Show I Drain of Gold G ld M May y 5 Cause Reduction in Commodity Prices Price foreign Countries Cutes Are Getting Into Better Shape Eng Eng- J. J i ilish 1 lish s Goods Good Aready Already Competing in il American Markets Mart Mar- Mar t Iet Commodities Are Showing Surplus r BY PERCY M. M CROPPE 7 J The hc Herald Financial Editor EditorS EditorS armistice signed tho- tho public has been treated to more or orless INCE tile was thO wn S less Jes lurid lurd tIo pic pictures Lurs of conditions con in the various arious European countries the Ul caused these to be greatly Iy newness of the situation probably portrayals geat I overdone wih with the result that tat many may have not secured a olear view vew With yih some few exceptions European countries have been hampered by practically the same conditions ns as America high taxes the highest being in our own o ou country labor troubles truble poor railroad equipment nt high Commodity commodity prices profiteering with its usual por dishonesty the tho exodus from tho fars farms to the it ci cities i caused wih by farmer soldiers becoming used d to city advantages th tl the voice oice and to enforce his olden opportunity for tho the radical to c to how bow to cure the ills iUs all tJ Theories and many millions of suggestions as al moro than a year car or 01 turmoil we we can cn seo man many of tho European l. l still engaged In an n orgy o oI oft ot of sUl org t I e extravagance demanding shorter u flours liours more pay tho working man en- en inS larger larer returns for his labor p than over before tho the dance halls running run run- Ing ning Ing and no thought of ot saving l For or ore condition was WS cret cre- cre a new e every eI t d. d I one But nul throughout all there Is cessation of these coming gradual a exhausting activities and tho n nerve morning r c after Is close at t hand hand Franco France is fast fast settling down to the Idea that It must work worl and not wait walt for an nn Indemnity from Germany As she could not tot get ct tho money mone France Prance will undoubtedly endeavor to bet beat Germany wi in tho Ito commercial world England Germany is getting a hold on the situation situa tion and each month Is showing a bl big gain in exports and a consequent stiffening str- str stif stif- enin fening o of the exchange rates Just as these countries are arc waking up so arc are tn a affairs of oC the United States moving ing back into shape March is usually one ono of ot the dullest months in the tho year It I is the time for Fettling UP UP- Commercial houses arc are just cleaning up for spring accounts arc just being adjusted and taxes taxes are be beIng being be- be ae hi ing collected Indications during the week k were that most of this work worl has b been n completed and the chief development development development develop develop- ment of or interest was the tho stiffening up of tho the pound sterling to close cose to 1 4 after hitting the low mark of In F February brua The low price of ot sterling has had the effect 01 or forcing forcing- importation from J England with wih tho the result that thal from month to month there will be a far greater supply of or goods brou brought ht to the United States Already the woolen and cotton coton fabrics manufactured in 1 England are alO making inroads in the Amerian American market Those who are arc now buying In hi New lew York are arc being offered English goods at a a much lower price than the thc made American article artcle I Decie Decline in fl Commodities I This combined with the timidity of nany in buying at present present prices price I h la causing using a slow but certain decline in commodities Tho The unsteadiness of tho the live 1 0 stock market maket during the week Is IsI IsaJi isn I aJi n indication of or what may be expected expect expect- ed td in meats meat Tho The woolen Jarl markets et of ot Boston tho reports of the tho stock on hand band in tho thc produce markets market only In Indicate In- In det that with certainty which way the lle movement is It I will wi be checked ed from rom time time- timeto to time but it i la is i probable that th tho breaking of or prices price will wi not not be duddon I There Thero is a a variance of ot opinion a ar to the tile to flow of or gold from this country many arguing that it will wi be disastrous trous troU but from many points of or view it win will probably be beneficial The control of ot a n. third of ot the gold sold of ot the I world has made our money cheap and consequently Inflated prices Tho The of or gold out of or the country has caused a shrinkage of credit credit It Itis I I is that that for tOl every ery e dollar dolar in ingold gold god that we lose loso there is a shrinkage of or credit of or between 8 S and 10 I When money is scarce it is more moro valuable and necessarily will wil buy more A shrinka shrinkage of credit will not I necessarily harm business business but It will wi cut ut down speculation It will wi cut ot off I the feverish demand for bank but in consequence a dollar dolar will wm go Co further In i buying power As the value alue of ot the dollar dolar goes up prices go gt lower Tho he federal reserve reser o bank bank of San in Its report on general busie busi- busi nes e s and J agricultural conditions in tho the Twelfth Ai federal reserve district Ba says s 's Accent rains have materially improved im lm- im- im I proved roved prospects for 1920 crops in the tho Twelfth federal reserve district al although although al- al though seasonal rainfall is still from sti 30 to 60 per c cent nt below normal In I California the rice rico bean normal and sugar beet acreage Is being materially curta cur cur- ta and a nerious erious shortage of or hYdroelectrIc hydroelectric hydro hYdro- electric power is probable because cur I of ack lack of ot precipitation ot Shortage of ot wa water ater wa- wa ter for irrigation purposes may some some- u-t u reduce the to acreage sown to spring crops in ln the Pacific Plc northwest some some-I I and indications are art that the tho sown fall wheat whet crop will wil average about sown fal-sown 70 10 p per r cent of normal While acreage planted I will wIl bo be undiminished In the tho irrigated sections of ot Idaho Nevada and Utah Uth the theof I 1 yield now wi approximate only so 80 Per cent I of oi normal In tho normal dry farming d por por- por- por of or these states the prospects for ynormal crops are are excellent Only Oy Small oaKe L Ran Range go ro conditions are ae favorable in al parts part of the te district e except in northern north north- ern rn Utah The Tho open winter has resulted result result- ed In il small smal loss Joss of live e 1 stock through exposure expOsure- and there thore has now been nouh enough dent clent feed teed precipitation during the tho summer to assure assue although grazing f has a had to bo postponed for several severa weeks In ln California f Lambing 13 OK about bo ut iL 1 50 per pcr cent completed with large Increases ases reported reported completed Lumber stocks are aro so depleted In the Ule Pacific northwest that It is probable l that that a normal volume of ot mill stocks I year will wil i not be attained for tor moro mil ro than a ai year although although i plants are arc running to tore capacity and and are re accepting only about abou so 60 r per cent of tho the business offered about A t in the car situation h baa been noticed during the past few tew Ing weeks the te movement of ot 2028 cars dUrIng durk dur- dur the te week k ending March 6 ing unfilled rail orders from to care It Is rs I anticipated however will wUl be more relief from rom car shortage for several months months During J weeks ending March 6 6 an av- av crago ot of 1 2 mills reported mis a cut of feet teet 62 per cent below nor nor- mal and orders of feet 35 per cent below production weeks leeks During the ending March 6 of of thirteen California an aVera average e redwood mills reported a a cut of ot feet and mia or- or ders AI AA Z JI vi r l of 2 feet as corn com feet a Jared with n a cut of fo tt oct t and orders o of feet during the tho preceding ilvo weeks I Building permits in eight principal cities of the district aggregated 1 12 during February as ao compared I I I with wih during durinS January and during February 1919 It I Is estimated that at tho present rato of I building It will wf tal take e five ve years to overcome tho the existing shortage of ot I housing housing facilities in the tho larger huger cites cities of oC the district Both tho the retail and wholesale trade report the customary decreases in business business busi busi- ness during February as compared with January sales sales' by values of ot department stores decreasing from 20 to 25 por per percent I cent of ot wholesale hardware stores from 5 to 10 per cent of wholesale stores from 15 to 20 per cent cont cont and of wholesale grocery grocer stores from irom Ir 2 to 30 iQ Q per cent cent- cent As compared with wih February 1913 19 however department I stores report Increases In sales by value of ot from 25 to 30 per cent cont wholesale wholesale wholesale whole whole- sale hardware stores from rom CO GO to 65 per percent per percent percent cent wholesale dr stores from to 70 0 per cent and wholesale grocery grocery gro gro- cery stores from Crom 20 o to 23 25 5 per par cent cent- cent Wholesale firms report report that present de demand demand domand do- do mand is primarily for staples and es esI essential essential es- es I goods rather than tan specialties and luxuries and that retail rett dealers are arc pui purchasing chasing supplies for tor current curent use I only onh Wholesale grocery prices show a tendency to decline sl slightly ht but In other lines Unes wholesale prices continue to advance ad Collections during during February February Feb Fob were reported as fair to good god as compared with wih good to excellent during January I Bank clearings s in twenty principal cities of or the district aggregated 1380 cites tle in February as compared with wih I in January Januar a decrease of or per cent although increasing or 2 per cent as compared compared com corn pared with February 1919 I Labor abor is fully employed ed In all al sections sec see of the district except in and tons around Seattle where there are ap approximately approximately ap- ap proximately unemployed and man many agricultural now report a shortage of ot labor although there is generally some somo unemployment ment throughout through through- out tho the district at this time of the year car There her have 0 been no strikes or labor r di disturbances T. T hR of oran any Importance I I I I I I I I I I 1 I r during durIns the tho past pat month and there thero are areno areno ae aeno no immediate prospects of any labor difficulties In the Ule district district An n View Ie The March monthly review of ot Bare Bare- clays clara clays Bank Dank limited of or London England Eng Eng- land land says SS In point of or fact tact the te United States State has now far tar too big a stake in the tho prosperity prosperity pros pros- of ot Europe to draw back easily Her business men know this and ad realIze realize realize real real- ize that If U the thc choice lies les between some further Inflation and European collapse col col- col- col lapse then the former would be bo Infinitely in inI infinitely in- in finitely tho the preferable alternative A country countr like lO the tho United Unie States can cn largely withdraw within Itself Itsel but tho the process would be bo a painful and dangerous one one compU complicated ted at the present time by b- ba a production position On all al grounds grounds on on those of ot humanity self interest Interest sel-Interest and prudence prudence- it Is apparent that the United States have havo much to gain b by rendering rendering further further fur fur- ther thor assistance in tho the reconstruction of Europe On O the other hand lland it is evident e that no good can result result from assisting countries who are not endeavoring endea by every ery means In their power to institute institute tute and ad carry into effect Internal re ro- ro forms Such assistance Is wasted wasted wasted-It It Itis is like pouring water into a sieve to give credit In such instances Too much credit has been created already and further additions should only bo be made when there is a reasonable chance ing of oC permanent benefits resulting result result- resul- resul If I the tho nations of the world worl will l' l heartily earthy operate co-operate co in the reconstruction tion of ot Europe then there thero Is every posS pos- pos S bl ty of ot a happy solution But Bt if it E Europe ope will i not try to help herself herel or orif orif if those nations capable pable of oC rendering assistance Is dark indeed withhold it It then the outlook As to the money situation in England Eng Eng- land tho the report says sas At the tho present time the monc money market mar mar- ket Is changing over from a war to a aI peace footing To this end the system of creating unlimited credit had to bo be abolished for or i if it had continued our currency notes would have depreciated more moro and more as time went on Difficulties Dif Dif- are bound to arise but hut but taking a lon long view tho the result will wil be somewhat somewhat somewhat some some- what hampered by a shortage of ot credit credit even then ten Infinitely less lesa damage will wil result resul than would have accrued by a continuance of ot the process of ot credit In in- in faton C Credit I In lii Inflated Our credit structure IS TS still Inflated and mo most moct t business men financiers and ad economists are agreed that our ur policy poley should bo be not to create further credit but to endeavor by every overy means to re reduce reduce re- re duce prices and and so make mako mako the tho existing volume of ot credit adequate The continual rise In prices price's prIces which wo we havo have witnessed constitutes a grave danger dager to the worlds world's credit structure and through its unsettling unsetting effect on labor prejudices the return to normal nonal conditions of or production Hoary Honry Hon Clews Company of or New York YorI say sa Domestically one of th tho th most roost hopeful hope hope- hop ful features feature in tho tue market outlook has ha boon been ben the disposition of ot p public men in both parties to try to relieve the op op- op tax situation which h has developed dovolo do- do volo l under existing law The he arrival arrival arrival ar ar- ar- ar rival of or March 15 with its enormous payments into tho federal treasury treasur es estimated es- es to amount to a round billion dollars with with simultaneous payments to the state of ot New York on local Income Income in income In- In come tax account has ha emphasized tho the evils ls e of ot conditions and tho the bad effect upon tho the banking position of or present methods of ot payment payment- Tho The secretary see sec sc- sc of the treasury has ha developed I 1 and placed before Congress ta tax reform Continued on Following P Pac IN UN ON GOLD MAY BRING PRICES DOWN n From Preceding Page of ot a constructive character charder if I carried Into effect would woud do 10 c ething to relieve tho present con- con Ions lons At the same same- sae time authorities the Republican party part have havo likewise wn Wa a disposition to support the theof of ot greater economy and efficiency cro ro i is evidently o a 3 general agree asree- nt at that the present ent excess profits plan is inequitable and J TI r and apparent apparently there thero Is a better beter of oC getting some early legisla- legisla ft Z that will relieve conditions than any time time heretofore Meantime the h an of the tho month has been passed and return of tax tn funds runds to the market already begun to exert a 3 bench benefi- 1 Influence In the relief of or a a strain strain- stran- |