The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-12-07
DEBTS ARE
SCALED
DOWN
Gross Income for Year Is Put
at $12, 1905 900. 900, a Gain
of 7 Per Cent
Nv HARRY WARD

By HAkK1 WAhD
While the farmers of the notion
have not yet reached an economic
parity with OF her great groups OF
producers, their position now is
more favorable than any time
since 1920, Secretary of Agricul-
ture w. NJ. Jardine declares in his
annual report, made public today.
Fewer Quit Farms
s'The' heavy net movement OF
rural population away from farms
has been checked" Jardine said.
Noteworthy progress has been
made in the liquidation of indebted
ness among farmers. Purchase or
supplies and materials for farm use
has-been resumed over the Icoun-
try on a scale contributing material.
ly to general business prosperity.
Jardine pointed out that the crop
year 192A-25 represented an adj
vance in total gross income from
$1I 800, 100000 to $12 ,1OO, 900 ,0OO or
an increa Sc of per cent. The
farmers, he said, are receiving bet
ter prices for their products than
at any time in the past five years.
The average of all farm prices TOR
October was 143 per cent Of the
prewar averages as compared with
13S per cent in October. 1924.
Earnings Buy More
''The real significance Of this
improvement in prices Is better
indicated by the relation Of this
change in prices of farm products
to the changes in the wholesale
prices of non-agricultural pro-
ducts" he said. 1.-The purchasing
power OF the prices OF farm pro-
ducts in terms of the prices on
non-agricultural products has risen
from Sc, the lowest point of the
depression period, to 81 in October,
compared with the pre-war average
of 100."
There must be substantial read
justments in freight rates, because
high freight rates constitute one
of the many causes that have con-
trtbuted to the depression In farm
prices, Jardine declared. 1t is gen.
orally conceded that the entire
frefght-rate@ structure needs over.
hauling, he said He expressed the
opinion that a careful study should
be made of the entire freight-rate
structure, as freight rates the coun-
try over have grown up in a hap
hazard way and as a result Of all
sorts of local considerations.
Rate Adjustment Basis.
ION the basis Of such a study it
should be possible to make rate
adjustments that take into account
the market value of farm products
as reflected over a reasonable period
OF years and likewise the influence
OF freight rates on the economic
development of different regions
and of the country as a whole" he
said. Il realize that adequate in
) come to the carriers must be fully
reckoned with as a factor in rate
making, because efficient and adc-
quate railroads are indispensable
TO a profitable agriculture.
There have been only minor
changes In the freight rates on
farm products in the last year. Our
index showing changes in freight
rates of fifty representative aeri.
cultural commodi' les stood on Jan
uary 1 at 1882, or So per cent above
the 1913 level. Since then there
have been no changes great enough
TO affect the index.
In relation to prewar conditions
the prices of farm products are not
yet on a par with freight rates.
The level of farm commodity prices
in September was IA per cent of
The prewar average, whereas
freight rates on agricultural COM
nodities weie 1853 per cent of the
Drewar average. Moreover, the
prices Of agricultural pf oducts fluc-
tuate greatly from year to year,
whereas freIgrt rates are stable and
are not frequently changed
The burden OF the postwar in
crease in fIeIght rates fell heavily
on agriculture because the rates
were increased just as agricultural
prices started downward and re-
manned high while agriculture was
undergoing a very severe depres-
sion. The ability of agriculture to
pay transportation charges should
not be reckoned on the conditions
OF any given yea. but on probable
future conditions, unless freight
rates can be made more flexible,
being raised when prices are high
and lowered when they decline,