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The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, December 31, 1920, City Edition, Image 20

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20
THE CHATTANOOGA NEWSt CHATTANOOGA, TENN., FRIDAY, DECEMBER 31, 1980.
R NOW AT CLOSE SA W COLLAPSE OF
WAR-TIME PRICES THROUGHOUT WORLD
Hon in Securities, De-
non or f-oreian tx-
jes, Currency Infla
tion Reviewed.
YEAR FOR CROPS
rst Country to Suffer
Far East and
luth America Are
Affected.
r which end today w the
t a world-wide neculHtinn
Hies and securities which
superimposed on the war.
tlon of currency and credit.
level of commodity prices
than any on record and the
II In ataple rommodltlea waa
, says the New York Eva-
'a annual financial review.
he year openrd with appear-
ro.xpemy, Japan, where
w neon pushed to the
llmlta. went Into a erl.l.
the arly spring, and before the
waa over virtually the whole world
,nMBKn. Uritlsh India
xTflna's have collapsed, car-
rtf with them; and the
biggest export commodities
tea. hides and skins have
vuks on the market Smith
caaaannoi pav ner acnts because
rente drops In the prices 'of
eat; wool, and hides and
naturally, has fait these
stlons, snd In addition has
ruggle with Increasing nnr.
dAreclation, unbalanced, bud-
poiitical and credit uncer
In our own country the fa
ns of the wanln hu.ln...
ha appeared, such as falling
nreasing unemployment, and a
ion of the number of busl
ultles and failures. Atten-
MVsatoenters on forecaata of when
dcprlkslon will end.
Kutstandlno Event..
wissr groups of events have
tr as bearing; particularly
t financial year:
treaty of peace at Versailles
Crops of the United States
ran lb
an
t
dim
seft-io
thSpast
pi
i
li
natlm
era lil.'
ela-o re Ml
left
Of
get in ti
been n
, kMs Wcr
more In
(I) C
abroal.
all 1 1 iii.--
Corn,
Hushels.
120 3,212,3(7,000
1919 " J,17,460,O0O
1916 .. 2,582,814,000
1917 (.086,283,000
1818 t.688,241,000
ISIS t.(94.79(,000
114 1,672,804,000
1813 2,440,088,000
1912 3,124,748,000
1911 2,681,488,000
1910 2,(86,260,000
1909 2,662,190,000
1908 2,(68,R1,000
1907 2,692.:i20,000
1906 ...
1906 ...
1(04 ...
1903 ...
1902 ...
1901 ...
1900 ...
1899 ...
1898 ...
....
.2,927,4111,091
.2,707,993,540
.2,487,480,934
,.2,244,170,926
,.2,523,648,312
. .1.622.619,891
..2,105,102,516
, .2,078,14.1,933
, .1,924,184,860
Wheat;
Bushels.
789,878,000
8(4,2(5,000
817,100,000
6M,656,000
639,(86,000
1,025,801,000
891,017,000
7(3,380,000
730,267,000
621,838,000
6(5,121,000
683,360,000
664,802.000
634,087,000
735,200,970
692,979,480
662,399,517
637,821,836
670,063,008
748,460,218
522,229,505
647,303,846
675,148,705
s 1.1,
Bushels.
1,(24,063,000
1,248,310,000
1,688,369,000
1.02.74O,OOO
1,2(1,992,000
1,649,030,000
1,141,060,000
1,131,768,000
1,418,377,000
922,298,000
1,186,341,000
1,007,129,000
807,1(6,000
761,443.000
964,904,622
959,216,197
894.695,662
784,094,199
987.842.712
736,808,724
809,126,989
798,177,713
730,906,043
flsaTttr
Bushels.
202,024,000
165,719,000
2(6,(75,000
211,769,000
180,927,000
228,851,000
194,953,000
178189,000
223.824,000
160,240,000
173,(32,000
173,321,000
166,756,000
168,318,000
178,918,484
186,661,020
139,748,958
131,801,391
134,654,028
109,933,904
5(,925,83.1
73,881,568
66,792,257
Rye.
Bushels.
69.3J 8.000
((,478,000
89.103,000
62,933,000
47,381,000
54,050,000
42,778,000
41,331,000
35,664,000
13,119,000
34,897,000
29,620,000
31,851,000
81,606,000
36,374.833
28,485.962
27,241,(15
29,868,416
33,630,592
10,844,800
23,996,927
23,961,741
25,667,622
Cotton,
Bales.
12,887,000
12,443,1(0
11,100,000
11,(66,000
11,787,000
11,1(2,000
16,136,000
14,(52,000
14,104,000
16,101,000
12,076,000
10.(13,000
11,817,000
11,441,000
11,640,000
11,234,000
13,654,000
10,002,000
10,674,000
10,768,000
10,319,000
9,422,000
11,266,000
Dollars
Price of Stocks and Bonds on the New York Exchange
Weekly Quotations, 1919 end 1920
MXU
'Excluding llnters. For other yeurs figures represent commercial crops.
1920,
December t36.000,000,000
November 36,006,184,248
October 18,778,879,046
September 35,991,044,059
Annum 84,(63,449,616
July 17.486,488,920
June 18,355,221,497
May 36,689,864.756
April 39,584.969.816
March 41,240,600,536
February 13,226,998,772
January 41,699,259,116
Bank Clearings in the United States
11119.
(42,357,544,203
39,109,900,2011
41,829,995,156
35,607,138,896
84,708,05,;o
37,513,814,649
14,254,611,460
88.1041.636.667
20,610,765,295
20,092,846,873
25,808,147,986
12,419,909,288
1918.
$80,810,729,741
20,349,859,287
32,064,945,921
26,375,184,(33
28,158,820,021
28,642,477,427
27,318,479,871
28,266,379,083
26,484,009,265
26,080,D44,861
22,265,063,767
26,680,712,416
1917.
$26,530,548,755
27,229,438,014
28,284,308,306
24,029,886,466
25,093,280,233
25,665,883,718
26,786,347,702
26,318,610,661
26,013,249,100
24,794,414,666
21,680,496.686
26,621,5Q,405
161C.
$27,293,700,999
26,814,818,761
26,726,697,413
22,864,901,746
19.814,033,024
19,868,114,947
20,663,997,436
20,720.099,628
19,378,942,130
20,774,241,671
18,292,704,969
20,128,687,544
Total $448,311,864,575 $417,709,796,477 $332,350,688,690 $806,926,913,482 $268,828,672,267
tDecember figures estimated. largest on rec ord In history of country.
began a precipitate decline, which haa
not yet stopped. Bradstreet's raw ma
terial Index of domestic prices at
wholesale reached Ita record high of
20.8690 on Feb. 1 this year, then fell
off ntll by Dec. 1 It had fallen (4.6 per
cent., thus bringing the Index down
to only 48 per eent. above 1913. The
bureau of labor statistics' more repre
sentative Index reached Its record high
of 273 during May. taking 1918 as 100,
fornBlly signed and put Into effect 1 but haa son downward ever alnrn in
F"- 6P. and the league of nations I 207 hv November. The I.Vnnnml.t In.
I T I V ,
rtfft
rganiied on Jan. 16. In both dex of
ceremonies me united
ng conspicuously absent.
presidential election gave
sslon to the whole league
Issue and aroused ennaid
ment upon our future for-
ons. Domes! io Issues were
deHedly In the background
IJJJJ0"V: Indeed, they were scarcely
Wttsed M all. The various financial
MaiasHurlag the early part of tin
anfg'ipnled n republican victory
of business recoverv.
enough, the outcome of the
d been discounted lone he-
and the overwhelming vie.
Hjf Of nator Harding gave the mar-
"t, '
of the bnoyancv which had
esled. Obviously, the mar-
under the control of factors
imtntal.
modify Drlces. here and
hached their record high for
in the year, and then
November. The Economist In-
British prices rose to a record
I high of (10 In March, taking 1918 as
iuv, mil naa iauen t ti oy me enu
of November. In similar fashion Jap
anese prices, taking the Dank of
Japan's .ladex. reached a record high
of (21 In March, then started down
ward persistently, reaching 12( by Oc
tober. French prices went to 684 and
Italian prices to 679 In April, both
record highs, and closed the year some
what lower. Prices the world over
turned downward this year.
(4) Our foreign trade has never
ahown such expansion In values nor
undergone such rapid changes of posi
tion. The exoess of merchandise ex
ports has fluctuated Irregularly, despite
many predictions thst the United
States would soon turn definitely to an
excess of imports. Our excess exports
reached (315,000,000 In May, higher
than any month in a year: then fell
to $77,000,000 by June, held low during
ine summer, ami nf to $147,000.00(1 In
mm
ELMAN & CO.
SALES STABLES
lUo Kossville Ave. Tel. M. 1 12.
OIJR SPECIALTY
Dump Wagon Work (latest drop
bottom wagons used only), for
I street, road and excavation work.
Our part in the erection of The
Clattanooga News' new building was
the haulinir of the crushed stone for
4
hew building and the hauling of
tlfe excavation work.
YOUR PATRONAGE
SOLICITED
SE
LMAN & CO
03 Rossville Ave.
U
Tel.
M. 1121
October as the seasonal cotton and
grain movement began, despite the
argument thst depreciated exchange
wpuid stimulate Imports, our total mer
chandise Imports reached their record
high of $668,000,000 In June; then be
gan a marked fall every month to $32'.-
000,000 for November. Our exports
have moved Irregularly, reaching a
high of $820,000,000 In March, the high
est for any month except June last
year, and falling to $878,000,000 In
August, but exports have held remark
ably high all year.
(6) Foreign exchange moved errati
cally at New York during the year, the
pound sterling fulling to the extraordi
nary low figure of $8.18 on Feb, 4, re
bounding to $4.08 $-4 by April (, and
closing the year around (8.60. The rel
ative steadiness of sterling during the
Istter nnrt of the year, when many hHd
predicted that the sessonal decline
would pull It down sharply, is explained
partly by the easing of money, the fact
that her Imports of cotton nave been
much lower than ordinary this year,
and her trade balance during Novem
ber waa In an unusually strong posi
tion for that reason.
Continental Exchange.
Continental exchanges have moved
most of the time with sterling and
have weakened In relation to It. The
drop In Central European exchanges
and the Itusslan ruble, frequently al
most to the vanishing point, has of
course been an outstanding featuro of
the year. i
Argentine maintained a premium
here during a part of the year, and
during the first six month got $90,
000.000 of gold from us. Hhe lost her
premium during June, however, snd
had fallen to a discount of about 20
per cent, by the end of the year,
tlraslltan exchange, hard hit by the
dron In coffee, broke Ita long level at
a 20 per cent, discount during July,
and by the end of the year was at a
50 per eent. dlacount.
The Japanese yen, although below
par In the spring, went to a premium
In May and held It till near the end
of the year, when it dropped again to
a slight discount. Next to Argentlns,
Jspnn got more void from us than atiy
other country. The whole far eastern
crisis has weakened their exchanges
greatly despite the strong position
earlier In the year, and tbey have been
making new tows along with the un
precendented drop In sliver. The In
dian rupee dropped from 45 cents early
in the year to 26 cents net Its close,
or to about 20 per cent, below the pre
war price. The Shanghai tael. which
moves directly with silver, stood at
around $1.80 at the beginning of year,
but slumped off with no significant re
coveries to below 75 cents by the end
of the year. Sliver, after making n
high of $1.87 per ounce on Jan. 11. had
dropped to the low of the year at 69 1-2
cents by Dec. 10.
Canadian exchange Opened the year
at a 7 per cent, discount and has held
at a discount all year. By June her
discount waa 11 1-8 per cent., but dur
ing the remainder of summer and until
November It held remarkably steady
around a 9 per cent, discount.
The sharp downward turn in Canadian
exchange at the end of the year tok
discount of 16 per rent. Is explained
by the cutting off of her wheat ship
ments, navigation having closed on
Dec. 32,
(() The return of the railroads to pri
vate control on March 1, following the
passage of the transportation act on
Feb. 28, was an outstanding event. The
railroad labor board on July 20 awarded
wag increases amounting over to $600.
000,000 per year, but the commerce com
mission on July 11 allowed rat ad
vances which were computed to enlarge
railroad revenues hv (1.60(1.000.000.
Thus the outlook was more hopeful than
in some time; but optimlsm was tem
pered by the somewhat disappointing
net earnings under the new rates and
the prospective falling off in traffic.
7) The stock market ahowed violent
breaks and widespread demoralisation
during January and February, A reviv
al of speculation was attempted In
March, during which many Important
issues recovered quickly much of what
they had lost In the decline that began
in November, 1919. After early spring,
however, slocks lost ground heavily, ex
cept for a few speculative flurries, and
December marked the ScTrest level of
the year and brought prices back to
where they were at the start of 1918.
Kails enjoyed a fair recovery during the
last half of the year, but suffered With
the Industrials at the very end,
(8) The trend of bond prices was dis
tinctly downward during the first live
months. Just as It had been during all
of 19l!; it then held level until near
the end of summer, when It moved up
ward strongly. Apparently the long de
pression In bond prices had flnslly end
ed. A reaction set In during October,
however, and before the end of th
year prices had lost a good share of
all their early fall recovery. Fourth
4H liberty bonds, for example, drsplti
their unquestioned security, made their
hivh at 93 early In the year, but then
fell to 82, and closed the year near the
lower level.
11 The federal reserve svstcm hcnn
the year with Ita reserve ratio standlng
at 4S and closed the vear at 4&N..
These figures represented, however, the
hliih points of the year, and In between 1
considerable fluctuations occurred, with
the low of ? I reached on May 14. Dur
ing th latter part of the summer the
reserve riitlo fell week by week from
44.1 per cent, on July S3 to 43.5 per
cent on Sept. 3, only 9.3 per cent, alx've I
the minimum of the year. Combined I
I note and deposit liabilities increased be
tween the, dates from 1 1. MM .coo. 000 to i
a maximum up to them for the year of '
.!!!. tmu.ttoo. successive advances In
the discount rnte were made. The fed
el nl reserve bank of New York, which
-els the pace for the others, at the very
lieiilnnini; of the year Inct cased its dis
count rat from 4' to i per cent, lor
best commercial paper loiter In Jenn
M") this HH was agatlt Increased to
i, per cent., and in .lune to 7 r cent ,
when It has held ever since.
federal reserve bank notes In circu
lation n ached their low of the year at
U.$44,6v66.M on Jan. !S. ulnv th
loinl reserve stood at Jt.OSV.Otio.OOo.o.M.
i. t at the peak of the crop nmv Iiik
pet . I. notes In circulation wtfj eg
pan. let to $1.11,0M,90,0M on V, it,
that In -st for the car. with total re
serves $)''K.tN)6.4W.)m. thus illustiat-
Inu attain the em In
a t Ime w hi n iMfi)
Soa-onullv. Inti'ilii
Awick rose to $:
a. s.i on neo.eon .lone
IK of th.
sw.ti 111 I I
n demand
Ins Ih-tt
sis sgrlnst
th. hot
OW',1'00 I II
Jan. 8. Ry Dec. 18 they had fallen to
$118,000,000,000. By Nov. 18 note circu
lation got down to $8,807,000,000,000, al
though It has been expended since.
i r i i i i iii i r -1 :
j 20 in uat: i: 1 f
Sis. .!-!! C. m
, I
L ro
ol I I I I 1 1 1 1 I I r Mill
(10) Tightness of money was accen
tuated during April the world over.
About the middle of that month the
bank of England put Its minimum up
from 6 pet cnt to 7; the Bank of
France advanced its discount rate from
8 per cent, which had been effective
since August, 1914, to 6 per cent; the
Bank of Belgium Increased its discount
rate from 44 to 5V4 per cent, and the
Bank of Bombay from 7 to 8. These
rates remained in force to the end of
the year.
(11) Our gold and silver shipments
early in the year maintained a heavy
excess of exports, due to large exports
to the Far East and Argentina, but we
then changed to a heavy excess of
imports, and shipments have varied
widely. Altogether the first pleven
months of 1920 show excess Imports of
$67,000,000 of gold against an excess of
exports last year of $258,000,000. Out
excess ot silver expotts for the same
period was $24,000,000, against $129,-
000,000 last year,
don, in sympatny with th Far Eastern
collapse, and desplt heavy decline III
production, haw moved - from rd
nigh to nearly th pre-war level. Bar
sliver at London sold at 80 eeaoe per
ounoa on Feb, 11 and fell a low a
1(1 on Deo, 10. while foreign silver
fell as low as (tt oents hare on Dec.
10, against the year's high of $1.87 on
Jan. 11.
(1$) A movement for lower retail
prices began as spring ended and. given
: length by a firm halt In purchasing
by the public as an mblttered proteat
to high prices, grew Anally to larg
proportions.
(14) Strikes among workers, partic
ularly during the first part of the year,
checked production; th most note
worthy was th "outlaw" railroad
strike.
(16) Government control over wheat
and the guarantee of a minimum price
closed on June 1, and trading In wheat
futures waa resumed on July 16.
(l The 1(10 crops, havlug fcra
planted when prices were high and
while growers had hope'.- of heavy de
mand, ran extraordinarily heavy In the
main. Our cotton crop yielded 11,(87,
000 bales, against 11,410,000 last year.
Wheat yielded 790,000.000 bushels,
against 934,000,000 last year, but the
season's crop was high as compared
8,232.000.000 bushels, easily th highest
on record. Oats, barley, rye, potato
and hay all ran high. Tobacco produc
tion reached a record high ot l,60t,
000,000 pounds, and rlc mor than
doubled Its pre-war rate, reaching
64,000,000 bushels.
(17) Pig iron production fell during
the spring, as transportation was tied
up, but gained great headway during
the latter part of summer and early
fall, holding well over the 1911-14 aver
age throughout the year. Unfilled or
ders of Independents, and even of the
steel corporstlon, fell off heavily dur
ing the latter part of the year. By
the end of the year independents had
scaled virtually all of thsfr prices down
to steel corporation, that Is, industrial
board levels.
(16) Bituminous coal exports, which
have never been particularly significant
excepting those to Canada, made a n'ew
high record every month beginning
with Juno and .running through Octo
ber. During the first quarter this year
we exported a monthly average of
1,306,000 long tons, about the 1911-14 -average,
but by October bituminous
coal exports reached 4,6(0,000 tons, of
which nearly 2,000.000 went to Europe.
(19) A severe depression has fallen
on ocean shipping. Charter rates have
fallen back to pre-war levels, or by
three-quarters since the nrst of the
year, while shin values hare fallen from
$200 deadweight ton level to $80 and
(12) Silver prices here and in Lon- $100. Tankers alone are in demand.
""'ss.
BOILERS
OF ALL KINDS
TANKS and TOWERS
STORAGE TANKS
Structural Steel Work
See Us or Get Our Prices Before Ordering
The Walsh & Weidner Boiler Company
CHATTANOOGA, TENNESSEE
Branch Offices: New York, Havana, New Orleans.
L . :
bis su inc b' sau. m
irXi
111 I

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