Weighting the U. S. averages by the Montana weights gives the following 

 average purchasing power of all farm products for Montana as compared with 

 the national averages: 



NOVEMBER PURCHASING POWER CENTS 



1923 1924 1925 



Montana 68 84 82 



United States 83 S6 87 



1926 

 81 

 80 



In this connection it is noted that the Montana farm dollar purchasing 

 power has improved considerably since 1923 when low grain and livestock prices 

 discounted the Montana farm dollar much more than in the national average, 

 [mprovement in the purchasing power of these groups since 1923 is reflected in 

 the Montana farm dollar in 1926 whereas it is over-balanced in the national aver- 

 age by the big slump in purchasing power of cotton. 



On the basis of national averages, therefore, Montana farm dollar purchas- 

 ing power, while not fully reflecting the upward swing of the national average 

 in 1924 and 1925, has on the other hand not shrunk during the past year to the 

 same extent as the national average. Montana farmers, in other words, will buy 

 more for their farm dollar in 1926 than will be bought by the average farm 

 dollar throughout the United States. 



PURCHASING POWER OF 1926 INCOME 



It is evident that income each year must be considered from the standpoint 

 of purchasing power and that changes in total numbers of dollars may be partly 

 offset by changes in purchasing power of these dollars. In the case of 1926 

 income, each dollar on the basis of November first purchasing power as com- 

 puted above, would have been worth three cents less in terms of things farmers 

 buy than the 1924 dollar and one cent less than the 1925 dollar. On this basis 

 1926 income would buy slightly less than the 1924 income, and not quite as much 

 more than the 1925 income as indicated by the total numbers of dollars. 



ONION SETS GROWN FOR SEED 



A new enterprise of the diversified farmer in Montana 



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