The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1920-07-08
BOrene AnalySes
Economic Conditions

| -
ing very interesting paper at recent
meeting of the Minot Rotary:
| The keynote of industrial conditions
during the last two years as reflect
ed in prices is to be traced to the war,
primarily: Anyone acquainted to any
considerable degree with the working
OF economic laws and principles has
long since discovered the fact that
prices are controlled and regulated
almost totally by actual factors of
production, supply and demand. And
it is equally certain that true, and
not artificial scarcity only, can account
for any length of time for the keep
ing Of prices at high level.
1t is interesting to outline briefly,
and only for moment how the war
has affected, and still continues to af-
feet prices. It is a generally &C.
cepted fact that with modern trans
portation and banking facilities, both
domestic and international, developed
as they are to make easy the pass
age Of both goods and credit between
countries far removed from each other,
prices in general are determined by
world market conditions. We are
no longer provincial nation concern
ed only with conditions as they exist
between our own boundaries. We
buy our raw materials and manufac-
tured products all over the world, and
other nations of the world do the same
as in our country. It becomes quite
evident therefore that any cause or
set of causes affecting the supply Of
such raw or manufactured commodi-
ties at any point in the world, affects
our supply at home, and consequently
influences domestic market conditions.
In this connection we have only to
recall the fact then, that from August
1914 to November 1918, the world was
in condition of war, to realize the
tremendous strain that has been put
upon the accumulated stocks Of the
world. During that period Of four
years primarily, and considerable
additional time, millions Of men, em-
bracing unskilled and semi-skilled
workers, skilled artisans and even the
general heads Of the worlds indus
tries were engaged in the solemn duty
Of killing and manning as many Of
the ehemy as possible. Europe,
Asia, Africa, and other lands were.
battle grounds, where forces, not of
production, but of destruction, sought
to win out in battle by making that
destruction as complete as possible.
And, besides, hundreds of thousands
were working night and day in the
manufacture Of the means of destruc-
ton. In this we have the first out
standing factor that has moulded the
scale of present world prices.
Let US. glance for a moment upon
the effects of the operations Of those
unheard Of armies of destroyers. In
the northern districts of France, and
in Blgiume large industrial centers
were completely wiped out by both
friend and foe. The principal textile
manufacturing region Of France was
literally scattered to the four, winds
OF heaven. So also in Belgium. And
what was true in France and in Bel
GUM was true in different degrees all
over the world with the exception of
the United States. The result Of all
this was that production Of raw ma
terials was limited to war needs, and
the manufacture Of clothing, ETC., was
limited to the utilization Of existing
raw materials for the basic needs Of
the armies, product that would be.
come complete waste when the end
should come. Sheep raising, cotton,
and silk culture lay neglected and the
whole world is paying for it today as
a result.
There was one saving grace in the
whole terrible period, and that was
the fact that our own country was
left to keep the world going. But
the effect Of it all was to drain our
own stocks both Of food and clothing
and the multitude Of other products
which we had on hand at the outset.
Not only this but we set about ration
ing our own people in order that the
surplus that would have made condi-
lions easy for us, could be spared for
the seemingly Unsuitable European
nav.
The end Of the war found stocks
depleted, fields destroyed, factories in
ruins, and man power scarce. It also
found the world suffering from = psy-