Evening star., 1943-08-08

1t Se11L nelQ workers llJO Do typical
agricultural counties in various parts OF
the country to interview farmers, bank
ers. doctors, merchants and others who
deal with farmers.
The interviewers came up with these
reports:
Farmers, as a whole, are enjoying
their greatest prosperity in more than
20 years.
They are flooding the banks with saw
ings.
They are buying more and better
clothes.
They are entering markets for bath
room and building equipment and other
durable goods on which sales have been
drastically restricted
They are paying more taxes than ever
before.
This survey is considered significant
by Agriculture Department officials in
view of the contention of some farm
leaders, including Congress members
from farm States, that despite agricul-
lures improved income, farmers are no
better off under war conditions than be-
fore because their labor and other pro-
duction and living costs have advanced
more than farm prices.
Nearly 19 Billions Income.
Before the survey, the departments
economists had estimated that gross
farm income from last years production
reached a record of $18,62s 900 900. The
previous record was $16,232 100000 in
1918. Indications poiht to an even high
er income this year. Gross income in.
cludes the value of products retained on
the farm for home consumption.
The department says the survey con-
firmed the economists estimates.
1t reported that increased farm in
comes, while general, were not dis
tributed uniformly, but ranged from a
45 per cent increase in some of the corn
belt and great plain States to about Is
per cent in some of the Southeastern
and New England States. A few small
areas reported some losses, largely due
to adverse local conditions.
For example, in the Connecticut VAL
ley, tobacco was damaged by August
rains; tomatoes in the Imperial Valley
ripened at the time of price decrease,
and unseasonal weather combined with
short labor supplies resulted in loss of
some soybeans and sugar beets in the
Middle West.
The department was interested pri-
marily in determining how farmers were
using their increased purchasing power.
The interviewers found that many farm
ers who never had a bank account now
are opening accounts. The story was
told Of Georgia farmer who spent an
entire day outside the county agents
office before he overcame his embarrass-
ment and asked the agent how to open
bank account.
Credit Men Lack Business.
Postmasters from some farm areas re-
ported that where formerly many c. o. D.
packages from mail order houses had to
be returned because the addressee was
unable to pay the charges. now they sell
dom have to send one back. Most busi-
ness houses reported q sharp decline In
their credit business.
In the South, where 1t has been Gus
tomary for farmers to be year behind
financially, credit merchants and credit
establishments complain of lack of
business. The interviewers found that
farmers, even in low-income areas, are
getting on current basis.
In areas of higher incomes farmers
were found to be paying off debts and
establishing a backlog of savings. The
farmers pride in his improved economic
status was reflected, the department
said, in frequent boasts heard in dairy,
corn and wheat counties that the ma
jority of farmers In the county paid In
come taxes in 1912.
The survey showed that, unlike the
boom period of World War I, the in
creased farm income was being spent
soberly for the most part.
Two factors seemed responsible for this
conservatism.
One was said to be the memory of the
tragedy resulting from the boom and de-
cline of farm prices during and after the
other war, and the fear of similar de-
velopment after the present conflict.
Farmers frequently recounted stories of
reckless buying during that period.
Can't Spend, So They Save.
Rationlng or complete withdrawal
from the market of many consumer goods
was said to be the other maj jor force pre-
venting reckless spending. Interviewers
said the inability to buy much heavy
farm machinery, new automobiles and
other expensive durable goods undoubt-
edly accounted for an important saving
of farm income. The extent of the farm
er's conservatism was indicated, they
said, by the fact that there is no griat
demand by farmers for used automobiles
is relatively liberal.
Many farmers had paid up back taxes
and had paid current taxes ahead of
time Old debts, current obligations and
even time payments not yet due were
being cleared up. Merchants and bank
ers everywhere told OF settlement of old
accounts, many past due and some
legally outlawed. Nearly all commented
on how we'll people remembered their
debts and that the farmers were glad
to be able to pay up.
Nearly all delinquent Federal Land
Bank loans have been paid, current pay
ments have been met, and considerable
amounts of money deposited with the
banks for future payments.
The interviewers reported that food
purchases of the middle and high in