AMERICAN CONDITIONS.

Taranaki Daily News, 25 June 1921, Page 10

AMERICAN CONDITIONS.

depression still marked. STRIKES AGAINST LOWER WAGES. Reviewing general conditions in the United States, Messrs. John Dunn, Son and Company, of New York, write under date of May 7, that the course of the various markets during April has displayed to a marked degree all of the characteristics incident to business depression and a readjustment of economic conditions. No general improvement in trade can be seen, although in some particular industries increased activity is reported. Unemployment has probably increased but this to a large extent may be classed as voluntary, caused by labor’s resistance to reasonable wage reductions. The trend of commodity prices continues downward, notable exceptions being those raw materials such as copper, leather, rubber, silk and wool, where apparently a level of comparative stability has been reached after drastic liquidatiom Railroad earnings are below those of last year notwithstanding the large increase in rates. The number of idle cars, whiclij early in the month reached the startling proportion of 21 per cent, of those in service, now shows a slight reduction. Bank clearings for April are some 27 per cent, less than were those of the same month last year, and for the first four months of 1921 the decrease compared wilh last year is 23 per cent.; the volume of clearings for the current year to May 1 is, however, only 1 per cent, below that for the same period in 1919. The automobile industry maintains the improvement previously noted. Prices of tyres have been quite generally reduced by some 20 per cent., and a few important manufacturers of cars have lately announced lower schedules of prices. The boot and shoe trade is said to be improving and some branches of the textile industry are fairly active. Wage reductions are being effected throughout the country, and as a result labor disturbances are reported on all sides. In the building trades reductions in wages are being bitterly contested, and a complete cessation of operations is the result in many localities. Wages of building mechanics, such as carpenters, masons, plasterers, and plumbers, have been quite generally fixed at about 10 dollars for a day of eight hours. A reduction to eight dollars is the subject of contention. The printers are. refusing to work in many cities as a protest against wage readjustment, as are also the employees of certain paper mills. Marine workers, engineers, firemen, and seamen in both coastwise and deep sea services are on strike against a cut in wages of 15 per cent. Some 2000 privately owned steamers and over 1700 owned by the Government Shipping Board are affected and marine traffic in American bottoms is almost suspended. The United .States Steel Corporation has reduced wages 20 per cent. This has been long expected, the independent mills having made similar or greater reductions some time ago. Banking and credit conditions are much improved, as evidenced by the reduction of the re-discount rate from 7 to per cent, by the Federal Reserve Bank at this city, and at other important centres. The passing of each month emphasises the probability that the present condition of business depression must continue For some time, and while this is to be deplored, for obvious reasons, yet it is most desirable that the process of readjustment and deflation now under way should be completed in order that future activity may rest on a firm foundation.

Congress has not disposed of the legislative programme laid out for immediate attention, except that the Bill restricting immigration has been passed. This measure provides that until -lune, 1922, the number of aliens allowed to enter from any one country shall be not over 3 per cent, of the number of such national* now resident here.