Evening star., 1928-03-19
FARM IMPLEMENT
SALES SHOW GAINS
Agricultural Buying Power
Increase Seen in Better
Equipment Trade.
BY j. &. ROYLE.

Special Dispatch to The Star.
NEW YORK, March 19.-Sales of
agricultural implements since the 1st OF
January have shown an increase OF at
least 10 per cent as compared with the
corresponding period of 1927, according
to reports received from agricultura al
centers by telegraph today.
Unless there is long spell OF cold
and inclement weather during the
Spring. the distribution by the big agri-
cultural implement firms will be larger
than at any time for good many
years. This will have marked effect
on the outlook and profits of the farm
ers and the country in general through
the absorption of unemployed labor.
Agricultural purchasing power has in
creased as compared with year ago
and the unusually wild Winter has fav-
ored early preparation of the ground
for crops This has led to extensive
purchases of mechanical equipment SO
far this year. The agricultural equip
ment industry is thoroughly prosperous
and is improving its position steadily.
This is due to the developing Of new
machines and to the reduction in prices
made possible by quantity production.
Six Have Better Profits.
Six of the eight larger manufacturers
of equipment showed increases in profits
in 1927 and these increases have been
surpassed in the business done in the
last two and half months. There is
every indication that there will be a
substantial gain in corn acreage this
year and this is influencing sales Of
equipment There also will be mate
rally heavier paintings Of the other
field crops.
The larger sales so far have been
in tractors. threshers, combines and
other powered machinery. These have
cut crop production costs materially
and the movement has only started.
Much Of the cutting of costs has re-
suited from the smaller number Of
farm hands 1t has been necessary to
employ. Even in the harvest season,
which Is now about TO start in the ex-
treme Southwest. the number Of la
borers required will be far fewer than
in recent years. This may have some
effect on the unemployment situation
as 1t affects itinerant and unframed
labor.
II Is maintained, however, that work
ers who are displaced by the machines
are not necessarily thrown out Of en-
p.oyment. since the increase in out
put resulting from the use OF machines
provides buying power which as
sures increased activities and larger
labor requirements in manufacturing
and other fields. Output per wage
Garner in this country between 1914
and 1925 increased 20 per cent. whereas
the total manufacturing output in
creased over 65 per cent and the
value Of the products sold rose from
$4,000. 600, 900 TO S63 900, ,000, 900. In
order TO meet the demand of the ex-
panded market resulting from higher
buying power, employers required a
million and half more laborers.
Dairy Equipment Outlook.
Sales Of dairy equipment and ma
chinery are likely TO be extremely high
this year. Shearing is now under way
in the Southwest. and this portion Of
the livestock industry Is, of course,
thoroughly and efficiently equipped me-
chan.caily. Most Of the wool nov be-
ing clipped has already been sold for
some months at adequate prices.
Sales OF mechanical equipment in
Canada are likely to be at an even
higher per capital ratio than in the
United States. The Canadian farmers
are in remarkably strong financial
condition. This Is sure TO show itself
in the volume Of sales of The American
manufacturers with branch plants in
the Dominion.