New-York tribune., 1920-07-21
West Preparing g
For Cheaper Food,
Says N. Y. Banker
Definite Change in Condi-
tions Expected, Accord
ing to r. P. Grant, Home
From Two Months Trip

Rollin T. Grant, vice-chairman of the
board of the Irving National Bank,
back from two months trip through
the grain, fruit and cattle producing
sections of the Northwest and the Pa
cific Coast, expressed the opinion yes
terday that producers and business
men were expecting a drop in the price
of foodstuffs and were preparing for
such change in conditions.
From one end of the country to
the other people are thinking, and
thinking seriously" said Mr.. Grant, "of
a very definite change in conditions.
Bankers are watching and restricting
credits as never before. The merchants
have had their ears to the ground for
some time and are buying more care
fully. They have been taking advan-
tage of what are known as summer
sales to force large reduction in
their inventories. They have sensed g
widespread feeling that the public is
becoming tired of paying high prices.
and are governing themselves accord
ingly.
"The change, first felt by the manu-
facturer and distributor, is now be-
ginning to be felt by the producer
who, we thought, would not feel it for
some time to come. Through the pro
ducer, labor also is feeling a touch of
it. Curtailment in packing and the
many difficulties attending transporta
tion possibly may have the effect of
holding prices on high level for the
time being, but it would seem inevi-
table that lower range of prices will
prevail.
The people also are trying to get
their financial affairs in as LIQUID
condition as possible. If that policy
can be continued throughout this fall
and way can be evolved to handle
the problems of large crops and de-
layed transportation, l believe we can
be much more optimistic of the things
that will confront us in the spring Of
next year"
Labor conditions, Mr.. Grant said,
We're considerably unsettled. The ship
building industry, which during the
war assumed such large proportions in
coast cities, was virtually at stand.
still. The skilled shipyard labor had
gone to yards in other parts of the
country and the unskilled labor to the
lumber camps. Few had returned to
the farms. Many progressive farmers
and ranchmen, he said, are building
bunkhouses with plenty of light and
air, shower baths, reading rooms.
and occasionally dance halls, to make
life in the country attractive to the
laborer.
OF the wool-raising industry Mr..
Grant said:
THE sheep industry also has suf-
fered. When I was in the West the
wool market was absolutely dead.
Shortly after the clipping a few buyers
appeared, made some scattering pur-
chases from 70 cents pound down to
81 cents, and then went away, so that
there was no market and only a nomi-
nal quotation. This commodity for
several years has been virtually a cash
transaction, which meant a quick re-
turn of the money to that section.
Now the only wool that is moving is
that which is being sent East on con-
signment. Because of this condition,
the banks are heavily loaned up and
see no prospect of Immediate relief.
Last year this crop was handled on a
ninety-day basis, and because of the
demand there was an extension of
time. This year the Federal Reserve
Bank has notified the banks that they
cannot handle this paper except on a
strict ninety-day basis"