The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-01
FARM INCOME
SEEN SPUR TO
REVIVAL DRIVE
Increased Buying Power
Is Considered Proof,
Carey Says.
BY PETER b. CAREY
presfdenf Chicago poard NJ Trad

american IMAM any JlIle u
several years. This is reflected il
greater buying power. Lines o
business that sell to the farmer arr
reporting increased volume. Such
increases mean more employment
a paramount aid to economic re.
covery.
Farm income, to be exact, is one
billion dollars greater than the pre-.
ceoing year. The total income il
placed at seven billion dollars BY
the Government. The extra billion
at this stage Of recovery, SHOULD
prove an immense incentive in the
drive back to normal times. Meas.
ured in buying power at current
price levels, its Importance is some
what arresting.
Thousands of indebted farmers
have been able to meet their obi
cations. Both farmer and mort
gage holder are heartened by the
bright ray of hope now penetrating
the gloom of depression. That the
turn has come for the farmer is
shown in sales of mail order firms
equipment houses, wholesalers anC
retailers. The rather definite signs
are apparent for the first time ir
several years.
Grain and cotton prices are high
err. The return from butter anc
eggs, highly important farm items
is well above that of a year ago.
Livestock Prices Up
Livestock prices are substantially
above last year, and returns are
larger in dollars than last year, last
winter or last spring. Forced liqui-
dalton Of livestock on account OF
feed shortage means future short
ages of meats. This should bring q
longtime prosperity for substantial.
livestock farmers.
OF course, farmer income has
been aided by benefit payment
from the government, but even aside
from this the fact remains that the
industry as a whole has started ur
from the valley of despair.
In spite of the drought grain
farmers have Jared rather well. The
price of December wheat on Dec. l
1884, was 81 compared with 83 cents
the same day last year; corn 9213
cent compared with AIS; oats 50
compared with 315s; rye 1914 COM
pared with So; barley 83 compared
with 3612 cents; lard 1112 compared
with 400.
Wheat prices have been held
down in this country by the some
what tangled foreign situation
France dumped part of her surplus
on the world market as a climax
to her disastrous price = fixing
scheme. Argentina showed Slight
discretion in feverishly disposing Of
her remaining old crop.
But in face of surprisingly low
Liverpool prices Jul prices held well
simply because of the indiputablt
shortage that exists. Our combined
crops of wheat, corn and oats this
year were little larger than a nor
NAL corn crop. The shortage Of
cereals in general can not be over
come this season except by high
prices, which will cut down con-
sumption enough to meet the situa.
ton.
Normal Crops Seen
Some able crop experts feel that {
cycle of over-production in wheat
has been passed and that a cycle Of
short or normal wheat crops ha;
been entered. If true, this would
aid in a return of prosperity to the
grain farmer. Such prosperity
would be doubly assured if we carry
out our hope of restoring foreign
markets for American surplus, mar
kets lost through the price-pegging
experiment of the late Farm Board
This experiment brought retaliatory
measures by France and Other
countries through the raising o.
tariffs and like steps harmful tt
wheat growers of this country.
Up to that time private trade haC
always distributed the American
wheat surplus expeditiouSly and a
good price levels. Political tamper.
ing with markets always proves dis
aStrous to the farmer. For thai
reason the incoming Congress.
should give intensive study to any
new measures having influence upor
the machinery for distributing
grain.
Receipts and shipments of fioul
and grain, Jan. l to Dec. l, 1894
compared with same period las.
year, ars as follows: