29 
commodity prices, but slightly less rapidly. The same factors 
that operated to promote conditions of prosperity when prices 
were rising produced the reverse conditions when they were 
falling. Just as during 1914 to 1920 prices of produce moved 
upwards more quickly than the costs of production, so now they 
fell more rapidly, and owing to the long period of turnover, the 
farmer usually sold his produce in a market where prices were 
much lower than he had expected, and possibly in the majority 
of cases below the cost of production. Up to the autumn of 
1922 the decline in agricultural prices was fairly uniform, but 
with the harvest of that year a new factor was introduced in the 
heavy fall of corn prices which in August and September had 
reached a level considerably below that of other agricultural 
products. This was due mainly to the large increase in the pro- 
duction of cereals in the United States and Canada, and partly 
bo the poor quality of the home crops. 
The subsequent period (1923-1925) was one of comparative 
stability, the sharp fall in general commodity prices having come 
to an end. Apart from this, the outstanding feature was the 
relatively low price of cereals in 1923, which was the main cause 
of the low point indicated on the vegetable products curve in 
Diagram VIII. Renewed competition after the war, combined 
with good harvests and a partial recovery of corn production 
in Europe, resulted in a relative excess of supply, which was in 
part due to the low purchasing power of certain importing 
countries. A depression of arable farming in Great Britain and 
a sharp contraction of the arable acreage was consequently a 
conspicuous feature of this period. 
Subsequently to 1923 there was a recovery in wheat prices, 
which in 1924 had reached an average price of 52 per cent. above 
pre-war, and in 1925 60 per cent. above pre-war. It thus stood 
at approximately the same level as the general average of agri- 
cultural prices. Barley also recovered, but the price of oats 
continued at a low level, influenced by the low prices of imported 
feeding stuffs. The average price of potatoes, both in 1924 and 
1925, remained exceptionally high owing to relatively small 
yields. Live stock and dairy produce, though subject to some 
fluctuations, maintained on the whole a more favourable position 
than cereals, while fruit and vegetables generally showed not 
unsatisfactory results. An average index number has been 
calculated for these three groups of commodities, viz. (1) live 
stock, dairy produce, poultry, eggs and wool; (2) cereals and 
other farm crops; (3) fruit, vegetables, etc., for each year from 
1920 to 1925, from which it is possible to judge to some extent 
the relative position of different branches of the industry.