Evening star., 1934-09-03
DROUGHT DAMAGE
OFFSET BY PRICES
Farm Population to Receive
About Billion More Than
Last Year.
BY JOHN A. CR0NE.
4 r,,eratnh "a Tba etar

GpCCihi w Law obnA.
NEW YORK, September 3.-The
higher prices being received for farm
products, even In drought-stricken
States, is more than offsetting the
drought damage.
The farm population, roughly one
quarter of the people of this coun-
try, will receive about one billion dol
lars more this year than in 1888.
While the farmer is receiving %
per cent more than last year. the rest
of us will be getting about 13 per
cent more than in 1888.
This larger income explains why
primary markets in recent days, de-
spite strike threats, international cur
rency wars, and salary slashes by
some corporations. have received siz-
able orders and recorders for Autumn
merchandise.
Before the Nations stores buy, they
try to get line on the purchasing
power possessed by each OF us.
Every State Improves.
Every State in this country this
year will have a farm income above
that of 1898, according to a survey
Just completed by Sales Management.
And every State, North Dakota and
Rhode Island excepted, will have a
higher general consumer income than
q year ago.
The magazine carries map show
ing that most Of the drought suffer-
ing is confined to strips of. country
running east and west, with large
areas in between that are in healthy
condition. The billion dollar gain in
farm income, as estimated by the
magazine, includes A. A. A. payments
up to June 20, 1884, plus estimates
of A. A. A. payments through Febru-
airy 20. 1895. 1t excludes drought re-
lief payments.
The best sectional gains over a
year ago, in every case. result from
agricultural products that have staged
spectacular spurts. When the sec
tional and State incomes. as compiled
by the magazine, are compared with
the advance in farm prices, as
gathered by the Bureau of Agricultural
Economics, this relationship is strik-
ing. Those sections which register the
smallest income gains are predom-
inantly either manufacturing and
mining or a combination of both, with
agriculture playing lesser role.
Helped by Soaring Prices.
The West Central section, where
the drought has been worst, makes the
best percentage showing, as this Sec
tion supplies us with grains and
meats, both OF which have scared in
recent weeks.
The Central section makes the next
best advance, although in this divi-
sion manufacturing predominates.
This section, however, happens to
contain Michigan - and automobile
makers have been buster than a year
ago. 1t also includes Wisconsin,
dairying State, and dairy products
have not faired badly in the upswing
of commodities. Likewise, some of
these States produce large supplies
Of eggs and chickens.
The Southwest section, when COM
pared with 1888, seems to rank third
in point OF gain, and the Southeast
fourth. This Is In line with the price
movements Of cotton, cottonseed oil
and allied products.
Mining strikes and less favorable
demand for wool partly explain the
smaller prospective gains in the
Rocky Mountain section. The Pacific
Coast section has been handicapped
by strikes, though statistics indicate
1t is forging ahead fast.
Heavier Industries Lag.
Although the Eastern section of the
country has had some fair crops that
brought high prices, others, like po-
tatoes. because of their abundance,
commanded less than last year. And,
of course. the heavier industries have
not shown up well. In New England,
where the smallest sectional gain ap-
pears to be in prospect, according to
the magazine. there has been a slack
ening in industry which agriculture
has not been able to overcome.