Morris tribune., 1921-12-16
PRICE REIMBURSEMENT
AT STANDSTILL, FARM
FEDERATION ASSERTS
Average Commodity Cost Higher
Than in June, With Agricultur- q.
al Products Still Falling.
MINNESOTA FARM BUREAU
FEDERATION NEWS SERVICE
Minnesota Farm Bureau Federation
BY NEIL H. SWANSON
Editor News Service

Editor News Service
St. Paul, December 10. Price read
justment is at a standstill, with the
products of the farm left at a dis
astrous disadvantage in relative pur-
chasing power, the Minnesota Farm
Bureau federation said today in a
statement Analysing the trend of
prices.
The statement was based on the
wholesale price index prepared by the
federal bureau of labor statistics, and
data gathered by the research depart
ment of the national farm bureau or
ganizatiOn.
Reconstruction is failing to recon
struct the purchasing power of the
farmers products the state farm
bureau declared. "The record of COM
modify prices since April indicates
that the decline in prices has almost
spent itself, although a comparison of
levels in September and October show
that the farm product and food
groups, including many commodities
just as they come from the farm, are
still falling.
1.-The prices of the necessities of
life appear to be marking time, with
the great agricultural population still
under a handicap so serious that it's
buying power is not recovering. 1t
must recover before the real revival
of industry and business can take
place"
The farm bureau statement quoted
figures of the bureau of labor statis-
tics to show that since June 1921,
the average price level of all commo-
dities has risen, instead of declining
Taking the 1913 price level as
100, the level in June, 1921, stood at
148, haveing declined from 1T since
January. But in October, the level
had risen again to $50. This deve-
lopment might be taken as an indi-
cation that the price level can be ex-
pected to remain considerably above
the 1913 level.
From the standpoint of the far
mer, the fact remains that no de-
finite improvement has been made
during the last several months
toward accomplishing a more equit-
able exchange relation between his
products and those which he must
purchase.
1.-THE farm products group, as listed
by the federal bureau of labor statis-
tics, was three points lower in Octo-
Der than it was in September, and
the food group had declined four
points. In the same period, clothing
had advanced three points, fuel and
lighting had gone up four points,
metals had advanced one point and
chemicals had remained at their Sep
TENDER level.
ITO offset the continued defation
of farm products, there was only a
one per cent decline in building ma
terials, which stand next to the high
est in the list of commodity prices
after many months of 'def1ation', and
a decline of five per cent in house
furnishings, whose price level is so
high that this small drop is insight
ficant"
Farm products, food and metals
were the only commodity groups
whose price level was lower than the
general price average for all comodi-
ties in October, the statement con-
tinued, pointing out that farm pro-
ducts stood at the foot of the list, 81
points below the average price of all
commodities.
There can be bue one conclusion
from such data" the federation con-
cluded. mo substantial improvement
can be effected in industrial condi-
lions until the prices of the commodi-
ties which the farmers must pur-
chase have been sufficiently Debated"