The midland journal. (Rising Sun, Md.) 1885-1947, 1934-11-30
FARM PROSPECTS BRIGHTER

share of the national income since
the depression of 1921. But to get
at the very bottom of the story it is
necessary to go back before the
Great war to 1913 which has been
set up as the basic normal" In
that year wages of factory workers
were at 100 and prices of farm pro-
ducts were also at 100 Business
then was good because the workers
of industry could and did buy the
products of the farmers and the
farmers, in turn, could and did buy
the products of industry. AS a re-
suit the general commodity index
then stood at 70, which is regarded
as a good normal" But then the
war came to spoil things for every
body.
The first aftermath of the war hit
around 1920. At that time the av-
erage price of farm products was
about 215 or lis points above the
| 1913 normal" At the same time
industrial wages were around 230 or
| Is points above the farm index.
This was the parting of the ways for
the industrial wage and farm price
| indexes, and they have never been
within calling distance of each other
since The result of this has been
that farmers have been holding the
short end of the stick ever since.
That is, they have not been getting
as much of the national income as
they did before the war or as they
should.
Now the declared purpose of the
Agricultural Adjustment Act of 1888
was to give farmers larger share of
the national income through restor-
ing the pre-war parity of prices.
How far that act and it's administra-
ton have gone toward 2 restoring
these can best be judged by the
farmers themselves. The over
whelming New Deal endorsement in
| the recent elections can be taken as
an indication that farmers as we'll as
industrial workers feel they have
been benefited by the emergency acts
and want to continue to march out
Of the valley. AS matter of fact
it cannot be disputed that the prices
of many farm products have increas-
ed from more than 10 to 80 per cent,
uneven though these increases be.
Of course the general level is still
about 20 per cent below the parity
level aimed at,
The farm income for 1888 and
1884 has been boosted by more than
$500, 100000 in rental and benefit
payments alone, and some $780,
| 100000 more is to be distributed by
the first of the year. Agricultural
Adjustment Administration officials
have estimated that the total farm
income in 1884 will be around
| 5000, 100000 more than in 1888 de-
spite the most disastrous drought in
| the nations history. The total farm
income in 1892 was $5,140, 900, 900.
In 1888 it was Sc, 0O,000,0OO, and
'the additional six hundred million
this year will make it approximate
| 81, 600. 100000 or more.
Even brighter prospects are in
store for the farmer in 1895. In its
annual outlook report the Bureau of
| Agricultural Economics predicts
lgenerally improved conditions in the
agricultural industry during the
coming year. Covering all phases
of farming from foreign demand to
farm family living possibilities, this
/ demonstration sets forth that:
Greatly reduced supplies of farm
products will be seen. But this,
with improvement in consumer pur-
chasing power, will likely bring
higher level of farm income during
the first half of 1885. Farm pro-
duction next year will be consider
ably larger than this years unusual
ly small production. Continued i'm
iproyement in the farm price level
next year will depend largely on i'm
provement or recovery in the dur
liable goods industry. However, the
bureau. predicts small improve
ment in farm purchasing power
But as is nearly always the case this
is expected to be offset somewhat by
The prices Of goods used in farm
production showing an increase, at
least for the first part Of the year.
The Pathfinder.