The Barre daily times. (Barre, Vt.) 1897-1959, 1920-03-10
THE BUSINESS SITUATION,
Europe Must Make More Effort Il
Care for Itself.

Early spring trade has been much
impeded by the severe weather and the
consequent handicaps upon transporta-
ton, yet the immediate approach OF
spring is as always not without It's
Characteristic inspiration. As the agrl-
cultural season opens it is to be re-
GREETED, however, that the promise OF
large production is not greater. Aside
from the winter wheat crop, whose
somewhat damaged condition is not yet
officially reported, lessened production
this year seems TO be threatened IN
all directions.
The farm labor situation apparently
is one of the primary causes OF this
situation. A recent investigation OF
3.775 representative farms in New York
state. by the United States department
of agriculture, disclosed that during
1919 the residents on those farms de-
creased nearly three per cent and that
the hired men decreased II per cent
Assuming the same proportion OF de-
ereas sc for the whole state, about 35,0OO
men and boys left farming as against
IL 900 who entered it from other in
dustries.
These figures sustain the impression
received from the published complaints
of farmers everywhere as to the diff
cult conditions they face in maintain
ing production on a scale commensur-
ate with the country's and the world
needs. There is, of course, scarcity OF
manual and field labor in industry as
whole. due largely in this country TO
the stoppage of immigration during the
war. Special efforts to increase agri-
culture in war time were measurably
successful, but the patriotic appeal for
land workers has now spent its force,
and the farms are feeling acutely the
full economic effect of the competition
with the urban and town industries
with their high wages and short hours.
The tendency of farmers TO diminish
the amount of land under cultivation
because of labor conditions will prob
ably have freer play this year than
before since the war broke out.
Unless Europe can come nearer than
last year TO feeding itself out OF its
own crops, diminished growth of
foodstuffs in North America must mean
| further resistance to a decline in food
prices which the urban population so
much desires. The present price situa-
ton is not particularly pleasant TO the
consumer. One commercial agency re
ports for last week more advances than
recessions in commodity prices, al
though the ice and snow blockades
must have been contributing factor.
| u. So .as
that the general food price level in
January was eight per cent higher than
in December. For all commodities the
index number for January, 1920, was
| PAS compared with 23s in December
and 203 in January, 1919. The London
| Economists index number as of March
| | was at new high record.
The feeling persists in some impor-
tant circles that credit contraction by
the banks. under the leadership Of the
| federal reserve board, is a failure in
achieving results; from other sources
comes testimony that the contraction
policy has already released large hold
/ ings of commodities, causing price re-
auctions. II is difficult to make out the
precise situation. The federal reserve
boards weekly statement, as Of March
5, showed net liquidation of about S62,
100000 of discounted and purchased
paper, accompanied by a reduction OF
$40 100000 in net deposits. Heavy ex-
port Withdrawals of gold. mainly for
shipment to South America, are largely
responsible for the further depletion of
the reserve hanks gold reserves by
4 a .1fs 81 hNr1r =
decline Of only s2s,600.O00. Federal re
serve note circulation increased by
about slO.0O0,O00, while the banks La
bilities on federal reserve hank notes in
circulation decreased by Ss0O0000. A.