Great Falls tribune., 1922-03-05
FINANCE AND BUSINESS .
HELD UNDER TIGHT REIN
Bv Wells. .Oickey Co,

Although the general financial and
business situation Of the country may
be described as under tight rein the
signs of Improvement in many lines
are unmistakeable. Stocks, bonds and
many commodities are now at the high
prices Of the year and this means. OF
course, that current quotations are
substantially higher than those for
1921. Wheat prices, for instance, now
stand at about 33 per cent higher than
they were last summer and corn shows
an increase Of around 25 per cent.
This improvement In farm commodities
coming right at this time has given
rise to much optimism among north
western farmers and doubtless will be
vital force in determining the kind
and extent of 1922 spring planting.
While the condition OF the farmer
in the northwest has been far from ia
vorable the actual situation in this
great agricultural district as whole
IS not nearly so bad as has been paint
ed. Credit for agricultural uses has
been hard to get due not only to the
inability of farmers in many cases to
meet interest payments on loans al
ready outstanding but also to the vast
demands for capital IN other lines Of
activity. The actual number of fail
ures among farmers in the northwest
has been relatively slight. while the
general inclination among lenders has
been to forestall foreclosure proceed
ings wherever the farmer continued to
occupy his land and showed serious
dispositi0n to work himself oft. T his
broad ysioned attitude on the part Of
investors generally has been a vital
influence in maintaining our farming
units at a fair state OF operating ef-
ficiency.
Overlook tho War
Those who would have the devel-
opment of a vast foreign market to
relieve the present stagnation in agri-
culture seem to overlook the fact that
our vast foreign markets during the
war were the result entirely of artifi-
cial conditions. Europe naturally pre-
sented great market for food prod
uets during the time that her peas
antry was at war but the American
farmer who drives his own automo-
versity cannot hope to compete sue
cessfully In world markets with farm
ers from those countries which have
low standard of living, low wage
scale and cheap lands. The idea so
far as American agriculture is con-
cerned is to develop to maximum
the consumption of American products
at home and to offer for export only
what is actually an exportable surplus
over home demands.
There is little possibility OF farm
products under free world competi-
tion ever reaching again the high levels
of 1919. During that period the farm
er made inordinately high profits even
production and as result values OF
farm lands suffered severe infla
ton. Those farmers who purchased
$500 an acre land at that time paid
500 down per acre and later found
themselves holding land worth only
$3.50 per acre naturally were losers.
it may be said in perfect justice to
most farmers, however. that there was
very little of sud-, land speculation
among any but restricted group who
deliberately made purchases at that
time with the idea Of realizing a specu-
lative profit. These men were not
farmers at ALL they were spectators
in the broadcast sense and deserved
exactly what their speeulatons brought
them.
Farmers Optimistic
Farmers throughout the northwest
to future prospects, They look for
ward confidently to seeing agriculture
back to normal BY the end of 1922
and by the end OF 1923 expect to see
the loans OF 1920 and 1921 entirely
repaired. Inasmueh as the whole
northwest is primarily dependent upon
the prosperity of its agriculture this
attitude among the agricultural
classes is one of the most encouraging
signs pointing to a brighter future. |
The bond market during the week
was characterized by dearth OF new
offerings and prices generally re-
sponded in an encouraging manner to
the constructive developments which |
have been accumulating during several
weeks past. The rising rates for for
eign exchange, particularly the Eng
lish and the French. improved rail-
way earnings statements, rise in value
Of agricultural products, easier money
rates and general feeling that sol,
der bonus legislation finally enacted
will be in such form as to create a