Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1921-04-07

factors that governed wholesale selling
prices Of meat IN its relation 20 produce
ton costs showed no material favorable
gain In strength.
The lcssenins Of operating costs
brought about By the reduction o. pack
ins house wagcs has been 40 slight that
It's importance NJ factor In the general
business of the industry must b. minI-
mIzed. The irregular and nervous con-
dItion Of business generally also had =
marked effect upon the packing indus.
try. The weakness Of demand continued
to be kecnly felt and the result has been
n sharp eurtailment OF the volume OF
business. Tho buying power Of many
millions Of people has been either de-
creased or withheld from the market
during tho last month and more. With
approximately four million Idle workers.
Ia the United States and with rursa CON.
mumitles almost entirely out Of the mar.
ket. u pcrccptible weakening In the
strength II the demand fer all conrnodi.
ties was 10 be expected.
The general stasnaiion IN inesastry
that has been caused BY the tessened de-
mand and by the daily Increase N the
nnnWr ~ workers who are finding
themselves out al employment can be
relieved by only ono process. Further
liquidation must be made. though. per-
haps. not 10 thu came extent AZ the liqui-
dations ~ the last three months during
which vast quantities Of merchandise
have been put into motion. with their
consequent immense losses both In cash
and IN inventories that were suffered
by the merchants and the manufncnir-
ers. Those liquidations. for the most
part. were the result ~ the insistence
from lending hanks that outstanding
loans bc canccllcd; that insistcnce was
| inspired largely by the action of the
! Federal Reserve Board which has con-
ciudcd that the ratio ~ its net deposits
TO lta loans and discounts must b In
creased.
The coming Of Spring with its eofise.
quent demands upon banks for loens to
farmers with which to put In their new
crops has made II absolutely essential
/ that the Federal Reserve BBnks
strengthen their reserve. The Fedcfai
Reserve banks have let Il be known
that they will not cOuntenance even
normal huns To farmers this spring.
The result may be that an additional
movement 81 last falls crops will take
place NJ that farmers may obtain funds
o. carry themselves over until fall. The
liquidation that viii he accomplished
thereby should have a beneficial effect
upon business generally though II could
not be- fcl, until late next fall.
| About the only measure ~ encourage
ment business received last month was
In the nature of the wage rcad1ust-
ments. Many Industries announced
wage reductions and shortly thereafter
additional plants were put On basis
where they could resume operations.
That In particularly true In the textile
industry and IN the automobile indus
try. Feeling the stimulus Of reduced
operating costs those industries Enade
gratifying increases In production.
There are still Industries. however. that
have the period ~ deflation ahead OF
them aud there II no use attempting
| Ia ovadc the fact that the general bust
ness tone Of the nation will not make
steady Improvement until the operations
Of every industry shall have been adj
justod Ia their relative levels The
packing industry. as an example. cannot
produce az a steady ana healthy rate
while some other indnstry suffers from
curtailed production. The consequent
economic loss must he reflected upon
every basic industry. II IL quite safe
10 say. therefore. that business win not
resume the healthy "normalcy" about
which President Harding has spoken
until every business has succeeded In
adjusting its affairs to the same relative
level.
The packing industry was perhaps ne
first large industry 90 approach the con-
di,ion that is termed normal" 30 far
~ it's selling price IL concerned. Otner
businesses necessarily followed IN It's
wake. by the procession has been sucn
a struggling one that production mas
suffered kecnly by IL. That In clearly
shown by the fact that year ago there
was n ear shortage ~ approximately
is5. 600 freight cars. while az tho pres
ent time there are almost q halt mil
lion freight cars idle. when the total
number of freight cars available TOR
operation il taken into consideration In
ccunectian with the number Of idle care.
IA gives on the inpressisn that preduc-
liar n The hasic industrien Of the nntion