Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1928-03-02
ROOKv1LLB.A MD
Startllug Losses.

The enormous losses which the farmers
Of the country have suffered during the
last seven years. both in deprecated farm
land values and in lower prices for their
crops. are reflected in an official bulletin
just issued by the Department Of Aericul-
ture. The bulletin is based on farm real
estate survey made for the fiscal year
1926-1927 by the Departments Bureau Of
Agricultural economics.
The losses which the farmers have sus-
tanned have been especially severe in the
Corn ond Cotton belts. The survey shows
that during the fiscal year l926-l927.
there was an average decline Of per cent
In farm land values for the whole country.
while in sections Of the Corn and Cotton
belts, the decline reached 10 per cent. The
per cent average decline made total decline
from 1920 Of 80 per cent Translated into
dollars, this was decline Of SIS. 100000
600 from the valuation Of S63.000.000.-
600 placed on the value Of farm lands in
1920, the last year Of the Wilson Demo-
cratic administration.
But two reasons can be assigned for
this enormous loss to the farmers.
One is the deflation policy for which the
Republican 1920 convention declared. and
which the Harding administration put into
effect as one OF its earliest acts.
The other is the prohibitive tariff policy
Of the Coolidge administration. which has
closed many foreign markets to American
farm products and which has forced the
farmer to sell what he did sell at world
prices while he bought his supplies in a
protected market at inflated prices.
One Of the most startling disclosures
made in the Department Of Agriculture
bulletin referred to is that lin constant dol
lars of the purchasing power of 19l2-13-l4.
farm real estate values on March |. 1927.
were really worth 20 per cent less than
they were is years before"
Another startling disclosure is that while
farm lands have been depreciating and
prices Of farm products have been falling.
the farmers taxes have been going up by
leaps and bounds. The bulletin shows
that where the farmers taxes we're 1855
per cent of his pre-war taxes in 1920, the
last year under Wilson. in 1925 and 1925.
he paid taxes 253 per cent Of pre-war. In
other words, from 1921 to 1925. when his
land value was depreciating 80 per cent.
his taxes increased 96 per cent.
The bulletin also reports that the net
cash returns of is. 900 representativ farm
ers reporting to the Department declined
Is per cent during the year 1926-27. Dur
ing the same year, the outflow Of farm
population to the cities was 100000
persons.
The bulletin also notes the fact that dur
ing the year for which the survey was
made. $4,000 farms were disposed Of at
forced sales and related defaults" and
that 10000 were sold at administrators
and executors sales, a total of $4,000
farms gd un85 he hammer Glowing
avs pefsons as the syersas number in
each OF diase farm families ere were
$4,000 mes women ard cbiiden dispos-
sessed OF thei "a homes Hine one
year. There were 10000 other farms
sold at voluntary sales, and many Of these
were made by farmers because their farms
were no longer profitable and they were
unable on them to properly support their
families and educate their children
In addition. the bulletin notes that re
ports are current Of syndicates being
formed for the purpose of buying up fore
closed and other distress farms in the Corn
belt and holding them for rise in value"
This means, Of course, that these syndi-
Gates are taking advantage Of the distress
10 buy up farms which the owners are
forced to sell and either operate them by
tenant farming Or later sell them at profit
whenever values increase. The Spectator
gains what the farmer looses.
Another very startling situation revealed
by this bulletin is that 10 no fewer than
nine States, land values had declined BY
lS26,27 to point where the buildings
thereon, the farm home, barn, Garage, corn
crib. etc. were greater than the value Of
the lands themselves. Depreciation in
farm land was smallest in New England,
LS perce and greatest in the north Gen.
tral States. ranging from 26.2 to 32.4
per cent. In the southern States. the de-
probation ranged from 2l.2 to 32.S per
cent.