The Washington herald., 1921-03-10
ADMIRABLE STATE.
SHOWNNCANADA'S
REPORT FOR 1920.
Price Decline Sets in Mid
die of Year, Materially :
Aiding Conditions.
LEATHER FIRST HIT
Wage Adjustment Gradually
Taking Place-Agricultural
Products Gain Over 1919.

The seventy-eighth annual report
of the council Of the Montreal Board
of Trade contains an admirable
statement of conditions in Canada
during 1890. II shows that prices
continued to climb until the middle
Of the year; in the second a series
Of sharp declines. at nrst largely
confined to raw products, spread to
manufactured articles. so that at
present there is scarcely commod-
ity that has not been reduced In
price.
The leather trade first felt the
fall. the demand for boots and shoes
ceasing, and factories commenced to
close down. 1t Is believed that
there will be better results this
year. because the stocks of shoes
are rapidly being exhausted. and
prices are down to q basis of pro-
duction and perhaps in some cases
below. Furs were offered at half
the former top prices in many in
stances. Raw cotton falling below
half price caused manufactured
articles to be marked down. Raw
sugar values commenced to break,
and resulted in heavy losses for
most refneries in Canada The
sharp drop in prices Of rubber and
the falling on of the demand caused
a sharp decline in prices, and the
industry begins the new year upon
sound basis and better results
may be looked for under the more
normal conditions now reached"
Wage Adjustments I'm Progress.
Though foodstuffs, for the most
part, did not show SO great a fall
as manufactured goods, in most
cases there was a decline. These
declines were due to the refusal of
the public to purchase at higher
prices. In consequence, at the be-
ginning of this year Qs21) a gem
eral slowing down of industry and
an increase Of unemployment are
noticed. and wage adjustments in
a downward direction are taking
place. The council finds 1t difficult
to predict how long this will con-
tnue. but present Indications are
that many adjustments will be fin-
ished in the process Of a few
months.
Wholesalers and retailers have all
made concessions in the matter of
profits, and in many Instances ap-
parent profits have become losses
through shrfnkage in inventorial
values. It Is now the turn of the
other important factor in the max
ing Of prices. namely. wages, and it
begins to look as though the wage
earners recognize the situation and
h.
sions also. Should this prove to be
the case, the first serious step in
readjustment will have been taken,
and industry may once more be
started forward upon aasteadier and
more satisfactory course.
Agricultural Products.
The report states that a semi
ofheial estimate. which may have
10 be modified, values the major
field crops of Canada at sI,63s,665,-
coo. as compared with $1,452,4 900
in 1913. Adverse factors were
found in marketing crops. for
Great Britain, doubtless believing
that lower prices would prevail, !"
was out of the market in the early
part OF the season, and farmers
held back in anticipation of higher
prices. Farmers expressed much
disappointment over the freeing of
the wheat markets from govern
ment control. II being their opinion
that such control was to their ad-
vantage. The Board of Trade
Council expresses the following
opinion In this regard: This err
roneous belief on the part of the
farmers that prices of wheat can
be controlled from Canada or from
any other one country may be re-
sponsible fo- the agitation now GO
ing on in the Canadian West re-
specting methods of marketing"
Flour mills are freed from gov
ernment control The demand is
rather light. but the mills are be:
neved ito have had a successful
year" though total grinding is es-
timated to have been less than 6O,-
100000 bushels. as compared with
f5,00o.0o0 in the previous year.
In dairy products there was also
an Indicated falling off, the re-
ceipts in Montreal of butter dron-
ping by $4,000 packages to 37O. 900
packages in 1920. cheese by Izs 200
packages to 1.413.000. and eggs by
$4,000 cases to 565,OO0.
Coal md Other Mining Prosu.,.
The Board of Trade estimates
that the coal production of Canada
reached a high record, the esti-
mated output exceeding $4,000. 900
tons, as compared with 13,477,5OO in
1913 and the previous high record
Of I4,s77,92s in 1918. Nova Scotia
Is sai9 not to have regained the
ST. Lawrence market, but an inn.
provement Is expected this year.
The aggregate value of the prod
ucts of the mines is reported a.
about s2oo,oOo.00o. but for the last
month Of the year conditions were
not entirely satisfactory, the price
Of all materials except gold hav-
ing fallen. and curtailment of pro-
duetion in some companies was
general because of this lowered