The Washington herald., 1921-12-11
Agricultural Recovery.

N the economic reaction of this postwar period,
i agriculture was the, first great interest to
be dropped over the sailing into the depths
of liquidation. 1t sank pretty nearly out OF sight,
but touched bottom almost with thud. It was
a of yourself, drown, and the farmers
began the battle of self-preservation. Was there
excuse for the agricultural bloc in Congress?
Was there need OF the relief it forced through
for the farmers? ~
Agriculture is the great basic industry on which
all other industries well our foreign trade
rest. 1t provides the bulk of the annual addition
to the nations wealth. 1t has had no organ
lied means of self-protecton against such periods
of depression. 1t has way to regulate its own
liquidation as it should have 1t has to take
the plunge, take it first, and trust largely to its
recuperative powers 1t always looks to
"the next crop" That next crop has been har-
vested and Senator Capper's Bureau OF Research
OF his farm press organization brings the very
gratifying information that the farmers of the
great Middle West States rapidly recovering
their buying power. Nothing is important
to all economic interests.
The Senator, who was one OF the most prom-
nent farm press publishers before he Governor
of Kansas, has completely organized, thoroughly
equipped research bureau manned by experts,
through which he is constantly in close touch
with actual farm and business conditions. This
is very handy in his present job of Senator; he
knows whereof ne speaks But recently, this
bureau undertook of the most thorough and
widely spread Investigations OF the agricultural
situation ever attempted by any agency. 1t in
cluded the sixteen States Of the Mississippi Ohio
and Missouri Valleys.
Investigators covered the field personally,
while questionnaires by the thousands were sent
to bankers, business organizations, wholesalers,
retailers, county agents and Federal land loan
agencies The rural community market cities were
specialized. The results in no way sensational,
startling but they very gratifying as
showing a rather unexpected soundness of agr-
cultural credit, the rising buying demand in
nearly all lines and assured recovery of
this fundamental industry. Every. country is pros
porous its farms prosper and it is safe from
all storms in proportion it is strong in an
independent, land owning, food producing rural
population.
This Capper report finds first of all that the
basic economic position of the farmer is stronger
than at any previous time except for a short
period OF wartime and postwar prosperity" This
is based his indebtedness to banks, bank bal
ances, savings accounts, farm mortgage balances,
farm equities and land values. There is sufficient
credit available for all consumptve purposes. There
is a probable average volume Of productive credit
dNandDle, lnOuSn neeQ mere Is INDICATED by very
small buying of farm machinery. But even in
poor crop areas the farm credit standing is re-
ported as excellent The farmers themselves are
recovering their confidence and natural optimism;
they rule bulls 10 their bust
and there is distinct gain in morale. Be
of reduced buying for the past year, the
household needs have increased and the buying
volume is increasing.
All in all, this showing is decidedly encourag-
ing. 1t has the utmost value to all dealers and
manufacturers and even in the financial centers.
The crying need is cheaper transportation
and cheaper distribution agencies. The recent re-
duction OF rail rates and repeal of the Federal
tax will help materially But this great farm area
which produces nearly threefourths OF the nations
foods is too far from water fronts 1t needs and
must have this cheaper way to the markets to
meet the competition Of, the rapidly developing
agricultural lands OF other countries close to
water