Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-05-23
Purchasing Power Increases,
While Prices of Products
Have Enjoyed Broad ADJ
vance
BY HARDEN COLFAX
U-eased Wire Service to The Iournall
Copyright, 1927

(C0pyr1ght, 1871
WASHINGTON, May 22.-The
American farmer is back again on
the highway to prosperity. Between
crops, and over-winter, the depart
ment of agriculture shows in a sum
mary completed today, he has in
creased his purchasing power be-
tween 20 and Is per cent, enjoyed a
broad general advance of about 20
per cent in the prices of his products
and raised his financial standing,
through the enhanced value of all
he produces, by a sum so great that
1t cannot be accurately measured.
Within that short space of time
during which no crops were harvest
ed, the summary shows, crops and
live stock have advanced from
level three points below the average
or 1913, or pre-war prices, to a point
15 per cent in excess of it. His
products today are fetching in hard
cash hundreds of millions of dol.
lara more than they fetched at the
beginning of wiSter. He may get
billion dollars more for his 1922 crops
and live stock than he did for what
he sold in 1921. 1t may be two
billions more; even higher; nobody
can tell.
The markets continue on the up
ward trend and as the farmers of the
country are at least IS per cent of
the entire population, their prosper
ity forms basis for industrial and
national prosperity than which there
is none more sound or secure.
Here are some of the things that
comparison between prices now
and prices six months ago as
checked up at the department shows.
All Staples Up
Wheat has risen from SLOT to
s1.44 a bushel and is still rising. Corn
has gone up from Al to 63 cents a
bushel, q 16 per cent rise. Cotton
was selling in December at round
II cents pound; today it is fluctuat
ing around the 21-cent mark. Hogs
have risen from 7.20 to 1O.40 cents a
pound, climb of more than 40 per
cent. Wool values have shot up
within the past 80 days. Sheep and
cattle alone have failed to keep step
with the forward march of farm
prices but even those values are on
the increase. @
Back in 1913 the, farmers dollar
4WGilId buy a dollars worth of goods
at the store. That was 100 per cent
value. Last December, however, the
farmers purchasing value had fallen
to SIS per cent. That fall was due to
the fact that while farm prices had
Debated to the last cent, the prices
of other commodities were still far
above the pre-war levels. In the
six months that have elapsed since
last December. the farmers purchas.
ing value has risen to 81 per cent of
the 1913 standard. He has been COM
ing back at the rate of per cent a
month.
The increase in the farmers
purchasing power is attributed at
the department to two things: The
increase in the prices of farm
products and a further decrease
though slight, in the prices of other
commodities.
An upward swing in the cost of
foodstuffs may be expected in retail
markets should the trend of prices
on the farm continue on it's present
way. The increased retail price,
however, it is pointed out, should not
be great.
Prosperity to BE Enhanced
Indications are that the farmers
prosperity will be enhanced this year
not only by the increased prices but
in some particulars, by increased
bulk of products. An illustration of
this tendency is shown in returns
covering the number of brood sows
on farms April 1 last, a census of
which has just been completed. The
figures show an increase of II per
cent or more than 100000 animals
in excess of the number a year ago.
This is interpreted as meaning the
farmers will raise at least, 5000, 900
moro hogs for the market this year
than they did last. With hogs top
ping 10 cents pound this one item
alone will add approximately $780,
$1,000 to the farmers income.
Other figures of the week, re
ceived by government agencies, tell
of a continuance of the business re-
vival. Deposits in national banks,
the federal reserve board reports, in.
creased by mere than 500, 200, 900
during the week. Stock market a.
tivities resulted. apparently, in an III
crease of loans by national banks
amounting to $4,000, 900. Railway
traffic continued at about the same
level as during the preceding week,
showing decrease of less than one
third of one per cent.
Indications are that the railroads
will show net income at the rate of
about A per cent on April business.
Notwithstanding the heavy loss of
traffic during the coal strike. Sucn
a showing would be much better
than the average for last year, when
there was no strike. Coal loading,
incidentally. are picking up slightly
tho most recent tabulation of the
Association of Railway Executives
showing an increase of 222 cars dur.
{ ing the week.
Heavy Grain Movement
heavy grain movement is re
corded in the tabulation and a falling
off of nearly 1000 cars in fores;
products Indications are that the
building trades will experience d
shortage Of cars in some sections
which will develop into a genuine
shortage with a revival of coal min
ing. At the present time, however
the roads report $4,000 idle open-tor
cars in good order on their lines.
Gold imports to the United States
have dribbled down from a torrent
a normal movement, April importa
tion being placed by the department
of commerce at slightly above more
than s12,O00,0O0. April exports o.
merchandise stand UP well with
those during March and are above
IN, low level of six months ago.