Evening star., 1920-12-04

quire vast quantities of material for
their restoration and extension. we
have had relatively little building OF
homes in the United States for years.
Much property has gotten along with
minimum of repairs and improve
ments. Individuals in great numbers
have postponed purchases of clothing
and other articles of personal use.
rather than pay the extraordinary
prices lately demanded.
"All this signifies very heavy po-
tential buying demand. In ADDITION
over and above the domestic require
ments of more than 10O.000.00O people.
Europe still calls for great quantities
of our goods Though obstacles stand
in the way of exports tand though tor
eign sales for some time may be cur
tailed because of distress abroad, de-
probation of foreign currencles and
the tie-up of creditS), it Is neon
ceivable that our export trade VIII
stop.
..As regards the immediate prospect
of prices. much will depend. of course.
upon the ability of sellers to controi
the market. 1t is not possible TO say
when. exactly, forced liquidation VIII
have reached hating place. Up 10
this time the downward adjustment
has been quite one-sided; the severity
of the break in wholesale commodity
prices and securities has not been
matched by the fail in retail prices
or in wages. These have moved oo"h
slowly, and it must be ciear 10 every
observer that readjustment VIII nol
be on a solid foundation until these
have also come down to some corre-
spending level, or until whoiesale
prices have regalned a part VI ZIG
ground lost.
For many items. still lower whole
sale prices may come: for others. lr-
regular changes in the nelghborhooo
of the present level may be expected.
For some. however, in when the
most severe declines have occurred
we can reasonably expect recovery.
Present Food Yields.
Factors of strength exist today
that should help to make the present
strain comparatively brief. Such food
Yields as those of the present are not
usually associated with Industrial de-
preston Five of the country's crops,
according to the preliminary estl-
mates of the Department, of AgrIcul-
ture, will this year exceed all pre-
vious records. The cotton yield will
be the largest in six years. Crops as
a whole will exceed the average of
the last five years. The country is
rich in physical goods and in real
wealth.
1T should hardly be necessary at
time like the present. when domestic
demand for goods has fallen off so
sharply. to dwell upon the need for
maintaining our export trade in so far
as it is possible to maintain it by ex-
tentions of credit. Even if domestic
demand had not fallen. the necessity
of preventing sudden shrinkage in
our exports would remain, because
the country's most important staples
are produced in quantities to meet not
simply our own demands. but the de-
mands of the world.
In 1919 we exported MORE than a
billion dollars worth of raw cotton,
more than a billion dollars of meat
products, nearly a billion dollars of
iron and steel and nearly a billion
dollars of wheat and other bread
stuffs If our export outlet for these
four items were suddenly cut off. the
surplus would have to be sold in
America, at disastrously low prices.
1T is with the aim of maintaining
our export trade that the American
Bankers Association has unanimously
approved the report of its CONNIE rcs
and marine committee. rendered after
two years study of the importance of
foreign trade to our domestic pros
perity, advocating a S100,0O0.000 cor
poration under the Edge act. To take