The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1926-07-02

farm. From 1911 to 1915 average9-
production OF cotton was 14,175, 900 I
bales at an average price Of 12.41
cents per pound. while from 1921 to
1925 production averaged 1882 900
bales 1t an average price Of Bliss
cents per pound In the 1911-1915
period wheat production averaged
0 6358yOOO bushels at an average price
Of So cents, while in 1921-1925 the
average production "a 8O4.384.OOO
bushels 0t q Silly average; IN the
fOEmsr period corn averaged 2,754.000s
600 Bushels a. eos cants while in the
latter the average was 2.S7a0O0yOOO at
es.s cents Cattle on farms for 1911
1915 were S7,178,OOO ct an average
estimated price Of $2e.52 while In the
latter period the annual average was
A1,s16,OOO at S26O8. Hogs on farms
In the first period were 63,151,OOO at
an average price Of $S.5S per head,
and In the latter 6O,418,OO0 at $11.3A
The Surplus Production Myth
From these figures, which eliminate
the period that embraced the van 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
complaint must be looked for in some
other direction. Il must be admitted
that all has not been and is not well
with this industry. After all, what is
the matter with agriculture? There
r a few facts which seem obvious
as a part at least Of the underlying
causes Of the situation and which sug-
gest something Of the remedy that
o 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
20 expansion Of plant and equipment
the requirement by the individual
Of larger acreage and modern, il not
always emcient, 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 z 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 % PEI
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
3Ority Of those who were swept %
their feet by the wave Of prosperity
through which they were passing, LEI
rs analyze the results Of this imitation
and expansion. The farmer Operat
ing on land that he was carrying IL
his capital account at a value Of, say
500 Der acre, and who perhaps had
loan Of $50 an acre, suddenly foun'
that. because Of the increased profits
from his operations, his land had
market value Of $500 per acre ant
that, If he had a new tractor and SOM
3 new farm machinery, he could great,
increase his production. But Il he dii
l that he would need q larger bar
and more warehouse facilities. Tn
chances are that with an appraisal o
500 per acre on his land he increase
his loan 70 500 per acre, hereb
doubling his capital account and hi
bonded dsbt-nOt out Of earnings bu
because Of his ability to eject
"cleah write-up" Of 100 per cent Of hi
plant account
II he did not effect the doubling
his capital account in this mannei
and II his 500 acre farm was clea'
he probably bought ais neighbor
farm for $500 per acre and mortgage
9 18th the new and the old for 500 pS
sore. In thiE latter case, he increase
his capital account 15oa per- cent
Il IS easy to sec what this did
bia net percentage Of income. N b
haa Nson able to make 8 Per cent 9
hia original investment without an
Allowance for the increased cost
. o-perations which of oOurBe did tai
place, he cut his net income. base
upon his capitalization, shout oneha
when he Had completed hiG eSDanele
program. But verse than that be-
Dsned. Ills calculations had bee
msde uDon q price Tor his pEoan
which reelected wartime 1emaNl al
q buying power of government mont
twhfra we're suddenly curtorea Mt