Perth Amboy evening news., 1923-01-08

VI 4OoL IA SShoANS A1A 49,
| report. The first of these shows that
the farmers dollar has grown very
cheap since 1919. His prosperity
largely depends upon the quantities
of products for which he can eX-
change a given amount of his W
| product. The purchasing power of
the farmers dollar dropped in 1920
to SO cents, and was even lower in
1921. During the war it had been
considerably above par. AT present
it's purchasing power is lower than
at any time since the year 800.
Secondly, the report demonstrates
hat when the general break in
prices came in 1920. farm prices
were the first to go down, and they
fell further than any other peices.
Among nine great group of COM
modities, which had increased in
price since 1913, farm products at
the beginning of 1920 were tied with
two other groups in fourth place.
| being quoted at about one and one
half times the 1913 level. Clothing,
three and one-half times as ex-
pensive as it was in 1913, topped
the list.
When the break came, farm prod
Lcts exceeded all the others in their
rapid slide down hill. until in the
Sdi1y 11lOAlILla "a 4JS4 lICy were lOW-
est and were little above the 1913
level. Almost all the other groups
! were then at least SO per cent higher
I than their 1918 levels. This slide
was which cheapened the farmers
dollar, since he shares with every
other consumer the necessity of hav-
ing to buy from these groups.
In the third place, it is shown in
the report that the farmers, unlike
producers in other industries, have
been unable to take advantage of
the high war prices by increasing
production to any great extent.
Since 1899 farming has been able to
Increase its output only at about
the same rate as the population in
creases, Since that year population
has increased 40 per cent and agri-
cultural products something less
than 80 per cent. On the other
hand, the steel industry has in
creased its output in that time 112
per cent, miners 1913 per cent, tex
tile manufacturers 80 per cent.
while vehicle makers have increased
their business to thirteen times what
it was in 1899.
Finally. the report shows that the
financial reward of farming has
fallen perilously low. Allowing him
interest on his farm investment, for
his management, his risk, and his
cwn labor in 1920, he received the
magnificent sum of Sass on the
average, which was less than one
third what he received in 1919. And
what few dollars he got were worth
only SO cents in their power to pur-
chase the things he had to have.
This disaster swept away complete
ly whatever profit be made during
tho war.
Because OF this condition, the
friends of the farmer are proposing
an extensive program of legislation
to make his occupation once more
attractive. The immediate thing to
be done for him, the administration
believes, is the broadening OF the
powers OF the Federal Loan banks.
Several rural credit bills have been
introduced in congress and the
banking and currency committees
are working on them.
At present the farm loan banks
lend money only to the collateral of
the land itself. Now 1t Is proposed
to broaden the powers of the banks,
to enable them 10 lend on COM
mercial paper backed by farm prod
uct-bilis of lading. warehouse re-
ceipts for stored products, ct cetera.
Credit of this sort will enable the
farmer to hold his crops for good
prices and relieve him Of the neces>
slty of dumping mis- crops on the
market as they are harvested.
But the whole agrarian program
goes mucn father than this. 1t
contemplates the legalizing OF farm
ers' cooperative combinations. the
extension of the warehousing laws.
the immediate reduction of freight
rates or farm products, the creation
Of agricultural attaches, to be t
toned in foreign countries, to aid
in the export of our crop SURPRISES,
more intensive national campaigns to
reduce the weather. disease, and in
sect hazards to farming and numer-
our other reforms. With this, and
with the aid of economic laws, 1t is
hoped that American agriculture
may be restored to Its lost estate.
Tho whole purport of these re-
forms points to higher prices for
the consumers to pay; but the eco-
nomists who have been studying the
question plainly indicate that unless
the American farmer does get more
Cor his produce. America will cease
to be a self-contained nation SO far
- her food sUpply b eonosrned-