New Britain herald., 1922-03-04
MIDDLE WEST FARMERS HIT HARD BY
 MARKET CONDITIONS, BABSON FINDS

Continuing his personal survey of business conditions throughout the country, Roger w. Dabson, economist, furnishes the following exclusive statement to the New Britain Herald on conditions in the farming sections of the middle west,
 Conditions Pretty Bad
 There is no use disgusing the fact that Conditions are pretty bad out here. The expected fall rise in busi- ness was apparent in all sections of the country except in these western states bordered by the Mississippi on the east and the Rocky Mountains on the west. Throughout 1920 the farm CTS tended to hold their crops pend ing higher prices but, statistics clear ly Indicated would be the case, prices declined throughout the year. Hence farmers reached the end Of the year funds. Al classes of farmers were hit but I find those depending pri- marily upon corn are the worse off. Of all the states In this belt, find Iowa most depressed and Minnesota the best off.
 Those engaged in stock raising, or more properly speaking In the feed ing of stock-have the greatest mone- tary loss. Many a farmer have met, who year ago purchased stock, has been feeding 1t twelve months and cannot today get for his fat cattle what he paid year ago. Others have cattle which they purchased eighteen months or two years ago and these Of course are in much worse fix. The same applies to sheep and hVgs Hence the banks in the cattle and sheep sections are in a weak condi- tlon, although l believe 95R of them will come through all right.
 Want Protective Tariffs
 T find 8 great interest in this sec ton for heavy protective tariffs, es- pecially on wool, hides and other products entering into industry. The farmers are panic stricken, grasping at straws here and there for tempor- ary help. They are the real bolshe- vists today and are actually favoring some of the uneconomic doctrines that Russia has already tried and round to be useless. Only greater ef- liciency and wider markets will help the farmer in the long run. Higher tariffs tend only to reduce efficiency and narrow our markets. Besides, the farmer will never get a tariff on his raw materials without giving the manufacturers a tariff on manufac- tured products and the double tariff will so increase the cost of living that no one will be better off.
 Generally speaking, the wheat growers of the northwest are not complaining like the corn and cotton growers. Minneapolis. l find to be the most optimistic city of the west ern states. The banks of Minneapolis and St. Paul, seemed to be in good condition and the stores of these cities are doing fair business. Per haps it may be said that Minnesota has turned the corner; but this is not true of any other state in this belt 1922 is destined to be a bad year for this section.
 Little Buying On
 This means that the western states will buy very little during 1922, even although they bought almost nothing duringr1821. The purchasing power Of the farmer has been cut from 5oM to 75R. Moreover, his hope rests not in higher prices but in reducing his operating expenses Manufacturers and merchants desir- Ing to dispose of goods in these states during 1922 must feature smashing price reductions" Farm CTS will not be attracted by the eual- ity of the goods. Price will be the only consideration. Labor saving de- vices and other necessities may be sold but very few pianos, phono- graphs, or luNuries of any kind will be shipped into these states during the current year.
 Statistics have strongly indicated that even during average years, very few farmers have made money oper- ating their farms. l mean that if farmers were obliged to keep books the same as manufacturers and charge up wages for themselves and families and interest on their invest ment, most farms would show a loss on average years The farmer has really made his money through the hatpral increase in the value of his land. The farmer is technically al great speculator. He speculates not only in his products but in his real estate holdings. There are far more speculators in Nebraska than in New York.
 Little Land Speculation
 Farmers complain about the wat | cred stock of the industrial corpora tions Of the east, but there is far more water in their farms than in the | average industrial corporation of New England, New York or Pennsylvania | However, there won't be much specu- ating in farm lands during 1922. The tendency will be constantly down. ward. Farm land prices are bound 70 go through a period of readjust- nent and the lands of these Western states will suffer the most. The greatest decline will come in farms which arc rented. The real farmcr| vho both owns and operates has lothing to fear from a temporary de- r dine in values. Like the seasoned manufacturers who have weathered many depressions, by not expanding turing the preceding periods of pros- 'erity, the honest dirt farmer has ,othing to fear.
 What is the hope for this section