The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1920-09-15
PRICES IMPRESSED
BY CONDITIONS
Three F actors Make for
" Fluctuation of the
World Markets

NEW YORK, Sept. 12.-Three
factors of market influence have been
development in the past week and
must continue to impress prices for
some time. The first is the decided
Improvement of credits in the United
States.
The next is the disorder in Italy
and the third, lis the threatened
strike of British coal miners. A
fourth factor is the testimony of
President-elect Oregon that he will
give American investors in Mexico a
square deal. This last factor has
been no surprise for 1t was the only
logical outcome of the situation
south of the Rio Grande. The other
factors are distinctly vital in market
effect. The first is buIlish, the
second bearish and the third de-
pressing in its first effect, but de-
cidedly constructive in it's final con-
sequences to American investors.
Improvement Of the credit situa-
ton in the United States has been
accomplished at the expense of gen.
eral business. The most important
factor of that improvement is the
realization by the federal reserve
board of its mistake in trying to
force indiscriminate defation.
1t is now intimated from Washing
ton that the reserve of the twelve
banks will be permitted to fall to the
40 per cent provided by law as the
first line of defense and perhaps to
the lower levels authorized by law
for emergencies. Without increas-
ing the number of dollars in the re-
serve the regional banks will be able
to expand credits more than $780,
100000. But not less than $780,
100000 of gold will arrive from Eu-
rope during the crop moving period,
thus increasing the possible credit
expansion within the 40 per cent
limit by $100,00O,OO0.
The Italian situation alarms a
good many international bankers be-
cause it is proof that the discomfort
of the masses is not confirmed to the
central empires and Russia. What
the consequences will be no banker
dares guess. They seem to agree,
however, the important thing now is
to watch the effect the Italian upris-
ing has on the workingmen of
France.
The British coal strike is a mat
ter for immediate concern, but the
ultimate rejoicing on the part of
American investors and business
men. England has dominated the
worlds commerce very largely be-
cause of the fact that 80 per cent of
tonnage leaving the British Isles
with coal which could be used as the |
basis of barter in every foreign |
country.
Now the United States is the coal
producer of the world and American |
ship owners thru cooperation with |
the government at Washington will |
be able to command at least half of
the commerce of the United States
with other countries.
CHICAGO, Sept. 12.-Grain fu-
lures and provisions moved up mod
erately in the market here as the net
result of last weeks operations.
Wheat and rye led the advance in
grains with September oats the only
weak spot in the list Pork was
but lard and ribs both
made good gains. Grain prices gen
orally reached their highest mark
CT the week on Thursday while pro-
visions did best in the closing ses-
sion.
Notwithstanding the United King
dom's continued absence from the
export market, continental demand
was sufficient early in the week to
start the wheat trend higher. Flu
lures advanced so rapidly, however,
that they became 5 to 10 cents out Of |
line with export bids and under
realizing sales, prices eased to
2 ga cents from Thursdays high
mark at the close Saturday. Pro-
ducers inclined to hold for better
prices was reflected, however, in the
net gain at tine week end of Z IL
to 7 ga cents over the preceding Sat
urday's close for December wheat
and of 5 to 10 cents for the
March delivery. IN"
1
Corn held barely steady in the face
OF the government forecast of the
biggest crop in history, which was
offset in part by fears that frost will
catch large part of the crop. De-
cember finished unchanged to IA
cents under the preceding Saturday
while September showed gains of
3-4 to 78 cents and May of is to
Ia cent.
September oats closed at net loss
Of IL cent for the week while De-
,ember gained ga cent and May rs
20 1-8 cents. The final session saw
hope of export business revived on
reports of 100000 bushels worked
or Montreal and a sharp advance in
Winnipeg prices.
Provisions values were generally
higher. .,,..y .apse !,