Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-01-03


ally in the second month, and the
| index numbers of February | and
March /, making a nearly flat line
on published charts, was a visible
sign that wholesale prices were
about at their peak. Brighter
weather in the spring months ana
the approach and passing of Easter
Gavo a temporary fillip to trade.
while prices were driven upward
temporarily by the s#tchmen'
strike of early April. BY that time,
| however, public abstention from
buying nad become marked at re-
tail, and early May saw big out
burst of advertising having for its
elm the moving Of slow-selling
stocks.
Some Measures of Movement.
BY and large the past year was
one of liquidation in industrial Sc
curities and commodities, of at
tempted reimbursement of all values
from a swollen war and postwar
level, and of slaughter of prices
OF commodities at wholesale. The
return of the extensively ard
badly-run railways to their own
ers was signalized by moderate
rise in railway as distinct from
industrial shares, the weakness of
the latter and the growing reac-
ton in trade ald inlu try, how
ever, finally invo wing the fo"n'er,
as well as bonds of all kinds, in
final end-of-year depression. Not
the least imposing feature of this
liquidation, by the way, was It's
continuance, with rather feeble
rallies, over the period from early
November, 1919, to late December,
1920, period of fourteen months.
During the year the foreign eX-
change markets were greatly eX-
cited and while early low record
levels in British exchange were
not quite reached later, rates of
exchange on other countries in
most Instances touched bottom
twice at widely separated periods,
Sales of stocks did not greatly
expand with the liquidation, and
aggregate sales were much below
those of 1919 while slightly less
than those of 1916. Bond sales
broke all records, for which deal
ings in the war crop of Liberty
and Victory bonds, that were liz
Undated freely by business houses
as a result of higher money rates
and credit restriction, were re-
sponsible Municipal bond sales
were slightly below those of 1919.
New interpretations and new do
nestle capItaI issues were of rec
ord size. Federal revenues were
increased heavily by taxes, and
the national debt showed de-
crease despite what were regarded
as extravagant expenditures. Mon
ey in circulation increased in total
volume and in per capita allow
ance, Foreign trade broke all rec
ords. alike in exports and in i'm
ports, though exports never in any
month reached the food swollen
totals of June, 1919. Imports re-
acted from the high record June,
1920, total. The excess of exports
over imports was pared down from
earlier records. Exports and I'M
ports of gold exceeded those Tor
the preceding two years, but hlgh
prices ruling early as a result OIL
Far Eastern buying. The bank
clearings of the country in eleven
months euualed the record break
ing annual record of 1919, but TINS
excess was due largely to early
months totals dwarfing the cor
responding periods the year be
fore. because the totals in the last
quarter of 1919 were never there
after eoualed. 1t was frequently
said that, owing to our possession
and oneration of the federal re-
serve banking system, the ofteh
predicted panic had failed 10 ar
rive-we were at least spared TINS
old time American luXury--anu
this was true to the extent that
hank runs were rare, except III
the PonZi troubles at Boston ana
the small agricultural bank sus-
nensions in North Dakota ana
other western states, but the vol
ume of failure liabilities as
whole practically equaled those OF
the manic years 1907 and 1914,
though the commercial failures
were comparatively light, exceed
ing only those of 1919 during tne
present century. AS to this, the
fat profits of preceding years We're
reported sufficient to carry many
dealers through not very proilt-
able wear, but the record addltioa
10 those in business in l9l3-zo
may contain some elements OIL Iu-
ture liquidation.
Retreat of Commodity Prices.
Nineteen hundred and twenty
was an almost exact reverse OF
1918 in the movement of prices
although this does not show IN IN
the yearly averages, which show
striking similarities for three years
past. After 1919, prices very
generally moved upward until SO
called war prices were dwarlea;;
In 1920, after somewhat parallel
hesitancy in the same period, the
trend though interferred with Dy
the switchmen's strike in Aprll,
which introduced actual famine TO
some cities. was pretty generally
downward, declines at first, moo
crate expanding AS the year al
vanced, until the record deciine