BRIEFLY outlined herewith is a resumÉ of what are accepted as the chief causes contributing to the sharp decline in livestock prices during 1919.

The discontinuance of Government orders for beef was the principal thing which affected cattle prices in the late spring. From being a purchaser the Government became a seller in the domestic market. Added to this, there has been unusual labor unrest, large supplies, agitation against the high cost of living, low foreign exchange rates, and the English boycott against high prices.

The falling off in hog prices was far more serious than in the case of beef, because normal demand for hogs is based on the consideration of large exports, while the market for beef is primarily and principally domestic.

The great demand for American pork products which was confidently expected from European countries did not materialize, because of the extraordinary and unforeseen development of exchange conditions which made purchases on the American market practically impossible.

The earlier part of 1919 was marked by an unprecedented export of pork products, reaching in the month of June the high point of over 400 million pounds. From this point the drop was sharp and continuous, month by month, the figures for October showing total exports of less than 120 million pounds—a falling off of 70% in four months. These later exports were on orders booked earlier in the year, and not on new business.

Added to these principal factors, and aggravating them, were attempted boycotts of meat and proposed radical legislation for the regulation and restriction of the packing industry, and the resulting condition of uncertainty up to the very closing weeks of 1919, when the understanding between the packers and the U. S. Department of Justice was made public.

The big question is, What of the year 1920? While nothing positive can be predicted, better conditions is a practical certainty. The domestic consumption of beef is increasing to a gratifying degree; the arranging of international credits and the opening of foreign markets is a matter of comparatively short time. European need for pork products will be urgent and excessive for a considerable time, and this will not only take care of our surplus hogs, but will react favorably upon the market for cattle and sheep.