Evening star., 1935-02-26
BY NICHOLAS ROOSEVELT.

BY NlCHOLAS hOOSEtELA.
A year ago the farmers of the Mid
die West we're crying, Reduce the
burden of our debts or we 60 under"
This cry was echoed by some of the
brain trusters" who assured us that
not only the farmers but the entire
Nation. suffered from too great a load
of debt. They insisted that We had
to scale down these debts-and when
some of us pointed out that the
trouble lay not so much in the exces-
sive volume of the debts as in the
large proportion of bad debts, and
when we prophesied that as soon as
the then existing debt structure was
reorganized the Nation would begin
to pile up new debts as fast as pos
sible, We were denounced with the
administrations favorite epithet Of
Tories" Coincidentally. the Govern
ment set the example of piling UP
new debts on a gigantic scale and
spent the last year in inducing every
one to borrow who could. 1t attacked
the bankers for not lending more
freely-and, as really constructive
measure, it proceeded to reflnance a
large volume of the farm mortgages
in need of being reorganiZed.
Times have changed. Today the
farmers are. talking less about the
burden of their old debts than about
their hopes of incurring new debts
Mortgages have been readjusted. The
local merchants have been or are be-
ing paid off. No longer does one hear
talk OF the need of imitation or argu-
ments for other artificial methods of
reducing debts. There is no more
talk Of evictions, and no more threats
of violence.
Farmers Are Buying.
But most significant of all, the
farmers are buying-buying new farm
implements. cars. clothes. radios, even
more land. Most of them are borrow
Ing to buy, but that is in the spirit
of the times. All are looking ahead
to a brighter future instead of brood
ing about the depression.
Even severe critics OF the admins
tration agree that much of the I'M
proved psychology is due to the re-
financing of farm mortgages by Fed
eral aid. More than $4,000, ,000, COO
have already been poured out for this
purpose-a sum equal to a quarter
OF the total farm Indebtedness in the
country a year ago. This is Just
about enough to bring relief for TIE
bad debts, which, it will be recalled.
formed only about a quarter OF the
total farm mortgages. Another ararter
of these $4,000. 600, 900 mortgages were
In such shape year ago that even
a small increase in farm prices would
enable the debtors to pay. Within
the year prices have increased so
much that payments are now being
freely made The remaining half of
the Nations farm mortgages we're of
such a class that even during the
worst of the depression payments on
them were being regularly met with
out too great difficulty. When it is
realized that scarcely half the farms
in the country are mortgaged, it Is
clear that the s2,00O.O0O,O 900 poured
cut by the Government to nandle the
worst cases has been able to afford
very genuine relief.
Casn from Other Sources.
But the Government has also
helped by providing the farmer NTH
cash from other sources. The various
benefits under the corn-hog ana
wheat restriction programs have been
Used either to pay off small local debts
or to buy deferred necessities. The
sums spent for rural relief work have
in part filtered through to the farms.
In the case of the farmers in the
drought area these relief payments
alone made possible the survival Of
some of the families
But fully as important as the mort
gage refinancing and other Govern
ment payments has been the drastic
increase in farm incomes due to the
rise of prices of basic farm commodi-
ties. Corn has nearly !ripled in price
since the early Autumn OF 1888
Wheat is up 80 per cent. Hogs nave
nearly doubled. Milk and other dairy
products have gone up by about a
third-enoUgh to improve the general
condition of the dairy farmers.
Altogether the farmers income dur
ing 1884 was materially better than
in 1933-the estimates for the total
increase run up to about 81, ,000, ,000, 900
for the entire country. The net result
has been that MANY farms which were
losing before are now making money,
and those which were run profitably
at the bottom of the depression are
much better of. The strain has been
lifted.
Psychological Reactions Cited.
This has had its psychological reac-
tions. There are fewer demands for
panaceas now than previously. There
is less sullen resentment against the
system" Less talk is heard of hang
ing Mr.. Morgan. More people are be-
ginning 10 say that perhaps we can
pull ourselves out by our own efforts.
They are grateful for Government aid.
of course, but the. thoughtful few are
quite aware that some day this will
have to be paid for. For the moment
they are hoping that some one else
can be forced to carry the tax burden.
To this extent they still talk Of ''redis-
tribution of wealth."
But they are returning to more
orthodox views of economics. This
means, of course, that they will assess
correctly the inherent dangers in the
Governments spending policy. Al
ready they are beginning to under
stand that the Government cannot in
definitely give cash to those who would
like to have it. Furthermore, they are
questioning whether they will not
themselves in the final analysis have
to pay for a large part of the benefits
which they are receiving. All of this
makes for healthy thinking, and this
in turn should lead to ultimate healthy
action in the Nation The only ques-
ton is whether they will translate