The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-08-05
Why Prices Are Low.

An Instructive review of the condi-
tion of the farmers of Wisconsin has
just been completed by Halford Erick-
son, commissioner of the bureau of la"
Dor, census and industrial statistics of
that state. Its results, while drawn
from only one state, are of general
interest and may not unfairly be taken
as applicable to agriculture in general.
Mr.. Erickson finds that during a
period Of at least ten years there has
been a continuous depression in agri-
culture. The farmers say they are
steadily losing ground; that they are
producing the largest share Of the
wealth of the country while receiving
the smallest share for themselves; that
the receipts In farming are less in pro-
portion to the outlay than in any other
industry; that their burdens are yearly
growing heavier and their gains more
meager; that they are the bone and
sinew Of the nation. That the farmers
are not complaining without cause Is
certain. The report shows that wheat
which it costs the Wisconsin farmer
thirty eight cents to grow brings only
forty-five cents per bushel. leaving lit
tie practical margin. 1t also shows
that many products sell below the cost
OF production. For instance, from 1879
to 1875 the average yearly value of the
product of one acre each Of wheat,
corn, oats, barley, rye, buckwheat, po-
tatoes and hay was $156.34. From 1890
to 1896 1t was $9l.3S, a fall Of $64.96, or
of about Ais per cent.
The farmers themselves assign va
riety of causes for this condition Of
affairs. Among the causes mentioned
in the replies received by Mr.. Erickson
to circular letters distributed by him
among farmers are high taxes unjust
ly assessed, gold standard, free trade,
import duties, trusts, eXorbitant trans
portation generally, corrupt legislators
and bad laws" etc. For his own part
he rejects most of these explanations,
and says:
While the causes producing the present
depression were in operation prior to that
time. farming was profitable up to ten or
twelve years ago. My tables not only
show the extent of the fall in prices, but
., hi Foil ia 1ar
due to the fact that our power of produc-
ton Increases at much greater ratio
than the consuming power, resulting in
what. in sense. may be called overpro-
duction. The effects of legislation affect
ing currency, the tariff, our relations
with foreign countries are undoubtedly
felt in our home markets, although usual
ly much less than was expected. Efforts
to corner" the products by large pur-
chascs of the visible supply by buying
futures or options sometimes have men-
acing effect. But efforts to counteract
the operation of the law of supply and de-
mand by such methods seldom meet with
success. During the last twenty-five
years the percentage of the fall in freight
rates Is greater than that of the fall in
prices generally, and the reduced cost at
which grain can now be moved from in
terror points, or where produced. to the
centers of population has undoubtedly
resulted in a gain to both producer and
consumer.
That our consuming power Is not in
creasing as fast as our productive power
Is plainly illustrated by the following ta-
Bile, in which is shown the percentage Of
increase of population and of production
and of the area under cultivation from
1S7O-7i to lS9O-95: