The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-08-27

JOURNEYING BACK TO NORMAL.
Indications that the world is trav-
cling rapidly in the direction OF nor
NAL conditions are multiplying daily.
We are engaged in converting scarcity
into abundance in many lines Our
crops are magnificent in spite OF a bad
start and shortage of farm labor. We
talk of a coal famine but our produc-
ton of bituminous coal thus far is
forty million tons ahead of last year.
Only a year ago the newspapers
were full of editorials about the ex-
travagance of the wage Garner. Silk
shirts, diamonds and automobiles were
being bought by manual laborers on a
scale that staggered the old rich.
Silk was on its way to $50 a pound
and buyers of motor cars were COM
PEELED to pay a premium for early de-
liveries.
The vogue of the silk shirt has
gone, and meteor cars can be had on
satisfactory deliveries. silk has gone
to Sc a pound. The diamonds are
finding their way back to the pawn
shops, where it is said loans are re-
stricted to 500, no matter how vaiu-
able the gem.
There has been a marked decline in
prices of many necessary commodities.
Coffee is down 20 per cent from the
levels current about year ago. Wool
has declined about 60 per cent, and
ELL - ~ at~o,,t aO var cAvf Of lie "a
cent high level. Cotton also is lower.
Grain prices have tumbled, and wholez
sale prices for meat are also down.
In fact most of the raw materials in
industry have experienced a consider
able readjustment, and the prospect
for bountiful harvests encourages the
hope of more reasonable food prices.
The wooden manufacturing industry
has been more or less at a standstill
for several weeks. The largest estab-
lishments have put into force drastic
curtailment in order TO avoid inventory
losses. Cancellations have been heavy.
Raw wool has suffered severely in
price, and actual sales have been few
and far between. Last year most of
the western clip had been sold ahead
at from so to so cents per pound,
while recent transactions have been
made on a basis of % to 25 cents per
pound.
One of the recent striking develop
ments in=the commodity situation has
been the decline in sugar. Recent es-
Inmates place the European sugar crop
for 1920-21 at about 100000 tons
over last year. The Cuban sugar crop
iety to sell. American refiners have
reduced prices materially.
From the course of the commodities
mentioned above it may be seen that
we are rapidly working toward a radi-
cal reduction in our living costs. Most
of these articles include the chief ne
cessities of the people. Manufactured
products are also declining. This is
particularly true in the cotton branch
of the textile industry. Certain num-
bers of yarn which, less than four
months ago, were selling around $500
per pound, are now offered below 20.
These reductions have not yet
reached the consumer in any consid-
cradle degree, but that they will do so
at an early date appears to be newt
able. Bradstreet's under date of Aug
ust 81 says:
If any really new feature might be
adduced in trade discussion, it might
be said that a disposition to readjust
prices and to take and charge off
losses is more manifest than at any
time before since trade began to quiet.
The outlook, in fact, is that business
is getting down to q real demand and
supply basis. that buying will be close
ly controlled and that extensive future
commitments will be avoided until at
least the present money stringency has
been bridged over Out of the mass of
trade reports examined, indeed the
fact shines out that price readjustment
is on as never before since the big war
reached its climax. This week has
seen advances and declines nearly bal
ance, but food prices have Teceded
rather sharply. Price revisions in cot
ton goods, mostly in goods in second
hands. are numerous. Mill prices are
said to hold. Wool is not much
changed, but silk and silk fabrics have
not held the strength noted some time
ago. Wooden production will be small
err between now and Labor Day. Shoe
buying is restricted. as is production.
Export trade advices are not quite en-
couraging, and there are signs that inn
port operations feel the brake of slow
ing trade in domestic lines.
This weeks index number. based on
the prices per pound of thirty-one ar
ticles used for food, is $4.36, which
compares with $3.50 last week and
/ 1914 for the week ending August 81,
1919. This weeks number shows a
/ loss OF 5 per cent from last week and
OF 1871 per cent from the like week of
/ last year.
nj. es.-.,.s 10000 s.a1,,aa 49,