The dispatch-news. [volume] (Lexington, S.C.) 1919-2001, 1922-05-03
THINGS OUT OF WHACK.

lnere is SOmeCnlng
and of country when the agricultural IN
dustry founderng in bankruptcy while certain special
privileged financial and other lines of industry are in
condition of prosperity The farmers generally with
out finances credits and heavily involved in debt The
prices of staple farm products continue far below the cost
of production though demand has Increased for such
products very materially within the last months Union
labor has generally maintained the inflated forced
upon the country during the World War and the daily
wages of such labor being stabilized by governmental
authority far the railroads concerned Union
labor engaged in the various crafts and industrial occu
paton receiving of from five to eight dollars
for eight hours work day. Farm abcrers in the cot
ton belt whether working for wages tenants share
troopers, unable to average of more than
fifty cents per day working average OF twelve hour
Railroad rates have far been practically undis-
turbed by defaton because of the stabzaon Of such
by Federal authority Interest rates loans to tar
continue high the law will permit to avoid the
violation of usury laws There many retail mer-
chants going into bankruptcy and settling with creditors
for from ten to twenty cents the dollar and marking
down goods to fifty the dollar COST that it is
zng the trade of those merchants who have so far been
able to weather the storms of arclay enforced della
ton during the past two years.
It is generally conceded by expert statisticians who
have investigated the situation that the American farmers
whole have sustained losses the values of their farm
products since the of 1920 aggregang the
NOUS total of Twelve Billion Dollars This equals the
losses of defaon to the cotton growers during 1920 and
1921 the drop in the of cotton aone is placed at
00 These losses estimated on farm prod
ucs and do not include the heavy depreciation in land
values and farm improvements It is known that very
large proportion of these losses the values OF
farm products and depreciation in lands still represent
ed in unqudaed obligations held by local bankers sup
ply merchants fertilizer dealers and other institutions IN
the form of frozen uncolecabe credits AS these debts
contracted during period of the highest imitation
Of money, labor and supplies it becomes question OF
serious concern to how and in what way how fast
they be liquidated with deflaed money and con-
tnung market which will not pay the cost of producing
staple farm products
The Federal Reserve Board has recently taken the po
son that all shortterm farmers loans redscounted by
that system will be only for planting cultivating and har
vestng crops and not for the of holding farm
products off the market for slow and orderly selling This
construction of the law will make imperative for farmers
whose paper has been redscounted by that system to sell
their cotton gnner other products no matter
whether such markets be gued and prices below the cost
of production or not
Any system of agricultural finance based upon SUCH
arbitrary rulings and enforcement will wreck the markets
and bankrupt the farmers The arbitrary rulings and OF"
ficia dctaon are enforced by the Federal Reserve
banks in any other line of business industry The far
mers have been singled out to be made the goat at
time when they in helpless financial condition and
unable to protect themselves. Rehabilitation OF Aner
life will be impossible under these conditions and
Congress should, without delay, enact an agricultural
credits system absolutely divorced from the Federal Re-
serve banks.