The Washington times., 1922-03-05
GOOD BUSINESS
CONDITIONS ARE
DUE TOFARMERS
Full Volume Of Business Will
Return When Agricultural
Property Is Restored.
BY International News Service.

BY International News Service.
NEW YORK. March 1.-THE
American farmer is the greatest
buyer In the United States. and
return to full volume Of business
cannot be expected until agricultural
prosperity is restored. Eugene Meyer.
jr.. managing director Of the War
Finance Corporation. declared today,
in an address before the Republican
Club of New York.
Improved prices and steady de-
mand for the farmers products mean
a gradual increase In his ability to
pay his debts and to resume buying
on a normal SCALE" he said.
For every ton Of agricultural
products that moves from the farmer
to the consumer. a much greater
quantity Of Industrial products
moves to and fro to supply his needs.
Restoration Of agricultural pros
perity. means return to q full
volume of business, which. in turn,
means restoration of prosperity to
the railroads as well a. other indus
trial activities"
Mr.. Meyer said that both tho rail-
roads and agriculture have an inter-
est In seeing that goods reach the
market at the lowest rates COM
patible with capital and operating
costs under efficient management.
He asserted that railroads and the
farmers alike will suffer equally
from rates SO high az to limit the
movement OF traffic Rates that are
unduly high, he said. tend to limit
thu ranQa ~ rnovamapt and yolume
Of transportation.
Railroads Must Help.
Tho railroads must do more than
merely defend themselves against
attack" Mr. Meyer asserted. They
furnish q target because they star
between the producer and consumer,
who is dissatisfied with high prices,
and the producer who Is dissatisfied
with low prices.
Freight rates constitute only a
relatively small part OF the differ
ences between what the producer
gets and the consumer pays. We
hear much about rates. but there Is
no general understanding Of how
much other costs enter into these
differences"
The duty Of the railroads at the
present time. Mr.. Meyer said, Is to
devise ways for more economical
handling at terminal points, and for
the elimination of waste and losses
in transit. He asserted the railroads
must also contribute something to
the development Of more economical
marketing methods. II was mis-
opinion that II a method Of gradual
marketing OF farm products develops,
as now appears likely, II will go far
toward leveling off the traffic
peaks" and Of proportionately in
creasing the movement OF business
over the roads.
Farmers Big Buyers.
Better financial conditions and
tho recently sterilization Of the mar
kets for agricultural products fur
nish Q sound basis for the business
recovery already well under way.
and for confidence that the improve
ment, possibly with temporary re-
actions. win continue throughout
the year" said Mr.. Meyer. The
Improvement at home" he con-
tinued," Is supplemented by the re-
turn toward normal of some Of the
important foreign exchange, which
warrants the hope Of the stabiliza-
ton of our foreign commerce. Every
concrete and tangible piece of EVIL
dence points to an existing and pro-
spective gradual improvement"
Mr.. Meyer emphasized the fact
that the greatest buyer In the coun-
try Is the farmer. and went on to
say: "The farmers buying power
was reduced to q minimum last sum-
mer and fall. Improved prices and
steady demand for his products mean
a gradual increase In his ability to
pay his debts and to resume buying
on a normal scale. For every ton Of
agricultural commodities that moves
from the farmer to the consumer,
a much greater quantity of indus
trial products moves to and fro to
supply his needs. The restoration
of agricultural prosperity means the
sure return of q full volume Of bust
ness, which. In turn, means the re-
storation Of prosperity to the rail
roads as well as to other industrial
activities"