Economic and Marketing Information for Indiana Farmers, v. 01, no. 04 (Oct. 1947) |
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FOR INDIANA FARMERS INFORMATION Volume 1, No. 4 Lafayette, Indiana October, 1947 Prepared by members of the Agricultural Staff of Purdue University THE GENERAL ECONOMIC SITUATION By R. H. BAUMAN, Agricultural Economics 1910 1915 ISCAUL. 'YEARS! L/IS THE NATION CONTINUES IN A POSTWAR INFLATIONARY period. Large exports, heavy private and corporate investment and unsatisfied demands for most consumer and durable goods are the major economic forces contributing to the unprecedented high level of business ac tivity. how long this sit uation will last is impos sible to predict definitely Present indications are that prices will continue near present levels for at least the first half of 1948. There ake too many uncertainties at the present time to hazard a definite prediction for the latter half of the year. Prices for most Indiana farm products, allowing for seasonal variations, are expected to continue near present levels for at least the first half of 1948. the coming year should be another profitablb year for farmers. Sizable economic adjustments are inevitable but at this time it is impossible to predict when they will occur. When these adjustments occur, the price declines are not expected to be of depression magnitude. They will be more in the nature of a realignment of costs and prices. farm prices are expected to fall more than non-farm prices, placing farmers in a much less favorable position than at the present time but well above prewar. Business Activity At A High Level •he nation continues in a postwar business boom. Meas- MERCHANDISE TRADE (Recorded*) Exports increased sharply in the first half of 1947. Imports rose less. BILLIONS OF DOLLARS BILLIONS OF DOLLARS 20 1925 1930 1935 CALENDAR YEARS 'INCLUDES LEND LEASE; EXCLUDES SURPLUS PROPERTT SALES AND CIVILIAN SUPPLIES EURMSMEO TO OCCUPIED AREAS SOURCE: DEPARTMENT CF COMMERCE 12 3 4 12 14 1946 1947 OUARTERLY DATA AT ANNUAL RATE During the first half of 1947 there was a large increase in United States exports without any significant increase in imports. In the second quarter of 1947 the value of exports was greater than at any time during the war, including goods shipped under lend lease. ured in terms of the usual economic "yardsticks" such as volume of production, payrolls, employment and national income, business is operating at a terrific pace. The current unprecedented high level of business activity is chiefly the result of the following three, more or less temporary, economic forces: First, during the first half of 1947 we exported goods and services at the annual rate of 20.7 billion dollars and received in return only 8 billion dollars. This net export balance of 12.7 billion dollars, larger than our whole construction industry, cannot continue indefinitely. Foreign countries have been using up their dollar reserves and credit balances and the purchasing power of many of them is nearing the bottom of the barrel. The so-called "dollar shortage" fundamentally is caused by the inadequate production of goods in other countries. While we in this country are turning out more goods than ever before, other countries have not yet been able to get their war torn economics in gear. Consequently, they have turned to the United States for almost all types of food and maerials. Their productivity has been low and postwar reconstruction exceedingly slow. The import restrictions recently adopted by most European countries, Australia, Mexico and several South American countries clearly point to the end of the export boom unless further loans and grants are made to them. Although sub- fContinued on next page)
Object Description
Title | Economic and Marketing Information for Indiana Farmers, v. 01, no. 04 (Oct. 1947) |
Purdue Identification Number | UA14-13-econ194710 |
Date of Original | 1947 |
Publisher | Purdue University. Agricultural Extension Service |
Subjects (LCSH) |
Farm produce--Indiana--Marketing Agriculture--Economic aspects--Indiana |
Genre | Periodical |
Collection Title | Extension Economic & Marketing Information (Purdue University. Agricultural Extension) |
Rights | Copyright Purdue University. All rights reserved. |
Coverage | United States - Indiana |
Type | text |
Format | JP2 |
Language | eng |
Repository | Purdue University Libraries |
Date Digitized | 02/26/2015 |
Digitization Specifications | Original scanned at 400 ppi on a BookEye 3 scanner using Opus software. Display images generated in Contentdm as JP2000s; file format for archival copy is uncompressed TIF format. |
URI | UA14-13-econ194710.tif |
Description
Title | Economic and Marketing Information for Indiana Farmers, v. 01, no. 04 (Oct. 1947) |
Purdue Identification Number | UA14-13-econ194710 |
Transcript | FOR INDIANA FARMERS INFORMATION Volume 1, No. 4 Lafayette, Indiana October, 1947 Prepared by members of the Agricultural Staff of Purdue University THE GENERAL ECONOMIC SITUATION By R. H. BAUMAN, Agricultural Economics 1910 1915 ISCAUL. 'YEARS! L/IS THE NATION CONTINUES IN A POSTWAR INFLATIONARY period. Large exports, heavy private and corporate investment and unsatisfied demands for most consumer and durable goods are the major economic forces contributing to the unprecedented high level of business ac tivity. how long this sit uation will last is impos sible to predict definitely Present indications are that prices will continue near present levels for at least the first half of 1948. There ake too many uncertainties at the present time to hazard a definite prediction for the latter half of the year. Prices for most Indiana farm products, allowing for seasonal variations, are expected to continue near present levels for at least the first half of 1948. the coming year should be another profitablb year for farmers. Sizable economic adjustments are inevitable but at this time it is impossible to predict when they will occur. When these adjustments occur, the price declines are not expected to be of depression magnitude. They will be more in the nature of a realignment of costs and prices. farm prices are expected to fall more than non-farm prices, placing farmers in a much less favorable position than at the present time but well above prewar. Business Activity At A High Level •he nation continues in a postwar business boom. Meas- MERCHANDISE TRADE (Recorded*) Exports increased sharply in the first half of 1947. Imports rose less. BILLIONS OF DOLLARS BILLIONS OF DOLLARS 20 1925 1930 1935 CALENDAR YEARS 'INCLUDES LEND LEASE; EXCLUDES SURPLUS PROPERTT SALES AND CIVILIAN SUPPLIES EURMSMEO TO OCCUPIED AREAS SOURCE: DEPARTMENT CF COMMERCE 12 3 4 12 14 1946 1947 OUARTERLY DATA AT ANNUAL RATE During the first half of 1947 there was a large increase in United States exports without any significant increase in imports. In the second quarter of 1947 the value of exports was greater than at any time during the war, including goods shipped under lend lease. ured in terms of the usual economic "yardsticks" such as volume of production, payrolls, employment and national income, business is operating at a terrific pace. The current unprecedented high level of business activity is chiefly the result of the following three, more or less temporary, economic forces: First, during the first half of 1947 we exported goods and services at the annual rate of 20.7 billion dollars and received in return only 8 billion dollars. This net export balance of 12.7 billion dollars, larger than our whole construction industry, cannot continue indefinitely. Foreign countries have been using up their dollar reserves and credit balances and the purchasing power of many of them is nearing the bottom of the barrel. The so-called "dollar shortage" fundamentally is caused by the inadequate production of goods in other countries. While we in this country are turning out more goods than ever before, other countries have not yet been able to get their war torn economics in gear. Consequently, they have turned to the United States for almost all types of food and maerials. Their productivity has been low and postwar reconstruction exceedingly slow. The import restrictions recently adopted by most European countries, Australia, Mexico and several South American countries clearly point to the end of the export boom unless further loans and grants are made to them. Although sub- fContinued on next page) |
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