Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-11-14
CORRECTION OF
UNEVEN PRICES
eHOPEOF MARKET
Instances of Improvement Elk
pected to Increase in
Numbers.
CHEERFUL TREND NOTED
Special TO Indiana Daily Times
and philadelphia Public Ledger.
BY MONITOR.


BY MONITOR.
NEW YORK. Nov. 14.-Some Of the
closest students of economic and finan-
eiaI conditions take the view that the
more cheerful feeling in the stock mar
ket has been caused by the appearance
OF encouraging ineidentals rather than
by evidence of any fundamental change
for the better. 1t is true that these scat
tered instances of improvement will in
crease both in number and importance as
time goes on, and in that event they may
readily dominate the whole trend Of de-
velopment.
That this diagnosis comes pref y close
TO rejecting the present situation hay he
seen from movements in the stock Far
ket. The rise in crude oil prices and
the strengthened statistical position of
the petroleum industry has furnished &C.
casion for confident buying of the oil
shares. The reduction in the huge sur
plus Of copper through the curtailment
Of production, Increasing domestic con-
sumption and heavier sales abroad have
called attention to the prospects of the
coppers. Their position is analogous to
that OF the oils, although it cannot by
any means be commended that it is yet so
strong or that it will be so. Neyerthe-
less, it is felt that q great program Of
construction is under way, not only in
, this country but throughout the world,
and that huge quantities OF copper will
be required and that the demand cannot
be filed or is not likely to be filed ex-
eept at prices that will be renumerative
TO producers.
MERCHANDISING
STOCKS EXAMPLE.
Then there is the case Of the merchan-
dising stocks. These cover a broad range
and include mail order concerns like
Sears-Roebuck and Montgomery, Ward
& Co., and extend to chain stores, such
as WOOlworth, Kresge and minor organ
izatiOns like Jones Tea. 1t is felt that
prices are being forced lower and de-
mand tempted to increase through mer-
chandising efficiency and as a result of
this increased demand and increased
efficiency, the prosperity Of welI-man-
aged merchandising will become more
pronounced.
With the railroads and a large number
of industrial concerns such as the steels
and equipments, it is felt that the en-
couraging incidentals referred to are
Offset by such fundamental considera-
tions as production costs. economic NAL
adjustment and dislOeatiOn OF buying
power. While prices for agricultural
products are around or slightly above
pre-war prices, except in the case Of oats
and corn which are considerably below
the antf-bellum average, the actual buy
ing power Of the farmer or the exchange
value of his products is much below the
level which prevailed prior to 1914. The
mcro fact that industrial labor has re-
tanned much Of the advantages in the
way OF wage scales won by it during the
v@T represents an actual deterrent to
General recovery 50 long as the farmer
IS getting such dispropOrtionate re-
tara.
AGRICULTURAL
BTTTSGs POWER CUT.
! Industrial labor, for example. is work
ing on wage scale approximately 100
ler cent above the pre-Tar level Living
,C5:s S-e now only about % per cent
;.4ovc the pre-wcr basis. The farmer is
Lae,- 40 the pre-war basis or below it.
Consequently the agricultural community
hes Il JUyiug power, speaking in terms
"a c@eiiange value with the products of
i.iG1-tr.al Labor, Of only about 80 per
sent lis furIacr capacity.
TIE study recently issued by the Har-
ward cOmEsittee on economic research
Giving is index figures as Of October
tu:s year compared with 1918 averages
= most interesting. Grains and -four
;:rs given Il value Of 112; livestock, meat
product. hides and leather are rated at
-. metals and metal products ut Ill,
tibers aud textiles II liz, fuels at is
building materials a. 179.
With such facts confronting US, it is
4 question If an attempt to bring about
a general revival of business and indus,
try would not be ill-judged and ill
timed. 1t is necessary constantly to
bear in mind that the purchasing power
Of poorly paid groups, as well as that
of Impoverished nations. will operate to
disappoint hopes Of q sustained recovery
1t is possible. of course. that the DIS
armament conference may bring forth
practical suggestions to rehabilitate the
buying power Of EcTope. II this should
be the case, the r1aladjustment between
industrial groups might be susceptible
10 more prompt cOrrection.-COpyright
1921, by Puhlic Ledger Company.