Show MARCH ACTIVITIES WIPED OUT DECLINE Continued From Preceding Page crops planted High prices stimulate production If It prices are sufficiently high man many farmers will purchase tractors These are aro labor avin mach ma ma- ch chines I a es Beyond question there Is iJ a scarcity of or goods goods-both both ot of necessities and anti of 01 luxuries Because of the shortage of or labor of or inefficiency and of ot short hours the supply of mo most t. t lines o of goods is not likely to catch up with tho the demand for several months to toCo Co come rn e. e There is reason to believe however that labor has pas passed ed tho the crest of or in inefficiency inefficiency In- In efficiency and extravagance and that there is greater c thrift today loday than there thero vas as six months ago This is indicated b by tho very great increase in deposits In Ulan many of our savings Institutions All that our people have ha to do to quickly relieve the strain on our credit situation Is to work and save I If It they do 10 this our bank hank loans will not need to go down to give us lower monc money rates Even our extravagance ma may not mean so o much as the tho figures would indicate Thus TItus the New ew York World figures that wo we have havo spent for tor automobiles jewelry musical and sporting goods etc otc since sinco tho the armistice was signed Assuming that wo we ha have spent twice as much as us formerly it may bo be that tho the extra half hale was former formerly In saloons If It so so our p people rna may now bo saving as much muchas as they over ever before saved It looks to us as if our prosperity for some time to come como would bo be measured measured meas- meas meas mas- tirel b by the ability of or our banks to finance us and by 11 the capacity of or our transportation facilities Credit I That our credit facilities will continue continue con con- greatly strained Is practically i certain That our laboring laborinS' men will continue to demand and to get et hl higher wages is also ahw practically certain This they will do Io until the breaking point Is reached ThIu may be In a few months or a n. f few w years Altogether the tho outlook for tor stocks for tor- tho the next few fow weeks IH Is moro more favorable favor or able ablo than unfavorable Th There re is how- how over oyer greater safety In the thu railroad than In iii the Industrial end of tho the list Increasing costs no longer r mean de decre decreasing do- do cre creasing lI net l earnings to tho the railroads Increased rates will return to tho the railroads railroads railroads rail rail- roads all J 11 increased outlays s 's for wages wag materials or supplies While we expect to see continued great real prosperity for rOI sonic some of or the Ind in industrials In- In d we think that the net earnInGs earnInG's earnings earn earn- ings lags of ot mo most t of them will soon begin to wane ane Says tho the Review He A ts of oC th the tha financial situation situation situa situa- tion has brou brought ht to th the minus minds of the people the fact that inflation of the currency is the cause of or a L largo larlo part of or tho the present unfavorable situation The rile per capita circulation on March 1 HIlI sas while on tho the first of March larch of or thin this year the circulation amounted to for each tach pcr person on Tho total amount of or mono money was 3 r Federal bank notes amounted amount amount- I ed cd to a little over oer about about one half of or the total circulating media Deflation Mutt Come Deflation must at some SOIne time take takeI place and tho the efforts of ot the Federal I Reserve r bank In the last several months have havo been in the direction of oC bringing about such deflation but the deflation object Is not to bring about i of or legitimate expansion This would wouldn n mean an that the productive agencies of oC the countr country would bo lIo curtailed which Is tho very thing wo we wish to avoid avold An increase In production would brin brina bring a about out a a. gradual decrease In prices and the cost of ot living That Is Is as s goods became more moro plenty plent there would be a a. greater desire on tho thu I part of oC the producer to sell them theta and arid the tho buyer seeing seeing- that plenty was be being be- be ing irig produced would not b be BO 80 anxious to bu buy for Cor fC fear r that he lie would not be bo beable beable able ablo to obtain tho thio goods on account of ot too scarcity of ot them This changing changing chang chang- In ing attitude of or seller and bu buyer er tho the seller being more anxious to sell and the buyer u r more Indifferent about buyIng buy bU Ing would If it production continued to increase gradually through competition tion bring about a reduction In prices So that it is not against expansion of oC credit to be bo used for Cor increasing production pro pro- that tho the federal reserve management man ian is IR proc proceeding McCall McCan fc nUe Riley company of ot New NewYork NewYork York sa say It has been o estimated that about I new cars will vill be manufactured manufactured in tho the United States during durin the current year Of or this number close to will be passenger cars and th tho thu balance will consist t of or automobile a trucks s. s In addition many motor companies companies com com- panics arc are receiving a greatly in increased increased in- in creased demand for tor farm tractors Tho The record output of or cars manufactured manufactured manufactured manu manu- In this country was In 1917 when a total of or were turned out consisting of or 17 pas passenger cars and trucks In 1918 the total was consisting of ot passenger cars and 11 trucks s. s and last lalit years year's output amounted to tu I.- I. machines of ot which passenger cars and 2 trucks All the tIle lal largo hargo o automobile companies have laid out extensive programs foJtho for foJ tho year rear Of OC tho the cars care estimated estimated esti esti- mated to bo be manufactured two companies com corn panics will turn out o over or r 75 71 per pcr cent The Tho Ford company lono alono is planning to build cars oars and General Motors Motors Mo Mo- tors torn it is estimated should turn out approximately tel The following comment is made mado b by Henry Clews Co of oC New ew York There Thero has been little now development development develop develop- ment meat In lit tho the foreign situation Condi- Condi in n Germany have havo evidently e Improved Im im- proved pro but slightly if It at all and advices advices ad ad- vices concerning the tho conditions in that country countr indicate cl clearly that little is It isto isto to be bo expected there thero until f such uchi time lime I as exchange Is rc restored to a a. moro more normal basis and raw materials are arc supplied for the tho purpose of enabling tho the German population to resume work The definite defeat detent of or tho the treaty treat of or peace by hy the Senate of tho the United States Slates has baa apparently had the effect not of destroying hopu hOllo that the United States would eventually c become a n. party parly to it and a a. member of ot tho the league of or nations but hut merely that tho the whole situation would have havo to be lie thrashed over 0 In tho the autumn campaign campal n with tho thio result possibly of deferring I action until a year from rein tho the present time or perhaps longer longcr Meantime tho league of or nations Itself Is evidently beginning ginning to function although on a limited scale and with the tho evident probability that the moro more re reactionary or less liberal elements will be In Control control control con con- of or tho thio situation Altogether It would seem that comparatively little Improvement In our foreign affairs Isto is isto isto to be looked for in the immediate Immediato fu u- u ture turc Ha Stone Co in their market marJ letter says sas Tho commodity markets have b been en almost as erratic as the stock tock marl market et Just when hen it seemed as aH thought though some somo progress would be made In tho the way of commodity liquidation and a. a be beginning beginning be- be ginning of or a II return to something like normal conditions there thero was a sudden turnabout and some somo commodities havo have shot eliot up to new high prices We c do donot donot not hot believe c that there is an any advantage to be gained from this oven even on the tho part lart o of tho thu producers of or those com coin Whilo admitting that there is still sUH stilla sUHa a serious shortage of ot manufactured goods we wo are arc Inclined to believe o that it a t will not be many months now before production pretty prett well wen catches up wit with i consumption and an any violent upturn in prices now can oni only mako tho the final liquidating process all tho the more severe ere There Thero Is one feature ture in the situation to balance the shortage of oC manufactured goods to which wo we believe sufficient suf sur- weight has perhaps not been given I namely that the products of or th the farmer have havo shown a vcr very cry decided shrinkage o in price consequently the tho farmers farmer's buying pou power er in iii other othor commo commodities com corn mo modules which have not receded proportionately proportionately proportionately pro pro- has been beon ver very ory much leaS les lea S C Xi Cd The Tho agricultural districts furnish after all tho the largest buin buying power of or oran an any one source and lack lacle of or demand from this quarter Is bound to make mako maket- maket It Itself self felt in time 5 Condition Coleman tc Now York say Tho The stock market speculator is a I much confused conru individual lately because I of erratic tendencies In Jn mo mone money market and amI tho the failure of these markets markets mar mar- hots to rf respond l. to what appears to tobe tolIe be lIe a hi highly favorable Ca situation It is rather rathor inane to expect careful caroul consideration con con- specially b by speculators of oC such concrete matters mallers as the basic factors controlling mon money disturbances In an nit otherwise sound situation but mention of our I increasing paper money Issues our restricted credit possibilities lilies against reduced gold gol rc- rc servos and tho the combined result of ot an adequate supply of ot working ca capital may help or inspire a n. moro more definite understanding Equally important is the fact that the tho British merchant probably for tho first st time ii in his career is not Hol purchasing sterling ex exchange ox- ox change chang in anticipation of his fall CaB business bust busi ness iss In this country countr ho lie feels suro sure that stealing exchange will ill bo be higher at that time timo and that ho he will bo lIo able to secure more moro American dollars as a result We Vc point out this fact for tho those who appear so keenly anxious about the tho welfare i of our former war ns ns- and for tor the tho con- con solution surely surel rests reEt In tho the realization that list if It our financial supremacy hn has been lIcon severely shattered in tho tim past paRt twelve twel months someone else will at nt least t receive these benefits The myth of ot stoning sterling e exchange chango still pcr persists and while Its now new par mn may not bo be as low as or even e S it Is certainly car cor- much below but If IL this fiction can bo be maintained with maintained with tho the aid of or our own financial Internationalists we we must face the inevitable Tho The reports of oC our monthly exports for tor forthe tho the next six months months and they will ill obviously ob be bo of or smaller volume will volume will partly partir show how this result is pushed The fiction of or gold exports Iron from London to this countr country is also niso being elaborated and the new nek item that the tho Bank of or England lost 12 12 gold in one ona week is being used d to its potential possibilities Nothing Is said of or tho the 17 gold old gained b by this tills institution in tho the past twelve months nor Is an any mention made matle of or ortho the tho huge gold old shipments to British India However we are still optimistic and believe o that the tho pronounced Individual Individual Indi Indi- vidual initiative o of our peoples will even tJ overcome o this incubus of or financial and fe federal eral bureaucratic Internationalism International ism |