Evening star., 1924-10-03
BUSINESS OUTLOOK
CONSIDERED BRIGHT
Farmers Greater Buying
Power One of Most Vital
Factors.
BY j. &. ROYLE.

! Special Dspatr to The Star.
NEW YORK, October 3.-Business
men today are busily engaged in
| reading the future"
Merchants, manufacturers and dis
| tributorS are carefully studying agri-
| cultural and live stock conditions,
! which. they have come to realize, af-
| feet all lines of business directly or
| Indirectly. An especially careful in
veStigation is being made of the eff
feet of the relative shortage of corn
| on the farmers financial condition
and profits from live stock.
Fewer Cattle to he Sold.
Government experts figure that only
about 100000 cattle will be shipped
from the range States this Fall, as
| compared with $500, 900 last Autumn.
The number of cattle on the ranges
is declining and the number in the
corn belt on feed is increasing. The
effect of the short corn crop probably
Will be toward lessening the demand
for range cattle to be fattened on
! corn-belt feed lots and thus keep
down prices and profits of range cat
tlemen. Indications. however, are
also for higher prices for orn-fed
| cattle, with consequent advantage to
farmers in the corn belt who elect to
market their corn as meat rather
than direct.
The shortage of corn will have
little effect on farmers profits from
hogs this winter, according to sur
vey by 'Armour's live stock bureau.
VIII Sell Lighter Stock.
This survey indicates that, while
farmers will not finish out their ami
mlas to the usual weights, this will
involve no financial loss, since av-
eraSe greater returns may be OBJ
tanned from light weight hogs than
from medium and heavy grades An
actual test on the basis of wholesale
prices shows that the margin be-
tween the cost of raising hogs to
| light. medium and heavy weights and
! the amounts received per head over
cost of feed, is s3.o2 for light weights.
S2%1 for medium and $l.42 for
htaNieS.
The important question for the
producer" the bureau says. lis the
relation of corn prices to the prices
received for hogs. ON the basis of
the test quoted, Il zoo pound hog
yields products worth s2076. a ESQ
pound hog. $3.50, and a 300-pound
animal. s30.03
The packer on the average pays so
cents of each dollar received for hog
|
would give the following values to
the hogs of each weight as sold by
producers: 200-pound pig. 1861: $50
| pound pig. S20.40; 800 pound pig.
$2i.02. These prices are somewhat
below Chicago quotations. but over
farm prices quoted by the Depart
| ment of Agriculture.
I Conclusions Significant.
Using farm corn price of 81 a
! buShel. the total cost of feed to bring
pig TO 200 pounds is $3.50. to $50
| pounds. slS.03, and TO 800 pounds.
| $3.50"
These conclusions are significant to
! merchants, manufacturers and dis
! trlbutors in all sections, since the
| farmer is one of the most important
! factors in the buying power in the
! country. On that buying power bust
ness men are baSinE their campaigns
! FOR the Fall and Winter, and in gen
! eral they express the belief that bust
! ness will be good, because money is
| easy, employment good and there is
| prospect of restoration in Europe in
! addition to an increase in the pur-
chasing power of the agriculture
! sections.
Purchasing Power Rising.
The purchasing power of farm com
| modities is steadily rising and so far
| this year is about 31u points higher
| than for the corresponding period OF
| 1928. as based on the index numbe rs
| of the Department of Agriculture.
! This is attributed in large part in the
! advance in prices of grain which re-
| presents - per cent of the value of
| farm products sold and of meat
| animals, which comprise 81 per cent
| of that value