Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1918-11-29
FACTORY MONEY
FOR THE FARMER
(By Edward N. Hurley, chairman
United States Shipping Board.)

/
nineties when corn was worth more
to burn than to sell. l wonder If
they would be interested in some
simple figures explaining those
times.
Our manufacturing output then
was, roundly, $3.50 per capita for the
whole population of the United
| States; that u.s. in 1890, the corn
burning period. The value of farm
in 1899 to each farmer tilling the
soil was $4,000. The value of pro-
ducts that each factory worker made
| in 1890 was $1,000. The average
wages of the factory worker was
! $500 per year.
Then came the great industrial ex
pansion, beginning about 1898.
hich has paused only once or twice.
In 1914 nobody would have
thought of burning corn or any other
farm product, for farmers were pros
porous along with the factory work
ers. BY that time we we're making
$246 worth of goods per capita, or
$1,000 per factory worker, The fac
tory workers wages had risen to
$500 year, and the result was
clearly shown in the value of farm
which was then $4,000 for every per-
son engaged in tilling the soil.
| think this shows pretty clearly
that the farmers market and his
prosperity are linked closely with our
industrial prosperity. l have quot
ed these figures because / believe
that 20 years from now the statistic
ians will be able to compare the fac
tory output and wages and farm val
ues of 1888 with those of today and
show perhaps even a more remark
able increase.
For we are on the verge of an even
greater industrial advance-an ex-
tension of production and commerce
in world trade ito the American mer-
chant marine and the new banking
laws and other recent legislation
which will help us to put our ships
on new trade routes all over the
world.
AS a business man, the farmer has
both direct and indirect interest in
these ships, besides his investment
as an American. Direct benefits will
come to him through direct sales of
his products to foreign countries,
breeding animals to South America,
fruit and dairy products to Europe
and the Orient, and the like. In
deed, the farmer through his CO.
operative marketing organizations
and his government can do much
directly to promote new world mar
llets, especially in those specialties
like red apples and cheese which sell
for good prices and take the mini
mum of fertility from his soil.
But the indirect returns of the
American merchant marine to the
farmer will be even greater. By sell
ing our factory goods abroad we can
increase the output When you in
crease the output of a factory, in
most cases, you are able to reduce
cost of production and also prices.
For incAeased output means that peo-
pie have steadier work and that over
head expenses such as rent, insur-
ance, depreciation, ETC., are spread
over a greater volume of business.
With world markets in which to sell
our manufacturers can keep their
plants running through the year.
They can pay higher wages. They
| can give factory workers more work
each year. The American factory
worker lives well. Give him more
wages and the first expenditure he
makes is at the grocery store and the
| butcher shop for more food and bet
ter. So the American merchant ma
rine and world trade are about to
put more dollars into our factories
and some of those dollars will go to
the farmers for food.
Another interesting phase of world
trade for this country when our mer-
chant marine is in operation will be
the new insurance against hard
times. I do not believe that we shall
ever again have money panics-the
Federal Reserve system has stopped
them. 1t has prevented several pan
les since the European war began.
But there is always the possibility
of depression due to decreased de-
mand for our factory goods. That
sort of hard times came to us here
at home through reduced crop yields
and other causes.
With an active merchant marine
and a healthy, growing world trade,
however, we shall be in a differ
ont nncitinn D,ri,,o, o,,o,,. ,-....- - 4