The Washington herald., 1922-03-09
Improved Farm Prospects Point to Industrial
Revival

IVv the purchasing power of the American
farmer by the recent upturn of prices for
farm products, and the radical improvement in pros
poets for the farm industry.
This movement shows that the farmerHs COM
ing into his own again and that he is likely to make
very much better showing on the years business
than seemed possible a month or so ago. This
does lose sight OF the losses sustained by many
producers who lquidated portion of their holdings
before the recovery OF prices set in but cit empha
sizes the quick changes that possible in
try OF unparalleled resources and which, at the
moment, holds commanding position the
,srestest creditor nation of the world
Inasmuch as the farmer and those engaged in
closely related pursuits represent the heaviest group
purchasing power in the country, about 40 per cent
It isobvious that higher prices for farm products
will ultimately lead TO increased business for impe-
ment manufacturers and general merchandise
dealers. !:
While it is true that the agricultural implement
business is still below, normal throughout the
United States, there is every believe that
Improvement will be seen during this year. Re-
ports from various centers by Duns Review reveal
that manufactures and distributors anticipate
general business revival in the spring. Many in
quiries already coming forward, especially on
the Pacific Coast and in the and wheat belt of
the Middle West.
portant effect upon the farmers purchasing power
With the highest quotations for foodstuffs, it is
anticipated that demand for better and more
modern farm machinery as we'll as for new implc-
mcnts to replace those will develop
Reports from Kansas and California show ideal
weather condition, with prospect of larger-than-'
usual yields. Washington and the Northwestern
States encouraged by the activities in wheat
raising districts.
Implement sales are reported about per
cent larger than those of last year. while prices
80 I-3 per cent lower than those of the correspond
ing period in 1921. comparison with 1920 shows
sales about 35 per cent smaller and prices, in
cases, as much as so per cent lower A better idea
may be obtained however, by manufacturers
group statement that business is from 70 to 70 per
cent of that in 1913.
Improvement of the farming groups treasury
is the result of the spirited advance in grain prices
with the resultant moving up of provision values
These movements have been exceptionally striking
during the past two months and their influence has
effectively strengthened business sentiment and con-
ditions in all sections of the country The advance
of exchange on London and Paris from the low
point of last year reflects better than anything else
the sustained Improvement in European affairs, put
ting those countries in position to provide ready
markets for exportablc> surpluses These
changes arc Of broad significance .and contrast
sharply with the chaotic conditions a year ago
In short, American agriculture is making such
rapid strides forward that it will soon assume its
prewsr Commanding position. Julius H. Barnes
former head of the United States Grain Corpora
tion. in recent address before New York fnan-
cicrs declared the day of opportunity for the farmer
has arrived. Thrift and energy in agricultural
pursuits may count with confidence on the
reward of these fundamental qualities All that the
farm buys has recently been on the down grade
and all that the farm sells distinctly on the up
grade Broadly speaking, he points out, the balance
has bee struck, and the prewar relation between
farm price and commodity index has been actually
restoped. r
With the opening of spring. this country has
entered one of the most interesting periods of the
hnansial year, thanks to the distinct beterment in
farming circles. The American people are showing
increased hopefuness and the major ISSUE the agri-
CULTURAL crisis, has been eliminated as a problem
lcavag in its stead feeling generally more conf
dent than few months ago.