The Monte Vista journal., 1919-01-11
kh Prices & Al Comedies and Labor
To Remain During 1919, Perhaps Longer

A. Z. de Ricqiss. presidsnt q the
American Live Ssock aaa Loan Co.
Dsavsr. 10 recognised 40 oas Of the
boat posted nsa In The country on
market conditions. Uadss date OF
December ~. 1913. NJ. Dc Ricqics
has issued = market letter containinK
n forecast for the coming year and
outlines reasons why high prices will
obtain for somo time to come. Tho
letter. In part. follows:
WHEAT PRICES AND ITS INJECT
Tho guaranteed price OF 43.:e per
bushel established BY the government
10 an entirely artificial thing. and
while At the time Il WAS put In effect
Il may have besa . proper and wise
thing to do. 20 ~ 10 guarantee pro-
daction OF this precious food for war
purposes. Il now becomes . serious
menace and contains moro danger
than any other singls element In our
economic structure. That 10 ouf
view Of Il. The rslatioLsAip OF tho
price Of wheat 70 corn. oats and other
Krsins has been explained In many
journals. For long series Of years
the. price Of corn has bssn about 81
per cent Of tho price Of wheat. On
that basis corn would sell at around
si.2s per bushel 70 long ~ wheat
sold At e3.2o. To make 100 pounds
Of pork requires - bushels Of corn.
40. based on the Relationship Of the
price Of corn to wheat and the artif,-
ciai price Of 32.2o for wheat. would
result In hogs costing aFound)ls.2
per hundred pounds. and the cost OF
beef would be eorrsspondinsiy high.
- beef cost 10 largely based on the
corn price: hence bread and meat
will remain high in the United States
durtsg 1919. With the record wheat
crop planted for the 1919 harvest
aad the crop conditions over the
country. which are far above the Az
erass. We can look forward to seeing
one billion bushels Of wheat produc-
Cd IN the Unitsd States during 1919.
The Government has guaranteed that
this crop soil for $40. or possibly
one billion dollars moro than it,
normal value.
The effect this artificial wheat price
will have on corn. and hence meat
animals. will add another billion
dollars at least: hence we will have
the sum Of these. or two billion
dollars. added TO our food cost, carry
ing along with II the necessity Of
high wages during 1919. How are
We going to get down from these
high prices to normal? Got down We
must. and It II there that the danger
OF this inflated price Of wheat devel-
ops. Tho payment by tho Govern
mont Of this extra billion dollars for
the wheat crop concerns all of us,
for this money comes out Of the peo-
pie In the form Of taxes. living costs.
etc. In Australia thcrc Is an i'm
menso accumulation OF wheat for
which there was no shipping avail
able during the war. That wheat
can be bought for 3l.l4. About
100000 acres OF grazing land and
parks In England. ireland and Scot
land have been plowed up and plant
ed In grain. China has wheat to sell.
India Is selling wheat. and Argen-
tina also. all below our 32.20 price.
VIII someone toll US how, we can
climb down from our predicame ent !?
With bread and meat high during
1919 there can be no material re-
duction In the cost OF labor: hence
all manufactured products will stay
up and the period Of imitation will re-
main with us at least during tho time
OF the guaranteed wheat price.
THE FREE REEF DANGER
Down In South America and over
In Australia they can produce beet
FOR less than We in the United States
There are many good cattle in these
countries. and with the advent OF the
big packers from America. produc
tion has been stimulated. especiall,
In Argentina. Under tho present
tariff the beef from these countries
will 60 into the United States fret
and be sold beside ours. Freight,
are comparatively low. and as soor