The Washington herald., 1922-07-10
DETERIORATION IN WINTER
WHEAT MAY HELP PRICES
Yield Under Expectations, But New Crop Will
Ease Financial Situation.

KANSAS CITY. Mo-. July g.
With the wheat harvest of the
Southwest well into the threshing
stage and grain, already coming to
the country elevators. the stimulat-
ing effect Of the promise of a .sw
Income is beginning to be felt.
While the yield Is uneven and In
parts of the wheat belt will be only
moderately liberal, there is in other
portions a larger yield than was ex-
pected and. on the whole. we may
look for considerable easing of the
financial situation from the crops
returns.
that there may be a falling of in
the total yield of winter wheat as
estimated by the government a
month ago. These reports reduce
the figures as much as 75.o00, 900
bushels. due to the extreme heat
of June. when the grain was in the
ripening stage. II this is not ex-
aggerated, the producers have rea-
son to expect sitter prices than the
30 cents to 81 bushel at which
the first marketing has been done.
Any advance over the latter figure
will bring a rush of grain. but sag
ging prices are likely to induce
holding for a later marketing. re-
gardless of the pressure upon every
farmer to hasten liquidation of his
obligations. The country banks are
depending on this and are insisting
that the first money available shall
come to them. as undoubtedly IL
will.
Little Demand for Credit.
While this insistence is positive.
the fact is that the country banks
are right now not greatly harassed
by applications for loans. We are
having many small loans. 500 and
under" explained an interior banker
in the heart of the wheat belt.
These are for current expenses.
buying twine. paying off harvest
hands. and matters like that. The
large loans are not In demand, for
they are mostly made in the cattle
feeding season. We are buying con-
siderable commercial paper. which
will come due next fall. when we
look for the local demand to
brighten again"
The local banks handling cattle
a market for large issues in the in
terror. They have applications from
Eastern banks also, but are placing
all possible with the country banks
out here, reserving the Eastern re-
source until later and as an assur-
ance in an emergency. The revival
of cattle interests has been marked
during the past year. The water
has been squeezed out OF livestock
values and Investments are made or
a business basis.
Good Outlook for Livestock.
II fairly average corn crop
comes on there should be a normal
activity in early autumn in the
livestock business. Most feeders
made a fair return last winter. and
as prices are holding up well there
is encouragement for the cattle men
to enlarge their operations. The
reports of shipments abroad are
showing promise of demand in that
direction. and there should be rea-
sonable outlook all through the cat
tie country.
An interesting sidelight on the
changing attitude of the average
producer Is his desire to get out
OF debt. In contrast with the pc
riod Of expansion when he was
plungiing into more undertakings
and seeking to extend his credit to
the furthest limit, he Is now as
eager to reduce his obligations and
apparently is determined so to do
at the earliest possible moment. He
may not be able to meet all his
notes and accounts with this wears