The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-02-05
BIG BREAK IN
LIVING COST is
NOW IMMINENT
Slump i'm All Markets Started by
Low Exchange.
Falling OF in European De-
mands Stops Export.
RESERVE STOCK BEING DUMPED
Drop in Grain and Meat Prices
First Indication.
Period of Depression Sure, De-
clare New York Financiers.

Washington, Feb. 5.-A big drop in
prices of necessities is only a few
weeks away, government officials
agreed here today, If the present rec
ord low levels of foreign exchange
rates continue.
England. France and Italy will be
forced quickly. it was predicted, to
curtaii purchases in American mar
kets. This means reduction in volume
of American exports and the dumping
of goods into the American markets.
Breadstuffs. meats and dairy prod
ucts now are being shipped abroad at
the rate of nearly s4,00O.000 a day by
American growers. packers and ex-
porterS, government reports show.
Dumped suddenly into the domestic
markets, such a vast quantity of food
would quickly force down prices, Off
cials said.
May Not BE Benefit.
Official opinion is divided, however,
as to whether in the long run this cur
tailment of exports will be beneficial
to the United States. Altho there is
no tendency to hold that a reduction
of the present high prices is not to be
urgently desired. many officials and
economists declare that the present
foreign exchange situation holds pos
A sudden decrease of European
purchasing in American markets
would have g. tendency to close fac
tories and throw workmen out of en-
ployment, some officials say. Amer
! lea, they say. must be able to ease off
gradually from the present record vol
ume of expectations.
Officials are about evenly divided on
| the question of possible permanent
benefits that may result from the sit
uation.
h That the curtailment of exporta-
tions already has begun is indicated to
some in the reduction of exports in
December as compared with Novem-
| Der.
Much Food Stuff Held.
| Some idea of the quantities in which
| foodstuffs might be released in the
domestic markets if foreign exchange
rates continue at present low levels
may be gained from inspection of the
rate at which the United States now
| is shipping food abroad. In Decem-
Der the total value of expectations of
breadstuffs, meats and dairy products
was s119,000,O00. This total was di-
lvided as follows:
| Whea.. 100000 bushels, valued at
| 100000.
Flour, 100000 bushels, valued at
Fresh beef. 6.oS1,ooo pounds. valued
at s1.198.000.
oleo oil, 6.oos,ooo pounds. valued
| at s1,672,000.
| Bacon, 5s,sS2,00o pounds, valued at
| $15.724,000.
Lard. 6s.645.o0o pounds, valued at
! $1S.406,0Oo
| Condensed milk 76,7SS,OOO pounds
valued at s11,23s.000.
| Chicago Prices Slump.
4 -
condition of the money market and
further affected by embargoes, grain
I futures opened sharply lower here to-
, day. The range in corn was cents
/ down and in oats 1 cent. Traders be-
gan selling at the tap of the gong. The
board of trade for the first time in
| three years was in a condition of ex-
citement nearing the pre-war sessions
/ Cash grains were affected. No dent
was made in prices on finished
products. Provisions sank with the
grain and hogs.
! February corn and March were
nominal. May and July corn were
each x C down at s1.S1 and s1.2s re.
/ spectively May oats was 1c down al
79c and >July 7sc down at 72c
The decided slump in the hog mar.
ket has been brewing for the past
sixty days. Chicago livestock men said
today.
Overseas buyers realized two
months ago their inability to finance
their purchases here, packing com.
pany official said, and there ha.
been no new business in pork O,
pork products since that time. All
export shipments now being made
are on old contracts
New York Pessimistic.
/ New York, Feb. 5.-The fall in com.
modify prices which has been pre-.
dicted as an inevitable result of the
{, drop in English exchange values will
not restore normal conditions, Franci.
H. Sissan, vice president of the Guar
anty Trust company, said today in al
interview.
THE inevitable result of the pres
ent situation will be the restriction o.
exports from this country" the banker
said. Then a consequent fall in ship
II ping will follow This. however. mal
result In industrial reaction with cor
sequent losses and unemployment"
Flour Drops Fifty Cents.
Minneapolis. Feb. 5.-Flour dropped
so cents a barrel at the local marke
today. the collapse of for eign exchange
and the slump in the wheat marke
being given as the cause Today
quotation-$l3.7 a barrel in 98-pount
| cotton sacks-is the lowest pric,
standard flour has been selling TO
this year.
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