The midland journal. (Rising Sun, Md.) 1885-1947, 1926-08-06

IolC CnaC Cnefe mas Doen a crush
farm. From 1911 to 1915 averages
production of cotton was 14,175,000
bales at an average price of 12.41'
cents per pound, while from 1921 to
1925 production averaged 11,362,o00
bales at an average price of 21.S5
cents per pound. In the 1911-1915
period wheat production averaged
SOC, 358,000 bushels at an average price
of SO cents, while in 1921-1925 the
average production was S04,384,000
bushels at a Silly average; in the
former period corn averaged 2,754 .000,-
900 bushels at 60.3 cents while in the
latter the average was 2,S7S,000,000 at
69.6 cents. Cattle on farms for 1911
1915 were 37,17S,000 at an average
estimated price of $26.52 while in the
latter period the annual average was
41,616,000 at $26.08. Hogs on farms
in the first period were 63,151, 600 at
an average price Of $95S per head.
and in the latter 60,41S,000 at $11.S4.
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
complaint must be looked for in some
other direction. 1t must be admitted
that all has not been and is not well
With this industry. After all, what is
matter with agriculture? There
areS few facts which seem obvious
as a part at least of the underlying
causes of the situation and which sug-
Fest something of the remedy that
oner 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
q profits This led inevitably with
tie farmer as with the manufacturer
20 expansion of plant and equipment
the requirement by the individual
of larger acreage and modern, if not
always efficient, machinery. These
statements do not apply to- every one
/ ecause 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 Initiation and Expansion
With the average and with the ma
jority of those who were swept of
their feet by the wave of prosperity
through which they 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,
500 per- acre, and who perhaps had 4
loan of $50 an acre, suddenly found
that. because of the increased profits
from his operations, his land had a
market value Of 5000 per acre and
that. II he had a new tractor and some
new farm machinery, he could greatly
increase his production. But if he did
that he would need a larger barn
and more warehouse facilities. The
chances are that with an appraisal of
$500 Der acre on his land he increased
his loan to 800 per acre, thereby
doubling his capital account and his
bonded debt-not out of earnings but
because of his ability to effect a
@clean write-up" Of 100 per cent OF his
plant account.
If he did not effect the doubling of
mis- capital account in this manner.
and il his 500 acre farm was clear,
he probably bought his neighbor's
farm for 5000 per acre and mortgaged
both the new and the old for 500 per
acre. In this latter case, he increased
his capital account $50 per cent.
II is easy to see what this did to
his net percentage of income. II he
had been able to make per cent on
his original investment, without any
allowance for the increased cost of
operations which of course did take
Mace. he cut his net income, based
upon his capitalization, about one-half
whenNhe had completed his expansion
program. But worse than that hap
pened. His calculations had been
made upon a price for his product
which reflected wartime demand and
huying power of government money
which were suddenly curtailed. With