The Birmingham age-herald., 1923-03-30
FARME ERS' SUCCESS SETSSTA TANDARDF0R
 NAT |OM WALLACE
Secretary Declares Business Depends Upon Welfare of
 Agriculture

WASHINGTON, March 29.-The ur- gent need for better understanding between the important groups of citi- zens engaged in agriculture. in in dustry, and in general business is forcefully pointed out by Henry C.. Wallac. Secretary of Agriculture. In a statement discussing their relation ship.
 AS our civilization becomes more complex" he declares, the relation ship between agriculture, industry and general business becomes more and more intimate. What hurts the one will certainly hurt the others. In general, what helps one will help the others. They must work together for the common good.
 There has always been tacit rec ognition of our national dependence upon agriculture. We have given an intellectual assent to such statements as, The farmer is the backbone of the nation, A prosperous nation de- bends upon a prosperous agriculture, Agriculture is the basis of national life and so on. The truth of such home to us so effectively as during the last two years
 Farmers Suffer First.
 'The drop in prices which began early in 1920 is familiar history. Farmers were the first to suffer and suffered most. Taking prices of 1913 as representing 100, the prices Of farm products in May. 1920. stood at 23S. During that month they began to fall and before the decline could be arrested they had dropped below cember. 1921. Then we had terribly vivid illustration of our dependence upon agriculture and intimate rela- tionship between agricultural pros perity and business prosperity. Many farmers could not pay current ex- penses. The ratio between prices Of things the farmers produced and sold and prices of the things they bought was so distorted that they were forced to practice the most rigid economy and reduce their buying to absolute necessities. Great indus tries which depend directly upon farm buying were plunged almost immediately into profound depres- sion. Thousands of manufacturing plants had similar experience. The railroads suffered through reduction in freight on things farmers buy. Business of every sort shared the dls- aster. Hundreds of banks failed. Thousands of banks tottered along the edge of bankruptcy. Perhaps S,00O,00O men were thrown out ot work The financial depression was widespread.
 
 Turn Is Reached.
 "The turn was reached In the win ter Of 1921-22. since which time there has been a gradual increase in the prices of farm products. Grad ually farmers have been able to pay some of their debts and resume their buying. As a result there has been a steady improvement in business, until now there is general optimism. The ratio between prices of farm products and prices of other com modities is still abnormal. Until this ratio becomes more nearly normal the full measure of prosperity will not be restored.
 While the experience of tho last three years has brought sharply to our attention the intimate relation ship between business and agricul- ture, the existence of such intimate relationship is no new thing. A ing power with business failures dur ing the last third of century tells the story in a graphic way. During the 10 years 1890 to 1900 the pur- chasing power of the farmer was below the 30 year average: the per centage of business failures was con- siderably above. From 1900 to 1920 there was a gradual increase in the farmers purchasing power From 1901 to 1908 this purchasing power was almost the average of the 30 year period, while from 1908 to 1920 it was considerably above. The per centage of business failures dropped below the 30 year average from 1899 to 1920 with the exception of two snort periods. one in 1908 and the other in 1914 and 1915.
 We have about 6,400,000 farms. More than one-fourth of all of our people who are engaged in, gainful occupations work on the farms. The capital invested in farming is about 70 million dollars. The money invested in farm buildings, machinery and live stock, not including the value of the farm land, would buy all of the railroads in the United States and
 in addition considerable number of the mines.
 "The number of people engaged In farming Is so per cent greater now than in 1870. but the volume of crop production in 1920 was 256 per cent greater than in 1870.
 Business and agriculture are de- pendent upon one another. A pros- porous agriculture means prosper ous nation. It is to the advantage of the business man that the farmer be fairly prosperous. Conversely it is to the advantage of the farmer that business be fairly prosperous It is not to the advantage of either that either the one or the other should be so prosperous that in-' temperate speculation and waste is stimulated because diversity always follows such period"