Evening star., 1931-06-27
Commodity Price
Trends of Week
BY H. N. McGILL,
Itor McGin Commodity Service.

E0ltOT MCGlil OOulInOQlty 6eTVlCe.
AUBURNDALE, Mass, June ~ R).
This weeks index for the first time
shows q substantial gain over the pre-
vious week. Not since September 5,
1880, has there been full one-pint re-
verse from the downward movement
from week to week. The point previous
occurred on July 20, 1929, so that the
extent of the weakness of commodity
prices in general for the last two years
can readily be seen.
All Commodities.
OF the IA groups under the heading
OF all commodities, recorded increases,
3 remained the same and only 4 de-
clined. This is the best record made by
the index for a long time.
Agriculture.
One of those which showed a good
gain was agriculture, with oats, rye,
fax. sugar. hay butter and eggs rising
in price, and wheat, corn and beans
lower. This is the first increase In this
group In several weeks.
Industrial.
The industrial group showed an in
crease for the first time since March 81,
1891. For some time we have brought
out the fact that this country was fun
damentally ready to emerge from the
depression. Production Of raw ma
terials and finished goods has been re-
ouced to the rate of current consump-
ton, which is very low compared with
normal conditions. Also, inventories of
raw materials in general have stopped
advancing and stocks Of finished goods
are light and incomplete. Costs Of
manufacture have been substantially re-
duced, as prices OF more than so raw
materials are at or below prewar levels,
and in many cases are under the cost
of production. The wages for many
lines have been reduced, profit margins
narrowed, and there is abundant money
available for credit purposes. All that
seemed necessary to set the forces of
economic recovery to work was some IA
vorable event to re-establiSh confidence
The suggestion from Washington of a
years holiday from the anchor Of war
debts and reparationS was that event.
Since that time the stock and connmod-
ity markets have been active, causing
an upward movement in general COM
modify index. Improved sentiment
seems to be giving the great purchasing
power in this country momentum. We
have felt for some time that buying
opportunities presented in 1881 for
profitable commodity purchasing will
not be repeated again for many years
OF course, not all commodities should
be purchased Immediately, and discrim-
ination and analysis should be used.
Non-FerrOus Metals.
Non-ferrouS metals group was the
leader in the upturn. recording SUBJ
stantial increase due to strength In
copper, lead, tin. zinc, silver and anti
mony. Quicksilver was the only item
in this group showing a price decline
Fine Textiles.
Fine textiles also moved substantially
upward with cotton. silk and print
goods leading the way. Cotton drills
and yarns declined.
Live Stock.
The gain Of last week was continued
by live stock. with cattle and hogs in
creasing, offsetting the decline in sheep
and lambs.
Vegetable Oils.
Vegetable oils advanced 1 point due
to cottonseed oil, linseed oil and China
wood oil. Palm oil was the only one
of the group declining. Paint materials
increased fractionally due to rosin and
linseed oil, with turpentine recording
decline.
Hides and Leather.
The only group recording more than
a fractional decline consisted Of hides
and leather. This was due to price
declines in cattle hides and union
leather.
The remainder Of the groups, includ-
ing building materials, ferrous metals
textiles, recorded only fractional losses
from the previous week.
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