Evening star., 1931-12-31
FARM SENTIMENT
DECLARED BETTER
Chemical Unit Head Recalls
That Wheat Gain Ended
1896 Slump.
BY HORACE ROWKER,
resident the American Agricultural Chemical
Company.


President the American Agricultural Chemical
| Company.
The closing week OF 1881 were marked
| by slight improvement in farm selti-
| ment. This was due primarily to i'm
provement in the wheat markets, for,
although this crop accounts for rela-
lively small part of the total farm in
come, wheat prices are barometer OF
| the state of mind of agriculture and
to some extent of the financial COM
munity as well. A similar upward
movement in wheat prices in 1896
marked the beginning of the end Of the
depression of 1892-95. Then, as now,
Subnormal crops abroad were factor
in the improvement of prices.
AS a matter of fact, close study Of
the agriculture situation yields certain
amount of encouragement. 1t will be
recalled that 1880, with its disastrous
], drought, saw crop prices decline to pre-
war levels. Many thought the bottom
had been reached. But 1881 brought
further steady price declines, until, in
the second half of the year, wheat,
corn, cotton and potatoes were return
ing to the farmer just about half OF
| 1880 prices, some crops touching the
lowest levels in history.
Buying Power Small.
This was an experience to test the
fiber of Americas s largest industry Such
a situation was bound to take its toll.
! That the results have not been more
disastrous to the fabric of industry and
finance warrants an increased measure
of confidence in the fundamental sta
| bility of agriculture and in the flnan-
cial and industrial activities with which
it is interrelated.
The purchasing power of the farmer
| is at a low ebb. This is shown by the
fact that while the wholesale price in
| deX for all commodities is at approx
mately pre-war levels, or 100, the prices
received by the farmer for his crops
average about 70. Farm taxes, on the
other hand, are at present over $50 on
| the pre-War scale, while the products
purchased by the farmer average 125.
The pressing situation reflected by
these figures accounts for the powerful
demand for farm relief" measures, q
demand which in all probability will
reach a creScendo in the present ses-
sion of Congress.
Yet informed sentiment among farm
ers as we'll as among the general public
is beginning to realize that measures
designed to raise prices artiflcially are
fraught with grave danger. Such meas
ureS by holding up or increasing prices
ly artificial increase in supply, and this
in turn can only mean relatively lower
price levels.
Artificial Aid Temporary.
AS a matter of fact, no price sta
bilization measure, whether 1t be char
acterized as a debenture plan, an
equalization fee or by any other term,
can produce permanently constructive
| ic anHnYonaniaH q
practical plan for controlling crop out
put. And this is extremely difficult in
an industry comprised of some 100000
separate units.
The output of other industries Is much
more responsive to price declines. But
farming is different; there is always
tendency to hope for the best and keep
on planting That is why it takes at
least two years of depressed prices TO
effect any appreclable decrease In acre
age. On the basis of the last two years
prices. however, it is reasonable to ex-
pect that 1882 planting Of the principal
money crops will show a definite acre
age reduction.
Any renewal of a program of artificial
price maintenance would to certain
extent offset this expected development.
The plan for Withholding a substantial
baleage of cotton from the market un-
I'LL July also WOulQ Iellu nOILldIly W
have the same effect, but sentiment
throughout the Cotton States is SO
strongly in favor of acreage reduction
that definite decrease in cotton plant
ing next season is to be expected.
A free market will do more to bring
about a healthier price tone than any
other single factor. The arrangement
of the price structure as the result OF
attempts to manipulate prices artificial
ly has an unstabiliZing effect upon the
/ buyer and tends to postpone the in
evitable readjustment of supply and de-
mand.
Gains Must Be Natural.
Public opinion in this country is be-
ginning to realize that the farm prob
lem can no more be solved by Govern
ment fiat than it can by the we'll wishes
of a people who sincerely deplore the
plight of the farmer The situation is
a great deal more basic. AS matter of
fact for the better part of a generation
agriculture has been talking about
hoped-for parity with industry in so far
as purchasing power is concerned.
Certain constructive steps have been
taken and some progress is being made;
cooperative marketin~ measures sup
ported by Government financial assist
ance are making steady if at times slow
headWay. Improvement in marketing
methods will substantially aid the
farmer to obtain a larger share of the
consumers dollar. Likewise, Federal
and State Governments have worked
with reasonably satisfactory results in
disseminating information designed to