San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-01-01
MIDDLE WEST
/. IS CHEERED BP
. 1922PROGRESS
Farmers and Merchants Are
Adjusting Themselves to
New Conditions.
c AU TON is SHOWN
Bankers Hold Back Opt
mists and Prove Truth
of Their Course.
CAUTION IS SHOWN

Kansas City. Mo-, Jan. 1.-One of
the maxims Of the old frontier cattle
days was: "You can't tell just where
you are until you come to the roun.
up" The past year in the Middle
West has been marked by an uncer-
tainty that at times brought dire proph-
ecies from the more temperamental but
in the round up" at the end has many
elements that tend towards encourage
ment. In its early months it was rec
ognized that we could not expect
complete clearing of the financial skies
in single season, but it was generally
believed that long strides in that direc-
ton would be taken. Perhaps the dis
lance traversed has been less than an
ticipated, but there have been sufficient
reasons therefor.
Every financial interest was for the
frs six months extending credit to the
utmost, looking forward to the harvest
in prospect. That harvest was abundant.
The wheat crop of Sl5,000,OO0 bushels
exceeded that of 1921, and practically
half the winter wheat was raised in
four states-Kansas, Nebraska, Mis-
souri, and Oklahoma.
Marketing Interrupted.
1t was logical to expect that this
| would be hurried TO market. as had
that Of the previous season, and doubt.
less such would have been the case had
| 1t not been for the rail strike aud
the consequent congestion Of transpor-
tation facilities. Merchants, banks,
and loan companies found when they
began pressing for payment on over
due paper or accounts that the farmer
was unable 10 meet his obligations:
be had not marketed his wheat. When
in early autumn there was again
something like normal movement of
trains the interior was without cars,
or, if cars were available, without mo-
tive power. Elevators and mills were
filled to the roof; buyers could not
move the accumulation, and producers
held their grain on the farm. The
whole machinery Of marketing was up
| set.
| Not until close to the end OF the
year did a measure Of relief show it.
self; then cars began to come West,
released in part from the demand made
| by the industrial demand Of the East.
Prices Of wheat and corn. now ready
for market, stiffened and producers
were ready to sell. Sluggishly, but still
with movement, grain began to make
its way towards seaboard. the producer
began TO cash his checks and some
thing like normal activity in this field
was resumed, But the four months of
/ congestion laid heavy hand on bust
ness and lost to trade and 10 baking
| interests much advance that might
have been attained.
Troubles OF Merchants.
The Western merchant has had dur.
ing the year a most trying experience.
| Unable 10 determine just when trade
would show seasonal activity, he has
taken protection through moderate buy
ing; at least, he has bought from hand
to mouth and has refused to fill his
shelves unduly. Eastern jobbing houses
have sought 10 overcome this by send
! ing goods for sales of short duration,
| allowing return of the articles uns0ld.
| In measure this has been justified,
and in the case of dry goods and ready
| to-wear articles it hRs proved helpful
to the country merchant. He was able
to show his trade late styles and yet
not invest in unstable materials. With
the increase in car loadings was evident
so marked n stimulation in trade that il
became an interesting speculation what
might have been the revival of business
activity had there been abundant trans
portation. 1t has become more evident
that efficient transportation is a key to |
the fullest accomplishment Of farm coun- |
try business.
Notable, too, has been the rising tide |
OF complaint against high transporta- |
ton costs. A heavy burden is laid on |
production and contributes TO the dis |
proportionate relationship between the |
prices received for products and those !,
paid for finished commodities. com
mon source of farm dissatisfaction. The |
years experience has added to political |
unrest from this source. When credit is
restrained and lack of ready resources
is general, merely because it Is impos-
sible TO move crops or because freight |
rates eat up profits, there is certain 70 !
be resultant aggravation. The COM
ing year is likely 10 see efforts to
change this condition.
Such methods as state-owned eleva-
tors. fixed prices for products, rural
credits 10 be granted on products on
the farm and similar measures OF re-
lief find supporters. 1t is all, of course, II
a part of the producers long-continued
revolt against his financial stringency
and 1t seems as strong today as when
the buyers refused to patronize their
merchants. more than year ago. What
ever buyers revolt now exists, however.
is not due to deliberate intent. but
comes from lack of current credit or
funds. though there may be plenty of
potential assets available.
Failures Among Small Houses.
Failures in this reserve district in
creased 81 per cent in the first ten
months Of the year, but liabilities de-
creased &c per cent compared with
1921, indicating that the small mer-
chant has been feeling the effect of
conditions more severely than the
larger concerns. The building of hard
surfaced roads and the increasing use
of the motor car have meant a hard
blow TO the village and small town;
trade seeks the larger centers, leaving
little to local firms except staples. Mer-
chants are realizing this and are
changing their stocks to meet the new
conditions. This tendency is likely TO
become more influential as easy move
ment Of buyers continues to increase.
The Middle West is in a sense accom-
modating itself to a new era, both in
the distribution Of trade and in meth
DDS Of agriculture, and It is not eI-
actly certain just what will be the new
alignment.
The agricultural situation hinges just