The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1922-11-13
BUSINESS CONDITIONS ANALYzED.

That fundamental conditions underlying the forward move
OF business which began months ago ntrinscay
sound evidenced by the prompt resumption of progress various
industries the major earng influences OF the strike
situation removed the number OF 1he Guar
anty Survey just issued by the Guaranty Trust Company OF New
York Nevertheless The Survey" continues it is well to ecog
nze that powerful factors the business situation tending
to restrain any developments which may promise repetition OF
expansion scale comparable to that OF l9l92O The lack
OF stable adjustment of prices OF farm products prices in general
rising wage scales and other costs OF production inadequate rail-
equipment continuing uncertainties the conditions abroad
upon which ioegn trade depends and the overtakng Of
demand lines OF production which shortage OF supplies
has long pesseda combine to limit the probable range of
early expansion.
Moreover the progress recorded in recent months has all
along been spotty. In industries comparatively little better
ment has been effected But for Fastening edus
ment here through the agency initiation should be tolerated 1t
better for all business the long that recovery from the
depression should proceed gradually enough for the establishment
durable rather over-reacng expansion
few lines should further disturb the Of orderly readu
had expected in many quarters that an extraordinary
increase in trade activity would be developed this fall
qucnee of revived purchasing Of the farmers Although
matcriaized the marked cotton grain and cattle
prices OF recent weeks may materially alter the business situation
restrained part by the OF what followed
period Of extravagan spending but for compelling
they the whole moderate spenders
Prices OF leading farm products relatively low with
striking exception the OF cotton and it is OF
relative rather than absolute prices which seriously restrict
the purchasing of the farmers While there has been
siderable recovery prices of number of farm products in
October in earlier weeks prices of wheat and sagged material
q
of immediate purchasing than requisite to induce the
degree OF business activity which generally expected
At the beginning of 1920 orty before the peak postwar
prices reached the average prices of farm products occupied
nearly the relation average prices of all commodities
in 1918 However during 1920 the index of prices of farm
products compiled by the Bureau of Labor Statistics fell nceas
ngly below that for all commodities There but little
aned Improvement this respect in 1921 and at the end of that
year average prices of farm products remained about R per
out of line.
Price changes in the first months Of 1922 brought the
farm products index much nearly into accord with the all
commodities index than had been for than years.
the variation February being only about per There
after until September the index showed increasing spread Of
prices of farm products below the for all commodities
and in that month 1871 per below the index for all
commodities 1t is surprising, therefore, that the buying
power OF the farmers this fall has proved disap
pointing.
Moreover aggregate indebtedness of the farmers much Of it
the heritage of the period of and postwar prosperity is
extraordinarily large Money which under other conditions would
be expended promptly by the farmers for their ordinary needs is
going this fall to reduce mortgages and pay off bank loans
and other debts.