The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1928-01-27
Business Conditions

Business Conditions
A lower purchasing power Of in
dustrial consumers at the beginning
Of 1928 than at the beginning Of
1927 is indicated. As result OF
the lower volume of manufacturing,
factory employment and total wage
payments ended the year at levels
below those of = year ago. Two
factors that would ordinarily sug-
gest seasonal advance in business
activity are the lack of burdensome
inventories and the ample supply OF
credit at moderate interest rates.
Farm Prices
It seems likely that the level Of
farm prices Of Jan. Is will not be
materially different from that Of
the past three months. Beyond
January the offsetting movements
of seasonally lower dairy and poul-
try prices against higher livestock,
fruit and vegetables will tend to
maintain the present level Of farm
prices.
Since Dec. Is wheat prices in the
United States have not changed
materially. Rye, corn, and oats
prices have reccdcd somewhat and
so have prices Of lambs, chickens
and eggs, while cotton. hogs and
cattle have advanced. The general
level Of farm prices Dec. Is was
the same as Nov. Is and 10 points
higher than year ago. Most OF
the commodities included in the in.
dex showed moderate price in
creases but they were offset en-.
tirely by a decline in the price of
cotton and the seasonal decline in
hogs. Most Of the commodities
are above last years prices except
wheat, hay, potatoes, hogs, eggs and
chickens. Non-agricultural prices
showed declines in textile products
and building materials with offset
ting advances in prices of fuels and
metals. The index of farm prices
in North Dakota for 1927 was Is
points lower than q year ago.
Wheat
In spite of an increase Of 125,OOO,-
600 bushels in the world wheat crop,
there seems to be no indication of a
slackening in demand.
cipal consuming countries for the
crop year to end next July are esti.
mated at about 775,000,000 bushels.
While import statistics are not yet
available, world shipments since
August first have totaled around
$50, 600, 900 bushels. Assuming that
this amount will be used to reduce
import needs, the requirements for
the remainder OF the crop year will
be around 475, 0OO, 900 bushels. Sup
plies available for export from the
principal exporting countries Jan. l
will allow carry-over at the end of
the season about equal to that of
last year.
With an increase of 1877 per cent
in the world supply Of flax seed in
1927 and a slight curtailment in
building activity, it seems rather
unlikely that any important immed-
late advance will take place in the
price of flax. Flax seed production
in 1927 in IA countries including the
United States. Canada and Argen-
tina Is now estimated at 122, 915, 900
\ bushels against 1O1 ,O37 900 bushels
reported by the same countries in
1926, and increase of 21.7 per cent.
stocks on hand in North America
and in the United States in Decem-
Der were much larger than a year
ago. Imports of flax seed into the
United States during the first three
months, September thru November,
OF the present season were only
1866, 900 bushels compared with i'm
ports Of 7,077 900 bushels in 1926 or
q decrease of 2,112,OO0 bushels.
The average fran price of flax seed
for North Dakota Dec. Is was $1.84
q bushel. This is almost the same
as it was Nov. Is and the price has
remained practically constant since
that time.
Feed Grains
The average farm price of oats
IN North Dakota Dec. Is was 40
cents or 4 cents higher than that
Of the previous month, and the ten
dency has been upward since that
time. The season of 1927 produced
disappointing oats crop, but the
production was nearly 100000
bushels more than in 1926 though
below the 1920 quality.
In 81 countries so far reported an
increase of Sc per cent is shown in
the production of barley. In North
Dakota the average farm price of
harley was IS cents Dec. Is. Since
this time the price Of barley has
remained about the same.
Beef Cattle
indications are that receipts OF
cattle Tor the next few months will
continue to run materially below 3
year ago. but the seasonal tendency
for well.fed cattle making up q lare.
or proportion Of receipts during the
late winter months will probably re.
suit in some reduction in the spreat
OF prices between the best and The
poorest class Of cattle.
Receipts Of cattle at several mar
kets during December were the low
est for any December since 1921
Chicago receipts alone were TIL
smallest for any December since 100,
and the supply of -finishet
cattle at that market was especially
small. Prices of cattle have beer
rising since 1924. This rise appar
emily has now gone far enough Il
encourage breeders to begin to re
serve more breeding stock. Tn,
number Of cattle on feed for market
ID the II corn belt states was 8 be,
cent smaller Jan. than year axo
All available information indicate,
that the cattle on feed Jan. / thi,
year averaged lighter IN weight thu,
last year and the lightest for man,
years.
Hogs
Market supplies Of hogs duriua
December - measured by receipts
q Al public markets was about
per cent greater than I year ~
and present indications are that NOR,
hoGs will bsocoming to market il
l0zB than last year. The Decem.
~, 1877. pig survey shows an in