Great Falls daily tribune., 1920-05-23

sudden lessening in the demand for
goods from their shelves, and in con-
sequence there has come from within a
voluntary reduction in prices. particu-
larly among clothing dealers and depart
ment stores. John Wanamaker led off
several weeks ago by announcing a 20
per cent reduction in the entire twenty
million dollar stock on the shelves of
his two stores, one in New York and
the other in Philadelphia.
The cry has been taken up in every
corner and today announcements of sub
stantial price reductions seem the rule
rather than the exception.
Whether or not such reductions pre-
sage general fall in commodity prices
or whether they are merely q passing
whim, is hard to say. 1t seems certain
however. that the buying public is COM
ing to its senses at last and that it is
stopping to analyze and consider before
parting with its money. The condition
of the country is fundamentally sound.
for there is plenty to be done and good
wages and profits to be made in doing
1.-THE adverse factors being the un-
settled state of the public mind, the
choked condition of transportation aris-
ing from shortage of rolling stock, and
a strained labor and credit situation.
Prices generally are holding up remark
ably well. despite the lessening in vol
ume of business. Bradstreet's index
numbers for commodity prices show IS
distinct advances with an equal number
of reductions, and 40 remaining station
ary.
Bolivia Profits.
Announcement came from Washing
ton last week that loan of $40 00O, 900
for 15 years to the Bolivian government
has been arranged with investment
bankers in New York City. This loan
is being assumed to shift a portion of
Bolivia's national debt from France to
the United States, for the purpose of
profiting by present low exchange rates.
In 1910 and 1913, the Bolivian gov
ernment negotiated two loans from
France. the unredeemed portions of
which today are valued at 56,6OO,0O0
francs. This amount the Bolivian gov
ernment now proposes to redeem at
present franc exchange. Here is how
Bolivia profits: For the sum of So
100000 francs. at the time of borrowing,
Bolivia received at par Of exchange the
ent exchange level it will cost her s3.-
10000. She will thus profit S7,275,0OO.
Through this process. Bolivia will not
only have reduced her national debt. but
will have obtained the free use of ST.
275O0O for the period of Is years. Bo-
livia little dreamed at rhe time this loan
was made what the wheel of interna-
tional fortunes would bring her in 1920.
The question naturally arises, will
other foreign nations with heavy debts
to European countries follow suit
Japan, for instance. could readily use
some Of her credits piled up in the Unit
ed States for the redemption of good
portion of her pound sterling obliga-
ton to England. and thus realize direct
profit Of at least 20 per cent. The inter-
national credit system is one which will
bear watching. There are tremendous
possibilities for profitable credit read
justments between nations. with the
present demoralized exchange situation.
and it is an interesting conjecture as to
exactly how far these readjustments
will actually be made.
Improved Crop Conditions.
Better weather throughout the cen
tral west last week resulted IN Improved
crop conditions, but reports indicating
decreased aggregate feed production CON
tinue to flood the public press. Ihe
Bureau of Markets reports a consider
able reduction in acreage of most crops
throughout the middle west with the
single exception of corn. This Is due TO
two reasons, first an acute labor snort
age. and second, the unfavorable weather
conditions throughout the entire spring
season. Ground is now being put In con-
dition for corn planting and tremend-
GUS acreage which had been planned for
small grains will be planted to corn,
because of the lateness of the season.
There have been several fine rains In
districts where grain has been seeded IN
North Dakota, northeast
prn Montana and central South Dakota
Moisture conditions throughout Montana
- ...A.nnt nrn hnttnr fhan they have