The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1921-01-01

rather feeble rallies, over the period from
early November. 1919, to late December,
1920, a period OF fourteen months During
the year the foreign exchange markets
were greatly excited. and while early low
record levels i'll 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
We're much below those of 1919 while
slightly less than those of 1916. Bond
sales broke all records, for which deal
lngs IN the war crop of Liberty and Vic
tory bonds, that were liquidated freely by
business houses as a result of higher mon
ey rates and credit restriction, were re-
sponsIble. Municipal bond sales were
slightly below those of 1919. New incor-
poratlons and new domestic capital Is
sues were of record size. Federal reve-
nues We're increased heavily by taxes and
the national debt showed a decrease DIES
plte what were regarded a. eXtravagant
expenditures. Money III circulation in
creased in total volume and in per capita
allowance. Foreign trade broke all rec
ords, alike in exports and IN imports
though exports never IN any month
reached the fOod-SwOllen totals of Jane
1919. Imports reacted from the high-rec-
ord June, 1920. total. The excess OF eN-
ports over imports was pared down from
earlier records Exports and imports OF
gold exceeded those for the preceding two
years, but silver exports were smaller des-
plte the very high prices ruling early as
a result of Far Eastern buying. The bank
clearingS of the country in IL months
equaled the notwithstanding annual rec
ord of 1919, but this excess was due large
" to early months totals dwarhng the
corresponding periods the year before,
because the totals in the last quarter OF
1919 were never thereafter equaled 1t
was frequently said that, owing to our
possession and operation OF the federal
reserve banking system. the often pre-
dIcted panic had failed to arrive-we We're
at least spared this Oldtime American
uXury-and tins was true to the extent
that bank runs were rare, except i'm the
PonZI troubles at Boston and the small
agricultural bank suspensions in North
Dakota and other Western states, but the
volume OF failure liabilities as Il whole
practically eGuaed those of the panic.
Years 1907 aud 1914, though the CONNER
clal failures were comparatively light. ex-
ceedlng only those OF 1919 during the pres
ent century. As to. this. the fat profits
OF preceding years were reported sutti-
cient to carry many dealers through Il
not very profitable calendar year. but the
record addition TO those in business in
1920 NAV contain some elements of flu
ture liquidation.
Nineteen hundred and twenty was am
almost exact reverse Of 1919 i'm the move
ment OF prices, although this docs not
show IN the yearly averages. which show
striking sImllarItIeS for three years past
After hesitation 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 switch
men : strike III April, which introduced
actual famine to some cities. was pretty
generally downward. declines at first.
moderate expanding a. the wear advanced,
until the record decline of November, re-
corded in the index number a. of Decem-
her l tl3 per cent, involved a net drop
from the peak point of February l of $40
per cent, the December l number being
the lowest recorded since Nov. /. 1916. Ia
other words. the general level OF whole
sale prices on Dec. l was below that rul-
ing in the months Immediately preceding
our break. with Germany over the sub
marine warfare, but although the Deem
Der l level was still IS uer cent above the
price level Of Aug. ]. 1914. more than halt
go per cent. to be exact of the siN-year
war and postwar advance had been can
cPied.
The drawback to the years results lay
in the less satisfactory urices secured as
y result of the great decline IN Drices from
the high levels of the preceding Crops.
The DEPARTMENT of agriculture puts the
decrease in value at 81 939. 000000. or 3
per cent from the high record OF 1919. but
this big cut seems rather over-stated
when the details are looked into. OF
wheat. for instance. a big quantity was
evnOrted at higher prices than in 1919;
Of corn. only about 20 per cent leaves the
farm in the form of grain. The money
loss in wheat and corn Is gwen as aggre-
rating - 22t 100000. The loss in cotton
was concededly large. as all that crop
leaves the farm and did not leave 1t tins
wear until the nrIce was much below last
year. The fact Is that even acCeDtIng the
verv low crop value estimate of the de-
rartmeut. the return to the farmer. Dec.
] prices used was in excess of ANYTHING
previous to 1917 and 1915 and 1916 were
not poor wears for the American farmer.
However. in Tesnect to prices, the farmer
Is merely experiencing what the whole
saler and manufacturer IN business has
had to suffer Desnite the heavy loss suf-
fefed by the wheat farmer. the aoricul-
tnral department places 1t at 6I2 100000.
the area nanted to that cereal this year
* estimated at 40 eos 600 acres. a loss OF
only IS per cent from a year ago and OF
ri nor cent from the war acreage record
&c 1918 while the condition is given as
s. o compared with $50 year ago.
Divergent views are held to the adj
mittedly clouded outlook. Those inclined
to take the cheerful side point to the alb
eeuce thuS far of acute financial. esDec-
inc of the strain on credit from the peak
point of midautumn. the evidences OF
nrice revisions having BROUGHT nearer the
noint where conditions. those affecting
money included. relatively sneakng, may
he expected to he stabilized, the great
basic wealth of the country. really un-
touched by the events OF the year and
the demonstrated ability of the American
to adart himself to and master difficult
ties. The other less favorable views ad,
vanced have to do with the spread OF
unemployment, the slowing, down OF indus,
tries. the injection OF short time and
wage reductions into the situation. this
tending to hammer buvinu ability among
LARGE sections Of country. and the as
serted cripnling of the farming interests
heralded as meaning reduced purchasing
mower among producers and as threaten
ING the very basis of trade and industry,
the production of stanle food and other
crons Only the very. sanguine annar-
emily look for swift reaction from what
economists describe as rne secondary
nhaso of crises and depressions. the SLOW
nainful and altogether u1nalatahle pro-