The Carbon County news. [volume] (Red Lodge, Mont.) 1924-1931, 1926-09-09

A0A IL. TIom ASA4 10 1y1o average
production OF cotton was 14,175, 900
bales at an average price of 11.41
cents per pound. while from 1891 to
1895 production averaged 1885,. 900
bales at an average price Of z1.S5
cents per pound. In the 1s11-1916
period wheat production averaged
S,358. 900 bushels 1t an average price
OF SO cents. while in 19z1.1925 the
average production was 3o4.3S4, 900
! bushels At $1.11h average: In the
former period corn averaged 1,754 .0O0.-
900 bushels at sos cents while In the
latter the average was 2.S73,000,000 1T
69.65 cents. Cattle on farms for 1911
1915 were 37.17s.00o at an average
estimated price of $26.52 while In the
latter period the annual average was
41,616.000 at $2608. Hogs on farms
In the first period were 63,151, 900 at
an average price of 1888 per head,
and In the latter 6o.41S,000 at $1L34.
The Surplus Production Myth
From these figures, which eliminate
the period that embraced the war and
the early postwar imitation. it will be
observed that, with the exception OF
cotton and cattle, production has been
almost uniform in the two periods. In
no case has production anywhere ap-
preached an increase commensurate
with the increase in population. So
called surplus production is largely a
myth and the cause of the farmers
cemp plant must be looked for in some
other direction. 1t must be admitted
with this industry. After all, what is
the matter with agriculture? There
are few facts which seem obvious
as part at least of the underlying
causes of the situation and which sug-
gest something Of the remedy that
sooner or later must be applied.
Present difficulties had their incep-
ton largely in imitation of prices for
agricultural products from 1915 to
1920 with consequent large expansion
Of profits. This led inevitably with
the farmer as with the manufacturer
to expansion of plant and equipment
the requirement by the individual
of larger acreage and modern, IT, not
always efficient, machinery. These
statements do not apply to every one
because there are always some who
play safely and conservatively, proved
by the fact that there are millions
Of farmers who have gone through
the recent crisis without any difficulty
and are today prosperous and con-
tented. In fact the complaints today
are coming from less than rs per
cent of the farmers OF the country
and from the hordes Of politicians
who are seeking to make capital out
OF the situation.
Results Of Imitation and Expansion
With the average and with the ma
jority of those who were swept on
their feet by the wave Of prosperity
through which tfDey were passing, let
us analyze the results Of this imitation
and expansion. The farmer operat.
ing on land that he was carrying in
his capital account at value OF, say
800 per acre, and who perhaps had a
loan of $50 an acre, suddenly found
that, because of the increased profits
from his operations, his land had a
market value of $500 per acre and
that, if he had a new tractor and some
new farm machinery, he could greatly
increase his production. But If he did
that ne would need a larger barn
and more warehouse facilities. The
chances are that with an appraisal Of
5000 per acre on his land he increased
his loan to $500 per acre, thereby
doubling his capital account and his
bonded debt-not out of earnings bu
because of his ability to effect {
"clean write-up" of 100 per cent Of his
plant account.
If he did not effect the doubling O.
his capital account In this manner
and if his 500 acre farm was clear
he probably bought his neighbor''
farm for 5000 per acre and mortgaget
both the new and the old for 500 Pc
acre. In this latter case, he increased
his capital account $50 per cent.
It Is easy to see what this did tt
his net percentage Of income. II h'
had been able to make s per cent OF
his original investment, without an,
allowance for the increased cost o
operations which of course did tax
place, he cut his, net income, baset
upon his capitalization, about one-hal
when he had completed hts expansion
program. But worse than that hap
pened His calculations had beel
made upon price for his produc
Mich rejected wartime demand ant
7g power Of government none.
b were suddenly curtailed. Witt