyrisht, 1930)