The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1921-01-21
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 few words:
| 1. The poverty of Europe has seri-
ously crippled the market for our
goods. The latest figures we have on
the depreciation of foreign money
October 21) show that the English
pound, formerly worth $3.50, Ameri-
can money, is now only worth $3.46.
The French franc, with a pre-war
value of IS cents, is now worth only
q cents. The Italian Ira has de-
clined from 10 cents to A cents, and
the German mark from "a cents to
10 cents.
| 2. The Federal Reserve situation we
have always discussed. We need men
with a better understanding of agri-
culture on the Reserve Board. We
also need a more consistent Federal
Reserve policy, instead of an extreme
ly lax policy one year followed by q
severely strict one the next year.
3. For Secretary Houston's place
we need man less ultra-conservative
Able man that he is, he is bound by
ancient precedents. McAdoo knew
how to meet an unprecedented situa-
ton in an unprecedented way. Sec
rotary Houston is precise, formal, and
regular in a position where elasticity
and vision are absolutely essential.
4. Agriculture has never had a
square deal in the management of
the country's finances. Money is ten
times more readily available for
| financing manufacturers and COM
merce than for financing agriculture.
The Federal Farm Loan Board must
be put to work again as soon as the
Supreme Court acts-put to work
with whatever adjustments may be
required to make it fit the courts de-
cision. But this is not enough. Some
plan for short time credit must be
worked out. Mr.. Levers plan to have
the Federal Farm Loan Board issue
securities based on warehoused farm
products is the best idea yet pre-
sented in this line. Every farmer in
America should help him work out
this plan. The war finance corpora
tions should also be revived.
5. Many merchants are not co-ope-
rating as they should in meeting the
new situation. They were perfectly
willing to mark up goods on their
shelves when war forced prices up
ward. Many are not willing, however,
to mark down goods on their shelves,
now that wars ending has forced
prices downward. We heard day or
two ago of merchant who had shoes
on hand when the war came on. He
had marked them up at profit. Shoe
prices rose, and he marked them up
again. Shoe prices took another rise,
and he added another profit. Yet
while making three profits on the
shoes then sold, We doubt whether he
is willing to lose one profit on what he
now has on hand. Such action on the
part of retailers is delaying buying
and is also foolish because it is driv-
ing trade from retail 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
6S 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.
6. Manufacturers who made such
enormous profits a 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, howev-
er, manufacturers have been tempted
to shut down and thereby both get
cheaper cotton and also have an ex-
cuse for a heavier cut in wages of
employes.--The Progressive Farmer.