The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-12-10
(Continucd from PAGE onel


farm income increases, because the
agricultural plant has been seriously
depleted in the last six years and
must be restored. Farmers. will buy
more and more freely of the taings
they need as their position improves,
the Secretary declares.
Some COmodity Prices Higher.
In some lines of farm production,
the report says, prices have been
satisfactory, while in other lines low
prices have added to the financial diff
ficulties of the farmers. The farm
prices OF wool, stimulated by a pros
tective tariff, is more than twice the
pre-war price. Cotton at the farm is
worth two and a quarter times its
pre-war value, and the purchasing
power of cotton per acre is above the
pre-war average, despite the ravages
OF the boil weevil. Butter, cheese
and milk, says the secretary, have
brought remunerative prices, and
poultry and eggs have been profit
able. Other farm commodities that
have ranged higher than the general
price level are beans, apples, broom
corn, cabbage, onions, cottonseed and
lambs.
Farm commodities thft are still be-
low the general price level include
horses, rye. barley, timothy seed,
beef cattle mich cows, corn, clover,
buckwheat, sweet potatoes, flaxseed
and potatoes. Many of these pro-
ducts, however, have risen in price
in the last year, notably corn and
flax. But the price of corn, Secre-
tary Wallace notes, must be taken
in conjunction with the price of hogs,
since not more than 20 per cent of
the corn crop will be sold as corn
but will be fed to hogs and other
live stock and therefore enters into
the cost of producing meat Hog
production received a great impetus
from the existence two years ago of
q large surplus of corn, and market
ing of hogs in the year ended June
80, 1928, exceeded that for sthe pre-
ceding year by more than S,000,00O
head, with the result that hog prices
have fallen and corn fed to hogs is
fetching lower prices than corn sold
on the market.
Turning to the dark side of the
picture, Secretary Wallace says the
ratio between the prices of most
farm products and the prices of other
commodities is still far out of llne
Industrial wages, he says, continue
at wartime levels and help to main
tain high prices for what the farmer
has to buy. High freight rates still
rule, and unfavorable exchange rates
with European countries nave mar
rowed the export trade in farm com
modities. Costs of retail distribution
of farm commodities are unreason-
ably high, the secretary asserts.
Moreover, the fall in prices generally
since the war period has made 1t I'M
possible for debts to be paid with the
same quantities of commodities that
would have paid them when they
were incurred While the price level
cd wit
which would do equal justice to
everyone, it would seem to be in the
public interest, says Secretary wal
lace, that while the country is work
ing out of war difficulties the price
level should be maintained at from
so to 20 per cent over the pre-war
level.
Farms Lost Through Foreclosures.
An inquiry made by the department
of agriculture into the financial diff
ficulties of the farmers reveals, says
the Secretarys report, that about
per cent of owner farmers in 10 corn
and wheat states lost their farms
through foreclosure or bankruptcy.
while nearly As per cent surrendered
their farms to creditors without le-
gal process and another Is per cent
were actually bankrupt but were
holding on through the leniency of
their creditors. Records of the de-
the prewar years per cent of all
bankruptcy cases were farmers, but
that in 1922 the proportion had grown
to IA per cent. Secretary Wallace
points out, too, that there has been
drift of population from the farms
to the cities which tends to restore
balance between agriculture and ur
ban occupations, but which is never
theless to be deplored because or the
conditions which make it necessary
and because it Is draining from the
country a large number of intelligent
and ambitious young farmers.
1t is therefore evident, the Secre-
tary declares, that notwithstanding
the progress made toward better
times, and Notwithstanding all that
has been so well done b. legislative
and administrative agencies, there is
still room for much improvement in
the condition of agriculture. Pro-
6ucers of those crops which are in the
main consumed at home, he says, are
In the main finding themselves able
to make such rcadjustmen as are
necessary to meet changing condi-
tions. 1t is otherwise, however, with
the producers of those crops which
must be exported in part, and which
are therefore influenced as to prices
by foreign competition and markets.
The position of the wheat grower
w no HdS Deen pTdCtlCdily
at war costs and is meeting condi-
tions which force him to sell at prices
we'll below the actual cost of produc-
ton, illustrates the difficulty, says
Secretary Wallace.
Export Corporation Discussed.
Secretary Wallace mentions vari-
Gus proposals which have been made
for dealing with the plight of the
wheat growers, and says he believes
the proposal to set up a government
agency with broad powers to buy and
export wheat and other agricultural
commodities which this country. pro-
duces in quantities yielding a surplus
over home needs, is worthy of re-
newed consideration. The discourag-
ing wheat situation is partly due to
the fact that wheat acreage was in
creased during the war in response TO
the extraordinary demands for wheat
| by the war administration, Secretary
Wallace observes. He says the pro-
posal to set up governments export
commission charged with the duty OF
disposing of surplus wheat would not
be price fixing, but might be de-
scribed as simply plan to give the
wheat grower the measure of pro-
lection which is given to so many
other groups by making fully effec-
tive the principle of the protective
tariff on a commodity of which we
produce a surplus.
1t would be necessary to sell the
surplus wheat in such a manner that
the domestic price might rise behind
an adequate tariff barrier to the
point of restoring the pre-war pur-
chasing power of wheat in the home
market, Secretary Wallace explains
An export agency such as it rs pro-
posed to set up, he says. would need
money, and it might be started with