PKICES OF FARM PRODUCTS. 25 
The agriculture of America will recover. But in the meantime 
many individual farmers have lost all their savings. The injury is 
most serious for young men who began farming as tenants or owners 
in the past few years. When prices are high, it is difficult to avoid 
J becoming too optimistic. When prices are low, it is equally difficult 
to avoid becoming too much discouraged. Many business failures 
are primarily failures of courage. Many farmers can not avoid failure, 
but courage and perseverance will carry many others through seem- 
ingly impossible conditions and will do much to bring back normal 
times. 
SUMMARY. 
There is considerable similarity between the changes in prices dur- 
ing the War of 1812, Civil War, and World War. In each case there 
has been a close relationship between money and prices. 
Crop yields in the United States are " exceedingly variable, owing 
to the variations in rainfall. The total grain production in 1920 was 
large and contributed to the reduction in prices of farm products. 
There is an intimate relationship between industrial conditions 
and the relative demands for farm produce. When wages do not 
advance as rapidly as prices, there is an increased demand for grains 
and vegetables and a lessened demand for animal products. 
WTien the 5-year average price before the war is called 100, the 
prices paid to farmers in June, 1921, for some farm products were as 
follows : Corn 92, wheat 140, barley 80, cotton 77, potatoes 97, beef 
cattle 104, hogs 101. 
The index number of wholesale prices in June, 1921, was 151. 
The weighted average price of 31 farm products was 106. These 
farm products therefore had an exchange value or purchasing power 
of 70 per cent of the 5-year average before the war. 
Compared with a 5-year average before the war as 100, the pur- 
chasing power of some farm products at prices paid to farmers in 
June, 1921, were as follows: Corn 61, oats 60, barley 53, wheat 9'3, 
rye 101, buckwheat 101, flaxseed 55, beans 81, corn 56, cotton 51, 
cottonseed 52, hay 68, cabbage 111, onions 73, potatoes 64, sweet 
potatoes 89, peanuts 48, apples 91, chickens 116, eggs 77, butter 83, 
milch cows 80, beef cattle 69, veal calves 73, sheep 66, lambs 79, 
wool 58, hogs 67, horses 45. Practically nothing that the farmer 
sells can be exchanged for the usual quantity of other things. It is 
physically impossible for farmers to absorb the products of factories. 
Farm prices have dropped much more than wholesale or retail 
prices of farm products. 
The low purchasing power of farm products has made it impossi- 
ble for farmers to buy the normal amount of other things and has 
been a contributing cause of unemployment. 
59143°— 21— Bull. 999 4 
