, 1925-01-14
Roger w. Babson Sees Situation as Best in this
Country Since 1919; Recovery was
Big Event of the Year

What was the most significant
mess is c~oncerned?" The question,
put recently to Roger w. Babson,
The statistician, brot an immediate
answer outlining the recovery Of the
farmer and the effect his
may have OF business during 1925.
1.-The yea 1924 marked a decided
change in the position of the Ameri-
can farmer" says Mr.. Babson. "As
we enter 1926 he is better off than
no has been at any time since 1919.
Two main factors have contributed
to this Improvement; first and fore
most has been the rapid and sub
stantial recovery in the price that
he receives for his products and
second, the trend of those non-agri-
cultural commodities which he buys
has been downward.
1.-THE years corn crop totalled g.
436, 100000 bushels decided de-
crease from the 1928 crop, and it is
also substantially under the aver
age output. However, the tremend-
GUS jump in prices which amounted
to over so e cent from the low of
this year more than offsets the de-
cline in production, inc as a result,
this years crop is estimated to be
worth 8 per cent more than last
year.. respective valuation figures be-
ing S2,4O5, 46S 900 and s~2,217,229,-
900.
"The wheat crop was not only sub
stantially greater in volume than
the 1928 crop, but the price that the
farmer received was Al per cent
higher. Hence, it is estimated that
this years wheat crop is worth 81
per cent more than last year, or ST.
136.596,000 against last years farm
value of $735,993,OOO.
1.-THE oat farmer was benefited al
so to a great extent, the value of
his crop being estimated at SO per
cent more than last year, or about
$739,495,0 900 against approximately
$541,137,0 600 last year.
prices of cotton to the farmer
as compared to last year have drop
ped about 80 per cent. However, the
yield is placed at 1~2,153,OO0 bales,
against last years yield of 10,140,-
900 bales. Hence, much of the sub
stantial price decline has been coun-
teracted and he will probably re-
ceive close to $1,4S7, 900 900 for his
crop, against s1,571, 900 for last
year.
This years potato crop is a rec
ord for all times, exceeding that of
1925 by $4,000, 900 bushels. Potato
prices are II per cent under last
wear hut the subcfantioI iporaosa
in yield should allow the farmer to
receive close to 1926. 900. 900,
against 1895, 000,0 900, the value of
his 1928 crop.
THE changes in the 1924 farm
values of other important crops as
compared to the 1928 values are as
follows:
1928 1924
Barley -$1O7,O3S,OOO 137,27O,OO
Rice 37,150,0OO 4~7,O51,OOO
Tobacco 3O1.O96.OO 256,346,OO
Rye --- 4O,971,OOO 6S,O61,OOO
F1axseed 35.951,OOO 6~S,611,OOO
Hay secs. 1,39S.22O,0 900 1,467,64S,O 900
"A brief calculation of the above
figures Immediately emphasizes the
grounds for optimism in the farm
situation. The farmer will receive
over 500, 0O0, 900 more for his 1924
crops than he did for last years.
AS mentioned earlier, the farmer has
not only benefited by larger crops
and higher prices, but he has also
benefited from another angle; that
is, those commodities which he has
to buy, namely: industrial commodi-
ties, have tended downward so that
the ratio for the farm dollar to the
industrial dollar is today higher
than it has been any time since
1919.
This particular occurrence has
been referred to variously as the
return of farm purchasing power,
the recovery of the farmer, the re
adjustment of prices, and the mar
rowing of the price scale. All of
them mean that the farmer is again
in the market with both money and