The midland journal. (Rising Sun, Md.) 1885-1947, 1891-08-07
Improved Prices Not a SUFFICIENT
Remedy.

May and again III the July numbers Of
the American Agriculturist. His treat
ment of the subject is very like that o.
the party politicians, and amounts simp
ly to this: Things will come out all
right-just attend to your farms and
let US alone. 1t appears from his sec
ond article that he is a statistician and
that his statistics and those of the
United States Department Of Agricul-
ture do not agree. And now he is try,
ing to convince us that be is right and
the other man wrong.
To the intelligent farmer the most
notable feature of his second article is
in his omissions. He utterly ignores
the fact that in much of the wheat
producing area of the world the market
price Of wheat has been either below or
so very little above the cost of produc-
ton that the better class of farmers
have turned their attention to other
products, and so consumption has over
taken production. This is well illus
trated in England where, according to
the writer, the area is less by 100000
acres than formerly. An English ex-
change said not long since that farmers
were encouraged with the prospect that
wheat would reach price at which il
could again be grown pro6tably. The
same is true in America. And the
farmers are already considering the
matter and preparing to increase the
acreage.
In former article Mr.. Davis says
aWhen from any cause the purchasing
power of two.ffths of the people has
been destroyed it means lessened EN-
ployment for others and lower wages
j This state Of affairs
is not due a. to too much or to toe
little currency; (2) too much or too
little free trade; (3) or to the unreason'
able exactions of the great transporta-
ton lines or yet to the baleful and far
reaching practices of the board oftrade
gambler in farm products, although the
cases named may and in some cases
certainly have been auxiliary
~ The report OF the United States
Secretary Of the Treasury, November l
1889, shows money in circulation
amounting to 81 ,as7,351, 1926, and de-
posts in national banks of 81 $50, 935,
161. Assuming deposits in state anc
private banks to be as much more We
have in round numbers four billions Of
money. OF this amount one.fourtl
must be held as reserve fund to secure
depositors, so that we have less thar
four hundred millions, or about sever
dollars per capita actually available, al
circulating medium. This does no
take into account whatever amount may
be in the United States Treasury, which
would reduce it to almost nothing al
times surprising the banks to comply
with the law. Does Mr.. Davis think
that this condition plays no important
part in the prosperity of the country
Why, last fall. Minneapolis mil.ers and
grain dealers went to Europe to borrow
money to handle the crop with, moi
because of lack Of available mon ey
The millers and grain dealers at ono
time proposed to issue their own scrip
in payment for wheat, but the wholesale
merchants refused to accept it. and SC
that scheme failed. IF wheat were
worth twice as much, would the same
amount of circulating medium handle il
any better? The most serious effect Of
shortageof money comes from its
lowering the price of farm products
and the price of factory labor, while il
does not correspondingly lower the
price of what the farmer has to buy OIL
OF the taxes and interest he has to pay
(2) The tenth census Of the United
States shows that of the S5,369, 579,19
total value of the manufactures of the
county, 81, O24,s01, 344 were profits tt
the manufacturers.
(3) We find from the same authority
that the railroad transportion earnings
of the country, less transportation ex-
penses, were S228.65o,474. We have
no data for estimating the effect in dol.
lars of the gambling in farm products
1t is unquestiopably a factor of no littl'
Importance. 1t is certain that whatever
profits the gambler gets out of it ulti-
mately comes from the producer or tn,
consumer. because there is nowhere els,
it can come from.
Now.we have loans and discounts o
three billions at say seven per cent in
terest, amounting to S2l0,000,000
year, profit on manufactures of th,