Newspaper Page Text
ARGENTINE TRADE j
DAMAGED BY OUR
HIGH TARIFF RATE
Exchange Rates Easily
Upset on Small Buying.
CLOSES THE MARKET
< ? ____________
United States Is Important
Market for Nations'
BUENOS AIRES. July 30.?American
exchange continues to be the
dominating factor In the Argentine
money market, and It Is noticeable
I that a very small buying of Ameri|
can exchange still is sufficient to
establish an altogether disproportionate
advance in the price of the
dollar. It is not believed here that
the new emergency tariffs in the
United States will improve the situation.
since they are expected to
exclude or at least greatly curtail
American imports of Argentine
dairy products, fresh and preserved
meats, wool, linseed, maize, and j
Hitherto the United States has
been an important market for Ar- |
gentine linseed, maise. and the other
mentioned products, with the exception
of wheat. Of the 172,000
bales of wool shipped this season,
for example, the United States took
| more than half, and during the first j
| quarter of last year 240,000 tons of
linseed, 25,000 tons of maize, and
20.000 tons of wheat were shipped
to the American market. Almost a
complete closure of the market may
be expected as a result of the
emergency tariff law, which imposes
duties of 35 cents a bushel on
wheat. 30 cents on linseed. 15 cents
| on maize. 2 cents a pound on chllle*
! and frozen meats, 25 per cent "ad |
i valorem" on preserved meats. 15 to j
! 45 cents a pound "on wool, 6 cents
a pound on butter and butter substitutes.
and 23 per cent "ad valorem**
Vast Have American Goods.
Although the low varue of Argentine
currency in New York will
no doubt continue to restrict American
exports to this market, it is
quite certain that Argentina will
still import from the United States
on a considerable scale. Mexican
j oil. which Is paid for in Hollars:
timber and other building materials,
j coal, kerosene. agricultural ma!
chinery and implements, office fur;
nlture and equipment, and a va- J
riety of other manufactured goods
will continue to be shipped to this
market from the United States, even ;
If the premium on th#? dollar groe!?
much higher than ,lt now is. Tn
other words, the United states may
shut out Argentine products, but
Argentina cannot altogether do
without American merchandise, and
ther burden of the higher cost must j
fall on consumers. Farmers
throughout the country are complaining
biiterly of the Immense
Increase in the cost of agricultural
implements, which Is felt all the
more severely because they have j
been encouraged by the national
crovernment*s scheme of minimum !
prices to hold their grain for higher;
prices, and are now being ofTered !
from 3 to I pesos the 100 kilos less,
than current market prices.
It should be borne in mind that |
although the commercial situation :
is unsatisfactory at the present
time, the country has enjoyed sev- j
cral years of great prosperity, and
that money Is still plentiful in most
of the agricultural and pastoral
areas, as well as in the towns. Consequently
buying of American goods
and commodities, some of which are
necessities and can be had only
from the United States, is not likely
to be eliminated because of higher
costs due to an abnormal exchange
According to recent statistics
from tjbe United States, the balance
of trade against Argentina during!
the seven months to end of January !
last was $53,552,888 United States
currency, and during tho earlier
months of that period, when the
trade ..balance was against the
United States, the latter country
shipped to Argentina $30,650,000 in
gold. Therefore there was a total
balance of over $93,000,000 against
Argentina for the seven months,
whereas in the calendar year 1920
there was a trade balance of $69,#00.000"
in favor of Argentina, and
of $32,000,000 in 1919. These figures
in th^tnselves are, .perhaps, sufficient
to explain the severe fall in
the v^)ue of the peso In relation
to th*. dollar since the beginning
of th?.year, and the great decrease
in the-volume and value of exports
and tttte fact that over 2.000,000 tons
of wh'$at are still unsold owing to
fcovern^nent interference with the
freedom of the market explain the
weakness and unsteadiness of exchange
on London, Paris and other
Kuropean centers. Prohibition of i
luxury!'imports and the removal of
duties and restrictions of all kinds,
which handicap the export trade,
would alleviate the situation, but the
national- finances are too much involved
tof make any sacrifice of
revenue possible, and the proba- |
bility i_a that abnormal conditions
will continue to prevail in the exchange
market for an uncomfortably
lengthy period. ^
183 MOTOR SHIPS
There are 183 motorships of
2,944 gross tons under construction
Hi shipyards of fourteen nations.
, The plants in the United
Kingdom are working on fiftyseven
bf these motor driven vest
sels. vjhile seven of 29,919 gross
tons axe being added to the American
merchant marine. There has
been a steady growth in the volume
of motorships, and it Is reported
that Germany, whose totals are not
Included In these figures, will produce
a large number of oceangoing
motorships for her new fleet.
On July 1. according to "Lloyd's
Register of Shipping," -there was a
total of 1,640 ships of $.199,568 tons
-?steam, sail and motor?building
throughout the world.
The Scandivanian countries, which
were the flrst to perfect the Diesels,
are engaged upon the roduction of
a good proportion of the large
ocean-going motorships. Sixteen of
tha- 63.260 gross tons are under way
In Denmark, while Sweden Is construct^
sixteen of 61.095 tons and
Norway Ave of 19,400 tons.
Large Export Buying a
CHICAGO, July 30.?A feature In
the wheat market which a large
part of the trade lost sight of la
the way prices have held up In
the face of an unusual movementChicago
received 1,125 cars on Monday
and 770 cars on Tuesday, while
the primary movement for the two
days waa nearly 9.000.000 bushels.
The speculative trade expected tbat
the heavy receipts would depress
prices, but the breaka of 3 to 4
cents were followed by reactlona of
the same size to a little more, and
those who sold on the break became
the beat buyers later.
Seaboard exporters were large
buyers of July and September, and
absorbed the hedging sales which
were unusually heavy, giving tne
market good support. The pressure
from cash wheat was light because
practically all the receipts had been
sold to arrive and were applied on
old sales, so that only a small percentage
of them came on the mar..
The tra<le not realize this
until late Tuesday, . when July
wheat, which has been at a discount |
FOR CROP REPORT
Covering Movement Among
Short Sellers Is Continued.
NEW YORK. July 30.?The only
feature of the market In today s
short session was the continuation
of yesterday's covering movement
among recent short sellers ovsr
Monday's government monthly crop
report. The entitle trade is now in
a. waiting position pending its puh1
cation which is due at noon, our
time. Monday. The trade is v expecting
the report to make the >ondltion
about 67 per cent. That is
the average of most of the private
reports Issued the past ten days. It
would compare with 69.2 for the!
June 25 condition as against 74.1
for July 25 last year and 75.4 the
ten-year average for July 25.
It would suggest a total crop in
prospect at present of about 8,800,ooo
bales without llnters against
about 8.450.000 in last month's report
as there is usually A considerable
deterioration in the condition
of the crop during July, whereas
there has been no such development
this rvonth. Instead of the
usual extremely high temperatures
and droqth in July, there has been
ample moisture while temperatures
have been of a seasonable character
on the whole. The worst feature
is there has been a considerable
increase In complaints ?r
damage by boll weevil, particuj
larly from Eastern Texas. A hot
i August with vnly occasional scatI
terrd showers would, however, be
beneficial to the crop in this respect.
| Meanwhile the necessary foreign
demand for our cotton to relieve
^3tPTfUre of h'avy surplus
stocks being carried In the South
over into the new colton statistical
year beginning Monday. August
1, has not yet materialized.
There was a spurt in the demand
from British and continental s%inners
for two weeks, but the past
week it tapered off to the previons
small proportion with Friday s spot
sales at Liverpool again dropping
back to a total of only 3,000 bales
for the day.
As a consequence the actual spot
sales on the Southern markets the
past week have made the smallest
total for some time past. Therefore
it will be necessary for either
a considerable improvement in thu
foreign and domestic trade demand
for the actual cotton or disastrous
weather conditions in the oe!t
to further cut down the already
smallest indicated crop since 1895,
in order to broaden the speculative
and investment demand for cotton
to advance prices from the present
level for more than moderate rallies
in view of the heavy surplus
being carried over into the new
World's spinners' takings of
American cotton for this week are
about 270.000 bales against 220,000
last year on tne Financial Chronicle
s figures but according to those
of tho New York Cotton Exchange
they have totaled but 204.594 bales
against 162.000 last year. The tola
amount of the world s spinners'
takings from August 1 to date on
th? later'. returns is 10,016.000
b?les against U.364.000 the same
t'm? >'ear' as against the total
of 10.442.000 on the Chronicle's figures
on its estlmte of 12.563,000 for
the same period last year.
Contract prices here were advanced
16 to 20 points from yester
day s closing quotations on the cov.
ering movement above referred to
with October going up to 12.17; December,
12.70, and January, 12.63
when the demand ran out in the
",te tr?d'ng the market relapsed
into dullness and eased off somewhat
in the second hours trading.
<vt,>h., H,*b lA,w Wo"SSSSer
* ::::..?:00 g-g ??
S:S \IZ ??
New York Cotton Exchange.)
CHICAGO BANK RATE
STILL SIX PER CENT
CHICAGO. July 30 ?There are too
S Kj,"Ke unll<Jui<'ated loans In
the Chicago Federal Reserve district
to permit of a reduction in the
rediscount rates from 6 per cent.
h?8 Kh'^aKO f>deral Reserve Bank
has held out la defiance of the
action of other reserve districts in
reducing their rates to 5U per Cnt
co?dmn"T rf5,lrdle" ?t financial
conditions. This reduction is believed
by financiers here to be unwarranted.
Chicago bankers are
anxious to get the business situation
on a sound basis, and do not
bel ?v. that there ha. been a completion
of deflation. Reducing disregard'.,
| Breadstuff Movements |
NBW YORK. July SO. ? The following
Wk" .li* 01 ?"?<???? . New
Cent .1 V. ^S? 40 0,101
\ / ,
ind Selling by Farmers
under September of late, advanced
to half a eent premium over September
on buying led br the seaboard.
Chicago haa sold over
ffOOO.OOO bushels of wheat to setboard
exporters within a week, the
bulk of It being for shipment beyond
August IS. Cash-handlers Jiere
do not like to take the risk of
large commitments for the near future.
owlnr to uncertainty as to the
elevator situation, although this Is
Farmer* Selling Freely.
Farmers In the West are selling
wheat and other small grains freely,
particularly wheat, the marketing
of which Is nearly at a record levet.
A Nebraska banker says that within
the last two years farmers borrowed
money extensively from tnelr local
banks to buy automobiles, farm
lands, oil stocks, and "blue-sky
stuff." and had no trouble In getting
the money because prices of grains
were high. "When the slump in
grain came last year." he said, J,the
farmers were unable to meet their
obligations. "We told them that we
did not want to press them too hard
and It was generally agreed that if
they were carried until the present!
harvest they would sell their grains
freely and pay up.
"They are now making good, and
the result Is seen In the htavy
movement of grain from the farms.
This is easing the country banker,
who secured his money rrom the
Federal Reserve banks. Some have
a little surplus, while others have
none, but the situation is betng
One Of the largest grain operators
In Nebraska says that farmers
have sold their wheat as It was
threshed, and that within a week
or two the big movement will be
over. Nebraska has good crops this
year. The com crop Is further advanced
than usual, and Investigation
throughout the leading corn
! ad"e * flndS the Cr?P *rac?cally
rule curb trade
Motor Stocks Make Further
Declines Under Selling.
NEW TORK. July SO?There was
heavy trading in many of the lowprired
issues on Ihe New York curb
market during the past week, but
ihe medium priced issues were
dealt In to ony a small extent and
the Important movements were to
j materially lower prices. Gillette
| Safety Razor wan one of the weak i
features, ranging from I43<i to 138.'
Goodyear Tire advanced to 16 but '
luickly rearte,|.to 11*. New.
I Jersey Zinc, after moving -up frnm
114 to 119. reached to 116. Glen
Alden was fairly active and strong,
advancing from 33% to 34%. Acme
Parking dropped from 1% to the
new low record of 1%. i,ow-1
priced motor stocks made further]
I declines, Bethlehem Motors selling
I at 65c a share. Locomobile at 70 to
i5c a share and Willys Corporation
50 to 4Sc a share. Durant Motors
was fairly well held with trading
, at 59 to 28. Chicago and East Illinois
was steady, selling at 13% to
13%. United Retail Candy ranged
from 6% to 6%. and Sweets Com-'
' pany was traded in at 3% to 2%.
A feature of the petroleum market
was the decline in Gilliiand Oil
! from 2% to the new low ot 1%. |n|
ternatlonal Petroleum developed
weakness, yielding from 11% to
I 10%. Maracaibo. after advancing
from 21 to 22% reacted to 21%.
Cities Service issues developed
strength, bankers shares advancing
! to 14 and the preferred to 120%.
There was heavy trading in the
! mining stocks. Boston and Montana
moving up from .67 to .77 on
; heavy transactions and Florence
: Goldfleld ranged .35 to .40. Magma
; declined from 18% to 17%.
record peach and
Heavy Shipments from State
Of Georgia, Figures
ATLANTA, Ga.. July 30.?Shipments
of peaches and watermelons
from Georgia for the 1921 season
have surpassed all previous records.
According to figures compiled
by the Southern Railway System
from official sources, 10.264
cars of peaches had been shipped
from Georgia up to July 22, and the
crop is expected to run above 10.500
cars. In 1920 Georgia shipped
5.663 cars of peaches. With a great
part of the watermelons still to be
shipped, Georgia had shipped 10,.
110 cars of watermelons, and shipments
since then have run above
150 cars per day.
The results show that there was
no ground for apprehensions expressed
early In the season that the
Georgia peaches and melons would
not move this year. Prices received
by growers have been quite
satisfactory. Estimates for the return
received by Georgia growers
from the two crops so far are placed
at $10,000,000. Favorable weather
continues. Improved transportation
facilities and better methods of
marketing are among the factors
which have contributed to the ?uccess
of the Georgia producers.
NEW YORK PRODUCE.
NEW YORK, July St).?ButterCreamery
extras, 43a46c; creamery
firsts, 38%a43%c; creamery, higher
scoring 43 3&a46c; l?tate dairy tubs,
32a42%c; ladles, fresh firsts, 31a
Eg**?Market firmer. Nearby I
white fancy, 53a55c; nearby brown
fancy. 44a4*c; extra, 41a42c; firsts,
KEW TORK. July 30.?Cottonseed
Oil was easy. Spot, 8.76 bid; crude,
7.25; sales. Futures?August, 8.75a
00; September. 8.82a8.R3: October.
8.82a8.84; November, 8.42a8.43; December,
8.42a8.45; January, 8.42a
8.45; Pebnjary, 8.45a8.50: March,
8.50a8.60. ^ r
Railroads Average 2.0
"J?^ TORK July i#.-For th,
ness Friday there was , lossofo
industrial ihtrei and a rain of o ||
follow "*""1 '"th la,t we,k- Co"
Imif ?, 1821
July 22, 1921
J?Iy IS. 1K1
?uij a, i?n
j?lj J. 1921
iua* 2?. 1921
I? IT. 1921
Jw ? . 1921
' ? I, 19*1
*? ?. 1921 ;;
Klf 20, I?*l.......
*?7 1?. 1911 \"'m
??** ? 19*1 ?
19m 29. Mn
April 22, 19X1
^l ?. i92i.
Aiwu 9. i9?
na??* 24. 'TSi:::::; ?
Msrc* U, 1921
Mink U. 1921
* ?* 4. 1921
F?toi mmrj b 1901
WllMT 11. 1921
3 7 29, 1991
Juaarr 21, mi
iaaaarr 14. 1921
Jaaaarj T. 1921
De<*aifc?r 28, 1W0..
Dmabi. 17, 1931
December ?. vno
DtnalMr #1.' itif \
Dfmhtr 91, 1919
December 81. '014
It took some time for the reduction
in the Federal Reserve discount
rate to exert its full influence
on the money fharket, kut a
pronounced change in money conditions
was recorded on Thursday
when, time money was offered in
substantial amounts at 6 per cent
and some special loans were made
below that rate. This was the first
open and maintained offering of
time money in a period dating back
to prior to November. 1919, when
the Federal Reserve managers
Issued the mandate that securities
must be liquidated. Since then
money has at times been in urgent
demand at 10 per cent and the
statement was repeatedly made by
those making a specialty of time
loans that the market was one of
bids without offers. There have
been instances when transactions
were made in time money in the intarvai
but these periods were
quickly ended and followed by renewed
Karly in the week reports were
made of loans of call money outside
of the stock exchange at rates
below those ruling on the board.
Apparently these loans at concesWHEAT
IN NARROW MARKET
Week's Receipts Have Been
I-argest in Many
CHICAOO. July 30?Wheat prices
moved irregular within a good
Tango. There was pressure early
from liquidators, and tho cleaning
up ?f a lar*e line of wh.-at bought
against sal a* of rye. This weakened
July for a time, but It was
absorbed later and prices advanced
cents. Trading was largely
loca . Cash prices were easy with
a fair export inqury. It Is said that
wheat Is moving to the Gulf faster
than it can be moved out, qpd that
more has been sent there tfian has
Primary receipts this week are
*o 4ln yea . not on record.
22.19<.090 bushels, or 4.308.O00 bushels
more than last year. Deliveries
for the morning were 229,000 bushels
making 1.518.000 bushels for the
month. Six cargoes of hard wheat
have been sold to Brazil and one to
Uruguay within the past two weeks
as our wheat is cheaper than Argentine.
Wichita reports lighter arrivals
and country offerings. Russia
has bought 5,000 tons of flour In
There was little in the corn market.
July being offered fairly on the
strong spots. Prices had a narrow
range, "with the undertone rather
steady. Hales for exports late yesterday
were 270.000 bushels, receipts
f^r the week show a good increase.
Weather remains warm, and while
there have been good rains in some
sections the past two days, most of
the moisture has been in the way
Northwestern hedgers were active
in selling September and buying December
oats at 3 cents difference.
L*>cal elevator Interests are trying
to do the same, but trade is not
large enough to admit of extensive
trading. Arrivals are increasing,
and primaries of 9,681,000 bushels
for the week are the largest I*
years. July rye was on tap from
Eastern interests at 17 cents over,
and No. 3 grades were taken by
them at 7 cents under July. Deliveries
were 133.000 bushels this
morning, and 634,000 bushels for the
Armour interests bought lard, and
report export business the largest
of the season. Other houses are
doing little. The week's shipments
of lard and meats were over 30,000,000
pounds, or 13,000.000 pounds
over last year. Estimated hogs for
Monday 39.000. against 131.000 last
year. Western run for the week.
413,000, last year, 417,000 hogs.
Money 6% to 6%.
Wheat?Open. High. Low. Clone.
Julj .... 1.21% 1.28% 1.20 1.23
Bept .... 1.23% 1.24% 1.22% 1 28%
Dee 1.26% 1.27% 1.25% 1 26%
Joljr ..... .61% .65 .62% .62%
Kept 60% .60% .60 . 62%
?% 60% .60% .60%
86% .15% .85 .35%
88% .3s% .3*% .38%
D? ..... .41% .41* .41*
S*P* ... 12.15 12.15 12.12 12.12
Get .... 12.32
(Fv?i?fc*d by W. 1 Hibbt * Co., member.
Chicago Board of Trxda.)
RADIO CORP. ^
Latest Information in our WaeUy
Market Letter, free upon request
James W. Ball & Co.
Members N. Y. Curb Market Assn.
8 Point Gain in Week. 1
b week -ended at the cloaa of bual62
point In the a?ra?e- price of IS
In the average of 24 railroad atocka
nparisons of two claaaea of stocks
23 Ballroada ? ladMtrlale Com. in J
<13.M M?0 JIM
65 28 5T.M *l*?
64.40 57.it "J*
6S.M 87.00 WW
80.62 M.M MJ?
fan MM M.M
Ctl " M.M ?* <t
M.T0 !.? JJ-J1 _
M.7J MM ?? f
aa mm ?" M
MM MM 01
MM ?T.M MM
CM M.1S * ?
MM MM cl
O.TI M.M P'
M 00 X M.M JJ-JJ I)
MM M.M JJJJ |,
MM MM JJM '
M.M M.M **]* tl
M 20 M M ? ? It
M.M M.M ? tl
.. M.M* 04. TO MIT 1
M TJ M.M M 11
T.M M.M ll
M.M M.M ** * p
T.M MM Mil J"
MM MM M.M 11
MM MM M.444
M.M r?M MH a
M.M M.M ?t-1* C'
MK 01.M M.M d
MM 01.M MM ?
M 04 M.M M.M ?
70.4ft M.M M M n
M.M IM.M MSI w
71 24 ? 102 44 MM
TO M * M 24 72. ? ?
M.M 40? _*1__ '
??? ' i ???- d
STREET TOPICS '
sions made barfks and other insti- f
I tutlons decide on meeting the out-'i,
| aide ' competition and on Thursday I a
i heavy offerings of call money were (
made on the exchange by leading fl
banks forcing the rate for call j t
money down to 3M? P?r cent, the :
lowest touched since August 19,'
1919, with the exception of a freak
loan made at 2 per cent November j
last. It was remarked as a curious , v
coincident that tnis break in the R
call money rate came at the same 11
time that the sale of $300.#0?.000 v
i United States Treasury certificates .
was so quickly affected. It was L
I suggested that the sharp reduction
in the call money rate might have
| the usual effect of driving the out- I'
of-town money away from the city *'
again and some of the leading lendi
ers believed this result to be ex- f
tremely probable. It was insisted h
by banking agents that the chief v
reason for the heavy offerings on ?
Thursday was to obtain employ- ] h
ment for a> excessive supply of; c
funds that otherwise would be idl?*. | e
Railway Steel Spring, which fell n
during the week to ths lowest price, c
touched since 1918 when it sold t
down to 4GV4. is an exception in its d
; financial condition to the general ; j
I position of industrial corporations 0
j in that it has no bonded debt and n
the only substantial item of obli- i _
| gations in its balance sheet of Pe- ;
cember SI. 1920, is the item of "?c- c
i counts payable*' of $785.9ff4. Against J
j this it held securities chiefly United
government bonds amounting to '
j f4.199.P27; accounts receivable. *
! amounting to $4,061.1 *6. and cash j
j 91.981.7&5. The common stock a
: has been on an 8 per cent dividend b
1 basis for the past two years. Th* t
I next dividend meeting should be a
! held In the last week of August.
In spite of assertions of distri- r
i bution of long holdings many stocks ^
j are In such scant supply In the |,
I stock loan market that they are
hard to borrow except at a pre- c
mlum. International Harvester is
an Instance of that condition. th#?
j borrowing demand beine so large
! as to be the subject of comment "
j in the loan crowd where it com- 1
j mands a premium of around one- I
I eighth per cent for use each day.
American Sugar loans from flat to
1-32 and Pressed Steel Car and Railway
Steel Spring both loan flat, that
is the borrower advances the market l
value In cash as security without
receiving any interest allowance. ^
Attention has been called to the I
i heavy borrowings demand for j
United States Steel common in the
I stock loan market after the close
each day. This demand has bee"
. intensified bv the fact that only a
few Honsfn offer to )<?an the stock (
I On Wednesday only one house ap-'
peared willing to lend the stock and
on Thursday a supply came in sub- j
stantial amounts from only three I
houses. This contrasts sharply with d
the situation a year or more ago o
when the firms offering to lend S
United States Steel common coul<? i a
be numbered by the hundred. i g
YEAR OF BUILDING \\
LOST IN GERMANY
Lack of Responsibility and
Confidence Delays ?
I (Foreign Correspondence of The Washington tl
Her&ld and Mew Tork Evening Pest.) H
FRANKFORT-ON-MAIN, July 15. p
?The entire German nation looked 1
with great expectations toward the ^
year 1931. and was convlncd that t!
with the revival of building a gen- a
eral recovery in industry and com- s<
merce would occur. These hopes, it a
is needless to say. were not realised, a
and apparently will not be for some a
months to come. We may therefore s<
call 1921 a lost y^ar in building. f<
Housing commissions are over- h
burdened with red tape, financial ^
provisions for building were duly
made, and there are still available Jj
funds carried over from last year. *
The delay is due to lack of con- i
fldence and of responsibility. The
commissions have not yet learned
that their task is to build houses fl
and not t<f promote the interests cj
of certain political parties. The tl
state of the building trade has d
caused a number of construction
companies to discharge their work- p
men, with a consequent increase in n
the army of the unemployed. In c!
th? meantime hundreds of thousands tl
who at present are living in tem- ti
porary wooden huts look with dread i<
upon the possibility of having to r
spend another winter In them. sj
^ JACKSON B1
reetal Tttofnik 1
KerekeaU' It Chloero. Mart
>oartTrf Trade. Iiaiu Ktaaeejelh. C
hMM tlrtim, lew Dnluth. Boart
T.rk. Wlnals^f. Orali
BM< ef Trade, Detroit. ., Tl7' _
Beard ef Trade. DalaU. , "
fredaae Eaehaate. IiMl. ekaaae.
OkaaiMr ef ?li?ini. KUwaske.. ?
^ hlUam. ^ Q.mnm.
FARMS NEED MOR
Average Farm Has Bee
Unit Requiring More
(By THE WASHINGTON 1
The great Increase in farm value* a
ist reported by the census have ap- T
roximAtely equalled the recent es- si
mates and the total of $77,925,000.- l>
>0 represents pra<Klcally 100 per 1)
snt Increase In ten/years. The In- oi
rease In the value of individual fi
ersonal property would undoubted- Pi
r bring the total far above the t?
10.000.000.000 mark. The chief slg- P'
1 flea nee of,this growth in values is ol
te Increased bligstlon in flnamig
agriculture In view of the fact a'
iat this dollar Increase in valua- oi
on Is so much greater than the tl
tcrease in tho volume of farm
roducts during the same period of v
*n years. n\
Judged from value in dollars Ir
lone, the farm products of the aj
ountry have made new record* A|
uring the war. but such valuations M
re deceptive and cover up tne rea? *
ate of increase in farm production
rhich is relatively little when prodcts
are judged in terms of quan- h
Itles. There has actually been a ?
ecllne in some instances, notably n
eef production, although the value 8
f livestock on farms has increased
2 per cent in the last ten years. 1
When the increased valuation is
ompared with the units of prooucion.
it is found that the amount of ?
arm capital, both invested and c
Iquid. fcer unit of farm product, has *
pproximately doubled during tne
ast decade, and this is a fact of c
rat economic importance to the na- 11
ion in considering questions of ru- c
al finance and the farmers' needs 0
or capital in various forms.
In terms ^of the average, indi- J1
idual farm the following table
how the conditions in years of the n
ast two censuses: n
'ALTS or FARM PROPERTY. 1920 1910 r
Arrrnge farm 192? 1S10 C
II fans prcprrtj 912.0*.', >*< 44 4 ii
and and building* 10.287 .*>.471 a
Land alone 5.514 4.476 ,
BuildiiMTs 1.77* 994
mp|pmfnt? 558 199 f'
i tor k 1.240 774 ?
Of this investment the averagr v
armer carries as his individual h
olding all except about 10 per cent, s
rhich represents capital borrowed a
n mortgages and current credit, as n
as been shown by the census re- fi
ently, the entire mortgage indebtdness
of farms amounts to a little ii
nor? than $4,000,000,000 and ether s
red its. loans and interests. *ther r
han the owning farmer, probably n
louble this amount. This increase b
n valuation naturally appears only t
n the books in the case of a great a
nany farms and the increment does <
lot involve a corresponding in- g
rease in overhead expense in actual e
tract ice. But for that proportion of n
arms that have been sold, which at c
resent is unknown, the increased t
aluation represents a real capital n
ncrease. upon a large part of which b
i reasonable rate of interest must i f
>e allowed jf agriculture Is to mainain
itself a business industry on h
. basis of profit. : o
"Here the peculiarity of the agri-ip
ulture industry romes in with re- I ri
pert to the fact that interest on I o
nveatmtnt is not a fixed charge ti
hat must he paid along with other p
osts of production, but is really a Ij
art of the individual owner's fi
roflt. except in the caae of a farm li
EXPECT NEW CORN ?
CROP TO BE LARGE jj
rop Well Advanced and Fine ?
Prospect Is As- *
Special Correspondence o(. The Washington s<
Harald and Hew York Erening Post.) a
CHICAGO. July 30.?-Unless there P
i very cool weather the next thirty n
ays the greater part, if not all, 8'
f the corn crop will be made by
eptember 1. The crop is further tl
dvanced than usual, and while a ti
ood part of the corn section needs ej
ain, the crop is doing wonderfully ti
'ell. It is silking and earing it
arlier than usual and the crop In k
'exas, Oklahoma and the South is h
lade, while in Kansas, Nebraska. n
arts of Missouri and Illinois, and ol
ndiana reports indicate that a ] e,
irge crop is assured. Iowa ha*;
fie bast prospects of all and tho n,
rop is doing well, ears forming ^
nd filling readily, and a good perengage
of the acreage is in the i
oasting ear stage, according to tho q
jwa State report. !7
Rain or no rain, there will be a n<
irge crop. Stocks of old corn in 1
iff country are larger than usual. 11
nd prospects are for heavy sup- **
lies for the next season. The
nited States could easily spare ^
ver lO^.OOO.OOO bushels of corn
without fueling it. It is seldom P'
hat the exports have ever run pi
bove 100.000,000 bushels in a sea- pi
on. At tho present rate there is pi
good export business on, as prices m
re low. Feeders in some sections a
re doing very little because of the ai
carcity of money. Those who had tl
*d hogs have profited, as prices of ^
ogs are the highest since last
UGH COST OF LABOR =
TURNOVER IS SHOWN /
NEW YORK. Julv 3#.?"You're
red*' and "I quit" cost one Amerian
Industry J100.000.000 last year,
he American Engtnering Council
The council, making public a reort
of Its committee on the elimlatlon
of waste In industry, deiared
that metal trade firms lost
?at sum throurh unnecessary labor
arnovers. With ar. accompanying
llenesa * of machinery the loss
cached $1,000,000,000. the report
*OS. & CO. ^
f Trade. In T?k. Trtitm S?
?altl-ws. Obaahse ?l
of TrUfc Otmmm*.
I ri?>?s??. TaW4s. FrWmo. IllllSMI
kaats' E? Il.tr.lt. ?eaH s<
In ThX IM E?
Chleaga. ?f?a Intiati, .
? CAPITAL *
ome Larger Business
irryln* mortgage indebtedness,
he fact that costs of production
try*y* h**? shown costs uniformhigher
than farmery have actuat'
received. Is due to this practice
r the deferring of the Individual
irmer'a interest charge. A market
rice that fully covers what has
pen stated as a complete cost of
reduction result* in a stimulation
t production since there have been
*ough farmers who would produce
t a price not Including a fair rate !
r interest on investment to hold up
le total of farm production.
A rough comparison of capital ineatment
In agriculture with the
lanufacturlnz. mining and railway
iduytrles. based on the 1>10 census
P pears as follows:
rricaitai* Hn.nrm.onn.noo i
suf.cturen 18,ooo.ono.owt n%
M t* ls.oon.ooti.oos
4,000.000,000 4*. j
Of this capital the farm owner |
d "PProximately 90 per cent of his I
wn individual capital In his busj- :
**" while in the other lines, out- i
*tock?. bonds and other i
idebtedness represented practically!
<"> Per cent of the total. In addi-k
on to this a large percentage or i
armers have provided their own
peratln, capital without ?lng
he rrn^""' i
While it has been the great in- '
hat has multiplied the farmers
during the recent years
ilul ,hP " the *r?*"nB total of
alue through recent decades has
**n "eadtly increasing the need
e?rtm0m" capital, and this
win no* disappear by any
leans when prewar price, are
eached on all farm products. The
ost of production of farm product*
'ion??"*, ,ncr"*,n?- ?"d thte
lone develops the need for more
'??>"?' The investment
irm machinery during ,he past deade
ha. increased 1M per cent. and
?h JZZ? ,?f th" " <,u* ?? the
Prices of machinery in the cen"
">o?t or ? mus, ^
?chin t0 th' ,ir?'r of
machinery required on individual
?rms for current operation.
The appeal for additional capital
y ;rr:U":e "P !
n,?. 7. ,h" ca" 'or improved
or*':redl|"' "">? " the form of j
^ loans from the sale of I
hT r 7'i'* Provided for through '
land banks and has brought In
volume of outside |
Pital but not in pr^,ortion to the
eneral in. rease In value The Dre.
"lrk'^U"1J"r *r"""r credit f?r
arkelinc. the result of the hich
wo v,;"!r " dUrin,t ,h' ?*"
~thod h7' /TPr'"n" " "cona
lethod b> which agriculture is to I
< assisted by more money in the
" of operating capital.
The re.ent tuw?iionK f?r lerfB.
h'eTs dT *" U- "Ml and
thers, described as emerirencv ?rn. 1
ZV't'rr. r""y '" ""'O- "f .he
d for a more permanent source
f supply of funds f?r filrm '
on and marketing. As vet r ...
Ian for providing capi,?, tot pu "
' Protective purposes l,as been
,J"? oul- ?cept insofar as
bank loans are used for tnts
urpose. The reeent
? the"bi" PU" "" ""'""on
r the services of the War Finance
orporation sh?,?s , disposition Ty !
^government to treat the whole
ian n-T ? temporary ,.?ed rather
*" IT ,mhich ? Permanent
pmed> is requires.
rJ ' maln proh,em which the BOVrh
'***" " that of deciding,
dti ?r ,'ed''ri" "i,! ?hall be pro-!
r.'h, h rr'nr th'farm ?'lus
*h?h safeguards the nation's
. !*Vpnl?' or whether through j
gislalion favorable to co-operative
r?"' r4rrn"-s them.
slve? the producers will be encourged
t? organize their own cororations,
both marketing and fl- i
'rpVus ,0 'n<1 ra?rk't the
^at'rvTnl'i * f""'inr among farmers
lat Congress must settle this quesion
one way or the other at a.
on'i di"' " *Kricu,tural proou. - j
on is not to sufTer because of cape
inT Th ' productl'>" ??<" mar- |
etlng The co-operative movemen. !
as rreat strength and |. mwln,
'"luneld"'' ;"h C"'r d'n"ifonf
r its Held under the law the farm- i
rs are prepared to continue to carrv '
.e greater part of the lo.i of ^
one in 'th" mdU"ry " ?h'>" h?"e
one In the past, if the f
onopoly. .o apparen, In somT
uarters. is to prevent the enar*
,ent of legislation ,1 Z'?nT^
erebt /Krirultur?! co-operation.
Nin. fk1"' farm organlve
so fa'r"n 0nl> ?,h*'r
proposed is government
.g the"urpn,u?.f " m',h0d of
Jicy cnr,V?r ' rlMnr?t nation.,
.rent ? ' ^UMUon has been ap.
t for several years ,nH
re'w.V tZ'T" ?"'? ??
rewar price levels has not re1
>?n by its expansion.
Rvbertsvn ?r ^!i!
r*mbers GnscbdatrdSfo<+?j< d Wy|?.
821 15tfc Street N. W.
Telephone Main 3160
WASHINGTON, D. C
* P. drain. Mgr.
"Bulls & Bears"
the nn,<?n? In
"fi? brokerage busl*rent
ordinary market letter.
th# tor and
?o ^!.v2 "V aDd "ocks
to leave alone. Manv
no^r lhouM bought
r d C,1'lol?,onAm Woolen
C. R. L 4P Ry Sinclair Cons.
or write for copv
market news and
xSwiXy* 21 Beaver St.
NEw ABK PHILADELPHIA
Independents Quote Bars
And Plates (3 a Ton
TENDING TO SA<?
Market Complexion Changes''
From Day to
( ptcial CmwywiwM W TW WsiklsgWa
Herald aad Tork E<ni>| Fort.)
PITTS BURG H, July 38?Price* of
1.75 cents on barn and 1 *6 cents on
platen and shapes have come to be
recognired u representing the ordinary
market amors the Independent
steel producer*. These price*
are 12 a ten below those announced
July 4 by the Bethlehem Steel Company.
and later by other producer*,
including the Steel Corporation on
July 6. but it cannot be said that a
f3 decline has occurred during the
week, there being rather a crystallization
in a market in which there
was rather general cutting. The
Steel Corporation's regular prices
remain ?t the old level, though competition
will be met a* occasion may
require. Undoubtedly the higher
prices hare been ignored lately In
the Western market by the Pittsluigh
plus" system being departed
In sheet* the reduced price* announced
early in July have been
shaded by Increasing amounts until
the decline in black and galvanised
now amounts to about $5 a ton.
making black $3.25 and galvanised
14 !5 as open market quotation* In
wire products and pipe the markets
are fairly steady at the price* announced
some three weeks ago.
Price* Tewd ? *?*
The complexion of the eteel market
a* a whole changes more or
less from day to day. but In gene.ral
it mav be said that price* tend to
sag rather than to break, and that
'.hey have become steadier by there
being leu* divergence In quotation*
mi-dc cp. order* of different decree*
of attractiveness There wa? a time
when a given mill would insist on
a certain price for a carload, but
would not hesita'e to cut several
dollar* a ton for an order of sav
1 Afin ton* The former price* for
large lot* have become common for
carload*, but large lots have not
Striking s weighted average of all
,-nporlant finished steel products:
prices are now about 4" per cent
above the l?-year prc?ar
and about 75 percent abov, the low
joint reached late In 1*14. thai low
point having been only a small per
,-ent above the historic low points
reached in 1?7 ?h'"
,opinion labor received I., cent* an
hour and ri.her and more easilymined
Iron ores were being used
The increase ?? ,hr volume c?f
demand upon the steel mill* that
began approximately a f-rln^ht
ago has become more pronounced m
I he last few days, and there can
be no doubt that the turn, tl.rn.gh
It amount* io little i^ore lhan a
turn, has been passed. The rtrrt
marked improvement was in
This was followed by a broadening
in the demand for bars, and pip?
i? now added to the list. w_ith a
distinct gain In mill books Shapes,
plates, wire pr..durts. and ?JTear
minor commodities have probab!>
had some improvement, but not
enough to be worth mentioning
A distinctly more cheerful tone
pervades steel producing circles
The feeling rest* upon the motives
of buyers, or the <-aiises that underlie
the improvement, rath.r than
upon the amount of the increase in
volume of business, for that
small The trade regard* it as *
particularly favorable factor thai
the increased call for steel seemto
be due entirely to a further decrease
In stocks In the hand, of
Jobbers and manufacturing consumers.
and not to an '"<-re,w ^
the volume of general b.ismcs* In
the country, or to a '
sentiment" on the I?art of bu>ers.
Why Order* l?rrt**d.
The distinction is important^ Tf
the increase In demand Mode fYom
business generally haxinir
enced an Improvement, then
mand previously evperleneed^ representing
I" r~r cent or less of
productive capacity might bave tu
Se accepted as in normal relation
,o the state of business and a
climb from f> rer cent t?. ? ?
or 100 per cent would certainty he
very arduous 1'
due to further decrease in stocks,
then further increase, can t>e e*a?
liquidation in ?<"<*
make* further progress.
create in general business, railroad
having and Inception of construction
projects to furnish further t?rr"c*"n.
If the Increased call for
steel were due to Improved "sentiment
among buyers the buyers
might change their minds seal
and the progress would stop.
New "Traders Handbook"?
given on request?explains:
How to buy stocks?
How to Rive instruction1?
terms with definitions.
How to indorse a Mockcertificate
to make it a good
Ask for W-471
CALX*. PHONE or WRITE?
eive us an opportunity to
demonstrate our facililie' for
rendering brokerage service
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Telephone: St. Paul 8451
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Jones & Baker
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