AMERICAN CONDITIONS

Otago Daily Times, Issue 18899, 27 June 1923, Page 8

AMERICAN CONDITIONS

SHORTAGE OF LABOUR. ORDERS IN EXCESS OF SUPPLY. RISING WAGES AND PRICES. Writing from New York on April 21, Messrs Maillor and Quereau, say: The Bjcond quarter opens in the same manner as the first quarter, only conditions are intensified. Manufacturers are experiencing very, great difficulty in making up ana supplying goods and the natural effect has been to advance prices materially in many lines. Underlying the diculty is the shortage of labour and the impossibility of securing it from any source. Under our unfortunate immigration laws wo can only draw a very small percentage of skilled labour from European countries, and that has practically been exhausted for the present year, so that wo cannot depend upon that source for any additional men. Throughout the country there is a constant cry and demand for more men. and wages have been advanced in many trades, until they are now higher than over before in this country. Another unfortunate effect of a very active demand is that the labour element is constantly demanding advances in wages until they, in some trades, are almost prohibitory. Added to that is the fact that in return for these very high wages labour is giving only very ordinary services; and in many trades it appears that the men purposely avoid more work than is necessary to get them through their short days. All these influences have made it very difficult for manufacturers to operate with any degree of success or satisfaction. When orders are placed before them, frequently they are rejected immediately, and even if considered at all, are only accepted with the stipulation that delivery is to be made at convenience of the manufacturers and depending upon conditions beyond their control. While tiiis means very great prosperity throughout the United States, the very sharp advances in all lines of merchandise and food supplies have caused an immense advance in the cost of living, and labour in turn is feeling this keenly. GENERAL PROSPERITY. General prosperity is the rule all over the country, and if the crops this year should be fair or large ones, the United States will prosper as never before. Money is abundant, but the employment of it is difficult, as manufacturers do not require nearly so much when they do not have a large pay roll to meet. The situation in regard to stool goods has reached a point where there does not seem to be any probability of improvement, at least for the remainder of the year. The United States Steel Company and all the larger manufacturers are now running to full capacity and are much behind in making deliveries. Domestic demand is very large, for all purposes, and with the railroads requiring very largo supplies of steel of all kinds, the automobile trade more active than ever and keenly competing for supplies of steel, and the oil pipe lines ready to place huge orders, the position does not promise well for export trade. The United States Steel Company has promised to do everything in its power to expedite the orders they have in hand, but they acompany each acceptance of an order with the condition that they are not to be held responsible for delays in delivery. Meanwhile, shipments of steel have fallen off materially and sales are not numerous or large. This no doubt is in great part owing to the much lower prices quoted by the British manufacturers and their ability to underquote the United States in nearly every line. CHANGE IN THE OUTLOOK. A later view of the situation is presented in the market review dated May 7, by Messrs John Dunn, Son, and Co., who describe the “boom” conditions in similar terms but add: A decided change in the outlook is now discernible. Consumers of raw and semi-finished products having contracted for their requirements of the near future, are now content to wait before placing their orders for more distant needs. During the past two weeks buying of iron and steel, lumber, wool, cotton, raw copper, brass and copper products, and all textiles, as well as many other important commodities, has fallen off very decidedly. While this is to some extent seasonal, it would seem to indicate, that the peak of the present cycle of industrial activity has been reached and that fears of a shortage of materials have disappeared. That this reaction has come none too soon is evidenced by the widespread rise in wages, indicating that other lines of business are rapidly approaching the deplorable condition that the building industry has reached in which wages and material prices have risen to a practically prohibitive height. The reselt of this severe and abrupt decline in the volume of new business is very uncertain. Possibly it is only a temporary reaction to be succeeded by renewed and even more intense activity; possibly it means that the present period of prosperity is about to end abruptly; most probably, however, it indicates only a wholesome slowing-down from the toorapid (Vice that has been in evidence and so should lead to a more protracted period of activity along morn sane and conservative lines.