The Denison review. [volume] (Denison, Iowa) 1867-current, 1918-11-06
SPECIALIZATION OF HOG PRICES

REHABILITATION OF HOG PRIZES
The following statement is trans
4 nfitted by the food administration a
request OF conference.
The conference between the live
n stock subcommittee of the agricultur
al advisory board, including specia
4 members of swine industry and of the
food administration, held on October
Esd to 25th, has, after consideration
Of the present situation Of the porl
and hog market, reached the follow
ing CONCLUSIONS:
The entire marketing situation has
30 changed since the September join,
conference as to necessitate an entire
alteration in the plans of price stabili
1atfOn. The current peace talk has
alarmed the holders of corn and there
has been price decline of from TWEEN
ty-fve cents to forty cents per bush
81. The fact that the accumulations
II. Of low priced corn in the Argentine
and South Africa would, upon the ad
vent Of peace and liberated shipping
become available to the European
market, has causd a great deal Of ap'
h prehensi0n on the part of corn hold
ers. The decline has spread fear
among swine growers that a similar
I reduction in the prices of hogs would
naturally follow. Moreover, the low.
er. range Of corn prices would, If in.
llc0rporated In a thirteen to one ratio,
4 obviously result in continuously
falling price for live hogs. In view
OF these changed conditions many
swine producers anticipated lower
prices, and, as result, rushed their
hogs to market in large numbers and
this 0vershipment has added to and
aggravated the decline.
The Information of the department
OF agriculture states that the supply
E0f hogs has increased about, eight per
cent, while the highest unofficial esti-
mate does not exceed fifteen per cent
Increased production over last year.
On the other hand the arrival Of
hogs during the last three weeks in
the seven great markets has been
tWenty-seven per cent more than last
I year, during the corresponding period.
Il Demonstrating the unequally heavy
marketing Of the available supply in
the face Of the excessive receipts
some packers have not maintained the
4 price agreed last month.
On the other hand many of the
n packers have paid over the price Of
fered to them in an endeavor to main
\ tain the agreed price. The result in
I any event has been failure to main
tain the October price basis deter
mined upon in the September confer
8ence and undertaken by the packers.
Another factor contributing to the
break In prices during the month has
been the influenza epidemic. 1t has
I sharply curtailed consumption of pork
products and temporarily decreased
the labor staff of the packers about
Twenty-Five per cent.
The exports OF one hundred thirty
million pounds of pork products for
\ October compared with about fifty
two million pounds in October of last
| year, and the export orders placeable
BY the food administration for Novem-
ber, amount to one hundred seventy
million, contrast with the lesser ex-
ports of ninety-eight million for No
vember 1917. The increased demands
OF the allies are continuing and are of
themselves proof of the necessity for
the large production for which the
food administration asked. The in
crease In export demands appears to
be amply sufficient to take up the in
crease in hog production but unfavor-
able market conditions existing in o.
tober afford no fair index Of the aggre-
gate supply and demand.
It must be evident that the enor-
nous shortage in fats in the central
empires and neutral countries would
Immediately, upon peace, result in ad-
sditional demands for pork products
which, on top Of the heavy shipment
10 the allies would tend materially to
increase the American exports, mas
ouch as no considerable reservoir of
applies exists outside of the United
y ates. 1t seems probable that the
pssent prospective supplies would be
inadequate to meet this world demand
with the return to peace. So far as 1t
is possible to interpret this fact, it ap-
pears that there should be even
stronger demand for pork products af-
ter the war, and therefore any alarm
Of hog producers as to the effect Of
leace is unwarranted by the outlook.
q the light of these circumstances, it
the conclusion Of the conference
at attempts to hold the price of hogs
the price Of corn may work out to
disadvantage of the pork produc-
s It is the conclusion that any in
,retation of the formula should be
road gagged policy supplied over
ng period. 1t is the opinion of
conference that in substitution Of
previous plans of sterilization the
.ock subcommittee of the agricul-
advisory board, together with the
lily invited swine representa-
should accept the invitation of
nod administration to join with
ministration and the packers in
lining the prices at which con-
exports are to be placed. This
regularly done. The influence
orders will be directed to the
ance of the common object,
the sterilization of the price
ogs so as to secure as far as
sible fair returns to the pro-
nd the insurance OF an ade-
lture supply. These foreign