Evening star., 1930-06-28
DECLINE IN PRICES !;
HITS MONEY CROPS
Farmer Feels Effect of Drop
in Commodities of
Past Week.


The commodity markets and thS
stock markets suffered a double knock
down this week. They struggled I'D ben
fore the count Of 10 and we're on their
feet, although somewhat groggy as the
week ended.
There is a wide difference Of opinIon
among business men and economists
as to how the blow was struck. Some
say that the stock market followed
commodity prices downward and was
lustifled In so doing. Others declare
that commodity prices reflected the
weakness and uncertainty in stocks and
bonds.
The three great money crops Of the
American farmer suffered marked
depression OF prices. Farmers declare
that at present figures these commod,
tiles are below the cost of production
Some industrialists say this is equally
true OF certain manufactured products
Believe Situation Temporary. \
There is a decided feeling, however,
among well informed bankers and finan-
ciers of the country that all this dis
ruption of prices is merely Temporary.
This view is upheld by the preliminary
reports of earnings of various corpora
tons for the. fiscal year now near its
close. Most of these corporations have
a good idea of just what the forth
coming fiscal year reports will show.
and they insist that the situation Is far
from being as black as it is painted.
The American Car & Foundry Co.,
which has just issued report for the
period ended April 3, showed large un-
hlled orders on hand. The sanyR> is true
of the leaders In the -tce. Industry
There has been no enange in the policy
OF the United States Steel Corporations
10 bring as much iron ore down tfs
lakes in 1880 as in 1929. There is nc
question that demand for pipe and
tubular goods will keep the mills well
occupied for some months to come.
The automobile industry is not in the
midst OF a boom, but it is progressing
on far more stable, conservative and
healthy basis than was the case year
ago. when some units in the INDUSTRY
were riding for fall"
The non-ferrous metals have i'm.
proved their position only to a slight
extent. 1t is true that copper was well
taken at prices well below IL cents a
pound, but the demand is not insistent
by any. means. Lead has dropped, with
demand more active at the lower
prices. Zinc showed little indication Of
recovery from its downward trend. Re-
striction of the tin output of the StraitI
III Ouly anu august Is 6Hf
pected to improve the technical posi.s
ton of that metal.
AS is natural during the Summer
months, demand for meat has fallen OF
and supplies promise to be more thar
ample. Wholesale prices Of beef are
now cents pound lower than year
ago.
New Building Contracts.
Contracts for new buildings are run,
ming about per cent under those o
last year. The public utilities are doinl
more than any other branch of ir'
dustry in the construction line. The
last two weeks have seen the ironinl
out of good many diff1culties in th(
utility field, and men in close touch
with the situation believe that an era
OF lower gas and electric rates is ap, .
preaching.
The lumber industry is depressed
owing to the decline in residential con,
struction, but retail stocks are low and
when demand develops, as it is expected
to do, increased wholesale buying mus
result. Foreign lumber business haI
dropped off approximately one-third
On the other hand, the cement indus,
try, while still overmilled, is In active
production and cement is moving into
consumption at an excellent rate.
Crude oil production showed Slighl
increase for the week, but there really
is, slight change. since the weekly aver
ages are rising and falling at about the
same rate as the Summer progresses.
The seasonal influence incident q
the progress of crops in Canada hal
exercised favorable influence on busiA
ness in general in the Dominion. There
is no specific stimulating force in ef.
feet, but the general situation of thu \
United States best customer is salts,
factory. 1t would be more satisfactory
had not somewhat strong opposition
to American customs duties developed
in certain sections of the Dominion
Canada has done exceedingly we'll In
the exporting of wheat, and condition.
are favorable for 1880 crops.
(CopyriCht, 1890 y