The Bridgeport times and evening farmer., 1919-07-16
HENRY CLEWS'
 WEEKLY LETTER

ez1 N1N - 1AS - EHs =
 President Wilson is promptly and energetiCally taking up the reins of government. He will doubtless secure a reasonably early ratification of the Peace Treaty with Germany, and it is to be hoped will succeed in establish ing the League of Nations after soma slight notifications. The Pres ident will find an accumulation of pressing problems awaiting his con sideration. and the latter half of the year promises to be a period crowded with important legislation. Congress should realize that no time should be wasted in petty political disputes. The whole country is serious minded, and will tolerate no unnecessary delays at Washington. The nation really wants Congress to get down to real business, to hasten resumption, to restore nor nal conditions and to revive busi- ness freedom as far as possible. President Wilson is correct in assert
 ing that Germany should be allowed
 to resume trade with the rest of the world as soon as practicable; this for
 our own sake as much as for others
 Crop Outlook.
 Our agricultural situation is some-
 what mixed and not entirely satis-
 factory. What the world needs is
 abundance of the necessities made
 scarce by war. Wheat is our only
 important crop that will be really
 abundant The acreage devoted 10
 this cereal was Il 1-2 million acres.
 or II millions above the record:
 while. thanks to exceptionally good weather conditions, the yield per acre is unusually high, or 16.2 bush
 els. On the other hand, the corn
 crop is only ordinary in yield; cotton
 will be even shorter in supply than
 last year, and oats show a deficiency.
 High prices assure the farmers of eX-
 ceptional prosperity; but dear food
 is not likely to please those already
 burdcued by the high cost of living,
 the only cure for which is in
 creased production of food, clothing
 and shelter. The July crop report
 gave the condition of wheat at S6.6 compared with a. ten-year average Of
 SIG, and the indicated yield is l. 161, ,O0O,00 bushels. or 135, 100000 in
 excess of the record crop of 1915. Condition of corn was reported at
 SGT, against a ten-year average of $40. The anticipated yield of corn despite a reduced acreage was 3,S15,- OOO,O bushels, which has been sur passed several years, but may be
 ClriSStll dS si lsi4I 4AClNt- AiiC AIAHAoSNeNN
 yield of oats was 1,4O3, 100000, Fl smaller yield than usual.
 Tho Course of Values.
 The future of commodity prices
 is a matter of much concern, and as
 long as their rise continues dtscon- tent is not likely to diminish. British commodities are falling; the London "Economist's" index figure at end of June being 565s, drop of 3SO points. Cereals and meats were slightly higher, but the majority of
 food prices there were considerably lower, and in textiles and minerals
 the declines were often considerable. London prices reached their zenith in September last since when the drift has been steadily downward. There has been no such movement in the American commodity markets, which are at about top figures and show a tendency to rise rather than fall. Brndstreet's index number covering the United States showed a rise of A points in June. Textiles, hides, leather and oils made the largest ad- Yances, while breadstnffs and live stock declined slightly. No entirely satisfactory analysis of the situation here is possible. In sonhe cases high prices here are due to scarcity In many instances they are the result of higher wages, higher taxes and the increased costs of production and dis tribution. Sometimes the pressing foreign demand Is q ruling factor, and the element of imitation is con-
 spicuous in every direction. The only cure for scarcity is enlarged output; the only offset tor high wages is in creased efficiency; the only antidote for taxes is economy, and the only check upon imitation Is more rigid
 discriminatory in the granting of credit. The credit market is really much in need of prudent regulation. In this respect the Federal Reserve system has not been allowed free op- eration, because of the overpowering Influence of government operations from which it is not yet free. Legiti- mate trade and legitimate speculation alike must be conserved by a closer restriction of credit to sound con cerns and sound enterprises. All great wars have been succeeded bv CD intense industrial activity, CD great prosperity, (3) excessive specu- | latlon. We are already in stages one and two. The third is still in the futuSe.
 If New York Is to attain it's anlbi- i ton of being the first or second finan- ! cial center of the world it must be- I gin by proving its ability to 1nde- | pendently control and stabilize its | own money market. London is again | proving its ability to maintain the | cheapest and steadfest money market | in the world, a situation we must ! meet if we expect to Dre@0-'"e the | prestige gained during the war.
 Monetary Co:lditionz.
 | The condition of the money market | attracts more or less attention, es- | pecia1ly the scarcity and consequent l extreme fluctuations in call money. | The latter is, of course, due to the
 enormous pressure of Government | borrowing, the banks naturally pre- 1 ferring to make such demands their | first consideration. The positive at- | titude of the Reserve Board in dis | couraging undue speculation is the l next factor of importance, and lastly | the unusually heavy demand for | financing legitimate foreign and do-
 mestic requirements, both of which
 are becoming increasingly insistent