> BULLETIN 1381, U. S. DEPARTMENT OF AGRICULTURE 
when the index of hog prices dropped from 274 in July to 171 in 
December. The price iP corn, beginning a downward movement in 
1917, recovered somewhat with the hog prices of 1919 and with the 
increase in general business conditions in 1920. The second down- 
ward movement in hog prices began in the fall of 1920 and completed 
the deflation process. Corn prices and the general index of all- 
commodity prices continued to drop rapidly after May, 1920, whereas 
the hog prices strengthened somewhat in October of that year after 
which they also declined rapidly. 
Economic conditions assumed some stability in the summer of 
1921. The general price level fortified itself about 44 points above 
the 1910-1914 average. Corn and hog prices sank much below the 
general price level. Hogs averaged generally 10 to 20 points above 
the pre-war average, whereas corn dropped to 72 in Gaioher 1921, or 
28 points below the pre-war average. Hogs now held a more favor- 
able position than corn as the ratio of corn price to hog price increased 
PER 
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1909 1910 I911 1912 1913 1914 19)5 1916 1917 1918 I919 1920 1921 1922 1923 1924 
Fic. 1.—The graph shows the general trend of the prices of corn and hogs, and of all commodities 
since the year 1908. The prices of hogs have a very marked tendency (excepting during the 
war) to fluctuate in regular cycles, being low two years and high two years in relationship to 
the prices of all commodities 
from 8.7 in 1920 to 13.7 in 1921 and to 16.8 in 1922. Corn prices 
were rising, and after September, 1922, hogs were in a less favorable 
position compared with corn. Many of the pigs born during the 
second year of this study were marketed during 1923. During this 
year the price of corn fluctuated violently, reaching the highest point 
since 1920. The close of 1923 found the index of hog prices 14 points 
below pre-war, corn prices 13 points above, and the general price 
level of all commodities fluctuating 50 to 60 points above the pre-war 
relationships. 
The price relationships are shown graphically in Figure 1. The 
years of this cost-of-production study are those after the deflation 
period. During the et year of study the all-commodity index was 
about 44 points above pre-war conditions and the SOE HVE. ratio was 
favorable to hogs. During the second year of study the general 
rice level had risen more than 10 points and the corn-hog ratio was 
avorable to corn. 
