Evening star., 1922-02-25
BY j. @. ROYLE.

Special Dispatch to The Star
NEW YORK, February 25.-The lure
Of paper profits is one of the most
pressing dangers which now threat
ems the farmers and stock growers OF
the United States. The advance In
the prices Of farm products has added
tremendously to the resources of the
agriculturists and has magnified their
potential buying power. Farm COM
modities have risen until they can be
sold at profit, but until they are
sold at profit the profit is paper
profit and liable to suffer the fate
of any scrap of paper. Until farm
products are sold and paid for the
buying power of the farmer Is largely
potential.
Business dispatches from widely
separated parts of the country IN
dicate that producers are holding
some Of their products for still higheS
prices. In other words they a.
speculating in futures and a producer
may do this with the wool still on his
sleeps back or the corn Mn his crib
or the cattle in his barnyard equally
as well as he can do 1t on LaSalle
street or at the corner of Broad and
Wall. That tendency has it's dangers
There is always the possibility or
overstaying the market. That was
shown conclusively in the case Of cot.
ton last year. Cotton rose above 20
cents pound. Planters had prohts
on their crops-on paper. But many
held for higher prices until the op-
portunity had passed.
Buying and Demand Grows.
Prices have advanced because Of in
creased buying and increased demand.
But manufacturers and close students
Of the situation are wondering just
how high prices for raw materials can
go without checking that demand and
halting that buying. Some commodi-
ties have advanced so per cent above
the levels that obtained last year. That
advance has not yet been passed on to
the ultimate consumer. and business
men are debating seriously to what
extent it can be passed on.
In the meantime. however, credits
are easier and the outlook far brighter
for commerce and industry as whole.
Timely rains have greatly improved the
situation for the farmer and stock
grower in many sections. Building
operations are getting under way.
Wholesale trade Is on the increase, for
retailers in many sections have cleared
their shelves of old goods. although
at very narrow profits in some cases,
and are preparing for increased busi-
ness this spring. Public service cor
porations in industrial centers report
increased demands for power at mills
anu idClOilSS. manufacturers are re-
cefvlng releases on orders placed long
ago and held in allegiance awaiting bet
ter times.
Rails Following Pace.
Railroads are handling an Increased
amount of freight and are putting
their programs for betterments and
improvements into effect. Thousands
of new cars have been purcha sed in
the last ten days, and lower passenger
fo in
creased travel this spring and sum-
mer. Furniture is moving in increased
quantities all over the country in re-
sponse to healthy demand and fac
tories are working full forces
Lumber demand is increasing for
domestic consumption with the in
auguration of spring building and the
shipments to the orient continue un-
checked. Hardware has shown a squirt
Of activity in many sections and farm
ments for the first time in months.
Cattle shipments have been heavy.
prices for live stock have advanced
strongly. and these evidences of activ-
ity have been attended by a rise in the
prices of hay and feed.
Auto Industry Active.
The automobile industry is increas-
ing operations by leaps and bounds.
Factory forces are being augmented
constantly, production programs are
being expanded and sales are better in
general than they were year ago.
The clean up of used cars has ma
terially. aided this upward trend. The
wool market is strong and still adj
vancing. Growers are polling their
spring clips and holding firm for a
further advance.
Warm weather has brought in
creased production of eggs and prices
in widely scattered localities have
fallen sharply. The demand for gaso-
line has strengthened and experts de-
clare the oil industry is facing a pc
riod of prosperity. Steel mill outputs
are increasing steadily, although
prices have shown no material ad-