Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-18
TRADERS WATCHING
COMMODITY PRICES
Recent Rise in Silver. May Bel
Forerunner of General
Advance.
BY CHARLES F. sPEARE.

special Dispatch to The Star.
NEW YORK, March 1s.-Any fore
cast Of the economic future invariably
runs up against the stone wall of the
commodity price situation. 1t is diff
cult to visualize real business recovery
without some improvement in this
quarter, and, therefore, intense interest
is taken in any sign of change This
Is the reason for ell the emphasis on
the recovery in the silver market, which
has been the feature of the commodity
price movement for over a week now.
Silver was slightly lower yesterday. but
some reaction was not unexpected after
its recent rise
Whether there is any foundation for
the belief that rising silver prices fore
cast a similar movement in commodities
generally is beside the point. The ira
uition is firmly established that senti-
ment Is affected fayorably by q
rally, in silver, and sentiment plays
a large part in the whole price
situation at this stage. once con-
sumsrS are convinced that the long de-
cline has been halted and that an up
ward turn is in prospect they will hasten
to anticipate their requirements.
Cotton Outlook.
The one commodity most influenced
Is, OF course, cotton. The Far East is
so large a consumer and its buying
power has been, or is supposed to have
been, so seriously crippled by the drop
In silver that the turn has had a direct
erect on cotton prices. Cotton has
been helped also by the better demand
from the dry goodS trade. It may be-
hot he
commodities, is hot so much the over
production as undsrconsumption. If so,
the outlook for cotton is improved. re-
CARELESS of the extent of the acreage
reduction for this years crop.
Not so much can be said for wheat
With the Government holding so large
proportion of the carryover Perhaps
this is the most discouraging situation
IN the whole field. The Department of
Agriculture, in its statement given out
today, pointed out that farm prices be-
tween the 30-day period from January
10 10 February Is had reached the
lowest point in 20 years.
later report comes from the Ma
tional Fertilizer Association, the index
Of which covers 476 commodity prices,
and which is down a fraction for the
week ending March IA However. in
the flve groups that advanced during
the week were fats and oil, other foods
and grain-feed-live stock" OF, course
some of the food changes are seasonal.
Eventually the problem will be solved,
but it may take crop failure or partial
failure to do it.
NOn-FerrOus Metal.
Conditions in the non-ferrous metal
markets are much unsettled. Nevertf1e-
less, copper has done better than was
predicted when the price first dropped
from 1912 to 1914 cents. The metal
shows better resistance than it did on
the last decline. Tin is strikingly
steady. 1t is true here as in many
other commodities that the statistical
position is bearish, but that quotations
do not decline correspondence Per-
hapS that could be said even of such O
commodity as petroleum, which is sub
Jected to about as adverse combina-
ton of circumstances as could well be
imagined, and yet there are authorities
in the trade who believe that a sudden
reversal as possible here also. In any
event there is. no such interesting or
important phase of the whole economic
outlook as that concerning commodity
prices.
Copyright, 1917