Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-04-06
RITSINESS AND FINANCIAL
CONDITIONS IN THE
UNITED STATES

UNITED SlAi Eo
Continued from paGe Two y
that thew may rebound to oGr "a
vantage, but in the long run, II we q
not think clearly and act wisely no"
those of our citizens who are aDSu
lutely dependent upon foreign MAJ MAJ
kets, especially the grain and cot.ol
farmers, will suffer more IN years u
come than at present
II is not the holders OF forelSl
bonds, but the producers and eNpoI,
ers Of American commo0lt!es, VIZ
will in time feel the effect OF n'ho :l.,.
shrown in the way Of foreigners
A having their debts, since the condit-oH
of our trade balance, by reason OF o.,
\ ;ts influence on exchange rates, VIE
be a leading factor in advancing. OF
re+arding the development of our Tor
\ eign trade.
Inproved Agricultural Outlook
DoveloDpents favorable to the FAR
mers have been the most outstanoi!e
feature of the industrial situation IN
] the first few weeks OF W., WINE
in general the business situation has
been marked by slow recovery IN some
lines of industry, and by prospects
for relief deferred in others, the out
look in me agricultural sections OF
the country has been Frightened by
the sharp rise in prices Tor grain ana
live stock. similar TO that which the
cotton growers experienced III the
early fall, Ehen cotton prices increas-
ed about 100 per cent in less than
three months.
Nav wheat sold at SLATE per bu-
shell in the middle of February, as
against a low S1.O3h early in Novem-
Der. an advance of 44A cents per bu-
shell. or about ~ per cent above the
recent low. May corn at 64@S cents
compared with 35l5 cents in Novem-
Der. or an advance of 81 per cent.
This rise has been accompanied by
an upward movement IN hogs ana
lambs, the prices of which have ap-
preciated nearly one-aalt and two
thirds, respectively. This improve
ment in the grain and livestock sit
uation has strengthened the morate
as well as the economic position, OF
the Western farmers.
Simultaneously with the advance IN
grain prices came the announcement
by the Department of Agriculture
that farm labor wages for 1921 were
81 per cent. below those for 1920. Al
though these lower operating costs
last wear were offset BY the larger de-
cline in the market prices OF farm
products, the relation between pre-
sent prices for farm products and
farm costs should go far toward lay
ing the foundation for a gradual re-
storation of prosperity for the TAR /.
mer. Moreover, the greater opium !
ism regarding the future of prices .
for farm products which recent mar
ket DEVELOPMENTS have induced has
been strengthened by the pronounced /.
advance i'm sterling and continental
exchanges, which has added consider
ably to the purchasing power Of Eu-
rope i'm our markets.
Farm Problems and World Conditions /
The recent Agricultural Confer
ence i'm Washington has served to /
bring home to the farmer the fact |
that the depression in mis- industry is
seperably linked with the world |
situation. At this Conference con-
servatiSm dominated the proceedings, |
there being a marked absence of radi- |
cal recommendations, particularly OF !
those which involve special govern /
mental assistance. The Cooperative /.
Marketing Bill advocated in princl- /
pie by the Conference has since been
passed by the Senate with only one /.
dissenting vote.
The Conference emphasized, al /
though it did not need 70 demonstrate, /
the serious plight of farmers as a /
group in consequence of the malad- I.
juStment of the price Of farm pro- I
ducts TO other prices affecting the
farmers costs of operation. More |
over, it recorded the judgement
that the farmer must reduce his cost /
Of production and distribution through .
increased efficiency, lower wages, and
lower freight rates. The implication
that the farmer must look TO I'M
provement in European conditions as
a basis of sound improvement in the
industrial situation here had hardly
been emphasized by the Conference
when the farmer saw for himself that
the recent rise Of the price for his
commodities in the domestic market
followed, and was dependent upon,
broad movements affecting the grain
markets throughout the world. The
reduced world stocks of wheat as com
pared with recent estimates, together
with an upward revision of estimat-
ed European requirements, has been