Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-10-08
FARM PRODUCTS
PRICES RISING
CONTINUED IMPROVEMENT MDE-
GATED By UPWARD TREND,
STATIsTEC1AN POINTS OUT
AIthough AgrEcaEsmre's Cash Kncosne for
1898 Hs Bezow THAT Of 1857 lhe Dis
parity ~ Expected 20 Narrsw fn
Coming Msnahs.

VOickng optimism over Tire con-
tinnea prospect for improvements
this fan and winter In tkze domestic
demand fer farm pEodmcsss Bay q.
Diamond mtasSstacAam fer the de-
partaeEae Of agricultural ec0m8mfes
at Helena presented figures and
estimates compiled from dozens of
different sources to show that farm
prices are tending to swing with
the rise In business activity. While
the farm income Is below 1887 flg-
ures, he pointed cut, the disparity
is expected to marrow In coming
months.
The estimate of 1888 cash farm in
come from marketings and government
payments Is approximately 1880 .00C
as compared with So, 500 900 as of 1887
he showed. The decrease is attributed
to lower prices OF farm products af-
fected by the marked decline in indus
trial activity during the past year, to-
gether with reduced consumer income
Currently, he said, interest centers
in the compliance Of winter wheat
growers with acreage allotments de-
signed TO improve a burdenSome wheat
supply situation. Loans on surplus
wheat, loans on cotton and increased
loans on old corn, were among the Inn
portant government announcements In
late August, Diamond pointed out.
Word received by Diamond from
Washington read as follows:
Nearly all doubts have been removed
the rise In business activity
this fall. The index of industrial pro-
duction for July was definitely up, with
slight improvement also in employment
and factory payrolls. Orders for steel
for the production of new automobile
models, together with other business IN
sight, seem to assure q substantial adj
iitional rise through October at least"
Farmers who are vitality interested
n the business situation, Diamond said,
because OF its influence on prices and
income received now have two main
questions. First, viii the initial upswing
n business continue, or be followed by
serious reaction; and second, how
ong win it be before the improvement
S plainly reflected in prices Of farm
PRODUCTS?
once a rise in business activity gets
lnder way" he said, zone favorable de-
elopment leads to another, and the
IpsWing tends to continue with only
minor setbacks until interrupted by
ONE combination Of unfavorable cir
sufficiently strong to upset /
he cumulative influence of the forces
ushing upward"
Some Of the possible retardfng factors
hitch might seriously interfere with
he recovery movement now starting,
e pointed out, are: The possibility of
erious adverse developments In the
1reign situation; less favorable pros
ects for agriculture with relatively low
rices for some important crops ac-
increased stocks and the
ecessity of ctirtailing production; diff
cult1eS In bringing various industrial
1sts and prices into better alignment,
r a too rapid initial upswing of bust
ess activity and security prices. The
utter might be followed by a sufficient
saction to bring a return Of pessimism
nd postponement of longer time COM
ailments on the part of business men.