BUSINESS CONDITIONS IN AMERICA.

Otago Daily Times, Issue 17158, 10 November 1917, Page 8

BUSINESS CONDITIONS IN AMERICA.

Messrs John Dunn, Son, and Co., export merchants, New York, report as follows, under date September 6: —

General business conditions are even more confused than they were a month ago. Produotion is still being driven ahead, but over everything hangs the-uncertainty as to Government action regarding prices and the distribution of products. The Government is placing huge requisitions, but in many cases there is no agreement. as to price, this being left for later determination. Prices of coal and wheat have been fixed, but prices of iron and steel products and other important commodities are still unsettled. It is extremely uncertain as to how all of this is going to work out, there being no precedent for judgment as to the effect of price-fixing measures even were it known what these measures are to be. In the case of coal, coke, foods, and foodstuffs the Government has full powers as to prices, distribution, etc. On other goods their power is limited to determining the price of their own purchases, and if they are to fix prices for all buyers it is probable that additional legislation will be necessary. Apparently the Government Hopes that producers will voluntarily accept for all customers the prices which will be fixed for Government orders, bat even should the producers be willing to take this position (which is very doubtful), it is difficult to see how they could maintain it in the face of a demand t-xceeding the supply, unless the Government supervised the distribution of their product. The result of all this uncertainty is that business to a great extent is at a standstill.

Tho labour situation is very unsatisfactory. There is an unceasing German propaganda going on which se-zes every opportunity to foment trouble amongst the working classes, and while up to the present no serious strikes or disturbances have occurred the situation is full of menace.

New regulations in regard to exports went into effect on August 30. The president's proclamation practically prohibits the shipment of anything from this country to European neutral countries except under license, and the conditions under which licenses _ are to be granted are so drastio that this- means in practice that shipments will be confined to such goods and quantities aa the Government considers absolutely necessary to sustain life. The Government's firmness in this matter is very much to be commended, and will undoubtedly do much to shorten the war.

Early in the month the announcement was made that after August 15 export licenses for steel plates, structural shapes, billets, scrap iron and steel, and pig iron would not be issued for shipment to any but belligerent countries, .and only to 'those countries when it could be shown that the material was to be ueed directly in the prosecution of the war. Under this ruling it will probably be impossible to ship 'these goods to Australasia unless this condition can be met.

Although the quantity of goods moved l>y the railroads is constantly increasing, they have so improved their methods thait there is much less delay than formerly. Of course, ±ho weather conditions are now at their best, and with the coming of winter more or less disorganisation must be expected. The conditions insisted upon at terminals are constantly being mado more stringent, and consignees are now obliged to move goods almost immediately upor arrival. This, coupled with the disarranged steamship service, makes extra' expenses in handling goods inevitable.