Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-08-25
RESERVE BANK
CROP FORECAST
Is ATTACKED
Report "co1ored' to Force
Debt Settlement, Farm
Agencies Say.

Charges h q the ninth district Fed
eral Reserve bank Is crop statement
d. 9ie, dug 'af s aS ! putting Sea I,,. the =. n .nt s.'st
ing It an Indication Of prospective
liquidation, g t'unwarranted" and
"colored BY a desire for settlement of
outstanding debts" were made public
yesterday in q joint statement issued.
BY N. J. Holmberg, Minnesota COM
missioner OF agriculture. The Mime
sofa farm bureau federation and r.
+. ~Trowbridge. director Of the North
Dakota agricultural experiment. sta
ton.
I General liquidation from the agri-
cultural districts this fall Is utterly
impossible" the joint statement said.
Reports on ~.thresfing show that the
Aug. / estimates OF the United States
department OF agriculture were too
high rather than too low. The time
has come for the northwest to face
he situation sQuarely, and to realize
that further extension Of credit, not
general liquidation, is the. only, posi-
BILE course.
"If an attempt is made to force
general liquidation, the agriculture in
the northwest will be seriously Grip
pled.''
John II, Rich, federal reserve agent
OF the Ninth District Reserve bank,
ovet whose signature tho statement
made by the bank Aug. 20 was issued,
was out Of the city today. J. F. Eber-
sole, assistant federal reserve agent,
refused to reply to today's accusation
by the farming interests.
Minneapolis bankers today said
they preferred not to be drawn into
an argument on the need for liquida-.
ton. They said that the Federal Re-
serve bank estimates are made from,
~Sann&&~~~4-~ $500 $500 sAAAA I ~
900 northwest bAnkers, each intimate
~ in touch\ with conditions in their
localities. Furthermore, they said the
general attitude OF these bankers has
been against forcing liquidation, SO
that statements by them indicating .
possibility of liquidation should not
be taken as an exaggeration.
II have no desire to be. anything but
optimistic" N. J. Holmberg, state
commissioner of agriculture, said to-
day. but I believe that the public 10
entitled to the facts Is they have
been gathered by the state depart
ment of agriculture and by the coua-
ty farm bureau" ts'
Crop Conditions Summarized.
The statement summarized crop
conditions as follows: !
Spring wheat-One hall crop, with
quality so, low in many. districts that
the farmer will yrecetye small returns
due to the low grade. ~ /. ~
Oats-One half crop. low quality.
EARLY potatoesrAlmost a total fail
bushels an acre.
Late potatoes-Prospects point to
a good crop, but this is almost entire
ly dependent on moisture and climatic
conditions.
Corn-Excellent crop, but with
prospects for a. market, price that. will
not pay the cost Of reproductions:
Rye-Normal.
Barley-Below normal.
.Hay-Fair to good crops -
Minnesota crop conditions as indi-
l5cated BY the r~eportslof Mr. Holrnbers
hold true for the greater part OF
North Dakota" Mr.. Trowbrfdge said:
Credit Extension Called Need.
Dairy farmers in both Minnesota
and North Dakota are in good condi-
ton, the statement said. Even in, dry
farmers "have lost everything else"
their dairy Income will enable them
to pull through It said.
THE only liquidation OF any conee-
quence that can be expected from the
farmers Of the northwest. the state
ment continues, will not come until
spring, when those who feed livestock
In the winter DrlnSt ,Cne1ra bIOCk "
market. There is no possibility Of gem
eral agricultural liquidation this fall
al. the result Of the 1921 harvest. If
the farmers of the northwest are"to
be put on their feet, they must. have
more credit SC. they can buy and feed
livestock this winter, II they cannot
feed the cheap grain and hay they
have raised, they can do nothing with
ut. It is hardly worth hauling to mar
ket.
"Predictions OF general liquidation
are. unwarranted and colored by a de-
sire for payment of the faFr1ers'
debts. It will take three or four years
| for the farmer to pay his old debt. He
is better of this year for Just one rea-
son: he has been unusually economic
al, he has gotten along with the min
imum of everything. and has not con-
tracted new debts except when 1t alb
| solutely, could not. be avoided.
Everyone is$ anxious for genera
and speedy liquidation: But the farm
er must have better crops and better
prices before there can be any general
liquidation" Sa