Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-10
FARM VALUES DROPPlNG In WEST
AND RISING IN EAST, SAYS BABSONl
Business Expert Foresees Same Sort Of Evening Up
of Conditions and Advises Both Politicians and
Business Men TO Reef Sail.

average of either cereals or other
commodities. such as coal, copper.
lead, etc. The farmers troubles are
not due to either crop failures or low
prices.
The farlners' troubles are due to
the fact that their expenses have In
creased more in the past 10 years
than their income. During the war
the farmers cost Of production was
suddenly raised to q much higher
basis. Since the war the income has
dropped off. but the cost OF produc-
ton has kept UP. There is no ques-
ton but that today the farmers have
very little net income and many are
operating at a, loss. The difficulty,
however, Is not with the quality OF
the crop or the price received, but
due. to increased operating expenses.
These increased expenses apply not
only to the business end Of the farm,
but also to the personal end. The
farmers wife and children viii not,
themselves. work as they did before
the war; they require better homes,
more conyeniences, newer clothes and
many other things about which they
knew nothing BEFORE The automo.
bile has taken the family about and
thus aroused the desire for more things
and to live like other people. In even
this our sympathies must be with the
wives and children who raise our
food and who should have just as
good things as we who eat their food.
East Against West.
These Western farmers would feel
very much better IL we Eastern people
were suffering at the same time from
Industrial troubles. The fact is that
while the Western farmer has been
working hard and running into debt,
his Eastern friends have been laying
aside money. This is due to the fact
that the price of manufacturing mate
rails has automatically increased as
the cost Of production increased.
Although the manufacturing costs
and the personal expenditures Of East.
ern people have increased just az
much as in the case of the Western
farmer, yet the Fasteners have been
able to provide for these increased
costs by securing increased prices for
their products. Not being trained in
world economies, the western farmer
thinks there iss some hokus.pokus
about this or else some unfair Iegis-
lation is helping the East rather than
the West. @
This unfortunate situation Ii ag.
gravated by what has happened to
land values. If farmers had been
obliged to keep books the same as
business men, many farmers would
probably have found that they never
made money on the actual produc.
ton OF crops. Even In the good days
farmers made their money by having
all the family at work without wages,
and by enjoying the sensation of
constantly increasing land values. In
other words, the farmer looked more
at the price of his land than he did
at his business profits. So long az he
could get on without getting into debt
and the price Of his farm was con.
stantiy increasing in value he was
happy. irrespective Of whether or not
ne made money in the operation Of
the farm. Farmers who bought land
at from IS to SIS an acre saw It con.
stantly increase In value to 500 or
$500 per acre. When I used to argue