Show the price situation W preston thomas thomaa department of agricultural economics U A C UTAH FARM PRICE tito tho index of farm prices in utah for or juno june averaged 77 per cent ot of the 1010 1910 1914 average compared to nil all index of 72 in may alay and GO 59 in fit february of this year when tho the lowest point was reached since sanco 1910 prom front february to juno june of I 1 fits year thoro there was wait an improvement in fit average farm farin prices in utah of 31 per cent during this period tho the increase in III tarin farm prices was waa about equal to the riso which took place from april to juno june 1917 whon when tho the united states entered the war tito tho recent rise however in tann farm prices was mainly the result of united states going oft off the gold standard and the depreciation of the dollar Who whenever thero there Is a general increase lit in prices raw products or farm commodities are usually tho the f first to RO go up ill and when tile decline takes place they oro aro tile tho first to drop future clinn in prices of fill all commodities will lie be closely associated with tile the monetary policy adopted by the united states this policy will have a groat influence on agriculture and tile tho individual farmer and therefore thero foro the action which takes place should bo be watched wat clied carefully lit in order to tako advantage advant aRo of the change in ill tile tho price situation which may occur the increase in prices paid for individual farm commodities since february lins has ranged from 7 pe per r cent for hay lay to per cent for wool with tile the exception of tile the increase in III tile tho price of wheat of over 50 per cent prices paid for livestock havo increased more than tor for crops livestock prices have in ill cr creased oaRed on in an average of 39 per cent since the low point as compared to 18 per cent for crops tito tho majority of the individual commode atles have increased between 20 tind ind 30 per cent or at approximately the same rate as tile the dollar has depreciated there was a change in tho the retail reta it price index of goods purchased by farmers from in may alay to in june compared to the utah farm price index in may of 72 and 77 in fit june the fact that farm prices increased taster faster than did retail prices changed tile purchasing alne power of the utah farm dollar train from 71 cents in fix may alay to 75 cents in june however there still remains a disparity of 26 25 per cent in farm arm prices and retail prices wholesale prices the general level of tile the who wholesale 0 prices as aa reported by tit the united states bureau of labor when compared to tile the 1910 1914 base advanced from 87 for the first week lit in march to 98 for tile the first week in july during this period wholesale who losalo prices of 0 farm products led in tile tho advance with a riso ot of 44 per cent greater increases took place in the prices of food hides and textiles than in other commodities ino modi dittes ties although there has haa been on an advance of 13 per cent in wholesale prices in the last tour four months prices in terms ot of gold have actually declined approximately 6 per cent during this period there has been a general improvement pro in industrial activity since ince march but tile tho increase ancin in employment and payrolls have not been oa as marked as industrial activity there has however been some improvement in the consumer st purchasing power which lifts has stimulated the demand for farm products ali there ere lias has been some improvement pro in the industrial activity in foreign countries but not to tho the same extent as in tile united states price of gold on oil march 6 1933 the united states suspended the gold standard internally but kept the dollar nt at par in foreign countries until april 17 when tile the gold standard was suspended entirely the united states par dollar loll 1011 ar contains 2322 grains 0 of gold and nn an ounce of gold wa was waa s worth since going oft tile tho gold standard tha value of tho the united states dollar and the number of grains which it contains lifts haa varied from time to time depending upon the arico of gold with the advance in the price of gold has come collie the depreciation of the U S dollar lit in terms ot of gold to its present value of 0 70 cents since april 17 the value of gold per ounce has haa increased from 2067 to 2971 au an increase of 44 per cent since april the grains ot of gold lo in tho the U S dollar hns has decreased front from 2322 to approximately IG grains prices in the united states will largely bo be governed by the amount of the depreciation of the dollar or the number of grains which it contains congress has haa given tile the president the power to it necea aary reduce tile the gold content ot of tho the U S dollar 60 per cent or to 1161 grains ot of gold it Is not likely that this reduction will be necessary in order to restore prices to what Is termed normal but it such action la Is taken prices in this country will immediately rise as a result of further reduction ot of the gold content of the U 8 dollar tito the price of silver has haa increased front from 28 cents per ounce on april 17 to ad cents on oil july 17 on april 17 it took 72 ounces of silver to purchase one ounce of gold how over aver on july 17 it took 75 ounces of silver to purchase one ounce of gold in other words lit in terms of gold silver has declined in III price but in terms of the U S dollar it has increased front from 28 29 to 39 cents an all ounce |