The Mena weekly star. (Mena, Ark.) 1904-1977, 1921-01-06
The Causes of the
Present Hard Times

The situation, so far as it regards
agriculture-and it is agriculture
which has been hit hardest-may be
summarized in a few words:
l. The poverty of Europe has SER
iously crippled the market for or
goods. The latest figures we have on
the depreciation of foreign money
October 21) show that the English
pound. formerly worth $4.86, Amer
lean money, is now worth only $3.46.
The French franc, with a pre-war
value of 10 cents, is now worth only
cents. The Italian Ira has declined
from 10 cents to cents, and the Ger
man mark from "a cents to " cents.
/ 2. The Federal Reserve situation
we have already discussed. We need
men with better understanding of
! agriculture on the Reserve Board.
We also need more consistent Fed
eral Reserve policy; instead of an ex-
tremely lax policy one year followed
/ by a severely strict one the next
year.
3. For Secretary Houston's place
tive. Able man that he is, he is
bound by ancient precedents. McAdoo
knew how to meet an unprecedented
situation in an unprecedented way.
Secretary Houston is precise, formal.
and regular in position where clas-
ITCHY and vision are absolutely es-
sential.
a. Agriculture has never had a
in fhxa r Al
country's finances. Money is ten times
more rapidly available for financing
manufacturers and commerce than
for financing agriculture. The FEEDER
NJ Farm Loan Board must be put to
work again as soon as the Supreme
court acts-put to work with what
ever adjustments may be required to
make it fit the courts decision. But
this is not enough. Some plan ior
short time credit must be worked out.
Mr.. Levers plan to have the Federal
Farm Loan Board issue securities
based on warehoused farm pro-
ducts is the best idea yet presented
IN this line. Every farmer in Amer
lea should help him work out this
plan.s The war finance corporations
should also be revived
5. Many merchants are not CO.
operating as they should in meeting
the new situation. They were per-
fectly willing to mark up goods on
their shelves when war forced prices
upward. Many are not willing, how
over, to mark down goods on their
shelves, now that wars ending has
forced prices downward. We heard
day or two ago of a merchant who
had shoes on hand when the war came
on. He had marked them up at
profit. Shoe prices rose and he mark
ed them up again. Shoe prices took
another rise, and he added another
profit. Yet while making three pro-
hts on the shoes then sold, we doubt
whether he is willing to lose one pro-
mt on what he now has on hand. Such |
seton on the part of retailers is de- |
laying buying and is also foolish be- |
caues 1t is driving trade from the re- |
tail stores to mail order houses. The !
cotton farmer lost out in 1914 when |
war began, and now in 1921 he has !
seen crop values cut 66 2-3 per cent. /
Retailers should count up the extra /
profits they made in war times and
be willing to share some losses with |
customers now.
D. manufacturers who made such .
enormous profits year or two ago
should also be willing to keep run
ming at some loss now rather than
throw employees out of work and tenn
porarily destroy the farmers market
for his crops Unfortunately, how
ever, manufacturers have been tempt
I'd to shut down and thereby both get
cheaper cotton and also have an ex-
euse for a heavier cut in wages of