TWENTY-FIRST ANNUAL YEAR BOOK— PART VII 535 



was sufficiently large to take it at a fairly steady price and insistent 

 enough that the price of beef advanced as the supply of these cattle de- 

 creased. Following the congestion of May and early June, there was a 

 period of readjustment during which the price of beef went sky-rocketing, 

 reaching the highest point ever recorded, and then came down with equal 

 velocity to find a level that took the supply offered for the following 

 weeks at a quite stabilized price. For this period the statement is per- 

 haps justified that under the industrial and financial conditions that in- 

 fluence the consumptive demand for this kind of beef then existing, the 

 supply was just about equal to the normal demand or a little short of it — 

 and from both the producers' and packers' point of interest a small short- 

 age in the supply is desirable, and a quite stabilized market was the 

 result. 



The third situation is that of the period beginning about the first 

 of November and lasting up until the present time. Here we have the 

 apparently anomalous situation of a declining market in the face of a 

 very small supply of these particular grades of cattle. With supplies be- 

 coming smaller every week before the first of November, the market did 

 not advance, and had much difficulty in maintaining itself. Evidently, 

 the demand for this special commodity was falling off, and what there 

 was refused to take the very limited supplies at advancing prices. After 

 the first of November, the supplies did not show any increase, but prices 

 began to decline and with some recoveries have continued to do so. 

 Explanation for this condition must be sought on the demand side. 

 Either there was a great curtailment in the consumptive demand for meat 

 in the channels thru which this kind of beef usually goes, or this demand 

 for meat was being satisfied by other competitive meats that could be 

 obtained at a cheaper price, or for which there was a seasonable demand. 

 Doubtless all of these conditions existed to influence the demand, while 

 at the same time there were very large receipts of other kinds and grades 

 of cattle that flooded the market with cheap beef and broke the price of 

 both cheap cattle and cheap beef to quite low (comparative) levels which 

 dragged the prices of the better grades with it. It was also a period of 

 rapid decline in commodity prices of all kinds, and this could not help 

 but have a sympathetic effect on this commodity. 



In order to understand what may have caused a falling off in the 

 demand for this beef, a consideration of the consumptive channels thru 

 which it goes might be of interest here. The figures which we have 

 secured show that about 56 per cent of the two grades of steers, good 

 and choice, are bought by the packers, and about 33 to 35 per cent by 

 shippers. But these figures do not show the exact situation, as a good 

 many of the cattle shown as bought by packers are really shipped east 

 alive, this being especially the case with cattle bought by Wilson, who is 

 one of the largest buyers of the better grades of cattle, but which cattle 

 show on the account sales only as sold to Wilson, with nothing to indi- 

 cate whether for shipment or for Chicago slaughter. It is probable that 

 around 40 per cent of these cattle are shipped alive, mostly to eastern 

 markets. 



