The Delta independent., 1923-03-23

about 70 billion dollars. The money
invested in farm buildings, machinery
and live stock, not including the value
railroads OF the United States and in
addition a 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.
| The value of the crops grown last
year was approximately 9 billion dol
lars, measured on the farm. This
was new wealth added to the nation.
additional five and one-third billion
dollars.
There has always been tacit recog-
milton of our national dependence up
on agriculture. We have given an in
tellectual assent to such statements
as "'The Farmer is the backbone OF
the Nation" "a Prosperous Nation de-
pends upon a prosperous Agriculture. y
Agriculture is the Basis of National
Life" and so on. The truth of such
statements has never been driven
home to us so effectively as during
the past two years. The drop in
prices which began early in 1920 is
familiar history. Farmers were the
first to suffer and suffered most. TAX
ing prices of the year 1913 as repre-
senting 100. the prices of farm pro-
ducts in May 1920 stood at 23S. Dur
ing that month they began to fall,
and before the decline could be ar
rested they had dropped below the
1913 level. standing at "a in December
1921 Then we had terribly vivid
illustration of our dependence upon
agriculture and the intimate relation
ship between agricultural prosperity
and business prosperity. Many farm
ers could not pay current expenses.
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 neces-
sites. Great industries which depend
directly upon farm buying. such. for
ilit lAAlAEtA II abf osiL
the farm implement trade. were plung-
ed almost Immediately into profound
depression. Thousands of manufac-
turing plants whose output was largely
consumed on the farm had a similar
experience. The railroads suffered
through reduction in freight on things
farmers buy. Business of every sort
shared the disaster. Hundreds OF
banks failed Thousands OF banks
tottered along the edge OF bankruptcy.
Perhaps three million men were
thrown out of work. The financial de-
preston was widespread
The turn was reached in the win
ter OF 1922, since which time there
has been a gradual increase in the
prices Of farm products. The agre-
gate value of the crops Of 1922 was
about billion dollars higher than for
the crops OF the previous year. Gradu.
ally 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, un-
til now there is general optimism.
The ratio between prices of farm
1
ties is still abnormal Until this ratio
becomes more nearly normal the full
measure OF prosperity will not be re.
stored In their own interest. there
fore. business men should do what
they can to bring up prices OF farm
products and bring down prices OF
other commodities until the relation.
ship between them Is more nearly
what 1t ought to be.
| While the experience OF the past
three years has brought sharply to
our attention the intimate relation
ship between business and agriculture.
the existence OF such intimate rela-
tionship is no new thing. A compari-
son of the farmers purchasing power
with the number OF business failures
during the past third OF century tells
the story in a graphic way. During
the ten-year period 1890 to 1900 the
purchasing power OF the farmer. meas
ured by the prices Of farm products
and of other commodities. was below
the thirty-year average. During this
same period the percentage OF busi-
ness failures was considerably above
the thirty-year average. From 1900
to 1920 there was gradual increase
in the farmers purchasing power.
From 1901 to 1908 this purchasing
power was almost the average Of the
thirty-year period, while from 1908 to
1920 it considerably above. The per.
centage OF business failures dropped
below the thirty-year average from
1899 to 1920 with the exception OF two
short periods. one in 1908 and the
other in 1914 and 1915.