New-York tribune., 1920-12-12
Farmers Loss
In Purchasing
Power Is Felt
Industries Making Specially
Of Selling to Rural Buy.
ers Are Hit by Restricted
Sales in Last 3 Months
Implement Orders Decline
Prospect of Recovery Is
Still Uncertain; Eastern
Belt So Far Escapes

Still Uncertain; Eastern
Belt So Far Escapes
Attention has been focused lately
upon the buying and selling attitude
Of the American farmer. In business
circles the present stand Of tho great
mass Of the. country's crop producers
is being alluded to as a "strike," q
strike against selling their products
and also . strike against buying new
equipment. clothing and practically
everything used on the farm that the
farmer himself does not wrest from
the soil.
The strike against selling his prod
ucts has received publicity in many
directions. The efforts of the organ
lied farmers to have the government
grant aid to them in the form of ex-
tended credits that will permit hold
ing grain. cotton and other products
for rise IN prices are we'll known.
The other side Of the story is affect
ing large number Of manufacturing
a.-d distributing enterprises. Manufac-
farming equipment Of all kinds, as we'll
as retailers in small communities and
the great mail order houses, whose
customers are drawn largely from the
rural sections are one In declaring that
the farmers are prosecuting q more
strenuous buying strike than were their
city brethren last spring, when the
latter were supposed to have forced
the countrywide sweep Of 20 per cent
reductions by their refusal to pay the
prices then ruling among retailers.
Attitude Of Farmer
Tho attitude Of the averare farmc cr
against buying now, as near as can be
learned by implement and equipment
statesmen who come in direct contact
with the tiller of the soil, is simple.
He is refusing to buy until he is able to
move his crops at what he considers q
fair price, or until the things he de-
sires to buy drop in price comparable
to the descent in crop values that has
materially decreased his prospective In
come.
The National City Bank Of New York
estimates the loss in purchasing power
TO the farming population this year at
"somewhere between 80 and 40 per
cent, or $6,000000,000 to $4,000 O00,-
600, as conn ared with last year. These
figures probably were arrived at by fig
uring the estimated crop yield for the
country at present prices and compar-
ing the result with the estimates made
OF farming income last year. They may
be revised by change Of crop prices
Also. they are not 80 formidable as at
first appearance, when the fact that the
siderably more this year than il did
last year because Of the fall in prices
OF some of the commodities no uses is
taken into consideration
Comm enting on the decreased pur-
chasing power Of the farmer the bank
said in recent bulletin: "It would be
foolish for the people engaged in other
industries to think that they can 20 on
making and selling goods as though
this loss had not occurred, enjoying
also the benefit Of this reduction in
cost of farm products"
Duller Season Than Normal
Although this is normally the dull
season for the sale of farming equip
ment, manufacturers of harvesting ma
chinery, plows, dairy equipment, etc,
assert that their sales are far below
those of similar periods in other years
We have never been quiet, so far
as sales are concerned" said an Of
fetal Of the De Laval Separator Com
pany, manufacturers Of cream separa-
hoping that there will be an improve
ment shortly after sne first Of the
year, when we will begin distributing
machines to our agents in the rural
| districts. Our sales began showing q
marked decrease about August. Previ-
Gus to that time our sales were above
those Of preceding years. We did not
feel the depression that was expert
enced in textile lines so early as the
silk, woolen, cotton and apparel trades
This official, together with execu-
ing farm equipment, declined to esti-
mate the drop in sales, but each
declared that in his opinion the pur-
chasing power of the farmer was about
80 per cent of what it was last year
These figures may have been based or
crop estimates or upon sales analyses
so far the makers Of farming i'm,
plements have not reduced prices. but
are watching each other for the first
signs Of q drop In fact, the new price
/ list recently issued by the international
in few machines and no change in the
majority.
Extend Farmers Credit
In a report to stockholders Thursday
announcing the payment of the usua
quarterly common stock dividend of
per cent in common stock in lieu o1
cash, the American Agricultural Chem.
ical Company held slow payments from
farmers responsible for this action
The company says that large part Of
its notes and accounts receivable are
due in the months CT October to Jan.
uary, "but owing to the unwillngness
Of the farmers to liquidate their debts
by the sale of their crops we will be
forced to grant further time on con.
siderable percentage Of these receiv
ables"
Much the same c. nditions are re-,
ported by other. concerns dealing with
the farmers and extensions have beer
freely granted. SO far actual losse.
have been small, It ia said.
Tho De Laval Separator Company re
Gently heightened its credit terms By
granting advanced dating, but no re-
cct'"n to this in increased sales ha,
been felt as yet, although suffi cien'
time has not elapsed to allow for thu
formation Of definite conclusion con.
cerring fhe efficacy of this policy.
Tho depression Of former purchasing
Is greater in the South than in tht
North. according to agricultural i'm
plement men, and plans are being made
to push sales in the North nert veal
before tho South Is canvassed.
The announced intention Of reducins
the cotton acreage next year Is givinf
the implement men certain amount
Of hope. More diversified farming IL