Evening Star Newspaper, December 31, 1924, Page 21

Industries Generally Experienced Fairly Successful Year, Review Reveals | Auio Market = Fluctuated; Production at 3,500,000 Iron and Steel Had Spotty Y ear—Bitumi- nous Coal Trade Suffered, But Anthra- cite Conditions Were Satisfactory. BY J. C. ROYLE. Business is always a battle. But it a battle which seldom is settled by & knockout. Iach vear the bout goes to a decision. Whether business is a winner in this annual contest de- pends not on one month or on one commodity or on one trend of prices. To judge accurately, it is necessary to tako into consideration all factors. In other words, to study “the fight by rounds,” the following reviews of commodity movements constitute the gccount of the fight by rounds in the 8924 battle. Automobiles. The automobile industry in 1924 had almost as many ups and downs as the roads the machines traveled. Manu- facturers started out the year at a pace never before equaled. But they failed correctly to gauge the market, and, before they knew it, their own warehouses and those of their deal- ers were stocked with cars that lacked purchasers. There was only one thing to do, and that was de- se production. Manufacturers curtailed output sharply, dealers in- stituted intensive drives, and, before tho Summer was over, surplus stocks were reduced practically to normal proportions and demand forced in- crease of production. There has been no question of ap- proach of the saturation point. Makers started out determined to have cars on hand for immediate de- liveries to buyers who in other years id to walt. When the buyers found they could get cars without difficulty the instant urge to buy them became less insistent. Throughout it all, however, there has been a steady un- dercurrent of demand, and as the end of the year approached, the working schedules of the factories were in- creased proportionate The year did not equal the record- breaking period of 1923. In that year mere than 4,000,000 cars were turned out. When final figures are com- piled for this year it practically is certain that the output will be slightly over 3,500,000 vehicles. The ¥ord output will closely approach that of 1923, when that company manufactured practically as many carsasall the other American makers combined. The Hudson and Essex s been of record-breaking and recent reductions in price, possibly because of increased output, kept the late season demand at a remarkably high level. Some other makers followed suit. There now are over 17,500,000 auto- mobiles and trucks in commission in the United States today, and there is every sign that the number will be increased at this vear's ratio in the next twelvemonth. Replacements alone will require almost cars in 1925 Price movements like production have had many ups and downs. Some mak a ding quantity pro- duction have been able to cut prices. But it has not been a good year for quality producers in general Few extreme changes in designs wer noted, but factories, neverthe- less, were spend millions in re-equipping their factories for production of new models. Balloon tires increased in popularity, but did rot eclipse the regular sizes on many #Models. Most changes were along the lines of what the trade calls “refinements” and brighter paint work. Despita power of the ties, the automobile never again will make the mistake of loading themselves up with fin- ished cars hevond® the reasonable limits of immediate demand. On the other hand, they will move actively toward lower costs of distribution, better regulated financing of time purchases through larger initial pay ments and shorter periods for com- pletlon of installments, reduction in “trade in" allowance, Yower costs of production and better serv to owners. Costs of materials have risen and there seems little likelihood of fur- ther radical reductions in prices. Ad- ditional buying revival expected after the turn of the year. proportion rs, or some forced to the augmented automobile buying communi- manufacturers Auto Trucks and Busses. The development of the motor bus Toutes of the country has been a life- €aver to the motor truck and bus in- dustry. It ufficed to take up the R £lack occasioned by falling off in de- mand for commercial trucks during the midyear utomobile slump and provided manufacturers with 15 to 20 per cent of their gross rev- enue. There are now about 50,000 busses tn operation and it appears that the field has only begun to be opened. Bus and truck production for the year totaled above 365,000 vehicles, a rec- ord second only to the banner period of 1923. The Increase in the late months of the year was marked and the output for the first quarter of 1925 is expected to approximate the extraordinarily active period of a year ago. Agitation for store door delivery and the expansion of bus routes are calculated to produce a demand in the coming year which has nover been equaled. In both truck and pleasure car flelds mergers are being talked of to cut overhead ex- pense. Iron and Steel. Iron and steel had a past spotted year, both in production and prices. The first quarter was started with a rush. Production in February and March shot up to above 90 per cent of capacity. Then came the Summer glump which upset demand and price levels and which was followed by sharp curtailment. After election, orders jumped again, mills were re- stored to about 75 per cent of capac- ity and prices showed additional firm- ness. All in all, it was not a bad year for the industry when it is taken into consideration that capacity of mills Is far beyond requirements and im- provement in demand and prices is likely to lead to decided overproduc- tion. Iron ore shipments on the great Jakes fell @ nearly 16,000,000 tons. Plg iron produetion dropped correspond- ingly and prices slumped far below 1923 levels in midyear. The Fall re- wival signaled its approach’by an im- provement in pig iron prices and the lighting of more stacks. Composite finished steel prices reversed thelr trend of the previous year. That is, they were higher than the 1923 levels in the early months and lower than those of last year in the last half of the year. Steel tank plate and structural steel prices suffered the most severe reductions. Tin plate re- quirements kept prices for that prod- mct fairly stable. . The s 2,000,000 | plus method of basing prices was the outstanding feature of the year in the steel industry. This put each produc- ing center on its own merits and greatly increased the importance of freight rates. To that extent it dis- turbed prices since many producers absorbed differences in rates in order to compete with more favorably lo- cated mills when old and valued custom- ers were concerned. It seems likely that freight rates will set definite limits on competitive zones around the various centers in 1925. Exports fell below 140,000 tons in some months of the year and imports from Europe increased as prices bet- tered toward the end of the year. As the year ends prices are firm and likely to advance and more furnaces are being blown in. Pig iron and steel bars are expected to show the largest gains with steel plates, cast iron pipe and structural steel showing the least advances. The rate of production has not reached normal but is expected to do =0 by February. The industry has been almost free from labor troubles but wages have been maintained and some raw ma- have advanced in cost. Water transportation will be utilized more ex- tensively in 19 r before by steel producers of the West Virginia, New York, Pennsylvania, Indiana and Illinois centers. Non-Ferrous Metals. Industrial uses of the non-ferrous metals increased to a remarkable degree throughout the year. Copper produc- tion was somewhat higher thad in 1923 and the range of prices was uni- gormly higher. From a low monthly \verage of 12.49 the price of copper advanced to quotations well above 14 cents before the end of the year. This was due to strong demand from do- mestic consumers in the electrical and automobile fields and to improvement in forelgn demand following the opera- tion of the Dawes plan in Europe. The market was benefited by floods in Peru which cut cheap Peruvian production. Lead was In strong demand all year. Paint manufacturers, builders, battery men and other consumers fought for spot supplies and from July on, the price advanced steadily with buy- ers paying a premium for immediate deliveries. The statistical position of zinc was | far weaker than that of lead through- | out much of the annual period but producers in the tri-state fleld cut out- put sharply at times and kept the market on a stable basis. Near the end of the year, demand increased es- pecially from galvanizers and the price advanced correspondingly. Silver unsupported by the pur- | chases which had previously been made under the Pittman act, but pro- ducers got together and worked out a feasible plan for encouraging for- | eign markets and domestic use in the | arts and sciences. As a result, prices | advanced steadily after midyear and the silver producers had a satisfac- | tory and profitable year. Tin was in demand and production was light. Prices, therefore, advanced and this trend was firmly consolidated lin the late Fall by the strength of the tin plate products turned out by the steel mills. The volume of building, with at- tendant refurnishing of Kkitchens throughout the country, gave a zip to sales of aluminum ware, and the prices of that metal show: d gains of 2 cents a pound above those Gold production did not keep pace| in the United States with consup- tion. Nearly $10,000,000 more gold consumed in the arts and sciences irrespective of coinage, than was mined, smelted and refined in the country. Since gold is stabilized at| a price of $20.67 an ounce, and has been for vears, while costs of mining and smelting have increased mate- Tially, there has been less incentive to increased operations of gold-bear- ing properties than has been the case in other sections of the mining in- dustry. Lumber. Lumbermen adjusted themselves to general conditions in a remarkable way throughout the past year. When demand was strong in the Spring, they were ready to meet it. When consumption slumped with business in general throughout the Summer, they cut production sharply, and it is a notable fact that production was kept well below new orders through- out the most of the year. Daring the Autumn, demand again improved and mills and logging camps have speeded up activities in consequence. As a result, prices of Douglas fir and Southern pine andvanced sharply to- ward the end of the season and now are on practically the same level as at_the same time in 1923. The improvement in buying of railroad equipment has been a de- | cided stimulant to lumber production. Bullding operations next year are counted on to maintain about the same pace as this year, but the re- quirements of the farmers for re- placements and new buildings is con- | servatively placed at four billion feet. In suming up the situation, it is apparent that prices on the whole were lower than in 1923, whereas costs of production did not decline in cqual ration. This inevitably spells lesser profits for producers. Brick. Activity in building, which was well maintained even into the Winter, served to keep brick production at a high rate. In the neighborhood of 287,000,000 face brick were produced in American yards and some ship- loads were imported from Holland and other Furopean countries. Prices all over the country showed a fractional reduction below the averages for 1923, but still were fairly well maintained, with no wide fluctuations except at New York, where red domestic brick on dock, after holding at $20 a thousand for months, ran into a sudden slump and dropped under $15 in August, Sep- tember and October. Stocks on hand gained somewhat before the end of the year and un- filled orders showed a decline as compared with a year ago, but in general production was held so closely to consumption as to stab- 1lize market conditions. Railroad Equipment. No sooner was election over and the threat of adverse legislation lifted from the railroads than rail- road equipment huying took a tre- the Pittsburgh mendous-Spurty w industrial and trade activity in the country and the demand for prompt delivery of goods occasioned by the hand-to-mouth® buying of retallers whick has become a fix feature of the business situation. The railroads had placed tremen- dous orders for the Spring of this year. When these were fabricated and delivered thero ensued a lull when roads were amply supplied. The remarkable crop movement put a lot of cars out of commission and as Fall approached, orders for freight cars, locomotives, ties, rails, spikes and fishplates, bridge timbers and other equipment sprouted from every headquarters office. . The freight car orders ran well over 20,000 a month in the last quar- ter and the total for the year closely approximated 165,000 cars. Locomo- tive orders have not been relatively s0 heavy and the difficulty experi- enced by the Baldwin works in col- lecting for equipment made for for- elgn customers has led to consider- able caution in the export field. Rubber. It worked. TIn spite of the declara- tions that the so-called Stevenson plan of rubber production fostered by the Britlsh government to restrict rubber production when the price fell below a certain level, was impossible of operation, it actually worked out in 1924. The price on which this slid- Ing scale of production was worked out was 18 pence, or slightly less than 35 cents a pound. Before the year ended, rubber had advanced from 22.80 cents to above the 37-cent level. The upward trend, which only be- came apparent after midyear, was alded by the steady volume of tire production in the United States which accounts for the larger part of the world supply. For some months, tire production was above 100,000 casings a day. The movement was increased by the undoubted popularity of bal- loon tires, which came to be not only an additional, but an original equipment of many makes of motor cars The mechanical division of the rub- ber companies showed high percent- age of operation, with excellent de- mand. Finished stocks of goods in the mechanical, footwear and tire di- visions were about normal as the year closed. The tire industry does its heaviest business in the Airst quar- ter of the vear, and there is every reason to expect that replacement de- mand and call for original equipment will be large in the next three months. There was some price cutting and cut-throat competition in the last year, but this is not likely to be re- peated in 1925. -Makers have cut pro- ductlon costs in some instances by buying their own fabric mills, and profits probably will be better in the next three months than any time in three years. Stocks in the hands of 100,000 dealers as the year closed were below 5,500,000 casings, & re- duction of 7,000,000 casings since last June. Replacements will account for about 25,000,000 tires and new equip- ment will call for probably 15,000,000 casings in the coming year. Coal. Weather played a dominant part in the operations of the coal industry in the past year, during which the bitu- minous end of the business suffered somewhat sever In the early months of 1924 bituminous production was rushed on the possibility that thers might be an extended strike when the new wage agreements came up for consideration in April. This did not materialize and these stocks lay on the market throughout the middle part of the year. The open Fall postponed buying by householders and for much of the season thousands of mines were closed and others worked only on a part-time basis. Production fell steadily below that of 1923 and prices suffered to an equal extent. In no month did the price of bituminous coal reach the general average for the 12 months of 1923, The anthracite industry, on the other hand, had a satisfactory year. Production almost kept pace with that of the previous twelvemonth, and mines were operated with full crews in most instances. Prices were a trifle under those of 1923, but this drop was not of marked proportions. The greatest difficulty encountered by the operators was in strikes in the anthracite fleld which were unau- thorized by mine worker officials, but which nevertheless proved trouble- some. The slump in industrial operations in midyear checked buying in both bituminous and anthracite, and the act that lake shipments to the Northwest fell off had its reflection in the prosperity of shipping com- panies which had difficulties in se- curing upbound coal cargoes. The hand-to-mouth buying noticeable throughout the year was due in part to improvement In rallroad transpor- tation and expedition of shipments. The anthracite industry conducted an intensive campaign in au effort to show the public how to use the small- er and cheaper sizes of coal in con- junction with the larger grades for domestic purposes. This was mod- erately successful. Coke oven activity picked up at the close of the year as steel mill ac- tivity increasesd. Farm Machinery. The advance in farm product prices came too late to have a revolutionary effect on sales of farm machinery this year. Sales volume was about on tho level of 1923 although gains were re- corded in some individual lines. How- ever, farmers have paid off much of their long-standing indebtedness to farm machinery companies and the latter are in far better financial situa~ tion than a year ago. For example, International Harvester is said until recently to have been oarrying ap- proximately $50,000,000 in farmers’ notes. Export sales have reflected the re- habilitation of Europe and for the first three-quarters of the year totaled about $47,640,850, or 11 per cent more than for the corresponding period of 1923. Prices of machinery have been steady although manufac- turers clalm the margin of profit has been small. Electrical Equipment. Radio goods undoubtedly were the feature of the electrical equipment trade In 1924, The popularity of radio sets increased steadily until, at the end of the year, it was estimated that about 15,000,000 were in opera- tion in this country. These figures are not exact because many of the sets were of home manufacture. Their parts, however, formed a part of the output of the electrical equipment compenies. In addition to radio, sales im- promed in household appliances, espe- cially refrigeration plants, small mill and factory apparatus and in sales of motive machinery to electric rail- roads. There is a certainty that pres. ent projeots for power development will result in heavy orders for equip- ment during the coming year. Kurope is rapidly returning to the market for this class of goods and Japan and the orient are sure to prove & ruittul aourme of trade: Snapshots of Business in 1924 BY J. C. United States increased nearly one The buying power of the ROYLE. billlon dollars over 1923, but buying did not equal the total of that record year. . A declded slump was encountered This was counterbalanced in part by a remarkable recovery quarters. of actlvity after election. in the second and third Industrial employment and wages continued high, labor dlsputes were of minor proportions, and savings accounts Increased. Condition of the farmers of the country showed a 30 per cent improvement, placing them for the first time in some years in a sound financial position. Many basic industries failed to record as high profits as last year, but more lines were placed in a statistical position to take full advantage of future demand. Forelgn markets gave unmistakable signs of increased absorp- tion of American goods. Competition continued severe, with strong resistance by the pub- e to price advances. Advertising and price reductions, however, brought immediate response from purchasers. Development of the radio and bus industries promise even greater advancement next year. Indications point strongly to advancement of industrial opera- tions, continued building activity and general prosperity during the first part of 1925. (Ovpyright, 1024) ——— tribution of farm lighting and power units has steadily improved and the four billion dollars’ worth of new building construction has called for heavy supplies of lighting fixtures. Telephone companies have spent mil- lions on new equipment and are pre- paring to send even greater sums. There is a tendency toward higher prices, owing to increased costs of materials, especially copper, zinc and lead, but margins of profit during the year were not unduly affected. Ag- gregate sales of the big companies fell nearly 10 per cent under those of 1923, but that was one of the best vears the business ever saw. For the first nine months the aggregate sales of four big producers, Allis Chalmers, General Electric, Westinghouse and Western Electric, totaled $535,105,644, Paint. The paint and varnish manufac- turers of the country had a record- breaking year. This was due not only to the heavy building program but to the Increased prosperity of the agricultural sections, which bought paints in tremendous volume to do refurnishing which has been neglect- ed since 1923. Sales of some com- pantes ran as high as $100,000 a week above those of 1923, as the year drew to a close. Increased prices of materials had considerable effect on the paint busi- ness. Lead and zinc increased in price during the year. Linseed oil advanced as the year drew to a close, although it did not reach the peak price of 1923. Turpentine, however, fell off sharply after the first three months of the year. White lead was more expensive, despite the abandon- ment of the old Dutch process in fa- vor of more expeditious methods of p duction by many paint manufactur- ers. “Black gold,” as oil fleld workers call crude petroleum, was on a some- what debased currency basis in 1924. But experts connected with the indus- try belleve the worst is over and that the next year will show a radical improvement. The tremendous flush production of some of the California flelds which upset conditions in the industry in 1923 was checked, but output in other sections was heavy in spite of prorating of pipe-line runs and other measures taken to slacken it. The total output for the year ran only about 7,000,000 barrels, or 1 per cent below that of last year, which was a record breaker. Daily production kept well up above 1,900,000 barrels toward the end of the twelvemonth. Demand was heavy. Fuel ofl con- sumption increased and the improve- ment in gasoline demand showed an advance of over 25 per cent as com- pared with last vear. As the year closed there were crude oil supplies in storage sufficient to meet con- sumption demands for nearly’ five months. Gasoline stocks are equiva- lent to about two month's requirements. Lubricants and fuel oils seem des- tined to advance. Price changes are largely domi- nated by local situations. Sharp com- petition in the retall gasoline fleld resulted {n marked slashing of prices in some sections, but quotations were comparatively stable for the country as a whole. The situation was bet- tered by the slackening of Mexican production and shipments, but this was counterbalance by development of new properties in Central and South America. Cement. More Portland cement was produced and used in the United States in 1924 than ever before in history. Production reached the enormous total of approxi- mately 150,000,000 barrels. This was within about 12,000,000 barrels of the annual capacity of the existing plants. The record demand was inspired both by building construction and by excep- tional road-making and paving pro- grams by States and municipalities. The amount of concrete pavement placed under contract during the year closely approached 10,000 miles. Cement ehipments, after the first three months of the year, ran steadily ahead of those of 1923.° Prices in general closely paralleled those of the preceding year and were fairly stable at an aver- age for the country of about $1.75 a barrel. It was not untll toward the end of the year that the glass industry ad- vanced to a basis comparable to that of 1923, In the early months of 1924 there was an urgent demand for plate glass from automobile manufacturers, but this eased off after the first quarter, and even at the year's end was not so pressing as in the previous season, ow- ing to heavy imports from abroad. ‘Window glass was in excellent de- mand throughout the period, but the character of bullding construction did not lead to as strong a demand as was anticipated. Many plants closed or cur- tailed productions in midyear. Toward the Winter they opened up again with good bookings, especially for bottles, containerse and lamp buibs. The latter product was active all year. Hardware. The hardware trade was firmly sup- ported throughout most of the year by the volume of building in progress. Costs of production were materially lowered through the adoption of standards which eliminated many sizes from the dealers’ bins. Manufacture of hardware fell some- what below the record. of 1923, but prices in general were firm and steady, and the probability of a tremendous volume of repair work on the farms next Spring is counted on to aid sales in the next three months. Raw materials have risen, but no radical change in price levels is anticl- pated. . Little of situation of in price, but production fell 600,000,000 bushels below that of 1923, and much of what was produced was not in such shape that it could be marketed direct. Those farmers who were able to sell their corn at prices considerably above $1 a bushel did well. The remainder, who will feed hogs or cattle and market their corn in the form of meat, have a chance of securing excellent prices for their product fn 1925. Wheat. Wheat has been responsible for the remarkable betterment in the condi- tion of the farmer this year. The crop was heavy, totaling approxi- mately 870,000,000 bushels, while there was a general world shortage. Canada, chief competitor of the United States In grain, had a crop far below the record yield of 1923. As a result wheat growers will re- celve something above $600,000,000 more than they gained last year. It is estimated that the farmers received prices for wheat 30 per cent higher than in 1923, and that if split up equally their gains would give each approximately $200 more to spend than he had a year ago. Flour. The flour business was somewhat disrupted during the later months of the year by the advancing prices of wheat and the consolidation of many large baking companies throughout the country. Prices rose over $2 a barrel during the year in reflection of the jump in wheat, and in the North- west such high figures were demand- ed for the Washington milling grades that many millers substituted Montana grain. It was felt that the banking con- solidations might have a decided effect on the sales of flour to house- wives. Consumption was not mate- rially curtailed, although buying by Jobbers and retailers was of the cau- tious, hand-to-mouth variety. Exports suffered to a considerable extent through conditions in Europe and the Orient, but heavy shipments went to Central America. Produc- tion continued at a good rate. Suga; I The burnt child dreads the fire, and consumers of sugar in this country took good care this year not to lay themselves open to wild fluctuation of prices. Buying was largely on a hand-to-mouth basis, although it was heavy, and quotations therefore ex- hibited no wide range. In the early months of the year prices. for both raw and refined were higher than in 1923, but toward the end It became apparent that world production would show a tremendous increase, and prices fell correspondingly. The chief wails, however, came from the Cuban producers. There is more cane in Cuba today than at.any time in history. Domestic production of beet sugars will reach nearly a million tons, and the European pro- ductlon increased over 25 per cent. The domestic producers, outside Louisiana, had little to complain of. Their yield was high. and returns from the 1923 crop marketed this year were highly satisfactory. This pro- duction served to act as a stabilizer of prices throughout the vear, and the Western producers sturdily contin- ued to invade Eastern retail markets with their product. The world crop is estimated at 10 per cent larger than last vear and this would indicate no violent ad- vance in prices in the coming year. The sugar situation was thrown into unrest by demands of Cuban pro- ducers that the American tariff, now fixed at 176 cents a pound, be re- duced. But there was a large volume of full-duty sugars, paying 2.20 cents a pound, which came in from other foreign countries, where producers were able to show a profit on their shipments. The Loulsiana cane crop was extremely short and sirup was In keen ‘emand as the year ended. This induced fairly heavy imports from South Africa. The rice crop this year was the smallest since 1916, being estimated at only 32.290,000 bushels. As a re- sult growers obtained splendid prices, which held firmly to the end of the year. - In Louislana, Texas and California stocks were exceedingly small and millers were active In securing rough rice even early in the season. The demand from the Orient was un- usually brisk and growers of the Sacramento Valley were able to dis- pose of all they raised at splendid figures. Further purchases by the Japanese government are anticipated in 1926. Louisiana mills are expected to close in January because of lack of supply of rough rice, The success or failure of the potato growers this year was largely & mat- ter of location and weather. ~Produc- tlon in general was high, with the total estimated around 454,000,000 bushels. This had its effect on prices and in some localities, notably Maine, growers suffered sharp reverses. Tea occupied a stronger statistical position in 1924 than the previous year. Imports fell off decidedly, but this apparently was due to short sup- plies at primary sources rather than to & decline in American demand. Shipments to this country fell well below those of 1923, but prices stiffened materially. This was due in part to the improvement in the quotations of sterling exchange. Each gain of 10 points in British exchange was followed by increase of approximately half a cent in the price of each pound of te; About 60,173,000 pounds of tea wer imported in the first three quarters 95-this yeag, SRyl A Advance in _Prices Enabled Farmers to Cancel Debts Coffes had a sensational rise in the past year and for a time it was feared that the time-honored ‘‘five-cent cup of Java” was endangered. Four fac- tors contributed to this: The tremen- dous increase in world consumption, the revolt in the state of Sao Paulo, Brazil, with its attendant disturb- ances of shipping, a damaged crop and efforts at valorization by the Brazilian government. Prices doubled between last Janu- ary, when the average of No. 7 Rio at New York was 10.86 cents a pound, to December, when they had advanced above 20 cents. . Now the Brazilian government has abandoned its valorization scheme, and it has\become evident that the crop there is in better condition than was expected. Experts, in many cases, look for lower prices next year. There is small doubt that imports this year will have reached the tremendous total of 1,5600,000,000 pounds and there is equally small doubt that enough coffee will be grown to supply world needs in 1925 at prices within reason. Tomatoes. The tomato crop was short this year. The Spring was late and wet planting weather was followed by poor growing weather. The crop was helped somewhat by better con- ditions late in the year. The small yleld induced advancing prices, but many farmers made their dellverles to canners on contracts made before the season started and therefore benefited only partially from the ad- vance. Canned Goods Weather was a prime factor in the canning industry in 1924. Excep- tional variations cut down corn and tomato crops which resulted in small- er packs of these staples and higher prices. The weather was favorable for peas and the result was the larg- est output in the history of the in- dustry, aggregating 19,000,000 cases of two dozen No. 2 cans each, or 5,000,000 cases more than the previous record. Production of canned corn is placed by Western Canners' Assoclation officlals at 12,131,000 cases, or 2,000,000 below that of 1923. Output of canned tomatoes was also cut sharply and omato-packing States are making short deliveries on contracts. In all of these staples, the market was practically bare when the year started and higher prices have fol- lowed except in the case of peas, leaving corn up 35 per cent and toma- toes 15 to 20 per cent higher. All canned fish and fruit had short packs with consequent active demand. Ex- port business increased greatly. Can- ners have marketed their entire out- put at profitable prices. America’'s sweet tooth gave candy manufacturers little rest during the past year. Consumption increased steadily and the makers wound up the year with factories running at capacity in most localities. The business was aided materially by the lower prices which were obtained for sugar during the 12 months. These showed both a reduction from the 1923 level and a greater stability since the fear of excessive sugar fluctuations was al- most entirely removed. Cocoa beans and other raw materials used in the making of candy were in strong positions, but conditions were such that most of the manufacturers recorded a successful year. Confec- tioners were affected somewhat by the Chinese revolution which caused an ad- vance in that country's esg products which are used in large quantities by the manufacturers. Dairy Products. Only the fire wall of regulated and co-operative marketing stood between producers of dairy products and dis. aster. As it was, they had a fairly successful year although the future is uncertain owing to heavy stocks which will be carried over. The year was favorable to milk production and this resulted in a record output of butter and cheese. Demand for condensed and evaporated milk fell off. Produc- tion of eggs was about normal with prices following seasonal trends. Stocks of butter, which totaled 15,246,000 pounds last January, in- creased to mnearly 130,000,000 pounds by December. Prices which started above 50 cents for 92 score, dropped below 37 cents in the Summer and were about 10 cents below the January price this month. Cheese had a similar ex- perience. Holdings increased about 16,000,000 pounds and prices weakened accordingly. Cold storage holdings of eggs aggregate 32,000,000 dozen or 14,000,000 dozen under 1923. Consumption of butter increased owing to lowersprices and better ad- vertising. Unfavorable weather cut fruit pro- duction in some sectlons, but higher prices in most States raised the profits of growers well above those for 1923. Yields of berries, peaches, pears, cherries, apricots and some other va- rleties were short, and prices paid by canners high. In California, fruit farmers realized about $18,000,000 more for their 1924 crops than in the previous year, the total value of the California output being estimated at $176,345,000. Production fell off 20 to 35 per cent, but prices, in some in- stances, were nearly 50 per cent higher. Grape growers, for example, marketed 225,000 tons fewer grapes than in 1923, but received $109,568,000 for them as compared with $94,550,000 last year. The apple growers had a fine year especlally in_ the Pacific northwest where the fruit moved into con- sumption fast and at high prices. Georgia peach growers did not do well. While the crop was large and of fine quality, it was shoved on the market all at once with consequent lower prices. Florida citrus growers suffered to some extent from the same lack of regulated marketing. Raisins and pruncs made fine re- turns to growers, as did other dried fruits, for all of which export demand was heavy. Clothing. The weather was a dominating fac- tor in the clothing trade throughout the year. Unusual weather condi- tions affected retail sales and re- tailers bought only from hand to mouth. As a consequence, produc- tion of clothing fell off sharply until late in the year. The decline was more noticeable in women’s apparel than in men’s clothes. Prices also were lower than in 1923 despite high costs of materials. However, the volume of clothing sales is one of the few staple factors in the business world and the year ended without serious disaster to the trade and with excellent profits to some well managed companies. There were few labor disputes to dis- xupt the-alothing situation and those Building Helped Hardware—Clothing Production Declined Until Late—Silk Was Bright Spot—Live Stock Strong. which did occur were concerned more largely with shop conditfons than wages, the chief complaint being the production of garments on subcon- tracts in non-unfon shops. The ex- periment of employment insurance, with employer and employes each standing half the cost, was inaugu- rated in a number of centers and is being closely watched by the remain- der of the trade. In the Autumn, there was a decided revival of activ- ities in which woolen and silk gar- ments benefited more than worsteds and cottons. The industrial revival after elec- tlon set the work of clothing manufac- turers going at top speed. Consum- er resistance to higher prices dwin- dled late in the season when It was impressed on the public that raw ma- terial prices warranted moderate in- creases. The pride in appearance campaign was vigorously waged b: manufacturers and retail alike and undoubtedly had a marked effect. The visit of the Prince of Wales, how- ever, which was counted on to groove style for men and encourage immediate sales, was ineffective be- cause the Prince outside of evening clothes, appeared in only two Suits and they closely resembled each other. No easing in clothing prices is ex- pected in view of the prices now be- Ing paid for still ungrown wool and mohair by manufacturers in antic- ipation of 1925 needs. Furniture. A fair year but not a good year. That is the way furniture manufac- turers and dealers describe 1924. For the first three months of the vear, production closely approached the 1923 levels, but after that time out- put and sales were curtailed some- what sharply. However, costs of dis- tribution were lessened, raw mate- rials recorded no unusual fluctua- tions and the volume of new home construction was only slightly di- minished. Therefore the trade looks forward to the Spring furniture fairs at Chicago and Grand Rapids with confldence that a splendid volume of business will be transacted. Prices for furniture during the year were well under the 1923 levels. The “coffin nail,” as the cigarette was called in the relgn of Lucy Page Gaston, has clamped the lid on de- pression in the tobacco industry of the United States in the last year. The consumption of this tobacco product has increased 10 per cent over 1923, and the output of Ameri- can factories has been more than 72,000,000,000 cigarettes in the last 12 months. Consumption of cigars has barely been holding steady, smok- ing tobacco has shown slight losses, but chewing tobacco and snuff are less used than In years. Cigarette sales are running at three times the rate of any prewar year, and manufacturers have been alded in piling up profits by the stability of prices for leaf tobacco and of the fin- ished product. Growers have bene- fited as well as manufacturers. The Georgia crop vielded splendid return and the outturn from Tennessee, Ken- tucky, Virginia, the Carolinas, Mary land, Connecticut and Pennsylvania has been sold at prices which as- sured a sound margin of profit for the agriculturist. The adverse trend in cigars has been felt most by producers of ma chine-made product selling at a rela- tively low price. The smoking to- bacco trade has been helped by the publicity given various prominent pipe smokers in_the.political cam- paigns here and abroad, and the mak- ers of handmade expensive cigars are gaining the patronage of those smok- ers who do not turn to cigarettes. The export trade was hurt by dis- turbances in the Orlent, but the im- provement in conditions in England counterbalanced this trend. Cigar production ran about five and three- quarters billion, with an especial de- mand for high-grade cigars for the Christmas trade. Woolen Goods l The woolen goods industry took a decisive turn for the better toward the end of the year. The annual period opened quiet with the only pressing demand in novelties and sportswear. In the Summer prices were slashed sharply by a leading producer to stimulate demand, but with only partial success. In the Fall, however, came the re- markable turn and by the end of the year production was in a fair way to reaching normal. This was caused by renewed demand from the men’s and women's clothing trades and to the depleted state of retailers’ stocks of cloth. The leading interest did not reduce wages during this 12- month, but some other concerns cut wage scales as much as 10 per cent. There has been a lessening of con- sumer resistence to higher prices and since the opening of the light-weight lines for 1925, prices have been ad- vancéd repeatedly for goods. The woolen divisions have shown more im- provement in this respect than wor- steds, but both have bettered. Cotton. The surprise of the year in cotton was the improvement in crop pros- pects which took place after Mid- summer. The carry-over at the be- ginning of the year was small and it was a question whether the crop would meet world requirements. Prices in consequence were high. But weather favored the crop and did not tavor the boll weevil. Acreage plant- ed was high and abandonments turned out to be low. The Texas out- put assumed unexpectedly large pro- portions and all these factors were accompanied by a heavy reduction in consumption by American textile mills. Prices, therefore, fell year's' end. Planters, nevertheless, had a prosperous year. They were in a position to hold. cotton for favor- able marketing and are confident that world requirements will be such as to secure additiond]l advances before the next crop is on the market. The exchanges were thrown into confu- sion by the frequency of the Govern- ment forecasts, and prices were un- settled throughout the year in con- sequence. The latest forecast of 13,153,000 bales seemingly will be ample for world requirements, although the ex- tent to which supplies from Egypt and India will be affected by political disturbances still is problematical. Exports were heavy throughout the off at the Cotton Goods. Moans rose from the cotton textile industry throughout most of 1924. Manufacturers in New England claimed the business was in a slump which threatened its very existence. Cotton prices were high and goods prices were low. Retailers resolutely allowed the manufacturer to hold the bag, ordering only for {mmediate re- quirements, confident that- they could get the goods they wanted when and as they needed them As a result operations both in New England and the South were sharply curtailed. After election, however, the pains affecting the industry seemed materially reduced. Wage re- ductions ware effected in many North- ern plants with the understanding that fuller schedules of work would be guaranteed employes. Cotton prices dropped on prospects of an un- expectedly large crop. Buying in- creased on the better financial condi- tion of the farmers and a revival of industry in general and mills in- creased schedules and production. Print_cloth prices were well under those of 1923, however, except toward the end of the vear, and even these late advances did not suffice to bring the annual average up to that of 1923, when 64x60s averaged 7.55 cents a yard. Sharp recovery in activity 1s pre- dicted for next year. Stocks of goods are low and a curtaflment of produc- tion below normal of 2,000,000,000 vards of goods must be made up. Cotton prices probably will be low, wages are down and the buying power of the country has increased. The foreign demand is expected to im- prove also as the Dawes plan Is worked out. The trend of movement of mills from New England to the South continues, however. Wool. Woolen manufacturers outguessed the wool producers in 1924. It re- mains to be seen whether they have outguessed them for 1925. Prices for raw wool during the first part of the year were fairly strong, but produc- ers in general did not take advantage of them. Later, quotations fell off sharply on curtailment of mill opera- tions and discouraging news from the textile and clothing industries. Many producers sold at that time. Boston was the lowest market in the world throughout the year. Con- sequently, some manufacturers were in a position to check manufacture, ship their wool stocks abroad and sell them at a profit without turning out a yard of cloth. ‘Toward the end of the year prices were extremely strong and manufac- turers, believing that they would be still stronger, began to contract for their 1925 requirements at an un- precedented rate. Stocks in dealers hands are the lowest on record and about 50 per cent of next year's clip has already been bought. Dry Goods. Dry goods suffered severely from unseasonable weather and from the slump in business and industry which hit the country early in the Summer. The dry goods trade, however, was among the first to feel the revivify- ing {nfluence of higher farm product prices and general business improve- ment, as the vear drew to a close. Expansion became evident in Septem- ber and October and the records of the last months of the year compared most favorably with previous record- breaking totals. Chain store and de- partment store buslness were the first to show the change in trend, but the | mail order houses responded almost as quickly and their late month turn overs were well in excess of those of 1923 Merchants were in excellent posi- tion to take full advantage of this trend, since they had moved cautious- Iy all vear, were not overburdened with stocks and were in sound finan- cial positions. Buyers continued to show caution and maintained a.strong opposition to price increases, but it was noticeable as the year closed that moderate price concessions in- duced rather heavy buying. The Christmas season was fully up to expectations both as to volume and money value, and were sufficient to bring the totals for the entire year above those of 1923. The mail order sales for the year increased nearly 10 per cent as compared with the previous period Woolen and silk goods took a de- cided turn for the better as the year closed and there was some improve- ment in cotton goods demand. Live Stock. Live stock growers of the country wound up the year in far better posi- tion than in 1923, although drought in some sections yndoubtedly hurt prospects. The debts of the stock grower, in most part, have been liqui- dated. Nevertheless, there is every prospect that a surprising quantity of range-fed cattle will come on the market in the next six months. Grow- ers not only need the money but they are facing a curtailment of operations in the feed lots of the midwest, caused by the low supply of corn and the poor quality of that staple pro- duced: Drugs and Chemicals. Denatured and industrial alcohol and nitrate of soda proved the main- stays of the drug and chemical fields in 1924. Alcohol advanced steadily under increased demand, rising at times more than 12 cents above the 1923 level. Soda ash was quiet, but was decidedly higher than in the pre- vious year. The general level of ni- trate of soda showed improvement after April Glycerin, after lagging behind for the first half year, felt the improve- ment in the industrial and mining sit- uation and shot upward over 2 cents a pound above early year levels. Sul- phuric acld and sulphate of ammonia. were weak throughout. The potash salts foowed the downward trend of foreign Yrices. Quicksilver suffered a slight slump in the Autumn, and the trade in general went into the usual holiday slump in December. The improved financial condition of the farmers is counted on to provide a strong market for fertilizers next year, although mixers are still cau- tious about taking on raw materials for 1925 requirements. The weather year, running well over the totals of | Was unfavorabls for the boll weevil 1923, (Continued oa Pags 24.) -