AMERICAN PRODUCTION.

Manawatu Herald, Volume XLI, Issue 1961, 5 April 1919, Page 4

AMERICAN PRODUCTION.

MARKETS DELL AND EALLIXD. EREKIIi'JM A DA IN REDUCED. Reviewing I Ik* condilmns in regard (n metals and other commodities, .Messrs .John Dunn, Son antLCo., of New York, write under dale .February Bth; — Deduced product ion owing' to lack of orders is in a word (lie story of the iron and steel industry. The resale of Government-owned goods, (lie reluctance of sellers to accept lower prices, the necessity for extensive renewals and repairs in many of the plants, and the feeling' on the part of havers that prices must decline further in the near future, are some of the reasons for the present dullness, which is in such marked contrast to the straining tor the last possible lon of production that has been the rule for several years. Lower prices are in evidence all along the line. Domestic consumers seem to prefer hand to mouth buying until the future is clearer and export demand is lagging, Altogether it seems probable that the present dullness will last for several months with a gradual sagging of prices, and with buying confined very largely lo immediate requiremeiPs. This delay will perhaps allow for the distribution of goods bought tit high prices, and in the end prove beneficial. The producers of raw copner have at last abandoned their attempt to maintain the price of llAd per Jb. for domestic business. The reduction to 9d recently announced has resulted in large transactions, and it seems likely that this price or thereabouts will stand for some time. Enormous supplier of copper have been accumulated both here and abroad for making munitions, and, of course, now come into sight as part of the world supply. Mills are now anxious for orders for all forms of manufactured goods. There has been a decided fall in the price of cotton, and great disappointment is felt that exports have not increased as much as was expected. Attention is being directed to the prospective acreage of tho next crop, which, it is said', will he. large, although the usual campaign is in evidence to induce farmers to

plant more, grain and loss cotton. This propaganda has never been very effective in the past, as each planter has seemed to consider it best to let some one else do the curtailing while he* avails himself of the higher prices. The market for cotton fabrics continues exceptionally quiet,, with business possible only as concessions are made by sellers. Drastic downward revisions have been made in prices.

The condition of the growing crops continues favourable, and predictions of an enormous wheat crop are current, with the present visible supply at'130,1513,000 bushels, compared with only 13,8(59,030 a year ago. The Government is planning an appropriation of £200,000,000 that it may have funds to maintain its guarantee to the farmers of 9s 2d a bushel. It is not thought (hat the consumer will he obliged to pay this price in case of a worldwide fall in values, but that the Government will directly stand the loss. That tins loss will be considerable seems probable, as the indications arc for a crop of at least 1,000,000,000 bushels!

About January lOlh reductions in rates of freight to Australia and Now Zealand were made, and early in February further very drastic reductions were put in force. Today’s rates by steamer are for unpacked steel, £3; steel packed in eases, crates, etc., £3 12s; general cargo, £O, all per ton of 40 cubic feet or 2,240 pounds, ship's option. Tonnage on berth is amply sufficient. There seems no reason to suppose that there will bo any difficulty in forwarding goods for some time to come. Shipments by sailer will from present indications stop after vessels now loading have cleared. The sailing vessels loading in New York are having difficulty in securing cargo.