The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-01-08

ioi WHiCu ucalIllSS Ill the war crop OF
Liberty and Victory Bonds, that were
liquidated freely by business houses
as result OF higher money rates and
credit restriction, We're responsible.
Municipal bond sales were slightly
below thocc Of 1919. New incorpora-
tonS and new domestic capital issues
we're Of record size. Federal revenues
We're increased heavily by taxes, and
the national debt showed a decrease
despite what were regarded as eX-
travagant expenditures. Money in cir
culatlon increased in total volume and
in per capita allowance. Foreign
trade broke all records, alike in ex-
ports and in imports, though exports
never in any month reached the food
swollen totals of June 1919. Imports
reacted from the high-record June
1920, total. The excess of exports
over imports was pared down from
earlier records. Exports and imports
OF gold exceeded those for the pre-
cedig two years, but silver exports
were smaller despite the very high
price ruling early as q result of Far
Eastern buying. The bank clearings
or the country In Ii months equall-
ed the record breaking annual record
or 1919, but this excess was due large
ly to early months totals dwarfing
the corresponding periods the year be-
fore, because the totals in the last
quarter of 1919 We're never therea fter
equaled. 1t was frequently said that
owing to our possession and operation
OF the Federal Reserve Banking sys-
n 4
failed to arrive-we are at least spar
cd this old-time American luxury
ana this was true to the extent that
bank runs were rare, except in the
'Ponzi troubles at Boston and the
small agricultural bank suspensions
in North Dakota and other western
states, but the volume Of failure liza
bilities as whole practically equal
cd those Of the panic years 1907 and
1914, though the commercial failures
were comparatively light, exceeding
only those of 1919 during the present
century. AS to this, the fat profits
OF preceding years were reported suf-
fcient to carry many dealers through
a not very profitable calendar year,
but the record addition to those in
business in 1919-2O may contain some
clements of future liquidation.
Retreat of Commodity Prices.
Nineteen hundred and twenty was
in almost exact reverse Of 1919 in
the movement Of prices. although
this does not show in the yearly av-
erIges, which show striking similali-
ties for three years past. After hesi-
tatioD in the first quarter Of the year
1919. prices very generally moved up
ward until so-called war prices were
dwarfed. In 1920, after somewhat
parallel hesitancy in the same period
the trend, though interfered with by
the switchmcn's strike in April, which
introduced actual famine to some
cities, was pretty generally downward,
declines at first, moderate expand
ing as the year advanced, until the
record decline OF November, recorded
IN the index number as Of December
l3 per cent? involved a net drop
from the peak point OF February 1
OF 34.6 per cent. the December 1
number being the lowest record
since November l, 1916. In other
words, the general level Of wholesale
prices on December was below that
ruling in the months Immediately
preceding our break with Germany
over the submarine warfare, but al
though the December level was still
Sc per cent. above the price level of
August /, 1914, more than half GO
per cent, TO be eXacD OF the six-year
war and postwar advance had been
Cancelled.
The Years Crops.
The drawback to the years results
lay In the loss satisfactory prices Sc
cured as a result OF the great decline
in prices from the high levels of the
preceding crops The department of
agriculture puts the decrease in value
at Si,939,OOO,000. or 35 per cent from
Tho high record of 1919, but this big
cut seems rather over-stated when the
details are looked into OF wheat, for
instance, big quantity was export
cd at higher prices than in 1919; OF
corn, only about 90 per cent leaves
thc iarm i'll the form OF grain. The
money loss in wheat ana corn is aiv-
{" as aggregating $2,334 100000. The
loEG in cotton was conccdcdly large.
as all that crop leaves the farm and
did not leave it this year until the
price was much below last year. The
i0ct Is that even accepting the very
low crop value estimate of the de-
partmcnt, the return to the farmer.
Decembcr prices used, was in excess
OF anything previous to 1917, and
1919 and l91G were not poor years
FOR the American farmer However,
IN respect to prices the farmer is
merely experiencing what the whole
:%ier and manufacturer in business
mas had TO suffer Despite the heavy
loss suffered by the wheat farmer, the
asrlculturai department places it at
$6'2'OOO,O 900, the area planted to that
cereal this year is estimated at 40
6oo,0OO acres, loss of only 2.S per
cent. from year ago and Of 20 per
cent. from the war acreage record of
l9l6, while the condition Is given as
S79, compared with S5.2 a year ago.