The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-03-01
The Revival of Industry, Led BY the Farm.

authorizing the expenditure of 10000. 900
to be used by the American Relief Administration
to purchase supplies for the relief of starving men,
women and children of Russia there began a
period of recovery of the American farm which
is leading to general industrial revival This
marked improvement based upon betterment of
farm prospects, is strengthening the entire bust
ness and agricultural position of the United States
Moreover, the promise of stability is accentuated
by the fact that radical alteration of conditions is
not confined to America, but is worldwide
Russia, formerly the worlds largest exporter
of grain, imported huge purchases during Decem-
Der and January, and stimulated steadily in
creasng betterment in world conditions in gen.
era, and grain quotations particularly, with
consequent reflection of optimism in every line of
industry.
Foremost among the accomplishments of the
Russian relief measure is the creation of an active
foreign demand for American grain thus enabling
the farmer to dispose of surplus stocks which, in
many instances, included all of last years crop
held in preference to selling at slightly more than
production costs
As late January 10, May wheat in Chicago
was below $I.Io and Buenos Aires below $Ioo
Since then, wheat for May delivery, Chicago basis
has reached $I44, and July contract wheat has
touched $I.24zs. September corn has gone up to
60 and oats for the same month sold at 43X. Pork
and lard have reached higher levels and barley mas
established a high record. Livestock has also
improved with hogs around the $40 level and
cattle showing a slight gain. Cotton, while still
below the level established under the impulse of
crop and adverse climatic conditions in GER
tain sections, has doubled its value within the past
few months, the market growing hrner with evil
dences Of improved demand
Vastly improved foreign exchange rates forciby
portray the urgent need of American farm produce
and the ability of foreign nations to pay for our
foodstuffs. Never since the armstice has the pur-
chasing power of the British pound sterling been
at such discount as the dollar of the American
farmer since the summer of 1920 Farm consump-
ton is estimated at approximately 40 per cent of
the total of this country, and a serious shrinkage
in. the of this majority class readily ac-
counts for much OF business depression. Higher
prices for farm products will be almost imme-
dhtely reflected in bank deposits and increased
sales of merchandise of all kinds.
All Of these alterations for the better directly
traceable to improved agricultural conditions.
The worlds situation suggests that farm pro-
ducts must establish permanently higher level
Argentina is being depended upon to supply APP
proxmately 100000 bushels of wheat, with that
country showing a surplus of less than 100000
bushels according the last official estimate
Should that country, together with Australia and
Canada move their entire SURPRISES this season
there would still be deficit. Our surplus
has been exhausted, and the crop will come
upon market practically bare and dependent upon
the United States for than half its imports of
wheat.
The President in his recent statement anent
the promise of the coming year, very helpfully
developed the facts of the situation Julius H.
Barnes, in an address in New York the other day,
strikingly portrayed the r-brghtening outlook.
Secretary of Agriculture Wallace has joined in
expressions of optimism anent the certain improve
ment in the farm industry
A most valuable agency was provided by Con-
gress in the restoration of the War Finance Cor
poration, authorized to advance funds from the
Treasury to banks and cooperative associations to
help crop marketing. Under this provision, ad-
vances of more than SI45oooyooo have been au-
thorized for agriculture and $38,oooooo for
ports. During the period from January through
February IS, voluntary repayments of loans ex-
tended by the corporation, in the main facilitate
export of farm products from the United States,
flowed in at the rate of more than $25ooooo a
week. The total of repayments was SI5,z33,ooo of
which S3.oao,ooo represented loans made under the
war powers Of the corporation, 100000 for cattle
and S3,757,ooo for railroad and public utilities.
4 An analysis of repayments of export advances,
totsling $7,64I,ooo shows that $4,000 repaid
by exporters, Sz3sooo by cooperative associations
and $z,6o4ooo by banking institutions, while ST.
10000 represents the liquidation of export loans
financed through Edge law bank acceptance Re-
payments on account of agricultural and livestock
loans aggregate S3.67Iooo. OF this amount, $2,-
$4,000 repaid by banking institutions, $4,000
by livestock loan companies and $4,000 by CO.
operative associations.
This repayment moneys utilized mainly in the
interests OF agriculture and the farmer sstriknsiy
illustrates definite turn for the better.
When the slump in prices of farm products
came, the farmer naturally turned to the banks for
al These. in many cases already extended to