The Washington times., 1937-01-06
1896 fine YEAR
FOR STAPLE
PROFIT
By JULES KRAMER
international News Service
Financial Writer


NEW YORK, Jan. 6 G.N.S0.
The year 1886 goes into history as
a bull year for commodities and
a profitable one for producers of
the most of the worlds great
staples.
With accompanying rising prices
has gone increases in consumption
and production with the major
exception of the great grain crops,
which suffered from a disastrous
drought in this country and
Canada.
The increase in consumption
has been marked, and reflected
a combination of circumstances.
World purchasing power has
gained as a result Of improvement
in domestic business in many
countries and betterment in inter.
national trade. AS important was
the world armament race, which
not only spurred demand for vari-
GUS metals used to make imple-
mentS of war but increased tax.
ings Of foodstuffs as well to build
up reserves in countries not self
sufficient.
Farm Output Checked
Nor must initiation be over
looked as a factor. While fears
subsidized at times, the spectacle of
continuously unbalanced budgets
and rising debt in this country
and abroad has been a persistent
bulliSh influence on the general
price structure, enhanced by de-
valuation Of the gold bloc cur
rencieS.
Despite the uptrend in produc-
ton, the year has not witnessed
much relaxation in restrictive ef-
forts and managed economy the
cries. The United States still
plans to keep output of farm
products under control. The quota
system continues to apply to a
great many commodities as sugar,
tin and rubber; and Brazil is
burning coffee as it has for sew
eral years. Death of the Agricul-
tural Adjustment Administration
in the Supreme Court for a while
threatened the domestic program
but new plans have come forward
since.
The drought this year took a
heavy toll of the grain crop in
the Northern Hemisphere. Wheat
was a partial failure and the loss
of corn ran into hundreds of mil
lions of bushels. This combined
with subnormal crops in other
parts of the world and inroads in
supplies in the last few years to
send prices to the highest levels
in six years and more, and to Gre
ate actual shortage fears.
Grain Prices Rise
From the producers point of
view, however, the return was
larger than year ago, for while
many farmers suffered disaster
others had good crops and reaped
the benefits of higher prices. And
there were Government bountieS
as well.
Wheat, which wound up 1885 at
a range of from 80 cents to a dol
lar a buShel, rose 80 per cent and
more during the year, corn gained
10 per cent, and oats and rye
nearly doubled.
Cotton had nothing as spectac-
ular in price changes during the
year, for the gain averaged ap-
proximately 100 points or IS a bale
from the 1885 close. OF greater
Importance was the size of the
crop, 12,407 900 bales, or 1,700,0 900
bales above the year before. Thus,
with the staple at the 12-cent level
and better, this meant around
$3.50, ,000,0 900 more in the pockets
of growers.
Other great preparedness" COM
moditieS are copper and oil. The
former went from Az cents q
pound to II cents. Crude oil was
boosted 10 cents a barrel to $1.1O
early in the year and only recently
was lacked up IS cents more to
take effect in January.