60 tTHE AGRICULTURAL BLOC 



calls from farmers for funds to meet current 

 expenses and additional funds with which to 

 plant a new crop. 



This acute situation forced the marketing of 

 breeding animals by the stockmen in an effort 

 to liquidate their loans. Crops were dropped 

 on the market at less than the cost of produc- 

 tion, thereby forcing the decline in prices even 

 faster. Early in the year the nation had been 

 alarmed because of the prospect that farmers 

 could not produce enough food. Credit was 

 strained by the country bankers then in order to 

 finance the farmers to put in a large crop. 

 We were told that anarchy and bolshevism 

 would result if the world was not fed and farm- 

 ers were appealed to in every manner to aid 

 the starving. 



After this credit strain to produce a crop 

 came the decline in prices and, of course, the 

 result was inevitable. Country bankers were 

 pinched and they in turn were obliged to press 

 the farmer. Further up the line, the city banks 

 were pressing their country correspondents for 

 liquidation and on top the reserve system was 

 pressing all for settlement. I pointed out to the 

 Senate in December, 1920, that since June 1st 

 of that year corn had slumped 70 per cent in 



