The evening Caledonian. [volume] (St. Johnsbury, Vt.) 1918-1920, 1919-03-22

the Government would not require
the full amount of commandeeree
supplies. No one knew the amount
which would be thrown on the mark
ct, and the trade became panicky Re-
tailers stopped buying, in anticipa-
ton of much lower prices, and it be-
came evident that a severe readjust-
ment of market values would occur
| if confidence were to be restored. AS
is usual under panic conditions, the
| reaction was too severe; prices drop
ped below correct values, and the
tendency is now upward to levels
warranted by conditions.
This reaction has been intensified
by the decision of the Food Admins
tration to reinstate all orders which
had been Cancelled by this first an
nouncement. At present the avail
able supply is far short of meeting
the demand at reasonable prices, for
the demand far exceeds the supply,
receipts having materially decreased
following the slump in prices. With
increased demand and decreased pro-
duction, we are experiencing an in
evitable reaction from the recent de-
cline.
The second main factor, which
caused butter prices to fall, also at
fected eggs. This factor which
could not have been predicted, was
the unusually heavy production of
butter in January, and eggs in Jan
uary and February This was due
to the spring-like weather which has
prevailed over practically the entire
country.
The season of heavy production OF
eggs normally begins about one
month later than it began this year,
and that of butter three months later.
We have had abnormal conditions
which no one anticipated.
This greater production during
January and February of 1919 is re-
fected in the statistics of receipts at
New York, which market is repres-
entative of conditions throughout the
country. Receipts of butter were
running about $4,000 packages a week
during the early part of December;
then increased production began to
make itself felt and the figure mount
ed rapidly, until during the week end
ing January 18th, 1854 packages
were received on the New York mar
ket, the weekly arrivals having al
most doubled in one month. Up to
February 18th the total New YORK
receipts since May list amounted to
136.182 packages in excess of the re-
ceipts for the same period last year
Rejecting these conditions, whole
sale prices on fresh creamery stock,
extras, dropped from approximately
sc cents to At cents per pound III
three weeks.
The figures for eggs show %scn
more surprising conditions. Weekly
receipts of eggs in New York City
rose from approximately $4,000 cases
in early December to 12O,26l cases
for the week ending February 10Th,
or an increase of 225 per cent. Dur
ing the week ending January 2Sth'
about 42,0OO cases afr1Veo' Che HeA'
week receipts jumped to $4,000; while
during the week ending February
18th, as stated above, 12O,261 cases
entered the city. The total receipts
since March list show an excess OF
approximately one million cases over
the receipts for the same period last
year. Is it surprising that wholesale
prices tumbled from 70 cents to 80
cents?
The law Of supply and demand IS
working "a hours every day just as
It always has and always will. W nat
we need is wider publicity and edu-
cation of the public regarding the
.eal causes of price fluctuations. The
ougaboo of manipulation would die
IN early death.