Evening star., 1924-12-31

tured p o u c t -.
showed slight de- Jc RovrE
clineS.
The important thing is that when
the year ended the buying power OF
the country had shown marked i'm
proVement demand was reviving, en-
ployment was on the increase, and
production of both raw and finished
materials was being forced closer to
plant capacity. These facts gave as
surance that business was on sound
and healthy basis, and that trade
commerce and industry could be
counted on to maintain a high level
OF prosperity, at least throughout the
early part of 1925
Weak Spots Strengthened.
There are still some spots in the
business fabric where the margin of
profit has been worn SO thin as to be
almost threadbare, but even these
have been reinforced and strength
ened In the last two months. Also
Enes which did not show satisfactory
prof1ts improved their technical posi-
tion in many cases by discounting in
Ventory losses and adjusting them
selves to new levels.
Marked improvement has been made
by some businesses in cutting pro-
auction costs. Individual efficiency
head has been lesSened, and methods
of distribution have been improved
Efforts in this direction have re-
suited in many consultations and
mergers of companies in similar lines
of business endeavor.
Main Factors of the Year.
Unquestionably the most important
feature of the year was the improved
condition of the farmer. This was
most strikingly exemplified by the
wheat growers, who have struggled
on for some. years with little or no
profit to reward their efforts This
year, however, the United States crop
was estimated at 870.O00.000 bushels,
as compared with 10000, 900 bushels
in 1928, while elsewhere in the world
Yields were short. As result, farm
ers who had to accept prices as low
as 20 cents a bushel on the farms
last year sold their wheat this year
at an advance of 80 per cent or more.
ano some got S1.25 to $3.50 a bushel
or higher.
The corn crop was 100000, 600 BUSH
els short, compared with last year.
and prices shot up well over 81 in
consequence. Farmers who sold their
corn direct did excellently. The fu-
ture trend of live stock prices must
tell the story of whether those who
Ted stock ana marketed their corn
In the form of beef and pork made
money or lost it by that procedure.
The cotton crop, expected carly in
the year to be scarcely large enough
70 meet world requirements improved
remarkably after Midsummer and
planters realized sufficient from the
increased yield, now forecast at 49,
1oo,OOO bales, to counter-balance
lower prices than those obtained ear
Ier In the twelvemonth.
Tooacco men had fine year, dairy
farmers were fairly successful, and
many fruit growers showed large bal
ances on the right side of the ledger.
Buying Power Augmented.
In consequence, hundreds of mil
lions of dollars were added by agri-
cultural products to the buying power
OF the nation. Conservative statis-
tfctans place the increase in the ma
tional wealth from these products
during the year at S12816,O 900. 900
This means that each of the 6,4OO .OO0
American farmers produced approx
mately S2,000-the total exceeding ae-
ricultural production of 1923 by s612,-
ooo'VUU. On this basis the average
farmer is just about $50 per cent
better off than in 1921. In view of the
advance in farm product prices land
the decrease in those for manufac-
tured products, the farmers dollar is
worth at least 10 cents more than 1t
was last year.
The Importance of this improve
ment is readily understood when it is
remembered that the farmers absorb
a tremendous percentage of the lum-
DER, Steel concrete, tile and other
commodities produced in this country +;
that they have piled up needs for
materials which they have not had
the money to buy for some years, and
that many of them settled up old
debts and are in excellent condition
financially.
Weather Important Factor.
The weather played a prominent
part In the ups and downs of many
hnes or endeavor during the year 1t
helped wheat and cotton, but it hurt
Eorn, fruit, live stock and some other
products. 1t also served to delay or
check entirely buying of certain sea-
sonaole goods In the dry goods. cloth
ing and textile industries.
Some sections had too much rain
and some too little. The Spring and
early Summer were cold and the Fall
was warm.
Some of the delayed demands were
hlled later, but a part of them were
blotted out entirely, with distinct ef-
4SCI oH retail CTaQe.
Activity After Election.
1t was a presidential year, and few
realized what deterrent effect this
had had on commerce and industry
until election was over. The day
after the ballots were cast busine ess
took on a new lease of life. Orders
which had been held up for months
were placed by wire. Shipments on
old contracts which had been held
back were released. Advertising
campaigns which might have been
abandoned or curtailed were put into
action. Mills and factories speeded
up output and raw material men took
steps to improve production.
The activity was healthy activity.
It did not hold the danger of inf1a-
tion. but represented a legitimate
change in the ratio of supply and de-
mand. 1t was reflected in a tremen-
dous increase in the prices of securi-
ties on the stock exchange, but this
fact dominated or Influenced few pro-
ducers. Many excellent authorities
indeed feel that the increase in values
shown in December trading in the
stock market discounted improve
ments in business for a good many
months to come. Therefore, business
made haste slowly, content to keep
production in close touch with con-
sumption.
The acceptance of the Dawes plan
for the rehabilitation of Europe ex-
ersed- aetremendous=indue ON SEN