| Show II if c GENERAL BUSINESS BUSNES CONDITIONS 1 By GEORGE E. E E ROBERTS From the Monthly Bank Letter Lter for April Apri Issued by The Te National City Bank of New Ne York month mot of March Marc b has strengthened strength strength- THE I ened eed the convictions o of those tose who believe beleve that tat the factors making maing for good go b business ire re still sti in the te as as- as Late in 1926 business busies experienced ex ex- e. e I cd some up let-up which was cause pre for considerable questioning among business men m as s a to whether the te long expected termination of pf prosperity were not at hand had Since the new ye year however business has hs b been n slowly slowly slowly slow slow- ly but steadily improving until it itis itis itis is now pretty dear clear that tat the recovery rever Has lias been genuine Industrial production though heavy hav in individual lines such suc as s iron and aM a steel and tires tite has bas not b been en generally Up tip p to the levels leves of 1926 Output however however however how how- ever has bas shown a good goo increase since the tile first of the year and d is in good go volume as m measured aur d by t the totals of most moss previous years Bank checks drawn and cashed throughout the country and railway traffic continue continue- at high l levels vel Bank as the former figures ate are called for principal reporting cities ag aggregated ag- ag gr for the four weeks ended Mardi March 23 compared with for the corresponding period of last year an increase of 53 per pcr cent despite the lower level of prices Railway passed the million mark for the first time this year in hi the week of March 12 or nearly nine weeks earlier than last year White While objection may be made that shipments of coal in anticipation of a strike are largely responsible for these heavy loadings the movement movement move move- ment of merchandise and miscellaneous freight has continued at record levels With the United States Steel Corporation Car Cor operating practically at ca capacity capacity ca- ca and the industry as a whole averaging around 95 per cent at the end of March the month will close to setting a new record for steel production General building continues to holdup hold op up as shown by February contract awards for 37 states which were only 34 34 per cent below those of February last year For the two months of January and February total awards ran an 10 per cent under those se of last year The Further Decline of Prices The general tendency of commodity prices has continued downward as indicated by Professor Fishers Fisher's index of articles articeS which in the week of March 20 touched 1396 per cent of the 1913 average the lowest in live five years and almost down to the postwar postwar post post- war low point of reached in Jannary January Jan Jan- nary uary 1922 Much has been said of the thc decline in agricultural prices but non agricultural prices have been falling falling fall fall- ing too In January of this year the average of non agricultural items in included in- in eluded in the Department of Labors Labor's wholesale price index stood at per tent of th the 1913 average down 5 S Sper per cent from froma a a year previous and practically equalling the lowest point of 1921 tc in the depression The decline of prices it is interesting to note bole has not been confined to this country but has ben been in evidence in iii foreign countries as aswell well The Improvement in Textiles Good reports are still to be had from the cotton and silk branches of the textile industry mill ac activity activity ac- ac has continued to increase both bothIn In New England and in the South with night operations common in the southern section Reports compiled by the Association of Cotton Textile Merchants of New York show that while production o of f standard textiles during February increased 8 per cent over February a year ago sales in increased increased in- in creased by per cent and shipments by per cent ent Stocks on hand handon on February 28 were per cent below stocks on hand February 28 19 1926 6 unfilled orders at the close Of February this year were per percent cent greater than on the corresponding date a year ago AH All in ii all the cotton industry regards regards' th the outlook more favorably than than than-at at any time for severa several sev sev- era eral years past fait I Silk manufacture also is active and rayon or artificial silk is in iii strong demand Woolens on the other hand are Fn ill the least satisfactory position of the principal Emphasis was laid on th the difficulties which the industry has been experiencing by publication of the annual report of the American Woolen Company for 1926 Those who are thinking that agriculture agriculture agri agri- culture is having a monopoly of troubles troubles trou trou- bles will get a different view by reading the record of this company which is the largest single factor in inthe inthe the woolen industry It had a deficit deli deli- cit after dividends in 1924 of 11 in 1925 it suspended dividends dividends divi divi- on its common stock but had hada a deficit notwithstanding o 2555 and in 1926 the deficit increased to Upon the publication of this report the preferred shares which have paid 7 per cent for many years sold down to 59 on the New NewYork NewYork York Stock Exchange and the common com mon touched the lowest price in 24 years I Agriculture The Governments Government's report of df Ma March ch 1st on grain status showed bushels of wheat above the figures of last year and good crop prospects with the result that prices weakened The stocks of corn and oats also are unusually large and prices of these grains declined to the lowest figures on the crop The report makes the interesting estimate that only 16 per percent cent of the last corn crop will leave the county in which it wes was grown and only 24 per cent of the oat crop These figures emphasize the fact that there Is but a limited market in the cities for these grains They must be fed out on the farms and the low prices of late are clearly due to a falling in the number of horses hogs hogsand hogsand and cattle on the farms faring The dairy industry on the other hand shows a contrast to declining consumption of other products According Ac Ac- cording to all reports the dairy industry in ill 1926 had one of the most prosperous years in its history its profits being befog increased by by the low prices for the feed grains Hoards Hoard's Dairyman in its review Of dairy markets markets mar mar- in 1926 says Disregarding the increased production per cow th that t ha has taken place In tb tb past ten years year and that liSa had an iso In part In increasing dairy farm return cot cost formulas for teed feed and market market mar mar- ket prices of dairy products product show how a avery avery very Condition prevailing In Inthe inthe the industry The Th spread pread between the feed cost of market milk and price received re received re- re wa we in 1926 This 1 is 2 23 cent above 1925 end t is exceeded only by a few cents cent in 1919 and 1920 Producer Producers Pro Pro- ducer of cream made into butter re received c ived a return of tent a pound fat above feed cot colt in which i Is 24 cents cent above the spread in 1925 and 1 exceeded only slightly in and d 1919 with the return in being 34 cent ct greater The number of ha ha decreased from on January I 1 1925 to on n th the day In 1926 and finally to on January I. I 1927 This i is a In two years year of COO head haid or nearly three per cent cht That flat there i S. S no immediate danger of overproduction by increase in number of cow i 3 indicated by the fact that there are I fewer heifer between one and two years year than there were two year ago ao although the number 1 11 four faur per cent greeter greater than a year ago Value I of cow tow i is 23 per cent cOnt greater than two year ago Sod and 9 per cent greater then than i one year ago The Bureau of Agricultural Economics Econ Bean I of the United States Department Department Depart Depart- ment of Agriculture in its review of th the dairy industry in 1926 says The close cloie of the ye or finds the domestic do do- mastic situation on an a sound ban bad with th the lighter 1926 production and an ac active ac tive consumptive demard out as primary elements of support Prices are high especially butter prices but the inventory of reserve tock on hand suit suit- rest that It i is plainly a case of supply and demand Butter is much higher prices in the United States than in any Other country New Zealand butter of guaranteed guaranteed guar guar- quality has been offered c. c i. i f. f cost insurance and freight paid at New York in the past month at 33 to cents and a considerable amount of butter from various foreign foreign for for- eign sources has come id itt subject to the 12 cent duty |
