The Washington herald., 1910-04-17
CHEAPER LYING
NOW ON THE WAY
Grain and Provisions Show
Declining Prices.
COST OF FOOD WILL DROP
Law of supply and Demand Works
Out Reimbursement of Values-EIe-
ments In the Problem Stated-Pe-
riOd of Scarcity Comes Grad
uaIIy to an End.
BY J. CLINTON RANSOM.

Pork has declined IN price 81 a barrel
in the wholesale market Of Chicago dur
ing the past ten days. Lafd has lost
nearly 10 cents a fierce and the price Of
live hogs has fallen of more than 3
hundred. In about the same length OF
time wheat has fallen cents a bushel
corn 10 cents. and oats cents The flour
trade is much demoralized by falling
prices. Cotton holds up well. but some
concessions in price last week brought a
fresh crowd OF buyers from Liverpool
and Manchester to this country to pur-
chase raw cotton.
These facts are looked upon by business
men generally as the forerunner Of con-
siderably cheaper food prices. Last week
the fall in the quotations Of nearly all
kinds OF provisions. except butter. in the
principal trading centers was little short
OF a panic. and most observers Of the
situation see in it proof that the period
of high cost Of living has reached the
limit and that the decline has come TO
stay.
Demand and supply Rule.
The facts Of speculation as well as trade
for the past six months show well the
workings Of the law of supply and de-
mand. The statement comes from Chi
cago that the prices Of live hogs fell be-
cause dealers, back Of whom are the
consumers. resolutely refused 10 take the
product at the prices demanded The
people not only Of Chicago, but IN other
parts Of the country, simply refused TO
eat pork in sufficient numbers 10 shatter
the speculative bubble which had been
blown with so much care.
The plans OF the handlers OF the live
hogs of the West and the manufactured
products derived from their slaughter,
with the demands Of the farmers back Of
them. have fallen through, and more or
less decentralization from the Iowa and
Kansas farm to the board Of trade in
Chicago and the packing plants or the
South Side has resulted Fortunes blown
UP with the speculative bubble are being
dissipated in the process Of readiustment
and gloom pervades the trade
Illustrated by Grain Prices.
The working Of the law Of supply and
demand is likewise seen in the fall in the
prices Of cereals. The high rates built
up about a year ago in the Chicago specu-
lative market. on the plea OF shortage in
the crops OF this country and other pro
ducing points. filtered out TO the growers
or grain and the tendency during the fan
and winter months was 10 hold on 20 the
supply for still higher prices. During
much OF the winter mills were in sore
straits 70 get grain for the production OF
flour The high prices OF American and
Canadian wheat drove the European
buyer into Argentina. Egypt. and Aus
Talia, with the result that American
shipments fell of 20 q surprising degree.
March exports from this country fell
short OF imports by 100000. which
marks the extent 10 which shipments OF
wheat and cotton from the shores OF the
United States declined.
This has created in the minds OF the
farmers Of the country who held on 10
their product a condition bordering upon
CONSERVATION. They find the season Of
harvest approaching with their supplies
on hand and the golden opportunity 20
sell past The turning Of these supplies
OF grain, cotton. and live animals into
the market by the producers who must
sell now or soon will serve further 10
unsettle prices. AMI finauciers. spectators.
packers, millers. weavers. and those who
buy and sell the products Of the farm
and plantation are preparing for what
they term big bear market. in which
the readjustment OF values Will be effect
ed at a lower level.
Interest CenterS in Hogs.
Going back to live hogs. which have
been the chief subject Of interest for sew
eral days. 1t is seen that the conditions
surrounding the production Of pork are
almost reversed from those OF a year or
six months ago. The Western farmer
with his supply OF corn I'm the crib. for
which there is not now and apparently
will not be any market at the prices
which have prevailed. is driven 10 the
feeding OF the corn 90 fatten pork in
much larger measure than at anv time
in the last two years This will have the
effect Of pouring into the markets ar ST
Louis. Kansas City. and Chicago an in
cFeasing number Of live hogs which must
force prices down. Probably as values
drop consumption will begin to increase
all along the line. and the fan, which has
started somewhat precipitately may be
held in leash so as not at any time 10
amount 10 a panic. In other words. the
adjustment OF pork prices may be ex-
pected to proceed slowly until the value
Of live animals. dressed pork. lard. and
ribs shall have come down 10 normal pro
portions. One might say that this adjust
ment viii be going on until well into the
fall months.
Much the same conditions are seen IN
the wheat and -four situation, and II will
not be until the new harvest is well in
hand that the settling Of prices for food
stuffs to normal level will be reached.
A different situation confronts stocks
and interest-bearing securities. Both
bonds and stocks have lost ground in the
last thirty days In some cases the de-
clines have been as great as those in
grains and provisions can be. but the de-
clining prices of products and the incu-
nation to sell will naturally increase the
traffic Of railroads. as il will give sub
stantial boost to many of the plants
represented in the industrial group Of
securities
This viii have a direct tendency to re-
strain the fall of stocks, and many OBJ
servers of conditions are Of the opinion
that the securities markets have about
discounted the break in commodity prices
and will he first to recover. The stock
market has been in a listless attitude of
waiting for many weeks. Manipulation
has failed to score any substantial rise
and the bars have failed to produce a