Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-07-20

of economic forces, whereas a spon-i
taneous rise of either wages or prices
under competitive conditions sets in
motion corrective influences. As to-
the outcome Of such tendencies, re-.
lance must be placed upon the COM
mon sense of the people. The labor
organizations no doubt have the pow
er to wreck the present prosperity, but
we are not expecting them to press
their claims to that e.:tent. .~,-vI
It is always necessary to take ac-
count not only of the logical results
OF the economic factors in q situa-t
ton, but Of what other people think
OF them and are likely to do about
them. The present situation is large
~ psychological, i. e., dependent upon
what people think and are moved to do
IN efforts to promote their inter-
ests. There Is no reason why the
country should not 60 on in moder-
alton with full employment and,
prosperity spreading until every de-,
partment Of industry is included.
Judging by the obvious possibilities
and probable trend we expect good
business for the remainder Of this,
year at least. -
| Agricultural Conditions.
It is true that the prices of aeri.'
cultural products are too low in CONF
parison with the prices Of other pro-
ducts, but the case is sometimes
overstated. All agricultural products
are not in the same position. The
South had very good returns from it's
cotton crop last year and seems likely!
to have this year. Corn is up to about
double the price at the low point, wool
and sheep and sugar beets promise
good returns, dairy products have
been doing very well and the outlook
for cattle is improving, The Bureau
OF Labor index numbers by classes
for the month Of May shows farm
products at 139 as compared with 1856
for all commodities, on a base of 100
for 1918. The farmer is not going to
be q free buyer under existing condi-
lions, but these unquestionably are
temporary, and meanwhile the deficit
in his buying power is being made up
by full employment in the other in.
dustries at high wages. ., -
There is a good deal Of natural inn
patience that the agricultural situa-
ton RECEIVERS so slowly, but the situa-
ton Is due to world conditions. Sec
rotary Wallace has recently pointed
out that the production of most Of
the grains has been largely increased.
The receipts Of, hogs at Chicago in
the first five months Of this year have
been about one-third larger than the
corresponding months Of last year.
Such conditions inevitably affect pri-
ces, but it must be considered that
the increased production Of both grain
and hogs has been obtained with very
little additional labor or expense. Hogs
are down in price, but not one-third,
and the increased yield of grain has
been at lower cost per bushel. The
manner in which the big corn sur
plus has disappeared and the price has
rallied is significant of what is likely
to happen with other farm products.
which is down on account Of the dis
appointing European demand. We are
producing great deal more wheat
than before the war, and the carry
over this year is very large. However.
the population of the United States
is greater by $4,000, 900 than in 1918,
and increasing every day. And the
same is true Of other populations
which look to this country for food.