The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1937-11-18

Inc department OF Agriculture is
quite pessimistic about the business
outlook for next
BUSINESS year. In series
Outlook of reports, analyz-
ing general condi-
tons, which the department issued
the other day, it made no effort to
conceal its belief that there is some
thing wrong in the business situa-
ton far beyond the recent violent
decline in the quotations of the
stock markets.
These reports and conclusions
take on considerably more weight
when it is recalled that several
other agencies of the government,
notably Secretary Roper of the De-
partment of Commerce, have
sought vainly to make it appear that
business is good" At the same
time, think attention ought to be
drawn to the fact that Secretary
Wallace of the Department of Agri-
culture is striving to have congress
pass legislation to aid the farmer.
1t is just possible that he thinks
his detectives can be achieved more
easily if the congressman are made
to believe that general business and
agriculture are taking a real tail
spin. That is the politics of the
situation, but business reports
spread on the pages of newspapers
seem to show that bad slump lies
ahead.
Recently, wrote in these columns
how business was as spotted as
leopard; that some firms were
making more money than ever be-
fore, and how some others were
getting by only because the volume
was large and faced difficulties if
the volume declined. The Agricul-
ture department statements, based
now on facts and figures, show even
a worse picture than I described
several months ago. They indicate
strongly that 1888 is to be consid-
erably lower in the level of business
than 1887, and that spells trouble.
For example, the agriculture
statement predicts that there will
be ga less favorable demand for
farm products" in 1888 than in 1887.
Home domestic demands are down
and appear likely to stay down,
and the export market holds no hope
for an increase. Emphasizing the
dependence of consumption demand
upon general business conditions,
the department statement explained
there was no certainty as to the
length of time the present slump
will continue. It added that "pros-
poets are against a sufficiently ear
ly and vigorous rise in 1888 to bring
the average of industrial activity
and of consumer incomes up to that
of 1887"
But from the standpoint of the
farmer, the picture is made worse
by the department
PICTURE st a t e m t. It
Made Worse points out how
there has been a
rise in production costs of crops and
livestock and how, staring the farm
er in the face, are more of these in
creases, adding:
"Along with the higher wage
rates, farmers apparently will have
to pay somewhat higher prices for
farm machinery, automobiles, build
ing materials, equipment and sup
plies. On the other hand, the prices
of feed and seed will be substan-
TALLY lower next spring than year
earlier"
The department did not go into
detail in explaining these increases
in production costs and increases in
prices for things the farmer buys.
It should have given facts and fig
ures on these for they are basic and
the picture is incomplete without
them. Everyone knows, of course, that
farm labor wants more money for
its work and has been getting more
in the last two or three years. De-
partment of Labor statistics show
this, and they show as well how
much additional labor is receiving
in it's pay checks from industry. The
automobile industry which has been
organized by John L. Lewis and his
c. l. o. labor group has been forced
to pay much higher wages and
naturally those wages have been
added into the cost of the automo-
bile which any one buys.
The automobile industry was only
an illustration The same is true
all along the line.
The truth of the matter is that fed
eral taxes which have been con-
ceived by the Presidents brain trust
professors and applied without stint
or limit to industry are upsetting the
whole agricultural as well as the
whole business structure of the
country. The load of taxes, together
with lot of queer-looking and cock
eyed regulations, have continually
increased the cost of production of
everything from black-eyed peas to
locomotives.
| Western Newspaper Union.