Perth Amboy evening news., 1923-03-10
acknowledgements
On Trade and Business
Conditions i'm General

MINNEAPOLIS, March 10.-Last
week we quoted Roger w. Babson
relative to conditions in the Indus
trial West This week Mr.. Babson
treats of the Agricultural West.
1.-THE Agricultural West" he says,
lis confronted with a fundamental
law which is this: the consumption
per capita of wheat decreases as a
people becomes more prosperous.
The business man eats less wheat
than his chauffeur; the chauffeur
eats less than the Italian gardener
and the gardener eats less than the
immigrant who has just landed.
Each generation of a given family
eats less wheat than the preceding
generation, and so it goes. This law
does not apply to cotton, sugar, rub
Der and certain other products. 1t
does not so much apply to corn,
which is fed to live stock, because
Is people become more prosperous
they eat more meat, and they con-
sumo more cotton, sugar, rubber,
etc. This does not NEAR there is no
hope for the wheat growers; but 1t
does NEAR that the wheat growers
have a more difficult problem than
the growers of most other products.
$50 long as a million new immi-
grants were coming into this coun-
try every year, and so long as our
birth rate remained high, there was
an increase in the demand for wheat
sufficient to take care of the excess
supply. With the immigration prac-
tically cut off-the net gain in 1922
was only about $4,000 people and
with the constant decline in u
native birth rate, the wheat growers
of the Agricultural West are up
against a very difficult proposition.
"As a result of these conditions 1
found the small farmers of Minneso-
ia, North and South Dakota, Kansas,
Nebraska, Iowa and even those of
Missouri still in rather bad shape. 1t
is true that conditions everywhere
in the West are much better than
two years ago. The banks are liqui-
dating their frozen credits and the
farmers are paying their debts; but
with low prices for their products
and high prices for labor and all
they buy-With taxes rapidly in
creas-the growers of wheat and of
other cereals have a real problem.
Fundamentally this is, under present
immigration and better rate condi-
tons, a problem which must be solV-
ed through exporting cereals. But
to increase exports our farmers must
compete with the low cost labor OF
Europe, the Argentine and other
cereal growing countries. This
means that u only hope is in mass
production. Wheat must be grown
as automobiles are made, by the
most efficient and intensive methods.
In order to compete with the rest OF
the world in raising wheat, either
the net productivity of our soil per
acre must be increased rs per cent.
or else the labor cost must be cut
25 per cent. If the latter is to be
ACCOMPLISHED, without reducing the
wages, it means that about 20 per
cent of the men now engaged in.
raising wheat should either raise
other products or else become car
penters, brick-layers, plasterers and
painters, in their own or nearby
towns. The future of such cities as
Minneapolis, st. Paul, Kansas City,
Duluth, Des Moines, Davenport,
Sioux City, Omaha, Topeka, Wichita.
and even st. Louis, depends very
largely upon a fearless recognition
and solution of this problem. 1t can
not be solved by the politicians or by
handing out gifts to the farmers.
1t can be solved only by intelligent
leadership with the active co-opera-
ton of the newspapers.
ooh course, no n should assume
from these comments the idea that
the Agricultural West is dependent
upon wheat. The Industries of this
wonderful section of the United
States are becoming more DIVERSE
fed every day. Moreover, these di-
versifed industries are rapidly pick
ing up. The lumber industry of Min
nesota, the dairying interests of this
section, and the various other lines
are improving. Packing, which was
fiat on it's back a year ago, is turn
ing over onto it's side preparatory
to getting UP. All the live stock
business looks better and the far
mers are confidently looking for
ward to higher prices. The i'm
provement in the copper industry
and the great improvement in the
iron and steel industry is helping
the northern group of these states.
Lead, zinc, and other non-ferrous
metals will soon be in better demand
as the great building boom devel-
ops further. This will help Missouri
and certain other portions of thai
section. The people should be also
tal1pht that 'diyerSidcation' applies