470 IOWA DEPARTMENT OF AGRICULTURE 



of obtaining this product in adequate amounts is one which is a source of 

 considerable worry on the part of our manufacturers. 



Taking up the economic situation as it deals more directly with dealers 

 in commodities operating under laws under the jurisdiction of this depart- 

 ment, a number of interesting situations have arisen. For one thing, 

 there is the paradoxical situation of grain prices, particularly corn, being 

 forced to pre-war levels because of a large visible supply, while in certain 

 other countries there is an acute shortage. Difficulties of transportation 

 are not alone to blame for this condition. The chief cause, of course, is 

 due to factors arising directly from the war, namely, declines in values of 

 foreign money and foreign credit. European money has declined to such 

 an extent that even with low prices prevailing in America it is almost 

 impossible for Europeans to purchase our products for any reasonable 

 sum after they have exchanged their depreciated money for ours. At 

 best, few of the foreign nations have supplies of money available and 

 with the sharp curtailment of credit on the part of both our government 

 and our bankers, it is practically impossible for European nations to buy 

 on long time payments. As stated, the result on prices of American farm 

 products has been alarming from the point of view of the farmer. Nor 

 does it appear possible that artificial standards or prices will suffice to 

 guarantee the farmer what may be regarded as a fair return for his prod- 

 ucts. The return not only in this country but of other nations to pre-war 

 conditions appears to be the only solution of the problem. To attempt 

 to set an arbitrary price for any product in disregard of the law of supply 

 and demand will eventually prove a failure. 



While in the case of a number of products sharp declines have taken 

 place since that date, a comparison of prices as of September 20th, 1920. 

 and the same date last year will prove interesting. A comparison of a 

 number of products in which Iowa is more intimately interested is given 

 here: 



Sept. 20, 1920 Last Year. 



Flour, Minnesota Patent $13.25 t $12.25 



Wheat No. 2, Red t 2.68 * 2.36i^ 



Wheat No. 2, Durham t 2.68 * 2.861/2 



Corn No. 2 Yellow 1.46y2 1M% 



Oats No. 2 White 73 .77% 



Pork, Mess 31.50 49.50 



Lard, Prime Western 21.70 24.80 



Coffee, Rio 08-.8y2 A5V2 



Sugar, Granulated 14.50-15.00 * 9.00 



Tea 15 .22 



Butter, Creamery 60y2-.61 .59y2-.60 



Cheese 29-.29i^ .30y2-.31 



Petroleum, refined .29 .17i^ 



Hides, Natural straight .30 .43 



t c. i. f. 



* Government figures. 



