Evening star., 1932-07-24
BANKER PINS HOPE
ON FARM PRICES
Believes Live Stock Industry
Will Lead Nation to
Recovery.
Special Dispatch to The Star.

Special Dispatch to The Star.
KANSAS CITY. July % (NAN.A).
An empire of life-giving green grass
and streams and pools full of life-giv-
ing water to defy the demons OF
drought, which is the picture of the
Western range country at this tine
has become in about 80 days the land
from which the live stock industry Is
to lead the Nation INTO financial re-
Covery.
That may sound like somebody's
pleasant dream to many who are Won
dering when the parade is going to
start. Yet it is the opinion Of
banker who has been for many years
in the very center of the live stock
business-that is. in the matter Of
financing. nursing loans, sitting up
nights and applying cold packs to the
throbbing temples of fainting, hope
exhausted live stock credits.
Live stock is leading the way" said
H. L. Jarboe, president of the Drovers
National Bank of Kansas City. The
increasing of the value of live stock.
which is the principal item of wealth
in this area. by about s5000 900. 900 will
start the steady uphill climb Of all
business. That is nv earnest belief
see it and every banker at the stock
yards sees it,"
Forsees Upward Climb.
Mr.. Jarboe asserted that hog and
cattle prices will go still higher, al
though there will be fluctuations from
time to time The banker cited the
decrease III farrowing of pigs in Ger
many and Denmark and decrease in
farrowing in five States in the West
North Central group ranging from IL
per cent reduction in pig farrowing in
Iowa to 40 per cent in South Dakota
He cited that reduction in the produc-
ton of hogs will have its effect in
maintaining a steady market.
The rule of supply and demand"
Mr.. Jarboe said lis going to govern
the market and as the supply falls off
the farmers. however, to keep their
sows on the farms so that more pigs
may be produced on the farm and be
fed on the big corn crop. which We are
gong to have in this section.
The way to put wheels under corn
crop is through live stock. A sustained
price on hogs will accommodate the
crop of corn and make it profitable for
the farmer to fatten hogs on corn.
The best price paid on hogs at the
stock yards is on hogs weighing from
180 to 220 pounds. That shows the
way to handle the corn crop. Market
the corn in the hogs
Mr. Jarboe cited that the reason for
a shortage of finished cattle at this
time was chiefly due to the problem of
financing and the declining market.
Supplies Also Low.
The man who could finance was
afraid of the declining market Mr..
Jarboe continued There was devel-
oped a shortage of finished cattle at
the same time the packers were getting
low on storage stocks. Reports show
they are lower on stocks of frozen beef
than at any time in the last four years
There We have demand matched by
a decreased supply. Such a combina
tlon means increased prices.
AS to financing, I will say that the
increase in prices of hogs. cattle and
sheep has been a wonderful stimulus
to the business of this country 1t
not only has taken the live stock man
out Of the rut, but has taken the
banker out, too"
Mr.. Jarboe placed a piece of paper
on his desk and began to figure with
q red pencil. He put down the figure
$50. That, he explained. was the
weight of hog brought to the Kansas
Slty HldTkeI OeIOTe llle price began 10
increase. The red pencil scribbled
3 cents beneath the $50 pounds Of the
imaginary hog. He multiplied out the
problem and placed $3.50 as the price
a farmer received for the porker be-
fore the price began to climb
AT that time" said the banker. "the
farmers were in the depths They were
in doubt about everything They saw
no way out. the price was below the
cost of production. Now let's do some
more figuring"
So the red pencil went to work
again. Mr.. Jarboe put down another
$50, and beneath it in multiplication
formation, wrote 5 cents, the top price
OF the market in the recent increase in
prices The answer was sl250
s5 More for Each Hog.
There you are," the banker ex-
claimed, that's the whole story right
there. The same hog has gained in
value in 80 days, literally changed
from $3.50 to sl250 Now let's sub
tract. We find our friend the farmer
has SIS more for the same hog than
he could have obtained a month ago
Now then-there were 10000 hogs re-
ceived at the Kansas City market in
the last three days. Multiply that
number by the IS gain on each hog
There you have 100000. That is new