Great Falls tribune., 1921-12-25
Better Business Hinges on Better Prices forFarn1ers
BY ARCHER WALL DOUGLAS
Chairman, Committee on Statistics
United States Chamber Of Commerce

United States Chamber Of Commerce
The story Of business conditions
which comes from the four corners of
the United States is that of continuing
stagnant markets for all farm COM
modities, coupled with prices below the
cost Of production.
The situation differs as to localities
in degree rather than in kind. Farmers
are buying only things Of immediate
and pressing necessity, for the very
good reason that most Of them have
neither ready money nor credit. They
are in an economizing mood that has
banks are loaned up all they deem is
safe, and the statements of many Of
observers is. that getting money from
banks for any purpose is impossible"
Business is quiet in the spring wheat
states, especially where the harvest
was poor, or where the quality Of the
wheat was not good. Much the same
situation prevails where corn is the
principal money crop, and where its
price is SO low that it is tragic in it's
effect on business and on the needs Of
low what it was during IT'S high period
in war times. These conditions account
for poor business in the spring wheat
states of the northwest and the corn
growing sections of the middle west.
Sell Only Because of Necessity
One reason for the lack Of better
demand for corn is the enormous crop
Of this cereal produced this year by
the south, more than enough for its
own needs, when in the past it drew
upon the surplus corn states for much
of it's wants.
Livestock, wheat and oats are only a
trifie higher proportionately in price
than corn and consequently there is no
especial reason, save necessity, to sell
them. That is about the only reason
that agricultural commodities are com
ing to market in such volume as now
prevails. The farmer must have money
to make some purchases, since credit
IL difficult for him to obtain. But the
gcanty returns he receives for his
products offer no inducement for him
to SELL and consequently business upon
the countryside continues In moderate
volume, although it is really larger
than would seem likely under prevail
ing conditions.
Matters are somewhat better in the
southern states although the recent
decline in cotton put crimp in that
general buying which had got we'll un-
der way, This buying was also affect.
estimate of this years production of
cotton was apparently wide of the
mark.
Minor Causes That Relieve
AS always, there are many minor
causes that relieve and alleviate the |
stringency in the agricultural situation
There is the dairy COW and the poltry
bird whose products furnish much
money to the farmer on the whole, |
There are fruits in the northwestern
mountain and desert states and in Cali |
fornia. There is garden truck in the
gulf states and the Pacific slope. There
are many minor crops, rice, beans, cram
berries, and sweet potatoes. There is
tobacco, where it is selling, as in North
Carolina and Virginia. But where it
see, there is deadlock between buy
ers and sellers, with nothing doing, and
consequent stagnant business. There
is the oil business in many states, un.
deniably on the upgrade both as to
production and prices, although pros Y
pecting and drilling seem to be gener-
ally quiet, save in a few localities
notably the Mexia field in Texas
=. More building is going on than is
generally realized, because it is local
and scattered. Also there is much
uOFc iOokeu IuF next spTlIS dS 1t is H.
believed by that time that high priced
labor and material will have got theirs
There is likewise general expectation
that with the opening of spring it viii 4
be easier to obtain money for construc-
ton in the country districts.
Mining Not Encouraging
Other industries are not so well off
The shipbuilding industry has become
nonexistent. Mining in general offers
little encouragement. Phosphate min
ing in Florida is mostly shut down be-
cause of lack Of demand from Germany.
Coal mining, save in the anthracite re-
gions, is not booming. The lumber
business has helped the situation much
in localities, especially in the yellow
pine districts. Just now it is slowing
down because of the approach of cold
weather, but expects all sorts Of busi-
ness next spring, especially if the ;
handicap of high freight rates be re- ,
moved.
Lower costs Of transportation are
among the matters of moment that add
hope of better business in some lines