Evening star., 1932-12-01
t fARMERS' INCOME
GAIN IS FORECAST
HYDE in Annual Report Pre-
diets Improvement in
Next Few Years.

Material improvement in the income
from agriculture within the next few
years" was predicted today by Secre-
tary of Agriculture Hyde in his annual
report to President Hoover.
Declaring that agriculture "felt the
shock of this depression earlier and
harder than other industries and 1t may
lead to the recovery" he warned that
temporary setbacks are to be ex-
pected.'
Citing the difficulties in which the
farmers have been enmeshed, the Agri-
culture Department head advocated ad-
ditional action toward relieving the
burden of farm mortgages and of taxa
tion on farm lands.
Amount Is Abnormal.
In addition, he explained that the
$306 400, 098 expended and obligated by
the department during the last fiscal
year ending June 80 was an abnormal
amount Eighty-one per cent Of the
total, he added, went to the general
public through road funds and other
wise for emergency relief action.
"In any period of deep and prolonged
depression Hyde said, 1T IS difficult
to recognize exactly the first signs of
improvement. Nevertheless, it IS sig
nif1cant that after ruinous three-year
decline agricultural prices rose mate
rally during July, August and Septem-
Der CT 1882.
"In october they receded somewhat
but not to the lows registered in Mid
summer Farm commodity prices
rose from SO per cent Of the pre-war
level in June, 1882, to SO per cent of
that level in September In the sue
ceeding month they fell of three points
to Sc per cent
Change Is Encouraging.
considered merely as net gain, that
was not much But the change was
encouraging, 1t was the first substan-
tial Improvement in agricultural prices
since the onset of the depression in
1929.
$40 some slight extent" he continued
'this improvement in prices reflected
reduction in the supply of farm COM
modities 1t resulted mostly, however,
from many fundamental readjustments
in the financial and business world.
"As the year advanced bank failures
declined Easier credit conditions and
lower interest rates furnished a basis
for renewed enterprise. Confidence in
the business outlook increased. This
was shown by considerable recovery
in the bond and stock markets. Stronger
markets seemed to mark the end of un-
certainty and the return Of confidence.
"This renewed confidence is not con-
fined to the United States. Gold is
again coming into this country, indi-
eating restored world confidence in the
American dollar. In Europe the Lau-
same agreement, the firmer tendency
Of prices of many products and the rise
in the American stock market favor
ably Influenced foreign business senti-
ment.
"These readjustmenrs and the chang
ing outlook are providing basis for an
improvement in the demand for agri-
cultural products.
while unemployment and reduced
wages of urban consumers are still a
great handicap in the marketing of
farm products, the upturnS in the
financial situation in the past few
months, If sustained, viii be q stimulus |
to increase ernploymput. 1nd win thus
increase the purchasing power Of urban |
consumers.
Furthermore, the improvement in |
the prices of agricultural products will
increase the demand for manufactured |
goods, and thus give further impetus to |
q general revival in business activity.
This in turn will add further strength |
TO the market for agricultural products"
Asserting that foreclosures on farm
mortgages are "all too prevalent" Hyde |
added that the Reconstruction Cor
poration and other legislation had aided
In relieving the problem, but that more
needs to be done"
"The powers Of our credit institu-
tions," he said, must be broadened and
legal restrictions relaxed, so that in an
emergency like the present one efficient
farmers can be given fighting chance
to hold their homes"
Tax Loan Generous"
Hyde said that with gross farm in
comes down to the pre-war level the tax
load is extremely onerous," and sim
pie justice requires both economy in
public expenditure and drastic revision
of the revenue system" He added that
farm property taxes had remained
practically unchanged during the de-
preston"
1.-THE tax that discriminates against
the farmer" he explained, lis the So
called general property tax. 1t is not
part of the Federal revenue system"
He suggested income and excise taxes
as the leading alternatives"
Discussing expenditures during the
year, Hyde said $212,421 IT'S went for
road construction, Sl0.806,8 ,829 for emer-
gency relief loans, S16.040, ,465 for pay