16 



BULLETIN 999, IT. S. DEPARTMENT OF AGRICULTURE. 



weighted average of the 31 is practically the same as the weighted 

 in nearly all months. 



The weighted average price of 31 farm products reached the peak 

 in June, 1920, with a price index of 246. At that time, the whole- 

 sale price of "all commodities" was 276. Since May, 1920, the 

 index numbers for farm prices dropped from 246 to 106. The drop 

 each month was as follows: 



July 4 



August 17 



September IS 



October 16 



November 23 



December. 25 



January 10 



February 5 



March G 



April ; . 9 



May 6 



June 1 



Fig. 11.— Prices of hogs, Civil War and World War periods, and wholesale prices of all commodities during 

 the Civil War. Five-year average before the war is in all cases 100. During each war period hogs were 

 relatively cheap for several years. Following the Civil War the price of hogs swung about the general 

 price level, showing the regular cycles of over and under production. 



COMPARISON OF FARM PRICES WITH PRICES OF SOME OTHER BASIC 



COMMODITIES AND WITH FREIGHT RATES. 



The weighted average price paid to farmers for 31 farm products 

 in June was 106. when the five-year average before the war is 

 called 100. 



The price of copper was 88 per cent of the prewar price ; anthracite 

 coal, 2 10; Pennsylvania crude oil, 154; Bessemer pig iron, 155. Freight 

 rates for the farm products given in table VIII varied from 158 to 

 231 per cent of the prewar average. Wholesale prices of "all com- 

 modities" were 151 per cent of the prewar average. 



If prices of farm products should long remain- at such unusual 

 ratios to other prices and charges, the most far-reaching changes in 

 agriculture would take place. The types of farming in different 

 sections of the United States are largely determined by freight rates. 

 Any changes in the ratio of rates to prices causes a readjustment in 



