Evening star., 1927-12-06

population-only 90 900 900. This Is
the first time in the history of the
United States that there has been in
any period of five years an actual de.
crease of farmers. In the five years
1920 to 1925, the decrease amounted
to 2.600.000 farmers or $50, 900 q year:
in the last year, 1926-27, the decrease
is SOC, 900.
The trend. therefore. is not encour-
aging. since the fall Of agriculture is
growing worse. instead of better,
judged by the population flow.
How much does the average farmer
make-gross and net? 1t is only by
Juggling interest rates on capital in
vested that it can be shown that the
average farmer. plus the labor of his
family, even clears expenses.
The average rate of interest he
pays on his mortgage and other in
debtedness is 6.3 per cent. but what
he earns on his own capital invested
is at the rate of only 2.7 per cent
The rate on the entire capital invested
is stated as AZ per cent.
That Is arrived at by counting the
farmers own time and labor at the
same price per month as he paws TO
hlred help. Counting his interest on
his own net capital at As per cent,
the average net pay for the farmers
work and management and risk last
year was S627. or trifle over S12 a
week. bricklayer receives SIS
day, or nearly 500 a week. In the
best year of the two decades ending
June 80. 1920. the average for the
labor and farm management was
S911; in the poorest year. the fiscal
year ending June. 1922, the farmer
who had worked his hardest received
Tor his years pay, out of which to
support his family. S27O: the last wear
n92O. S627. In addition must he
counted the food and house rent. esti.
mated at $3.50 per year per family.
So. in order TO count the pay of the
farmer at the rate paid his farm hired
nelp the rate of interest on the in
Nestment must be pared one.half. or
II the interest is paid at the normal
rate for money whether belonging 10
the farmer or to the mortgage holder,
then the farmer does not earn any.
thing near what his brother in in.
dustry receives in wages.
the Bureau of Economies of the
Department of Agriculture thus sums
up the situation, in its Crops and
Markets Bulletin:
compared with the earnings of the
preceding year G926) the wages no,
farm family decline 10 per cent
wages paid to hired hands increased
per cent, while the earnings IF
factory employees were as high in
l92o-2 as In 1925-26. COMPARED
W.T. W.T. a. lhelr respective earnings in
ISl9'V' the average farm family
earned 80 per cent less. the hired
laborer about IA per cent less and
the employed factory worker ner
cent more PV'
considering the farm operations
as business enterprise. II annaars
that tne average farmer earned as
q reward for his capital and manage
ment during 1926-27 less than a nor
cent on a shrinking market value of
his capital. having earned about 4
in 1890. pei eei''
Comparable returns on tho o,,;,ai
Investment of all corporate jndns-
TRES appear to have heen
around IL per cent during the mast
Two years, or three times the rate
OF returns on agricultural canitaL.
Inc relatively high corporate retrrns
during the past Ave years have heen
earned on an increasing current VAL
ue of capital
n
If the exodus of farm no,,,lotion
continues at the rate of the five or
SIX years. ending June 80, 1926. in
less than 13 years there will be no
more agriculture. If the increased
exodus grows at the same geometric
ratio as it now shows, increasing in
volume 20 per cent each year. in S
years from now the flight from farms
VIII be in excess of 100000 a yearI
ana ana In ~ years the rate of net loss
will exceed 100000 a wear In 1887 &
there will be fewer than 1O.OOQ,0O0
tarm population. with probably $780,
100000 total population, and by 1870
we shall raise neither grain nor Hve-
stock. but shall turn to factories for
synthetic nourishment--or import all
our food from the ends of the earth.
We are headed that way on a tobog-
gan slide.
tcopyright. 1927. By Paul v. collins.l