Evening star., 1923-12-10
FARMERS INCOME
UP BILLION IN 1928
Wallace Finds Room for Bet
terment Despite Gain, in
Report to Congress.

Marked improvement was recorded
in agriculture during the past year,
according to the annual report of
Secretary Wallace of the Depart
ment OF Agriculture. made public
today.
The general farm income of the
nation will be greater for 1928 than
for last year. probably by more than
one and quarter billion dollars, Sec
retary Wallace estimates. He finds
that farmers are getting higher prices
for crops. at lower cost of ,produc-.
ton and with some reduction in the
prices of things they buy. but said
that many adverse conditions are still
faced by the farmers.
Secretary Wallace spoke optimistic
ally of reclassification of government
employees. saying that prospects
which it's offers ARE acting as a
strong incentive for the continuance
OF effort and the rendering OF effi-
Client service"
Better Housing Asked.
Secretary Wallace renewed his ap-
peai. made In his report last year. for
lettering of the housing condition of
the department. declaring that as
long as the department is using forty
ouiiuingS, scattered around Washing
ton. efficient and economical admin
istrauon remains impossible"
Inc secretary discussed the wheat
situation and outlined his plan for a
government agency with broad DOW
erS 10 BUY and export surpluses, not
ON! OF wheat, but of pork and other
farm products,
Unfavorable exchange rates with
european countries the report says.
together with financial difficulties in
those countries which need our sur
Plus, make 1t more difficult for them
to buy, and our export outlet for
farm commodities is narrowing.
Aside from this difficulty. it is to be
expected that. as the countries OF
europe get on their feet they will
strive to produce more of the things
this must be considered in planning
our future production.
Retail Costs Too High.
The costs of retail distribution of
farm products are unreasonably large,
thus enhancing the price to the con-
sumner and depriving the farmer OF
the benefit of increased consumption
which ought to follow lower prices
which result from large production"
A complete report on the wheat
situation in all of its aspects has been
prepared by his department, Secre
tary Wallace said. A reduction of
! acreage. he sad. was going on at
rate much greater than generally
realized. and as rapidly as could be
expected. Diversifcation of crops in
sections heretofore specializing in
wheat was making substantial prog
ress. The idea that the government
arbitrarily fix Il price covering pro-
duction costs was no longer enter
tanned by any considerable number.
The bringing in Of foreign farm
laborers to reduce production costs
seemed visionary because high in
from the farm.
The purchase and holding by the
government of surplus wheat might
prove of temporary help. provided an
advance in price, which is the object
sought, should be protected by the
| necessary advance in the tariff. The
proposal to sell considerable part
of the surplus to some country which
could not buy for cash, but which is
! in urgent need OF food, selling on
long time and taking evidences of in
debtedness issued by state or munich
pal governments, was worthy Of con-
sideration. The organization of wheat
growers into successful, powerful
cooperative marketing organization
might enable them to control the
flow of wheat and reduce marketing
costs. but was a work requiring years.
Tariff Hns Been Help"
The existing tariff has given a
substantial measure of protection to
the growers of certain varieties of
wheat" said Mr.. Wallace, but not
sufficient to make good the difference
in cost of production and marketing
here and in some competing countries
when all factors are considered. Any
effort which has the effect of advanc-
ing wheat prices at home must be
supported by an advance in the tar
itf on wheat"
Mr.. Wallace outlined his suggestion
for an export corporation to take care
of surplus agricultural products.
Property taxes and interest COM
bined paid by agriculture. Secretary
Wallace pointed out, has increased
from 81. .457, 100000 in 1920 to $I,749.-
100000 in 1922. and farmers are hav-
ing great difficulty in meeting pay
ments. The increase in taxes he said.
was due to local and state govern
ments. not federal. Investigation has
disclosed that Of the owner farmers
in fifteen corn and wheat producing
states, on an average over 5 per cent
had lost their farms through foreclos-
ure or bankruptcy, while nearly 4 per
cent had turned over their farms to
creditors without legal process, max
ing q total of about 8.5 per cent. In
addition, more than Is per cent were,
In fact. bankrupt, but were holding on
through leniency Of their creditors.
In England two centurfea ago II