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Show COAli INDUSTRY GETTING BACK TO NORMAL. Roer AV. Babson Sees Even Produc. tion But' Advises Purchase For Protection. Babson Park, Mass., July 5, 1924. The Coal industry,, important in itself it-self and because of its affect on other industries, Is getting back onto on-to a normal basis, according to Roger W. Babson. The statistician discusses discus-ses both bituminous and anthracite fields in a report issued today. "The coal industry has been upset up-set so long." says Mr. Babson, "that It Is distinctly encouraging to find that it is preparing to get back onto a more normal basis. The feast and famine program, promises to giva way to something approximating three square meals a day for the operator, the' miner, and finally, the consumer. "The latest upset started last winter win-ter with the threat of a strike for this summer. To prepare for such . an emergency the operators rushed to build up a reserve supply and, the 1922 production of bituminous total, ling 422,000,000 tone was topped with a volume of 545,000,000 tons In 19JJ. January of this year following fol-lowing suit wirh 50,000,000 tons, and February totaled 45,000,000 then it became apparent that busi-' busi-' ness was slowing up; the threatened etrike was called off and a three year agreement with the miners signed. Demand declined and the operators fojnd themselves with a tremendous stock on their hands, in fact, April first showed our reserve supplies at 60,000,000 tons, the largest lar-gest in recent years. Prices drop-ted drop-ted to $2.10 at the mine and operations opera-tions were cflrtailed, during April May and June production ran about 60 per cent of the average earlier in the year. "Stocks are still relatively heavy but prices are down to $2.01 at the mine and demand is overtaking the supply. Under these circumstances 'it is probable that same of the high cost properties will have to close, but everyone will be better off with fewer producers working a greater part of the time. Prices may not go much below present quotations and certain keen buyers look toward slightly higher levels. However there is little in the present situation to justify any radical change in either direction. Production mean, time rhould follow Its normal sea-Fined sea-Fined tendency with a possible slight Increase a3 fall business demands materialize. Prudent buyers are covering their needs In the present market. "Once the Industry gets back Into its ptrlde It should hold it until Borne development threatens another coal shortage, then I suppose we shall all have to pun the gauntlet again, taking tak-ing our lickings by turn. Such shortage ordinarily develops from a combination of three factors. If business gets to booming and the demand for coal is unusually heavy, prices climb and the buyers demand for coal is unusually heavy, prices climb and the buyers push In to protect pro-tect their need. Result a tempor. fhottae. There If, nothing In the pre.-.ent - situation (the fiabsonchart shows general business activity at 13 per cent below normal ) to promise prom-ise any shortage from this source for 'he r'-malnder of this year, at leant. T iiii-il labor r i fli u 1 1 : r- have a similar effect on the market, but the three year agreement now In force precludes the prba!,jl 1)1 i,y of BUut 'lov. ii,) on theis score. The third factor Is transportation. When coal cannot be moved from the mines li m., ht o , veil not exist as far as th. market is roricerrie I. plenty of car and no con?'; it ion pi.,inl,e rapid iruri.oit.w.orj ,,f co.,1 during th,. re ma. ruler of Uif, year. '.The urit h racltr- Industry has not urrercd so great a hIiiiiiu iis the bituminous bi-tuminous h"j;iu u; i.o n, i- . v.ri , threatened and nto'-k4 were r t t, 'j to iu' h a t ' " ' t ttent. Produc t'on In X'j'i'i of 'jf,. 000, 000 tonn has teen followed. -by production firound' 7.000.000 tonV u morith thl, year. ' Low prb'-s for the year are ordinarily ordinari-ly ri' bed In April when (1 differential differen-tial li put Into effect to npeej early deliveries. .This usual monthly increase in-crease is now scheduled and will probably continue. Little change in wholesale prices may be expected. "Retail coal dealers are facing a serious problem. The public Is not buying this summer In the usual volume. Many of the retail dealers, lacking more storage space or suf. ficient capital, are being forced to refuse re-fuse their shipments as they come from the mines. The operators in this case curtail production and are only mining as much coal as the dealers can take. If this continues we will find everyone clamoring for coal September first. It will be physically Impossible for the dealer to get and deliver In a single month the coal he should have been delivering deliver-ing all summer. Under these circumstances cir-cumstances a local shortage may easily develop and we will all he rushing around trying to get coal at any price. "There Is little chance of prices going any lower under the existing conditions and the wise man will got his coal in now when he can get deliveries, de-liveries, thjs avoiding possible shortage short-age prices and the bother of trying to get it late this fall. "The consuming public may also be interested," concluded Mr. Hau-! Hau-! son, "in the recent filndings of the Canadian Geological Survey which reports on new fields In Alberta which promise to supply anthracite. bituminous, and lignite coal for all of Canada for many years. This spells smaller exports from our own supply and precludes the probability of more shortages, as severe as the last two." m . . |