Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-07-22

this territory purchases Will recede
or advance, but the commercial and
financial interests who anticipate
bearish trend are in the majority.
Much is heard of u shortage Of
steel. q shortage OF lumber and cop
per and lack Of wooden goods and
silks. but there is growing evidence
Of eXaggerations in those claims.
Even admitting that shortages exist
In many lines, the fact that the banks
Of the United States are heavily
loaned up and that the Federal Re-
serve system can not lend much more
money without permitting its re-
serves to fall below the legal mini
mum requirements is a very vital
bearish influence. This tightness of
money, which Is the result Of the
approach Of imitation to the maxi
mum limit, is already reducing the
purchasing power of many consumers
and readjusting demand and supply
conditions in commodity markets.
While general business on the sur
face presents an appearance OF great
activity, those dealing in the COM
modities which the southwest i'm
ports were never before confronted
with so high interest rates as today.
The cost Of business money is high
er than the top rates which prevail
ed in 1907 Under the influence of
such a money market, manufacture
ers and wholesalers are feeling more
and more the necessity for liquida-
ton. Their goods are coming into
markets where the larger business
men and their associates, who are in
close touch with the lack of credit,
already feel it highly desirable to
practice more economy. Labor is at
fected to degree, but being slow
no Sulueddpu 81 leu.M elgIoaIddB o.
account Of its unfamiliarity with
banking conditions, that element is
still spending freely. However. the
abundant supply of wheat harvest
hands in Oklahoma and Kansas re-
Elected a slackening in employment
in many industries, which is sign
of a coming decline in the earnings
and purchasing power of labor. This
will help to reduce commodity prices.
An interesting reflection of the
state of the steel industry, which Is
one Of the basic enterprises of the
country, is to be found in the expe-
riences of the Federal Reserve Bank
of Kansas City. That institution is
erecting a new home to cost $780,
600. 1t has earnings set aside to pay
for the building. When 1t began con-
struction work in the spring there
was nervousness over the delivery Of
steel. 1t was feared this would de-
lay the completion Of the structure.
AS the scant supply Of money for
financing private building activities
made itself felt and forced abandon
ment Of many plans, the Federal Re-
serve Bank OF Kansas City began to
receive steel many weeks in advance
Of its requirements and has been
forced to lease vacant land on which
to store the material.
While tatlors still report goods
scarce the demoralized market for
raw wool does not provide any basis
for their claims. 1t is felt that
sheep -rais'ers can not count on a re-
turn to the high raw wool price of
the early part Of this year. Those
who deal In WOODEN goods are con-
fident of lower prices.
! Hide markets. In which there is in
| terest among both cattlemen and
| consumers in the southwest, are stin
| weak. Prices are more than so per
fcent lower than at the high point Of
trade last August, when a downward
movement was started partly by the
| pressure Of the governments So
| called "figh-cost- living drive.
Packers are reported selling at the
declines, indicating little hope of
early Improvement in prices. Calf
skins are as low as 10 cents a pound,
compared with a level as high as
95 cents last year. Tanners are not
enjoying an active trade in leather.
While consumers are already getting
shoes at lower prices, further de-
clines are very probable.
The trade in lumber is credited
with slight reaction. but prices Of
yellow pine are as much as 80 per
cent lower than the high record level
in tho early part of February. Buyers
in cities and on farms are not yet
getting the full benefit Of these ra1i-
cal declines in prices at mills.
It is obvious that the wheat dol
lar, the cotton dollar and the live
stock dollar, are going to be worth
more to the producer In the next
year. Still In the markets where the
4 products of the southwest are sold,
tight money is also a bearish factor.
This is particularly true Of cattle,
which are no longer enjoying active
foreign competition except in the
case of orders from Belgium. Anoth-
er point to consider is the probabili-
Ity that labor will not be able to fur
nish the support Of the last year to
food markets. The latter, however.
are considered here in sounder po-
sition at the current quotations than
the markets handling the commodi-
| ties the southwest buys.
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