22 BT7LLETIX 999, V. S. DEPARTMENT OF AGKICULTUBE. 
pound and 61 per acre harvested. This is the lowest since 1 ■- 
Since December 1 the price of cotton has continued fo drop, so that 
now (1921) the purchasing power of an acre of cotton is the lowest 
ever reported, Unless there is more reserve capital or credit it 
would appear that at no time since records have been kept could 
cotton farmers buy so little. 
The 1920 corn crop was a very large crop and its purchasing povrer 
ecemher 1 prices was 60 per bushel and 73 per acre. Both have 
dropped since that time. Even at December 1 prices there has not 
been a time in 20 years when an acre of corn or wheat would sell 
for so little* 
EFFECTS ON INDUSTRY. 
The Xation is not only confronted with the most violent drop in 
prices that it has ever experienced, but agricultural prices have 
dropped so much more than other prices that we have a severe 
agricultural panic on top of a severe general depression. 
At first thought the city consumer of farm things is likely to 
delight in low prices of farm products and high prices for city prod- 
ucts. The farm consumer of city things is equally likely to delight 
in low prices of city goods and high prices of farm products. But 
neither can long prosper at the expense of the other. 
Z^en allowing for the drop in wholesale prices, farmers can now 
(1921) buy only about two-thirds their usual amount. In very 
large areas at centers of production their buying power is not half 
of the normal. If farmers can not buy, cities can not sell, and 
unemployment results. X either industry nor agriculture can pro- 
gress in a normal way until the relative prices become adjusted at 
some comparatively stable price level. This would occur if all prices 
and wages went to prewar levels, which farm products have nearly 
reached. The adjustment which seems more likely to occur and the 
one that would appear to cause the least injustice is to have the very 
low prices rise and some of the very high prices drop so that adjust- 
ment is made at a price level considerably above the prewar price. 
WHAT CAN BE DONE? 
The primary purpose of this bulletin is to present basic statistics, 
not to give an extended discussion of causes or of remedies. 
The general depression is practically world-wide, but in the coun- 
tries with an agricultural surplus farm products have dropped in 
price more than other products. In the cotmtries with an agricul- 
tural shortage farm products have dropped in price less than other 
commodities. 
The credit expansion and unusual demands caused the great rise in 
prices. Very large production, the breakdown in the buying power of 
European countries, and the fact tha-: the credit limits of our banking 
system were reached all helped in causing the industrial depression. 
