The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1921-04-22

rlculture, q issued Cne 1OiioWAilt
statement on the agricultural situa'
ton:
"Let me speak first Of the agri
cultural situation in general. | thinl
if we can get an understanding Of
this, the proper work of the Depart
ment of Agriculture will become. ap'
parent. We must approach it iron
two angles-first, present conditions
which are decidedly unusual, and sec
ond, conditions which may develop
in the future.
81 doubt whether the people of the
East realize just what has happened
out here. Take the grain and live
stock producing country of the Cen
trail West, for example. and l speak
of this because it is the region with
which l am most familiar, and also
because it is the region which gives,
has the finest rural civilization,
taken as a whole. the world has ever
seen: our farmers average very high
in intelligence; they produce more per
man than almost any other farmers IN
the world; they have adopted the most
advanced system of extensive farming
vet developed. Notwithstanding all
this, they are now in a most trying
period and are suffering severe finan-
cial losses. Farmers throughout the
Nation, especially those in the South
and West, are experiencing exactly
the same trouble. The cotton farmers
of the South, the rice farmers, the
cattle and sheep growers of the Far
West; the fruit growers-all are pass
ing through this same valley OF dis
couragment.
"People who are not familiar with
agriculture find it hard to understand
the situation. They refuse to believe
that the depression is as serious as 1t
really is. They point to the high val
ue of our land, to the high prices at
which farm products were selling prior
to this heavy drop, to the large num-
Der of automobiles now owned by TAR
mers, to the apparent wealth ana
comfort on every side, and they refuse
to take seriously what the farmers say
concerning their troubles.
There are two causes for the wide
spread agricultural depression. One
is the high cost Of production last
wear. If we include all the factors
which properly enter into the cost OF
production, for example, we find, 1t
cost more than 90 cents to produce a
bushel of corn in Iowa. This includes
the lands cost, the labor and every
thing that ought to be includued.
Many people say you are figuring
the land at inflated prices. You must
not do that. The farmer did not pay
that price for the land. He wants
no dividends on watered stock.
1t is true that the land charge is
considered on the basis of its value a
year ago., but it is also true that the
advance in land values was not as
great as many people suppose. They
hear Of the occasional sale at $500 or
$500 an acre and assume that that
represents the average. Nothing OF
the sort. The average advance in the
value of our rich corn-belt land was
only about 60 per cent above prewar
values. 1t must be remembered also
that in the principal corn states over
half of the land is farmed by tenants,
and these tenants mostly had to pay
rent on the basis of the advanced val
ues of the land. 1t is true that if we
omit the land value altogether the
price which the farmer can get for a
bushel of orr is still considerably be-
low what it cost him to produce it.
The largest item cost in corn raising
is not lana, DuC laDOr.
The man who has been farming his
own land and who saved his money
has prospered. The five years prev
ious to 1920 were profitable years es-
pecially to the grain farmer. If he
exercised ordinary intelligence he
made more money than he ever be-
fore made at farming.
The second cause of the farmers
trouble is this: Prices of farm pro-
ducts dropped out Of all proportion
to the prices of other things, as well
as out of proportion to the cost of
production. The price of corn and oats
on the Iowa farm is about 20 per
cent below the normal price before
the war. Now note the price of some
of the things the farmer must buy:
Wages of farm hands, ever at $4,000
and $4,000 per month are so per cent
above the prewar level; railroad rates
are from 70 to 90 per cen over pre-
wal normal; such basic commodities
as pig iron, coke, petroleum., lumber
and cement are from 100 to $50 above
and in some cases 200 of the prewar
prices. All wages that enter into the
manufactured articles that he buys are
more than 100 above prewar normal.
IL we are 10 MAKE lHlS Il StllSuS-
tanning Nation agriculturally, there
is no time to be lost in %remedying
the great problem of the farm and
its relation to our commercial pros
perity. 1t is not a question OF pro-
duction alone; it is the question of
the farmer being able to sell what he
produces at a price which will Justify
him in continuing TO produce. We are
the best producers in the world but
our sales system is very bad. We
must study everything that influences
both production and price. We must
look into the matter of competition
from farmers of foreign land where
agriculture is still being exploited,
and where the standards Of LIVING
are very much below the standards
Which we demand for our people. We
must look into world conditions, both
of supply and demand, and produce
more intelligently, and adjust our vec-
ious crops to the probable needs. We
must look into the administration of
our credit machinery. Those who con
troll the finances of the country and
who have in their power to influence,
either directly or indirectly, the extern
sion of credit can exercise a large
amount of control over the prices of
farm products. The same thing is
true of the administration Of ou1
transportation system. Through the
simple device OF. regulating the flow
of cars tba prinoc Of fo rroI,ros