The Washington times., 1923-12-25
IMP ROVEMENT
FOR FARMS
FORECAST
Walter W. Head, Banker and
Farmer, Sees Factors
OF Prosperity.
BY w. s. COUSINS.
W. 0s NVOO4ANSs
~(Copyright. 1923. by Cosmopolitan
News Seryicel

News Service.)
NEW YORK, Dec. Robustness
conditions in the Middle West have
not been ideal in recent months,
but there has been a gradual i'm
prOvement, and the volume of bust
mess this year will be far in excess
of that of 1922, said Walter w.
Head, banker and farmer, Of Ne
kbraska, in an exclusive statement
to Cosmopolitan News Service.
In addition to his duties as presi-
dent Of the Omaha National Bank.
Head directs the activities of the
American Bankers Association, of
which he is president, AMI super
vises his 2,2O0-acre farm near
Omaha.
Condition Of Farmer.
'"The farmer has suffered In the
same degree as other business men
by the contraction In business and
the deflation in prices since 1921, "
said Head, but the farmer, by rea-
son Of his investment in fixed as
sets. requires a longer time to re-
l'cover from periodic setbacks.''
Most hardships are suffered by
farmers who purchased their lands
at inflated prices in the boom pc.
Rod. often with slender resources
and therefore unable to pay down
a very large proportion of the pur-
chase price, head declared. These
farmers might improve their condi-
t1on by a proper diversification of
their crops, instead OF devoting
practically all of their attention to
the raising of wheat, he suggested.
Farm lands throughout Iowa,
Nebraska and Kansas. sold at as
high as $500 an acre." said Head,
and present production at present
price levels will not justify such
high valuation, which is perhaps
from 5000 to $500 an acre. OF
| course, speculation entered into a
large percentage of the transfer of
farm lands in 1921, but in this re-
spect the mental condition of the
farmer was not different from that
OF the rest OF the country, and
farm lands were not the only OBJ
jects of Speculation"
Corn Crop Is Favorable.
"The extraordinarily large corn
crop, and the maintenance of good
average prices for corn this year.
Head declared, ARE important ele-
ments, making for prosperity for
next year. When this corn crop
| is placed on the market next year,
either in direct form, or in the
form of the livestock it nurtures
and fattens, there will be a ire
mendous increase in the purchasing
power of the agricultural districts.
THE farmers problems are three:
First, the necessity of finding
| markets for his surplus products,
/ lx1 vxYIAf nIn
! markets; second, transportation, not
| only Of his products from the farm,
| but OF the commodities he requires,
to the farms; third, securing and
maintaining a proper relationship
between farm and industrial &C.
tivities.''
Head stressed the necessity of de-
veloping cooperative farmer move
ments, and approved the proposed
| tax reduction program.
1.-The adoption OF Secretary Mel
| Ions program will bring increased
industrial activity and greater bust
ness stability, with resulting pros
perity for ALL" he said. "Particu-
| larry do wish to emphasize the
| necessity of maintaining the budget
system appropriating Government
| funds. The way to reduce taxes is
! to reduce expenditures. and this is
| possible only by adhering closely to
| budget estimates.
FaVOrs Amendment.
Furthermore, trust Congress
will accept the Presidents recon-
mendation for constitutional
amendment removing the tax ex-
| emption privilege for bonds issued
by municipalities and other subdi-
visions of the Government.
THE recent bank failures in the
| AGRICULTURAL districts are not the re.
suit of new developments there, but
the final chapter in the deflation
| process that started more than two
/ years ago.