Evening star., 1938-01-30
CITY YW0RKERHELD
FARM PRICE KEY
Industrial Output and Pur.
chasing Power Linked to
Slump in Values.
BY BLAIR BOLLES.

ny bLAlh DULLES.
American farmers, whose PRODUCTS
brought in mid-January prices less
than three-fourths of those quoted
at the same time in 1887, were advised
yesterday by Louis H. Bean, economic
expert of the Agricultural Adjustment
Administration, that they must help
find a way of increasing industrial
production and making the economic
life of city folk more secure If they
are themselves to enjoy stable and as
sured prosperity.
The Bureau of Agricultural Eco
nomics' price report showed that
farmers are getting the lowest January
prices for their produce at local mar
kets since 1884 and % per cent less
than January Is, 1897, although the
average price is l02 per cent of the
pre-war mid-January price.
However, most of the prices repre-.
sent a rise over December, 1897. The
downward trend during the years
period was led by grains, cotton
and cottonseed. meat animals. fruits
and truck crops.
Wheat IS Cents Under Year AGO.
Wheat, which sold for sl.236 a
bushel in mid-January, 1887, sold
for $0.886 in mid-January. 1893. Corn
Slid from $l.006 to S0522. oats from
$0.527 a bushel to $780, barley from
$0.s04 a bushel to sO54O, rye from
S0.979 bushel to SO64l, rough rice
from $0.843 a bushel to. SO.660.
Hogs. marketed at S9.4O 100 pounds
last year, are $3.50 now. The beef
cattle figures are 1854 and S5.93, veal
calves, 1882 and 1892; sheep, $4.24
and 1857; lambs, S792 and s7.15.
Cotton, the great international trade
crop, slumped from 1874 cents to 7
cents pound during the twelvemonth,
and the price of cottonseed was almost
halved from 1852 to Sl8.89 ton,
but special cotton report issued by
the Agriculture Department stated
that while world consumption of raw
cotton has declined during the last
six weeks the relation of sales to
output in the United States appar-
emily has been more favorable than
1Or some time.
On the heels Of the issuance of
these Rlum reports, Mr Bean. one of
the countrys most expert analysts of
market statistics, made his statement
for the farmer, informing him that
his problem has to be solved in the
factory and not in the field.
Progress on Price and Volume.
During the last five years farmers
and farm leaders have concerned
themselves with tina. part of the farm
problem which farmers themselves
could do something about, namely,
the volume of farm production and
farm prices. Much progress has been
made in that direction.
During the next five years it will
be necessary for farmers to concern
themselves as we'll with the other
half OF the farm problem. namely, the
volume OF industrial production and
the purchasing power of consumers.
The success of the ever-normal
eranary farm program. the ability to
attain parity prices and parity in
come, the general raising of the farm
er's standard of living-all depend
tully as much on what business men
DO with industrial production as on
what farmers do with their produc-
ton, marketings and reserves"
The parity price mentioned by Mr.
Bean, which is the ratio between the
price the farmer received for his
produce and the price he paid for
commodities necessary to his existence
was only 81 per cent of the pre-war
prices on January Is, compared with
1Ol per cent a year ago. the Agricul-
tural Economics Bureaus price report
disclosed, a dislocation which costs
the farmer $780, 100000 Mr.. Bean
figured.
Drought Aided Parity Level.
I'm a large measure" Mr.. Bean
said in this regard, the parity price
level was attained early in 1897 as a
result OF the droughts of 1884 and
1885. that lifted meat animal prices
to very high levels. Had the produc-
tion OF meat animals. particularly
hogs, been normal, so as to supply
consumers with their usual per capita
quantity Of pork products, parity
prices even under the improved in
dustrial conditions Of early 1897 would
not have been possible.
Parity prices for normal ouanti-
ties might have been possible had un-
employment been fully reduced with
one-third more industrial production
than we had in the spring of 1887"
Since unemployment in the city is
q key to unmet mortgage payments
on the farm, then, Mr.. Bean made