Evening star., 1924-11-28
FARMERS dollar
GETTING LARGER
Buying Power Up From SO
Cents in 1921 to 81 Per Cent
Ratio at Present Time.
BY j. C. ROYLE.
Special Dispatch to The Star.

cpcCldt Dispdtcn 10 Inc Star.
NEW YORK, November 28 - The
farmers dollar undoubtedly is get
ting bigger, and in consequence those
who sell to the agriculturists antici-
pate that 1t will be easier to get
After somewhat jerky movement
throughout the fall months, october
and November have seen a definite
result In the ratio of farm prices to
wholesale prices of agricultural
commodities. This Is indicated by a
survey just completed by the Sears-
Roebuck Agricultural Foundation
based on figures of the Department
OF Agriculture, and it means that
the farmer has made long step to-
ward reinstating himself as a buyer
In the Industrial and business world
Method Of Companions.
What happened to the farmer Is
plainly seen from the figures COM
piled. These were based on COM
parison with the average prices Of
farm products and non-a AGRICULTURAL
products from August, 1909, to July
1914, which in each case were given
an index figure of 100 per cent. In
1913 the buying power of farm
products as compared with those the
farmer did not raise was IO6 per
cent, the farm price index having
reached 200. as compared with 100
before the war, while the index for
manufactured goods advanced only
to 1873.
By 1921 the buying value Of the
farmers dollar, as compared with
what he had to pay for mona agrfcul-
tural products, had shrunk to SO per
cent. This was the lowest point in
the depression period. During this
time the farmers dollar would buy
only SO cents worth of non-aSricul
tural goods. In 1922 the ratio rose ia
"A per cent and in 1928 it climbed to
78, with the index number of the cost
or living II points and crop prices "a
points above pre-war levels.
Ratio Now 81 Per Cent.
In the present month the ratio has
risen to 81 per cent of equality
This gradual climb of the prices
which the farmer is paid toward the
level at which he must buy, indicate es
as clearly as anything can. the i'm
proved condition of the agriculturist
This country is facing one serious
crop shortage, which may mean high
er butter. milk and cheese prices for
many citizens. The clover seed crop
this year was the smallest ever
known, totaling only SIT 1000 bushels
as compared with 100000 last year
and a five-year average of 100000
Glover Seed Imported.
Last year it was necessary to i'm
port 24,000,0O0 pounds of clover seed
from Europe to seed pastures, but
Europe also is short this year and
probably will be able to export little
seed.
Prices for seed already are high
and dairymen predict they will go
higher. The Blue Valley Creamery In
stitute, which looks after the condi-
tions in the dairy situation, is
therefore advising farmers to grow
alfalfa rather than compete for high
priced clover seed, and avoid thin
seeding. The alfalfa crop of the
country was nearly third larger
than normal this year.
Canadian Prices Higher.
The fact that the farmers Of the
United States are prosperous and will
have money to spend is likely to
bring added expense to those who
buy Canadian products. This has be-
come especially apparent in the news
print paper situation. In October
there was considerable discussion as
to the probable price of contract
news pl lil lOI tHe liISI Hall oI lSZ y.
The trade and financial papers sug-
gested a further softening of prices
and s65 to s6S a ton were suggested
declaration being made that many
Canadian mills could pay dividends
at the former price.
Paper Output Record.
The Canadian mills, however, pro-
fess to see additional demand from
American consumers as result of
larger advertising by producers and
retailers. Many mills are demanding
$40 a ton for next year and some
contracts are being placed at that
figure.
Production at American news print
mills so far this year is well under
that of 1928, but the Canadian output
has increased sufficiently to bring
total output of the two countries to
record figures. Book, fine paper and
wrapping paper are very firm and
the box board market is showing in
creased activity. -.