The New York herald., 1921-12-12
With Rates Coming Down
One Factor of Depression
Is Relieved.
LIVE STOCK IMPROVES
Sections Where Dairying Is
Carried On Also Survive
Hard Knocks.
Special Despatch TO THE New YoRK HERALD
Nexx XorIr

New York Herald Bureau.
Washington, ID. G., Dec. IL.
Despite decrease of nearly so per
cent in the purchasing power of ma jor
grain crops over the average for five
pre-war years, Henry C. Wallace, Sec
retary Of Agriculture, expresses the
greatest optimism over the future out
look for American agriculture in his
annual report to the President. The
worst has been passed, he feels, and
glowing above the last vestiges of the
distressing times the Secretary sees
the dawn of a new agricultural era.
The troubles Of the American
farmer. the Secretary says, are not
due entirely to local conditions. The
conditions We're, in fact, worldwide
and an inevitable result Of the war.
They were 20 be expected and could
have been avoided only by some mirac-
ulous Transformation. The transition
from a period of adversely to one of
prosperity already has set in, and. 1t
is in the offing that the Secretary sees
the bright road to agricultural good
times.
Increased freight rates, bumper crops
raised in the face of high costs and
Industrial unemployment are a few of
the causes of n lessened buying cited by
Mr.. Wallace. Also the lack of foreign
markets for surplus American agriculture
created the conditions the farmer had to
face during the last year These COM
posed "a vicious circle" the secretary
feels, through which the farmer could
not hope to break even by the most
Judicious use of his lands, and most
economical living on the part of himself
and his family.
Starving With Plenty Near.
HAD some way been found for the
people in need to buy our surplus at
prices which would cover the cost of pro-
duction, the American farmer would have
been prosperous and the country would
have prospered with him." the Secretary
wrote. "It is a terrible indictment of
modern civilization that with such abun-
dance here there are millions of people
overseas suffering for the bare necessi-
ties, and other millions starving to
death.
"And surely we are sadly lacking in
our understanding of economic laws or
in our adjustment to them when the pro-
duction of bounteous crops grown by the
hard labor of 1900. 900 farmers and
farm workers, and their families Is per-
mitted to play such n large part in
paralyzing our industries and business
at home.
"1Tor that is what has happened. The
purchasing power of the principal farm
crops of the year 1921 at the present
hafn IL
At times past some of these crops have
sold at lower prices per sale unit ex-
pressed in dollars and cents, but prob
ably never before have our farmers gen.
orally been compelled to exchange their
crops per sale unit for such small
amounts of the things they need. The
purchasing power of our major grain
crops is little more than half what 1t
was on an average for the five pre-war
years of 1910-1914, inclusive"
Higher freight rates played havoc
among the farmers. The rates nearly
doubled In most instances. the Secretary
saws. and in some IL more than doubled.
Freight Rates Great Hardship.
"When wheat was selling at $3.50 per
bushel corn at S1.75, cattle and hogs az
SIC and $22 per hundred cotton at 30
cents per pound, the increased freight
rate was not serious matter" he con-
tinued. 1T amounted to but few cents
relatively and was small Item In the
total price. But with wheat at 81, corn
at 4S cents. cattle and hogs at 81 to $40
per hundred. cotton at II TO 20 cents Gall
these being primary market prices. not
farm prices). the addition of even 10
cents per bushel or per 100 pounds i'm
poses "a burden grievous to be borne.
When farm prices are ruinously low any
addition TO the freight charge means
added distress. At the present time the
cost of getting some farm products to
market is greater than the amount the
farmer receives himself in net return.
And the heaviest freight burden nat
urally falls on those farmers who live in
our great surplus producing States"
And again. the Secretary says. the
farmer of the surplus producing State
must compete, despite the high freight
rates. in the heavy consuming markets
of the East with the foreign producer
and the farmer who has but a short
haul to market. Foreign producers have
the benefit of cheap water transporta-
ton. and "in many cases can lay down