Graham guardian., 1918-11-22


The conclusions Of the conference
The entire marketing situation has
20 changed since the September joint
conference as TO Eeccss'tate an entire
alteration In the plans Of price stabl-
lixation. Tho current peace talk has
alarmt, ! the holders OF corn. and there
has h->n a price decline Of from 20
cents 40 cents per bushel. The fact
that l..e accumulations Of low priced
corn In the Argentine and South Afri-
ca would, upon the advent Of peace
and liberated shipping, become availa-
BILE to the European market has ere
ated a great deal OF apprehension on
the part Of corn holders. This decline
has spread fear among swine growers
that n similar reduction In the prices
Of hogs would naturally follow. More.
over, the lower range OF corn prices
would, II incorporated In q t3-to-1 ra-
Ito. obviously result In a continuously
Calling price for live hogs. In view
Of these changed conditions many
swine producers anticipated lower
prices aud a. result rushed their
hogs to market Ia large numbers, and
this overshipment has added to and
aggravated the decline.
The information Of the Department
" Agriculture indicates that the sup
ply Of hogs has Increased about per
cent. while the highest unofficial esti-
mate does not exceed Is per cent. IN.
creased production over last year. On
the other hand, the arrival OF hogs
during the last three weeks IN the
seven great markets has been "a per
cent. more than last year, during the
corresponding period, demonstrating
the unusually heavy marketing Of the
syailable supply. In the face OF the
excessive receipts some packers have
no' maintained the price agreed last
month. On the other hand, many
of the packers have paid over the
price offered to them 10 an endcavor
10 maintain the agreed price. The ~
suit In any event has been failure
10 maintain the October price basis
determined upon at the September con-
terence and undertaken by the pack
ers. Another factor contributing TO
the break In prices during the month
has been the Influenza epidemic; II
has sharply curtailed consumption OF
pork products and temporarily de-
creased the labor staf Of the packers
about 25 ger cent
The exports Of 10000. 900 pounds
Of pork products for October COM
pared with about 100000 pounds
in October year ago. and the
export orders pIaceable by the Food
Administration for November. amount
to l7OOOO,O00 pounds as contrast.
cd with the lesser exports OF
eS,OOO, 900 for November, 1917. The
Increased demands Of the allies are
continuing, and are In themselves
proof Of the necessity for the large
production for which the Food Admin
istrs ton asked. The increase In ex'
port demands appears to be amply
sufficient to take up the Increase IN
hog produeti ~, but unfavorable mar
ket conditions existing IN OCTOBER AZ
ford no fair index Of the aggregate
supply and demand.
It must be evident that the enor.
nous shortage In fats In the Centra.
Empires and neutral countries wouid
Immediately upon peace result In ad'
d,t,ounI demands for pork products
which. on top Of the heavy shipments
n the Allies. would tend materially
to increase the American exports. In
asmuch az no considerable reservoir OF
supplies exists outside OF the united
/ States. Il seems probable that the
preseut prospective supplies would be
Inadequate 10 meet this world demand
with the return to peace. 30 far as II
IN possib,e to interpret this fact. II ap'
pears that there should be even q
stronger demand for pork products
,fter the war, and therefore any alarm
Of hog producers a. to the effect OF
oeacs is unwarranted BY the outlook.
IN the light Of these circumstances
n IN the conclusion Of the conference
that attempts to hold the price OF hogs
to the price Of corn may work out to
the disadvantage Of pork producers.
Il 10 the conclusion that any interpre.
tstion Of the formula should be q
broad gansed policy applied over 4
long period. II 10 the opinion Of the
conference that In substitution OF the
previous plans Of stabilizatioh the
1--we Stock subcommittee OF the Agri.
cultural Advisory Board, together with
the specially invited swine representa-.
tives, should accept the invitation OF
the Food Administration to Join with
the Administration and the packers IN
determining the prices at which con
tro,ied export orders nre TO be placed
This will be regularly done. The In
6uence of these orders will be directed
70 the maintenance Of the common OBJ
jeet-namely. the stabilizaticn Of the
Drics Of live hogs % as TO secure 40 fal
,s Il 10 possible fair returns 10 the
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