The New York herald., 1921-12-12


cheaply than our own people can ship
their products to the same points by
rail-"
Brighter Side of Picture.
Continuing. the Secretary says:
Fortunately. there is brighter side
to the picture I have presented Prices
for live stock are much higher relatively
than prices for grains. In the case or
corn, for example. which Is our largest
grain crop, the farmer is receiving very
much more for this grain when fed to
hogs and cattle and sheep and marketed
In that form than he is receiving for
his corn crop when marketed as corn.
Speaking generally, about 80 per cent. of
our corn crop is fed to live stock, and
those farmers who have maintained their
livestock production are not suffering so
severely as might be indicated by the
price of grains. The prices Of dairy
products also are higher relatively than
the price of grains and feeds. and in
those sections where dairying is prac-
tised there is steady income and the
farmers are getting along.
THE cotton crop of 1920 was large,
and when the foreign outlet was so re-
stricted prices dropped far below the
cost of production. The situation was
so serious throughout the cotton States
that the bankers merchants and business
men generally joined with the farmers to
bring a reduction in the acreage in 1921.
This effort was successful, and the
acreage was reduced about 2S per cent
The crop was still further shortened by
the ravages of the boil weevil, so that the
final figures will indicate a reduction of
nearly so per cent. below last years pro-
duction. When this situation became
known there was @ rapid advance In the
price of cotton.
1.-THE price doubled within a period Of
a few weeks The effect was beneficial
not only to the cotton planters and others
who held old cotton. but to all business
interests in the South, and reports from
that section have been much more hope
ful during the last two months"
Relief Efforts in Congress.
Never before, Mr.. Wallace says, has
Congress given more serious attention
to the needs of the farm. The measures
enacted are touched upon by the Secre-
tary as follows:
"All Of this legislation is of construc-
tive character and will be more helpful
than Is now realized. Concerning the
efforts to make easier credit conditions,
there is this to be remembered: Better
prices for the crops the farmers have to
sell and lower prices for the things he
has to buy are far more needed than an
opportunity to go further in debt. Easier
credit will be helpful mainly in enabling
the farmer to tide over this period Of
severe stress without being compelled to
sacrifice his live stock and crops and
without losing his farm.
Money made available through the
new facilities provided by legislation
should be used mainly for carrying loans
on which payment is demanded and for
buying live stock to consume the surplus
crops. If loan companies and insurance
companies which hold farm mortgages
will freely grant extensions of payment
of both principal and interest. that will
help conditions very much. and they can
do this without danger Of loss.
GAS is always the case in such periods
Of depression many we'll meaning men
come forward with i'll considered meas
ures. Visionary schemes Of all kinds are
presented. Some would have the Govern
ment take charge of the larger business
enterprises others would have the Gov
ernment undertake to fix prices either
arbitrarily or indirectly by buying up
surplus crops. The experience of 5000
years shows the impractcability of such
efforts.