The sun., 1893-09-10

The Farmers and the Crisis.
When, by reason Of unfavorable condi-
tions. nearly half Of the population is de-
prived in whole or In part Of its power to
purchase Of the products OF those engaged
in manufacturing industries. the whole
commercial and industrial world suffers
from paralysis: the exchanges become de-
ranged: boarding ensues: monetary strin-
gency follows: mills. factories. and fur
naces close; operatives, ceasing to earn.
lose their power to purchase OF the products
OF their own labor as well as Of the labor Of
others; and the circle Of declining activity
constantly widens.
Such are the conditions now existing. and
they are largely il not almost wholly due.
primarily, to the loss OF the power on the part
OF some As per cent. Of the people to pur-
chase OF other than the veriest necessaries.
On the other hand. Whenever this great
multitude OF people have large revenues.
their purchases are Of such volume and the
character and quantity bought SO constant
that manufacturing plants are fully en-
ployed, and new ones are built to meet aug
menting demands; the mill owner buys raw
material in advance of consumption: opera
tives and artisans have constant work: the
wage scale being an ascending one. the abil-
ity OF the worker to buy Of the products OF
his own labor and Of the labor of others Is
enhanced: money seeks employment with
confidence; the merchants stock rapidly
disappears and is constantly replenished;
collections are easy. and. in short, labor is
fully employed. manufacturers overrun
with orders. money is abundant, and times
are good.
AS the prices Of farm products have fallen.
so has declined the purchasing power Of
nearly half the working force Of the nation.
and SO has waned the prosperity OF all.
At the taking Of the census Of 1870. SO per
cent. Of all the males following regular
vocations were engaged in agriculture. and
this was approximately the proportion OF
the people living upon the farm: but by
1880. owing to the growth Of manufac-
lures, the proportion had been reduced be-
low 49 per cent. and Is now probably about
As per cent.
After the close Of the civil war. farm
products brought such prices that the 80
per cent Of the population then directly
dependent upon agriculture had ample
revenue; their purchases of the products of
manufacture were so liberal that many
establishments ran night and day: the mill
owner. the producer Of raw material, the
merchant, and all those engaged directly
and indirectly in distribution or construc-
ton. as we'll as those employed in the SUBJ
sidIary industries. were fully employed at
remunerative rates. the result being an era
Of prosperity never eQualled in our history.
as neither before nor since have those prices
for farm products been equalled.
Now the very reverse OF such conditions
obtains. except in so far as relates TO the
desire of the farmer to buy of the products
OF others. This desire remains. as it has
during all the years when declining prices
for his products have forbidden its exercise
except in the most restricted manner.
AS the power OF the farmer to buy de-
clined. so has declined. measurably. the,
activity OF the industrial and commercial
world, except as an impulse has been given
to commerce and manufactures by the con-
struction OF an immense railway mileage,
often in advance and excess Of local needs
While the development Of transportation
facilities served to mask and postpone some
OF the Inevitable results due to the farmers
loss OF purchasing power, the almost entire
cessation OF such works tends to empha-
size the loss Of that power. which the
farmer exercised In such a way as to cause
q rapid extension of the industrial equip
ment OF the country. until it has become
more than sufficient to meet demands re-
duced by reason Of the loss OF revenue suf-
fered by the greatest body OF workers in
the country.
The nation is likely never again to have
Its economic conditions hidden by facti-
tious prosperity growing out OF great rail-
way constructions. as such operations are
no longer possible. there being no region,
except very limited Southern areas. where
expenditures could be made to appear as
promising returns to tempt the possessors
of available funds.
For more than fifteen years. 1878 to 1898.
all the great primary agricultural staples
have been declining in price. although there
have been periods when the price of some
one was high for u limited time. This is
more notably true as respects secondary
products. especially meats and lard: but
the trend of the whole scale has been con-
stantly downward. and the general price
level at tho end of each year was lower
than at its beginning. In the mean time.
there has been no material reduction in the
cost OF production. the selfbinder. the
gang-plough. mower, hay tedder and hay
loader. and all other great improvements
in agricultural machinery. having come
into use prior to 1878. Subsequent modih-
cations and improvements have been in
the direction OF greater facility in operation
rather than OF lessened cost. While it is true
that there has been material reduction in
the cost of farming implements. such re-
duction has not always resulted in lessen
ing the cost OF production on the farm. as
new machines have often displaced those
which were but partially worn and which