ALBERT R. MANN LIBRARY New York State Colleges OF Agriculture and Home Economics AT Cornell University Cornell University Library HD 1765 1894.P37 Agricultural depression; causes and reme 3 1924 013 737 931 Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/cletails/cu31924013737931 AGRICULTURAL DEPRESSION CAUSES AND REMEDIES. U E POET ET MR. PEFFBR, SOBMITTED TO THE SENATE COMMITTEE ON AGRICOLTURE AND FORESTRY F EBRU A.IIY 15, 1894. WASHINGTON: aOVlOBNMENT PRlNTINGir OFFICE. 1894, Mr. Pefpeb, chairman of subcommittee, submitted the following report: Hon. James Z. Geoege, Chairman Committee on Agriculture and Forestry: Sir: On the 19th day of Apiil, 1892, the Senate adopted the fol- lowing resolution : Resolved, That the Committee on Agriculture and Forestry be, and they are hereby authorized and directed to- ascertain in every practical way, and report from time to time to the Senate, the present condition of agriculture in the United States and the present prices of agricultural products, and if there be any of -which the prices are depressed, then the causes of such depression and tlie remedies therefor, aud particularly whether the reports of the Department of Agriculture on the distribu- tion and consumption of farm products, published from time to time by authority of the Secretary of Agriculture, contribute in any way to such depression of the market prices of such products, and whether any proper governmental purpose is subserved by such publication, aud whether such publication should be continued. And for this purpose that they be authorized, by subcommittee or otherwise, to sit during the recess and sessions of the Senate, at such times and places as they may deem advisable, to employ a stenographer and such clerical assistance and such experts as they may deem necessary; and that they be authorized to send for persons and papers, the expense of such investigation to be paid from the contingent lund of the Senate. And on the 21st day of February, 1893, the following resolution was adopted by the Senate, continuing the authority granted in the first- named resolution : Besolred, That the powers conferred and duties imposed on the Committee on Agriculture and Forestry by, and all of the ja-ovisions of, the resolution of the Sen- ate April 19, 1892, be continued during the recess, after the expiration of this Con- gress. On the 24th day of March, 1893, at a full meeting of your committee, the following resolution was adopted : Mesolved, That two subcommittees, consisting of three members each, be appointed by the chairman of this committee, one' of which committees shall be charged especially with the duty of investigating the condition of the agricultural industry 01 the country as it concerns cotton and other vegetable fibers, the other to investi- gate the grain and other farm interests not confided to the other subcommittee, all for the purpose of aiding the full committee in executing the order of the Senate as contained in the resolution of the Senate adopted April 19, 1892, and continued by resolution adopted March 3, 1893. fMesolved further, That one member of each of said subcommittees shall be author- ized to perform the duties of said subcommittee when it is impracticable for all the other members to be present under the summons of the chairman of the subcom- mittee. Tour subcommittee, appointed in pursuance of the two resolutions last above noted to investigate the condition of the agricultural indus- try as if relates to grain and farm interests not including cotton and other vegetable fibers, having made such investigation, and having 3 4 , AGRICULTURAL DEPRESSION. heretofore reported the matter collected, do now submit the following report thereon : •« ^ i- The committee is charged to ascertain and report four specihc lacts : (1) What is the present condition of agriculture m the United States? (2) What are the present prices of agricultural products? (3) If any of such prices are depressed, what are the causes thereof, and, (4) Whether the reports of the Department of Agrlcult^re on the distribution and consumption of farm products, published from time to time by authority of the Secretary of Agriculture, contribute in any way to such depression of the market prices of such products, and whether any proper governmental purpose is subserved by such pubb- cation, and whether such publication should be continued. In addition to these duties, the committee is charged with the responsibility of suggesting remedies for any depressions in prices which shall have been found to exist. If the wording of the resolution in respect to time- were to be liter- ally construed, it is doubtful whether any good would come from the work of the committee, because, in that case it would be only the present condition — the condition of agriculture at this time — that could be examined and reported, present condition and present prices. This, obviously, is too narrow a construction. The committee have taken a wider view of the subject and have examined the condition of agriculture during many years past in order that by comparing the present condition and present prices with con- ditions and "prices heretofore existing, we might the more readily determine whether there is depression now and what has caused it. And in using the word "present" it would be manifestly not satis- factory to limit it to this year, or last or next year, or to any one year. If we compare the condition of agriculture in the year J.893 - with its condition in the year 1892 we may find a change for the better; if we make the comparison with the year 1890 we may find little difference. The fact that farming is not profitable this year is not evidence that it was not profitable last year nor that it will be eithe^- better or worse next year. Poor returns for a single year argue nothing except as to that particular year. Comparisons of any one year with any other year do not show reliable data for periods of time longer than one year, or two years, at most. If we compare the condition of agriculture in the years 1893, 1892, and 1891 with the conditions existing during the three years immediately preceding, we may discover favorable changes, while if we set general conditions of the farming industry during the last ten years against conditions during the next preceding ten years the con- trast may be marked against the later period. So, in contrasting long periods we may find a general level about the same, and again differ- ences worthy of note may be plainly apparent. CONDITION OF AGRICULTURE. Farmers as a class are much better informed than they were forty years ago concerning not only their particular vocation but those ot tlie classes that purchase, carry, and exchange farm products. There are many local and several national organizations of men and women devoted exclusively to the interests of agriculture. The Patrons of Husbandry— commonly known as the Grange— began their work in 18C7; the Farmers' Alliance was organized about the year 1875: the Farmers' Mutual Benefit Association has been in existence about nine years. These and other bodies of men who till the soil have done a great work among themselves in the way of necessary education co^- AGRICULTURAL DEPRESSION. cerning details of business methods in the disposition of their sur])lus pnodncts. Agricultural colleges and experiment stations have been serviceable in teaching the art of farming from a scientific standpoint. It is common in some parts of the country to find graduates of these colleges busily engaged in the practical work of agriculture. The educational influences of the county fair have been greatly lessened by the modern tendency to horse racing and other species of gambling. But the fair has been superseded by farmers' institutes and other forms of meeting, where men of learning mingle with plain farm- ers, and together they discuss practical matters pertaining to the daily work of the farm. In Wisconsin a State ofScer has charge of insti- tute work. In Kansas and some other States teachers in the agricul- tural colleges fix dates for holding institutes in different portions of their respective States as often as they can do so without neglecting their duties at the college, and the places for meeting are so arranged as to reach all parts of the State in the course of a few years. In some States State agricultural societies manage the institute work. In some of the States departments of agriculture have been created as State ofQces, and this has been found to be an efficient means of col- lecting and disseminating information of special benefit to all persons interested in the business of farming. Through the operation of these and other instrumentalities before mentioned, the intellectual horizon of our farmers has been greatly widened within the last twenty-five years. There is an evident tendency in many places to possess and to cultivate large tracts of land under one ownership. In such case.s, machinery can be used within the closest limits of economy and labor can be applied to the best advantage. The production of large quanti- ties of wheat or corn by one management and the raising of a great many animals by one person or firm for sale serve to secure for their owners many advantages among dealers and carriers. This "bonanza farming" is seen highly developed in the Dakotas, the new mountain States, and in California, where farms range from 5,000 acres to 200,000 acres. On these immense plantations farming is conducted with as much business tact and attention as a great man- ufacturing establishment or railway corporation. Everything is util- ized to the best advantage and everything is accounted for. Farmers of this class are men of large means ; they have all needed conveniences for the successful carrying on of their business at the least expense. Their business connections are not limited to the boundaries of their landed possessions, but they extend to elevators, railways, and steam- ship lines. Some of the large farmers of California own freight houses along the railroads and warehouses and wharves at tide water. In the older States many men who spent their earlier years on farms and accumulated a competency have turned their lands over to renters for tillage, and in the newer States some of the more prosperous farmers are enlarging their boundaries by purchasing the lands of their less fortunate neighbors. The farming area has been greatly enlarged since the war. The fol- lowing table shows the acreage devoted to particular crops in certain years : Years. 1870 IS80 189^ Wheat. Acres. 38, 992, 591 37, 986, 717 38,554,430 Com. Acres. 38, 646, 977 63, 317, 842 70, 626, 658 OatB. Acres. 8, 792, 395 16, 187, 917 27, 062, 825 6 AGRTCttLTUKAL DEPRESSION. It will be observed that much the largest increase of acreage took place during the first ten years of the period covered by the table. The wheat area was doubled between the years 1870 and 1880, whUe the increase from 1880 to 1892 was only 567,713 acres. Corn area was enlarged 60 per cent during the years between 1870 and 1880, while since that time the enlargement has been but 13 per cent. The oats acreage was increased twice as much from 1870 to 1880 as it was between that time and 1892. With the stimulus to grain-growing came corresponding develop- ment of the milling industry. Men of great resources — and the same men — are frequently found engaged in buying and selling grain, and in manufacturing and exporting flour. They have facilities for collect- ing and storing grain scattered along all the railway lines in the grain States, and at the milling and trading centers. They are in constant touch with the speculative markets at one end of the line and with their agents out among the farmers at the other end. The local buyer does not purchase on his own account; he is the agent of men or com- panies at headquarters. There is an enormous concentration of wealth and business talent at the grain marts dealing with products of the farm. Minneapolis dealers bought 70,000,000 bushels of wheat in the year 1892, and the 21 flouring mills-there turned out 9,750,000 barrels of flour in the same time. The market for wheat in the United States is fixed by dealers on the Board of Trade in Chicago, and for all the surplus wheat and corn exported the price is fixed in Liverpool, England. Merchant milling has become so common that farmers now quite generally sell their wheat and buy their flour as they need it. In the Eastern States the old grist mills still do some custom work, but the " grist " business has almost passed away. Vast areas of nutritious native grasses in the Territories tempted stockmen into raising cattle on the public lands. The range and ranch cattle business began about the year 1868, and m seventeen years it had grown to fabulous proportions. With the building of railways in Texas, Kansas, and the far West and Northwest began a movement of cattle from Texas northward and eastward. Young cattle were driven and afterwards carried on railroads to the grazing lands of Wyoming and Montana, and fatted animals were carried to St. Louis and Chicago. Improved breeding animals were taken from the Eastern herds to cross on the natives from Texas and the Indian Territory. By the year 1884, it was estimated that about 7,500,000 head of cattle were on the ranges east of the Eocky Mountains, and north of New Mexico aad Texas, and their value was put at $187,500,000. The influence of this abnormal development of the cattle industry was felt on every farm in the country where cattle were raised and fed for slaughter. With the use of land without taxes, the use of grass with- out cost, young cattle at low figures, and transportation at favorable rates, ranchmen were able to flood the markets and defy competition. While the cattle business was growing on the ranges facilities for handling the animals marketed developed in equal proportions. Pack- ing houses are among the great Institutions of the country. They draw their supphes from all the States west of the Ohio and Missis- sippi rivers. Local butchers at all the large towns have gradually come to purchase their meats dressed and forwarded to them by the packers. This logically relieves the local buyer. The live animals are loaded at the nearest railway station and hauled to the stock yards, where packers are the only bidders. One great packing establishment in Chicago killed 1,750,000 hogs, 850,000 cattle, and 600,000 sheep AGRICULTURAL DEPRESSION. 7 during the year 1892. The packing business has become so widely exteiKled and reaches so many towns that farmers are fast coming into a habit of selhng their animals on foot and purchasing their meats from the butchers or merchants at the nearest town. ine extension of the agricultural area took place chiefly in the new btates ot the West; it produced a marked effect on farming operations in ail parts of the country, and it had a corresponding influence on the general conditions of agriculture. In the prairie regions, where timber 18 scarce, lumber dear, and weather uncertain, it is necessary to sell surplus crops as soon as harvested; railways have been constructed tbrough every State, and elevators and warehouses are erected at con- venient distances for collecting grain. Grain dealers with headquar- ters at the centers of trade have uiiequaled facilities for procuring infor- mation and forwarding instructions to their agents and buyers out on every line of road, with ready facilities for receiving and transmitting intelligence concerning condition and quantity of grain in any given locality. The agents receive their instruttions daily— hourly in pan- icky times— as to what prices shall be offered or paid for grain. It may be said that as to much of the grain-growing lands of the country, they have been improved in late years. This is true par- ticularly as to E"ew England and the old Middle States. Well-man- aged farms there do now yield more wheat by the acre than they did fifty years ago. Though cereals are not grown as extensively in the far East as they were before the era of manufacturing there, the fertility of lands which are still used for that purpose indicate that the soil has not been per- mitted to "wear out." Many of the old farms in E"ew York, Pennsyl- vania, the Virginias, Maryland, Delaware, and New Jersey, that have been continuously cropped a hundred years or more, yield 20 to 40 bushels of wheat per acre in favorable seasons. They have been carefully tilled by prudent men, their fertility has been retained by wise rotation of crops, by copious applications of barnyard manure and com- posts, and a judicious use of commercial fertilizers. Ohio farmers pro- duced more wheat per acre during the last fifteen years than they did during the like period immediately preceding and on the same lands. Good soil conditions have been well maintained-throughout the Northern and Western grain States, except on thin lands and where farmers have not yet learned the need of feeding the earth they work. Speaking generally, farm lands in all the grain-growing and stock- raising States are in as good condition for tillage now as they ever were, and they are yielding as large returns, as the following tables show: Showing the aggregate production and the area of all the ce^'eals — wheat, corn, oats, rye, tarley, and hneMcheat — grown in the United States for each of the years from 1867 to 1888, inclusive. Calender year. 1807 1808 1869 1870 ]871 1872 1873 1874 1875 1876 1877 Total produc- tion. Bushels. 1, 329, 729, 400 1, 450, 789, 000 1,49], 612, 100 1, 629, 027, 600 1, 528, 776, 100 1, 664, 331, 600 1,538,892,891 1, 454^180, 200 2, 0327235, 300 1,963,422,100 2, 178, 934, 646 Total area of crops. ^cres. 65, 630, 444 66, 715, 926 69, 457, 762 69,254,016 65, 061, 951 68, 280, 197 74,112,137 80,051,289 86, 863, 178 93, 920, 619 93, 160, 286 Calender year. 1878 1879 1880 1881 1882 1883 1884 1885 1886 1887 Total produc- tion. BvsheU. 2, 302, 254, 950 2, 437, 482, 300 2, 718, 193, 501 2, 066, 029, 570 2, 699. 394, 496 2, 629, 319, 088 2, 992, 880, 000 3, 015, 439, 000 2, 842, 579, 000 2, 660, 457, 000 3, 209, 742, 000 Total area of crops. Acres. 100, 956, 260 102, 260, 950 120, 926, 286 123, 388, 070 128, 568, 529 130, 683, 556 136, 292, 766 135, 876, 080 141. 859, 656 141,821,315 146, 281, 000 ^ Oregon not included. 8 AGRICULTURAL DEPRESSION. The following statement shows the production and area of corti, wheat, and oats for the years 1889 to 1892, inclusive : Tear. Prodootiou. Area. 1889 Busheli. 3, 354, 967, 000 2,412,853,000 3,410,328,000 2,805,448,000 Acres. 143, 912, 231 1890 134,489,288 1891 141,703,273 1892 136,243,913 As to the different grains separately stated the following table shows how well the general average of production has been maintained since the year 1867: Tahle showing the estimated production and area of grains grown in the United States each year from 1867 to 1S9Z, separately stated. [From the Annual Keports of the Department of Agriculture.] Corn, Wheat. Calendar year. Total produc- tion. Total area o^ crop. Average yield per aci^e. Total produc- tion. Total area of crop. Average yield per acre. 1869 Bmhels. 874,620,000 1, 094, 255, 000 991,898.000 1, 092, 719, 000 932,274,000 850, 148, 600 1,321,069,000 1, 283. 827, 500 1,342,658,000 1, 388, 218, 760 1. 647, 901, 790 1, 717, 434. 643 1,194,916,000 1, 617, 025, 100 1, 551, 066, 895 1,796,528,000 1, 936, 176, 000 1, 666, 441, 000 1,456,161,000 1, 987, 790, 000 2, 112. 892. 000 1, 489, 970, 000 2,060,154,000 1, 628, 464, 000 Acres. 37, 103, 245 38, 646, 977 34,091,137 35, 526, 836 39, 197, 148 41,036,918 44, 841, 371 49, 033, 364 50,369,113 51, 685, OOO 53,085,450 62,«L7,842 64, 262, 026 65, 659, 54€ 68,301,889 69, 683, 780 73, 130, 150 75, 694, 208 72, 392, 720 75,672,763 78, 326, 056 71.970.763 76, 204, 516 70, 626, 658 Bushels. 23.6 28.3 29.1 30.7 23.8 20.7 29.4 26.1 26.6 26.9 29.2 27.6 18.6 24.6 22.7 25.8 26.5 22.0 20.1 26.2 27.0 20.7 27.0 23.1 Bushels. 260,146,900- 235, 884, 700 230,722,400 249, 997, 100 281,254,700 308, 102, 700 292, 136, 000 289, 956, 500 364,194,146 420, 122, 400 448,786,630 498,549,868 383, 280, 090 504, 185, 470 421, 086, 160 512,765,000 367,112,000 467,218,000 456, 329, 000 41.5,868,000 490, 560, 000 399,262,000 611, 780, 000 515,949,000 Acrii. 19,181,004 18,992,691 19,943,893 20,858,359 22,171,676 24,967,027 26,381,512 27,627,021 26, 277, 646 32, 108, 560 32, 646, 960 37,986,717 37, 709, 020 37,067,194 36, 455, 595 39,475,885 34, 189, 246 36,806,184 37, 641, 783 37,336,138 38, 123, 859 36, 087, 154 39,916,897 38,554,430 Biishels. 13.5 12.4 11.5 1179 12.7 12.3 11.0 10.5 13.9 13.1 13.8 13.1 10.1 13.6 11.6 13.0 10.4 12.4 12.1 11.1 12.9 11.1 15.3 13.4 1870 1872 1873 1874 1876 1876 1877 1878 1879 1880 : 1881 1882 1883 1884 1885 )S86 1887 1888 1889 1890 1891 1892 AGftlCULTURAL DEPRESSION. 9 TaMe shoioing tlie estitnated production and area of grains grown in the United States each year from 1S67 to 1892, separately stoted— Continued. Eye. Oata. Calendar year. Total pro- duclion. Total area of crop. Average yield per acre. Total pro- duction. Total area of crop. Average yield per acre. 1867* Bushels. 23, 184, 000 22, 504,800 23, 527, 900 15,473,600 15, 366, 500 14, 888, 600 15, 142, 000 14, 990, 900 17, 722, 100 20, 374, 800 21,170,100 26, 842, 790 23, 639, 460 24, 540, 829 20, 704, 950 29, 960, 037 28, 068, 682 28, 640, 000 21,756,000 . 24,489,000 20, 693, 000 28, 415, 000 Acres. 1, 689, 175 1, 651, 321 1, 057, 584 1, 176, 137 1, 069, 631 1, 048, 654 1, 160, 355 1,116.716 1, 359, 788 1, 468, 374 1,412,902 1, 622, 700 1, 625, 450 1, 767, 619 1, 789, 100 2, 227, 884 2, 314, 754 2, 343, 963 2, 129, 301 2, 129, 918 2, 053, 447 2, 364, 806 Bushels. 13.7 13.6 13.6 13.1 14.3 14.1 13.1 13.4 13.0 13.8 14.9 15.9 14.6 13.9 11.6 13.4 12.1 12.2 10.2 11.5 10. 1 12.0 Bushels. 278, 698, 000 264, 060, 800 288, 334, 000 247, 277, 400 266, 743, 000 271, 747, 000 270, 240, 000 240, 369, OiJO 354,317,500 320, 884, 000 406, 394, 000 413, 578, 560 363, 761, 320 417, 885, 380 416,481,000 488, 260, 610 571,302,400 583, 628, 000 629, 409, 000 624,134,000 659,618,000 701, 735, 000 761, 515, 000 523, 621, 000 738,394,000 661, 035, 000 Acres. 10,746,416 9, 668, 736 9,461,441 8, 792, 395 8, 366, 809 9, 000, 769 9, 751, 700 10,897,412 11, 915, 075 13, 358, 908 12, 826, 148 13, 176, 500 12, 683, 600 16, 187, 977 16, 831, 600 18, 494, 691 20, 324, 962 21, 300, 917 22,783,630 23, 658, 474 25,920,006 26, 998, 282 27, 462, 316 26,431,369 25,581,861 27,062,825 Bushels. 1868* 25.9 1869 26.3 1870 30.4 1871 28.1 1872 30.5 1873 30.1 1874 37.7 1875.1 22. 1876 29.7 1877 24.0 1878 31.6 1879 31.4 1880 1881 26.8 1882 1883 1884 1886 26.4 1888 37.4 19.8 28.9 24.4 1800 1892. Barley. Buckwheat. Total pro- duction. ' Total-area of crop. Average yield per acre. Total pro- duction. Total area of crop. Average yield per acre. Bushels. 25, 727. 000 22, 896, 100 28, 652, 200 . 26,295.400 26, 718, 500 26, 846, 400 32, 044, 491 32, 552, 500 36, 908, 600 38,710,500 34, 441, 400 42, 245, 630 40, 283, 100 45, 165, 346 41, 161, 330 48, 952, 926 50,136,097 61, 203, 000 68, 360, 000 69, 428, 000 56,812.000 63, 884, 000 Acres. 1, 131, 217 937, 498 1,025,795 1, 108, 924 1, 177, 060 1,397,082 1, 387, 106 1, 580, 626 1, 789, 902 1,766,511 1, 014, 654 1, 790, 400 1, 680, 700 1, 843, 329 1, 967, 510 2, 272, 103 2, 379, 009 2,608,818 2, 729, 359 2, 652, 967 2, 901, 953 2, 996, 382 Bushels. 02.7 24^4 27.9 23.7 22.6 19.2 23.1 20.6 20.6 21.9 21.3 23.6 24.0 24.5 20.9 21.6 21.1 2.3.5 21.4 22.4 19.6 21.3 Bushels. 21, 359, 000 19, 863, 700 17, 431, 100 9, 841, 600 8, 328, 700 8,133,500 7, 837, 700 8, 016, 600 10, 082, 100 9, 608, 800 10, 177, 000 12, 246, 820 13, 140, 000 14, 617, 535 9, 486, 200 11, 019, 353 7, 668. 954 11,110,000 12,626,000 11, 869, 000 10, 844, 000 12, 050, 000 Acres. 1, 227, 826 1, 113, 993 1,028,693 536, 992 413, 915 448, 497 454, 152 452,590 576, 630 666,441 649, 923 673, 100 639, 900 822, 802 828, 815 847,113 857, 349 879,403 914, 394 917,915 910, 606 912, 630 Bushels. 17.4 17.8 - 16.9 18.3 20.1 18.1 18.3 1868* 1870 1872 1874 17.5 14 5 1876 15 6 1878 1879 1880. 17 7 11 4 1882 1883 ■ 8.9 1884 . 12 6 13 8 1886 13.9 11 9 1888 . ■ 13.3 * Oregon not included. It will be seen that buckwheat is the only crop that has not been largely increased since 1869. Wheat and corn have been about doubled, and oats increased about 125 per cent. Eye has not gone beyond 25 per cent. Taking all the cereals as one, the increase of pro- duction has been about 120 per cent since 1867, while the enlargement of the area on which the grain was grown was somewhat less. In the same time the prodbftfiliu^of potatoes increased nearly 100 per cent, and the increase ofTfvestock greatly exceeds that figure. From 10 AGRICULTURAL DEPRESSION. 1.868 to 1892 the number of horses increased from 5,756,940 to 16,206,- 802; mules from 855,685 to 2,331,128; milch cows from 8,691,568 to 16,424,087; oxen and other cattle from 11,942,484 to 35,954,196; sheep from 38,991,912 to 47,273,553; swine from 24,317,258 to 46,094,807. It is clear that the area of farming lands has been greatly extended, that their fertility has been well maintained, and that their returns have been increased, in the aggregate, more than 100 per cent within twenty- five years. If this were all that is to be taken into the account the verdict must be that the condition of agriculture is good, for the farmers have been industrious and the earth has responded bounteously to their toil. But it is not all, and now we proceed to consider what remains. PRICES AND DEPRESSION. The second and third facts which the committee are charged to ascer- tain and report are so intimately connected that it wiU save time by considering together the evidence on which both facts rest. Whether there has been any depression in prices can be ascertained only by comparing present prices with those of preceding years. We will first refer to the prices of such things as could be gathered from assessors' returns in a few of the States, and for convenience we will reproduce here some of the figures found among " State statis- tics," beginning on page 16. MISSOURI. Land. — Average value per acre — assessed valuation in 1884, $6.25; in 1892, $6.76; increase, 51 cents. liive stock. 1885. 1802. $38. 76 46.89 63.60 13.50 1.12 1.93 $34. 73 38.30 78.05 9.54 1.31 Hogs .' 1.59 Grains not assessed separately — they are^ included in "other i)er- sonal property." ILLINOIS. Quantiti/ and valve of real estate assessed for taxation each year from 1S73 to 1S9S. Average value per acre. Year. Average value per acre. Year. Improved lands. TJnimprov- ed lauds. Total lands. Improved lauds. Unimprov- ed lauds. Total lauds. 1873 1883 $13. 20 13.37 12.91 12. 59 12.34 11.97 11.71 11.46 11.35 11.18 $4.26 4.46 4.12 3.97 3. 85 ' 3.66 3.66 4.02 4.12 4.03 .$11.45 1L26 11.02 10.76 10.57 10.24 10.08 9.98 9.95 9.82 1874 $20. 81 19.44 18.42 17.28 15.58 14.38 13. 81 13.80 13.60 $7.66 6.85 6.21 5.64 5.29 4.65 4.48 4.47 4.37 .«7.16 16.15 16.23 14.35 13.02 11.99 11.69 11.61 n.55 1884 1885 1875 1876 1886 1877 1887 1878 1888 1R79 1880 1890 1881 188a 1892 AGRICULTURAL DEPRESSIOl!^. 11 Yield and averaye value of yrains per bushel for each year from IHIS to 1S92. Wheat. Com. Oats. Year. Average yield per acre. Price per bushel at farm Aug. 1. Average yield per acre. Price per hnahel at farm . Average yield per acre. Price per bushel at farm Aug. 1. 1873 Bushels. 13+ 11+ 10+ 94- 16+ 14+ 18+ 17 + 6+ 18+ 10— 12+ 8— 14 16 15 18 12+ 18 18 $1.10 .86 .91 .93 1.15 .80 .87 .82 1.07 .89 .95 .76 .86 .74 .65 .70 .70 .82 .79 .69 Bushels. 21 18 34 25 30 29 38 33 24 24 25 33 33 25 19 39 35 27 38 26 $0.32 .56 .34 .31 .28 .22 .32 .33 .53 .42 .36 .29 .28 .30 .41 .28 .23 ,45 .38 .35 Bushels. 30 17 33 20 39 30 33 35 36 40 38 36 36 34 30 40 39 24 38 33 .$0. 28 .45 .28 .26 .26 .20 .22 .24 .30 .41 .26 .25 .24 .28 .23 .24 .20 .29 .28 .27 1874 1875. 1876 1877 -^ 1878 • 1879. 1880 1881 - 1882 1883 1884 1885 '. 1886 1887 . . 1888 1889 1890 1891 Average value of different classes of live stock for each year from 1S74 to 189S. Tear. 1874 1875 1876 1877 1878 1879 1880 1861 1882 1883 1884 1885 1886 1887 1888 1889 1890 1891 1892 Mules Horses. Cattle. and asses. Sheep. $45.92 $15. 63 $50. 39 $1.62 40.95 14.27 45.75 1.51 36.92 13.37 40.70 1.44 33.90 12.38 36.92 1.30 29.63 11.19 32.39 1.15 26.63 10.15 28.82 1.10 20.56 9.95 29.77 1.29 27.66 10.04 31.50 1.29 28.22 10.18 31.17 1.28 28.89 10.45 32.21 1.25 ■ 28.41 10.13 31.20 1.16 27.16 9.61 29.26 .99 26.13 8.84 27.39 .95 25.80 8.31 26.79 .96 24.88 7.11 25.03 .96 24.21 6.59 24.46 .98 23.96 6.43 23.44 1.02 21.96 6.30 22.94 1,07 20.74 6.07 21.64 1.06 $2.60 2.90 3.35 2.56 1.50 1.33 1.56 1.83 2.O3 2.25 1.85 1.52 1.38 1.4o 1.42 WISCONSIN. Value of land and of live stock assessed for taxation in the years 18S6 and 1S9S. LAND. Year. 1880. 1892. Average value per acre. $8.43 10.60 12 AGRICULTURAL DEPRESSION. raUie of land and of live stock assessed fm' twxation in the years ISSG and i^P^^Cont'U. LIVE STOCK. Horses Neat cattle Mules and asses . Sheep and lamba. Swine MINNESOTA. Average value of land for the years 1878 to 189^j inclusive. Year. Average value per acre. Tear. Average value per acre. Tear. Average value per acre. 1878 $8.08 7.83 7.80 7.68 7.89 1883 $7.60 7.40 7.19 7.50 7.02 1888 $7.22 1884 1889 7.05 1880 1885 1890 7.36 1881 1886 1891 7.46 1887 1892 7.88 Average value of live stock for the years 18S3 and 189S as assessed for taxation. Horses 3 years and over Cattle 2 years old Mules and asses Sheep 2.03 1.40 Hogs 3.41 2.20 Average value of live stock for the years 1870 to 189,?. Tear. Cattle. Horses. Mules. Sheep. Swine. Tear. Cattle. Horses. Mules. Sheep. Swine. 1870 1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 $12. 87 13.37 11.10 10.98 11.04 11.04 10.90 10. 26 10.90 10,20 10.48 10.52 $42. 67 39.97 35.04 34.33 35.85 33.35 32.42 30.48 29.96 29.23 29.33 29.80 .$38. 53 •50. 18 45.01 42.41 41.80 40.77 40.54 38.94 30.75 37.11 36.62 36.59 $0.63 .68 1.00 1.09 1.08 1.22 1.11 1.09 1.01 1.10 1.30 1.25 $3.09 2.56 2. 08 1.86 2.00 2.37 2.63 2.36 1.91 1.60 1.92 2.02 1882.... 1883.... 1884.... 1885.... 1886.... 1887.... 1888.... 1889.... 1890.... 1891.... 1892.... $10. U 10.60 10.41 10.97 10.16 9.03 8.05 7.70 7.11 6.74 6.70 $30.52 30.06 31.00 31.56 30.18 29.04 28.33 27.81 26.46 25.64 24.10 $37.47 37.14 37.25 36.07 34.54 33.32 32.24 30.98 28.80 27.46 25.67 $1.28 1.19 1.17 1.08 .99 1.02 .99 1.06 1.18 1.33 ' 1.35 $2.08 2.15 1.97 1.71 1..58 1.66 1.^84 2.06 1.64 1.39 1.55 jMEBKASKA. Average value of land assessed for taxation for the years 1885 and 1892. Real estate— lands. Tear. Improved. Unim- proved. 1885 $4.60 3.72 $2.76 2.27 1892 AGRICULTURAL DEPRESSION. 13 Average value of live stock assessed for taxation for the years 188$, 188S, andlS9S. Live stock. Average value. 1882. 1885. 1892. Horses $24.51 8. li.'i 22.74 .94 1.25 $23. 51 8.81 28.33 .58 1.18 $13. 24 Cattle Sheep .77 KANSAS. Average value of lands per acre as assessed for taxation, 187S to 189S. Year. Avernge value per acre. Tear. Average value per ' acre. Year, Average value per acre. 1872 1879 $3.97 S.90 3.83 3.88 3.85 4.23 4.13 1886 $4.24 4.12 1873 1880 1887 1874 $4.26 4.07 4.16 4.11 3.98 1881 1888 4 15 1875 .... 1882 1889 4.03 1876 1883 1890 3.82 1877 1884 1891 3.80 1878 1885 1892 3.68 It appears that — In Missouri land increased in value 51 cents an acre since 1884 ; that horses, mules, neat cattle, and hogs decreased in value, and that asses and jennets and sheep increased in value since 1885. In Illinois improved lands fell from $20.81 in 1873 to $11.18 in 1892 ; wheat fell in the same time from $1.10 to 69 cents a bushel ; that corn fluctuated, but about maintained its normal price ; that oats was 3 cents higher in 1892 than it was in 1873 ; that cattle dropped nearly 60 per cent y horses and mules went below that, hogs fell 50 per cent, and sheep 33 per cent. In Wisconsin land increased in value from $8.43 in 1886 to $10.60 in 1892 ; horses, mules, and cattle fell, while sheep and swine rose. In Minnesota land values remained at about the same level from 1879 to 1892, and live-stock prices went down during the same time. In Iowa all classes, except sheep, declined from 1870 to 1892. In Nebraska improved lands fell from $4.60 to $3.72, more than 20 per cent since 1885, and live stock dropped, on an average, about 40 per cent. In Kansas land was about 15 per cent lower in 1892 than it was in 1874 and in 1884. In New York the State authorities do not report assessed lands by the acre, nor are the different classes of live stock separated and their number and value given. Values of land by the acre and of animals by numbers, for purposes of <;oinparison, must be procured from other sources. According to the report of the State comptroller submitted January, 1891, farm lands in that State had depreciated at least 33^ per cent within a few years. In Pennsylvania, while correspondents differ, it may be stated that on the whole farm lands in that State have fallen 25 to 30 per cent in the last twenty years. We have not found any official statement of values of land by the acre, nor of live stock by number, nor of grain by the bushel, except as to sheep, corn, and hay at Pittsburg for 14 AGRICULTURAL DEPRESSION. eleven years. On these articles prices fluctuated at the stock yards from 1881 to 1891 as follows: [Sheep, 100 pouuds or over.] Year. Sheep. Corn. Hay, per ton. Year. Sheep. Com. Hay, per toil. 1881 $5.80 6.40 6.00 6.40 4.20 6.80 $0.65 .55 -.45 .45 .50 .80 $11. 00 9.00 7.00 6.00 6.50 7.60 1887 $5.20 6.00 5.40 6. 80 5.80 $0.76 .75 .70 .55 .55 .$8.06 1888..... 10.00 1889 1890 6.50 1884 6.50 1891 15.00 188() In the New England States lands used for agricultural purposes are not valued as high now as they were in 1875 by 30 per cent. It will not be practicable to procure satisfactory information con- cerning land values in all the States before the XJ. S. Census returns are published. There are many local Influences which affect prices, and it is only by averages that we can approximate the general truth in regard to the matter. When men who own land are out of debt and do not want to sell, they hold their land as high as they ever did; while, on the other hand, when the owner is in debt or wants to sell, he does not strenuously hold up the price. From the best sources of information accessible, the committee are of opinion that the prices at which farm lands in the, older States could have been sold during the last five years is at least 25 per cent below the level of fifteen or twenty years ago. And if we are guided by the reports of land sales in foreclosure proceedings, the depreciation has been more than 50" per cent. In 383 cases in six counties of one State the lands sold for but 25 per cent of the debt, and the debt was only one-third the esti- mated value of the land when the debt was incurred. Concerning the general range of prices throughout the country for grains aud live stock the following tables were prepared for the com- mittee by the statistician of the Department of Agriculture: Farm prices of cereals, per husTiel, in United States for each year from 1868 to 1S9$. Year. Corn. Wheat. Kye. Oats. Barley. Year. Corn. Wheat. Eye. Oata. Barley. 1868 1869 1870 1871 1872 1873 1874 1875 1876 3877 1878 1879 1880 Gents. 63 '0 75-3 54-9 48-2 39-8 48-0 64-7 42 -U 37-0 35-8 31-8 37-5 Cents. 142 -9 94-1 104-2 125-8 124-0 115-0 94-1 100-0 103-7 108-2 77-7 110-8 95 1 Cents. 127-7 97-1 81-5 79-0 76-3 76-2 85-8 76-9 66-9 69-2 52-6 65-6 75 '6 Cents. 56-0 47-6 43-3 40-1 33-6 37-4 52-0 36-5 35-1 29-2 24-6 33-1 36-0 Gents. 130-3 8L-6 84 -S 80-6 73-8 91-5 92-1 81-1 66-4 63-9 58-0 68-9 1881... 1882... 1883... 1884... 1885... 1836... 1887... 1888... 1889... 1890... 1891... 1892... Cents. 63-6 ■48-4'* = 42-0 36-7 32-8 36-6 MA '34-1 28-3 50-6 40-6 39 --t Cents. 119-3 88 -y 91-0 64-5 77-1 68-7 68-1 92-6 69-8 83-8 83-9 62-4 Cents. 93-3 61-5 68-0 51-9 57-9 53-8 54-5 58-8 45-7 62-9 77-4 54-8 Gents. 46-4 37-5 33-0 28-0 28-5 29-8 30-4 27-8 22-9 42-4 31-5 31-7 Cents. 82-2 62-8 58-7 48 -7 56-3 53-6 51-9 59-0 42-7 64-8 64-0 47-2 AGRICULTUEAL DEPEESSION. 15 By separating the whole time into three Cnr-year periods and finding tue average prices for each period, we have the following : Statement showing the average farm prices of corn, wheal, oats, rye, and Urlei) during each of three f«m^ijear periods, beginning with 1868 and ending with '"'" ff-^ — 1868-'72. 1878-'82. 1888-'92. Corn Cents. 56.24 118.2 92.32 44.12 90.16 Cents. 45.18 98. 22 69.72 35.52 65.72 Cents. yrhea,t 78.4 59.92 31.26 53.54 Bye Oats Barley This shows an average decline during the whole period of wheat, 35 per cent; corn, 32 per cent; rye, 32 per cent; oats, 30 per cent; barley, 40 per cent; a general average of about 35 per cent for all. Farm value of live stock in United States. Years. 1868 1869 1870 1871 1873 1873 1874 1875 1876 1877, 1878 1879 1880, 1881 1882, 1883 1884, 1885, 1886. 1887. 1888, 1889. 1890. 1891. 1892. Horses. $75. 16 84.16 81.88 78.52 73. 37 74.21 71.45 68.01 64.96 60.08 53.16 52.41 54.75 68.44 68.52 70.69 74.64 73.70 71.27 71.82 71.89 68.84 67.00 65.01 61.22 Mules. $77. 61 106. 74 109.01 101. 53 94. 82 95.15 89.22 80.00 75.33 68.91 63.70 56.06 61.26 69.79 71.35 79.49 84.22 82.38 79.60 79.78 79.49 78.25 77.88 75.65 70.68 Oxen and other cattle. 25.12 22.64 22.82 19.61 20.06 19.15 18.68 19.04 17.10 17.14 15.39 16.10 17.33 19.89 21.80 23.52 23.26 21.17 17.79 17.05 15.21 14.76 15.16 15.24 Milch COWS. $36. 78 39.11 39.12 37.33 31.97 29.72 27.99 28.52 28.89 27.32 26. 41 21.73 23.27 23.95 25.89 30.21 31. 37 29.70 27.40 24.65 23.94 22.14 21.62 21.40 21.76 Sheep. $2.53 2.17 2.28 2.32 2.80 2.96 2.61 2.79 2.60 2.27 2.25 2.07 2.21 2.39 2.37 2.53 2.37 2.14 1.91 2.05 2.13 2.27 2.50 2.58 2.66 Hogs. $4.5.5 6.26 6.99 6.20 4.36 4.09 4.36 5.34 6.80 6.09 4.98 MS 4.28, 4.70 5.98 6.75 5.57 6.02 4.25 4.98 5.79 4.72 4.15 4.60 0.41 -Dividing the whole time into three ^fe*H--year periods and striking averages we have the following statement showing the average farm values of live stock in the United States for eacli of three four-year periods beginning with 1868 and ending with 1892. Horses , Mules Oxen and other cattle MUch cows Sheep Hogs 1868-72. 1878-'82. $78. 518 $56,456 97. 912 64. 432 22.19 17.17 36. 862 24.25 2.42 2.258 5.672 4.624 $66. 792 76.37 15. 484 22.17 2.428 5.134 It appears from these figures that horses fell from the first period to the second about 28 per cent; that they rose from the second to the 16 AGRICULTURAL DEPliESSION. third about 21 per cent, and that the drop for the whole period has been about 16 per cent. . Mules declined over $33 a head from the first to the second penod, and gained f 12 a head from the second to the third period, losing 22 per cent during the whole time. Oxen and other cattle dropped nearly 35 per cent during the whole period; milch cows went down 40 per cent; sheep maintained their average, while hogs declined 20 per cent from first to second period and gained it nearly all again during the time between the second and third period. The average loss on live stock, excepting sheep and swine, has been about 28 per cent. The following tables show the monthly and yearly range of prices for fat animals at Chicago for fourteen years, from 1878 to 1891, with the general average for the whole period. Monthly avei-age price foi- 1,SOO to 1,500 pound heevea for fourteen years. Janu- ary. Teb- rua- ry- March. April. May. June. July. Au- gust. Sep- tem- ber. Oc- to- ber. No. vem- ber. De- com- ber. Yearly aver- age. 1891 1890 $4.35 4.05 4.06 4.35 4.40 5.00 6.60 6.05 6.35 6.60 4.35 4.86 4.36 4.65 $4.40 4.10 3.70 4.30 4.25 4.65 5.36 6.00 5.46 6.75 4.95 4.65 4.75 4.66 $4.85 4.20 3.65 4.46 4.40 6.06 6.46 6.90 6.10 6,30 6.15 4.90 ^ 4.80 4.30 $6.00 4.40 4.00 4.45 4.65 5.10 6.50 6.10 5.65 6.45 5.46 4.80 4.90 4.65 $5.30 4.55 3.96 4.60 4.50 5.25 5,55 6.16 5.95 7.80 6.66 4.96 4.86 4.70 $5.05 4.30 4.05 6.46 4.15 5.05 5.65 6.30 5.75 7.40 5.60 4.60 4.75 4.80 $4.60 4.20 3.96 6.25 3.85 4.60 5.65 6.20 5.60 6.70 5.50 4.10 4.80 4.06 $4.36 4.20 3.95 5.15 4.10 4.30 5.45 5.75 5.25 6.30 5.10 4.60 4.70 4.00 $4.00 4.15 3,90 6.05 4.00 4.26 5.40 6.75 6.16 5.85 6.60 4.90 4.05 4.45 $4.10 4.00 4.00 4.60 4.00 4.20 4.80 6.95 .5.70 5.60 5.50 4.95 4.65 4.20 $4.10 3.90 3.85 4.35 3.90 4.30 4,86 6.40 5.35 6.40 5.40 5.00 4.70 4.20 $4.35 4.10 3.80 4.30 4.10 4.10 6.05 6.05 5.70 6.60 6.50 6.10 4.76 4.16 $4.60 4.15 1889 - - 3.90 ]888 4.70 1887 4.20 1886 4.75 1885 5.35 1884 6.90 1883 6.60- 1882 6.25 1881 6.25 1880 4.75 1879 4.70 1878 4.40 Monthly average 4.85 4.80 4.95 6.10 5.26 j 6.20 4.90 4.80 4.80 4.70 4.60 4.70 4.90 Average price for fourteen years, $4,90. Monthly average prices foi- Western range natives and lialf-hreeda. Tear. .July. August. September. October. November. December. 1891 $4.10 3.30 3,20 4.45 2.00 3.85 4.35 4.20 4.10 5.20 4.10 $3.75 3.65 3.30 4.65 3.20 3.85 4.10 4.75 4,66 5.20 3.75 3.15 3.05 3.60- $3.90 3.60 3.25 8.70 8.20 3.26 4.15 4.70 4.76 4.80 3.80 3.60 3.00 3.20 $3.70 - 3.30 3.30 3.50 3.16 3.35 3.75 4.45 4.80 4.70 . 3.55 3.60 3.45 3.40 $3.45 3.25 3.20 3.70 2.90 3.20 3.60 4.40 5.05 4.25 3.65 4.15 3.05 3.80 $3.35 3 00 1890 1889 1888 1887 3 00 1886 .'. 1885 3 60 ]884 .. -- 4.10 4.95 4.55 3.75 1883 ] 882 1881 ]880 1879 1878 4.10 AGRICULTURAL DEPRESSION. Monthly average prices for Texas and Indian cattle for 17 fourteen years. Tear. Jan. Feb. Mar. A . May. J e July. Aug. Sept. Oct, Nov, Deo. J891 $3.00 3" 30 its. 60 3.20 3.25 3.15 3.45 3,95 4.20 5.00 4.85 4.85 $3.75 3.20 3.15 3.50 3.65 4.30 4.20 6.10 5.60 5.00 $4.40 3.40 3. 50 3.65 3.85 4.50 4.70 5.30 5.25 5.50 $4.00 3.45 ,3.10 3.50 3.90 4.45 4.30 5.20' 5.10 5.40 $3.45 3.30 2.80 3.25 3.70 4.00 3.75 5.00 4.50 5,00 3.75 3.10 3.00 3.00 $3.50 2.85 2.75 3.30 3.10 3.60 .3.05 4.35 4.45 4.55 3.80 2.90 3.10 3.05 $2.80 2.60 2.70 2.95 2.85' 3. 20 3.30 4.05 4.05 4.35 3.40 2,80 3.05 3.00 $2.85 2.55 2.55 2.80 2.65 3.00 •3.00 4.20 4.10 4,10 3. BO 3.00 3.10 3:00 $2,80 2,75 2,70 2.65 2.60 3.05 2.95 3,70 3,80 4.05 3, 65 2,95 3,15 2,80 $2.65 2.75 2,65 2,80 2,50 2,90 3,05 3,55 4,00 4,00 3.40 3.00 3.00 2.85 1890 $2.95 1889...--. 1888 3.35 3.20 3.25 3.80 3.90 4.75 4.15 5.00 2.50 1887 1886 2.40 1885 2.80 1884 ■ 1883. 1882 1881 3,55 2,95 1880 1878 3.30 The first five months of each year represent "fed" cattle, and the laat seven months mainly show prices for ' grassers.' '' Monthly average price for heavy packing hogs, per 100 pounds, averaging 250 to S50 pounds. Tear. Jan. Feb, Mar. Apr, May. June. July. Aug. Sept. Oct, Nov, Deo. 1891 $3.60 3,75 5,00 5,60 4,70 4,05 4,65 6,10 6 55 $3,50 3,85 4,55 5,45 5,35 4,30 4,-90 7,00 7 15 $4.20 4.10 4.70 5.40 5.75 4.35 4.65 7.10 7.55 7.00 6.00 4.45 3.90 3,75 $4.80 4.25 4.75 5.50 5.65 4.26 4.60 6.35 7.65 7.35 6.30 4.55 3.50 3.60 $4.60 4.05 4.60 5.65 5.15 4.15 4.05 6.70 7.40 7:60 6,26 4.30 3.60 3.30 $4.45 3.70 4.30 5.65 5.05 4,25 4,10 5,45 6,65 8,30 6,10 4,35 3,95 3,75 $4.90 3,70 4,25 5,95 5,40 4,85 4,35 5.50 5.55 8.55 6.55 4.85 3.60 4.30 $4.95 3.f0 4.00 6.35 5,25 4.75 4.45 6.25 5.35 8.65 6.70 5.25 3.45 4.35 $4.90 4.30 3.95 6.35 6.00 4.55 4.20 5.50 5.10 8,80 6,95 5.46 3,60 3.95 $4,00 4,20 4.05 6,00 4,70 4,15 3,76 5,20 4.85 8.05 6.55 5.10 3.75 3.40 $3,90 3,85 3,80 5,50 4,90 3.85 3,70 4,56 4,95 7,05 6,50 4,85 3.96 2.95 $3.76 3.55 3.55 5.20 5.46 4.45 3.90 4.35 5.46 6,50 6,25 4,80 4,65 2,75 $4.30 3,90 4.30 5.70 5.20 4.30 4.30 1890 1889 1888 1887 1886 1R85 1884 7 6.20 7 65 1882 6,80 7.05 1881 5.35 4.65 2,80 4,05 6.00 4.50 3.85 3.95 1880 1879 4.85 3 70 1878 3 65 Monthly average. . 4, 90 ; 5, 10 5,20 5.20 .5.00 5,00 5.20 6.26 5,20 4.85 4.60 4,65 5.00 Averse price for fourteen years, $5. Monthly average price for light baeon hogs, per 100 pounds, averaging 150 to 190 pounds Tear. Jan. Feb. Mar. Apr. May, June, Jnly. Aug, Sept, Oct, Nov, Dec. 1891 $3.45 3.60 5.00 6.10 4.30 3.76 4.35 5.60 6.05 6.25 4.90 4.50 2.70 3.85 $3.60 3.90 4,70 5,16 4.95 3.90 4.50 6.35 5.75 6.40 6.75 4.30 3.30 3.75 $4,05 4,10 4.75 6.20 5.25 4.05 4.40 6,30 6,95 6.35 5.60 4.35 3.85 3.60 $4.70 4.20 4.80 5.35 6,10 4.00 4.50 6.65 7.35 6.90 5.00 4.45 3,60 3,50 .$4, 60 4,06 4.60 5.50 5.35 3.90 4.15 5.40 7.10 7.45 5.86 4.25 3.55 3.10 $4.45 3,75 4,40 6,50 4,80 4.16 4.00 5.15 6.35 7.75 5.75 4.20 3.80 3.35 $5.00 3.80 4.60 5,80 5,25 4,60 4,65 5,26 5,80 8,15 6,25 4,65 3,95 4,00 $5,05 3,80 4,45 6.20 4.96 4.40 4.70 5.95 5.80 8.00 6,50 5,10 3,70 4,10 .$4, 85 4,30 4,40 6,00 5,00 4.25 4.15 5.75 5.30 8.00 6.65 5.15 3.60 3.85 $4,35 4,00 4,26 5.80 4.50 4.00 3.80 4.80 4.90 7.20 6.25 4.70 3.70 3.30 $3,60 3,70 3.85 5.40 4.60 3.70 3.36 4.35 4.50 6.36 6.85 4.65 3.85 2,70 $3.55 3.36 3.56 5.15 4.90 4.10 3.55 4.05 4.90 5.86 5.80 4,66 4,40 2,65 $4,35 1890 1889 1888 1887 .-. 1886 3,95 4.45 5.50 4.90 4.10 1885 1«84 1883 1882 4.20 5.40 5.90 7.05 1881 1880 1879 1878 5.90 4.55 3,70 3.45 Monthly average. . 4.50 4.75 4,90- 6,00 4,90 4.80 5.10 5.20 5.10 1 4.70 1 4.25 1 4.30 4,80 Average price for fonrteen years, $4.80. 15405 2 18 AGRICULTURAL DEPRESSION. Monthly average price for 70 to 115-pound sheep. Tears; Jan. Feb. Mar. Apr. May. $4.60 $5.15 $5.60 $5.65 $5.60 5.30 5.40 5.45 5.55 6.50 i.iO 4.60 4.45 5.00 3.80 4.45 4.95 5.60 6.60 4.35 4.05 4.10 3..S5 4.40 4.25 4.00 3.80 5.00 5.55 4.50 3.65 3.55 S).65 4.15 3.70 4.00 4.20 5.00 5.05 3". 16 3.60 3.90 4.10 4.05 4.00 4.65 5.00 5.60 6.75 5.80 4.50 4.75 5.20 5.60 5.85 4.65 a.m 5.60 6.60 4.75 3.60 4.00 4.40 4.95 4.60 3.75 3.85 •4.00 4.05 ,4.50 June, July, Ang. Sept. Oct. Nov. Yearly average. 1891 1800 1889 1888 1887 1S86 1885 1884 1883 1882 1881 1880 1879 1878 $4.60 4.75 3.75 3..'i5 3.85 3.80 3.50 4.00 3.25 4.00 6.00 3.95 3.76 3.85 $4.25 4.50 4.26 3.70 3.66 3.25 3,05 3.95 3.20 3.60 4.00 3.96 3.70 3.25 $4.20 4.15 4.00 3.90 3.50 3.25 3.10 3.25 3.25 3.80 3.90 4.05 3.60 3.35 $4.25 4.20 3.95 3.60 3.60 3.16 3.15 3.15 3.20 3.75 3.75 3.85 3.55 3.50 $4.35 4.15 4.00 3.50 3.65 3.35 3.00 3.10 2.95 3.85 3.80 3.65 3.46 3.20 $4.50 4.30 4.30 3.70 3.60 3.25 2.75 2.90 3.00 3.65 4.15 3.85 3.75 3.05 $4.55 4.35 4.85 4.05 4.15 3.35 2.85 3.30 3.10 3.95 4.25 4.20 3.80 2.85 $4.75 4.80 4.30 4.25 3.90 3.85 3.35 .3.95 3.45 4.55 4.60 4.46 3.80 3.60 Average price for fourteen years. $4.10. Chicago prices foi- 189S. CATTLE. Months. January — February .. March ..... April Mliy June July Angust — September October — November- December . Range 1892 Eange 1891 Native steers. 1200-1600 pounds. $3. 00-5. 25 3. 00-5. 00 3. 45-5. 00 3. 30-4. 85 3. 65-4. 85 3. 60-5. 00 3. 45-6. 10 3. 10-5. 50 2. 85-5.- 50 2. 85-6. 75 3. 00-6. 85 3. 00-6. 35 2. 85-0. 35 2. 70-6. 50 Native steers, 1500-1800 pounds. $4. 25-6. 85 4. 25-5. 60 3. 90-5. 15 3. 76-6. 00 4. 10-4. 90 4. 00-6. 00 4. 60-6. 10 4. 50-5. 70 4. 25-5. 76 4. 20-5. 90 4. 35-5. 90 4. 25-7. 00 3. 76-7. 00 4. 00-7. 15 Native cows, 600-1100 pounds. $0. 75-3. 50 1. 00-3. 35 1. 00-3. 45 1. 00-3. 50 1. 00-3. 80 1.00-3.60 . 76-4. 00 1. 00-3. 25 . 76-2. 90 . 75-3. 25 . 75-3. 25 . 75-3. 60 . 75-4. 00 . . 75-4. 60 Stockers and feeders. $2. 00-3. 90 1. 80-3. 90 2. 25-4. 05 2. 25-4. 00 2. 80-4. 10 2. 40-3. 90 1. 50-3. 60 1.50-3.40 1. 60-3. 45 1. 60-3. 50- 1. 50-3. 45 1. JO-3. 55 1. 50-4. 10 1. 40-4. 76 Texans and Westerns. $2. '60-3. 70 3.15-4.15 - 2. 25-4. 06 2. 50-4. 25 2. 35-4. 05 1. 86-4. 20 1. 50-5. 25 2. 00,4. 50 1.7,5-4. 55 1. 65-4. 60 2. 2!>-4. 6b 2. 35-4. 50 1. 60-5. 25 1. 90-5. 60 SHEEP. January. ... February . . March April May June Jnly August September . October November . December. . £ange 1892 . K»nge 1891 . Months. Native sheep, 00 to 150 pounds. $3. 00-$5. 76 3. 76- 6, 25 ,3. 65- 6. 70 3. 50- 6. 70 2. 75- 6. 90 2. 50- 6. 65 2.«0- 6.15 3. 00- 6. 50 3. 00- 5. 60 3. 00- 5. 26 2. 25- 5. 35 2. 50- 5. 70 2. 25- 6. 90 2. 00- 7. 00 Native lambs, '40 to 100 pounds. 00-$7. 00 00- 6. 85 60- 7. 00 70- 7. 05 50- 8. 25 50- 8. 00 25- 7. 10 00- 7. 05 25- 6. 25 75- 6. 00 50- 6. 00 75- 6. 40 3. 00- 8. 25 3. 25- 8. 60 "Weateni, sheep, 70 to 150 pounds. 60- $5. 45 15- 6.85 50- 6. 75 15- 6. 40 60- 6. 40 00- 6. 25 75- 4. 86 50- 5. 00 50- 4. 70 75-4.95 76- 4. 85 00- 5. 15 00- 6. 75 25- 6. 85 Texas sheep, ~ 50 to 100 pounds. $3.76-$4.85 4. 15- 5. 35 4. 50- «. 16 3. 50- 6,35 2. 75- 5. 75 2. 50- 5. 50 2.65- 4.75 2. 50- 4. 90 2. 85- 4. 50 2.50- 4.55 2. 25- 4. 70 2. 25- 4. 90 2. as- 6. 35 2.05- 5.75 AGEICULTUEAL DEPRESSION. 19 Chicaffo prices for 1892 — Continued. HOGS. Months. January . . . February.. March, April May..^ JaiiQ July August . . . September October . . . November. December . Kiiuge, 1892 . Range, 1891 . Heavy i ing, 250 t aok- Mixed pack- Light bacon. O460 ing, 200 to 250 150 to 200 pounds. pounds. pounds. $3. 70 $4. 72i $3.65 $4.66 $3. 60 .$4. 66 4.15 6.05 4.15 6.00 4.00 5.00 3.95 6.10 4.20 5.05 ■4.30 6.05 4.00 5.00 4.15 4.95 4.15 6.00 4.10 5.10 4.16 5.06 4. 20 f.. 05 4.30 6.75 4.35 5.65 4.25 5.65 5.15 0.10 !>.20 6,00 6.16 6. ]0 4.60 6.27i 4. CO 6.15 4.60 6.20 4.60 5.70 4.06 5. 66 4. 60 5 70 4.75 5.97i 4.80 5.90 4.86 '6.85 4.90 e.07J -•4.90 6.95 4.90 5.85 5.50 7.00 6.60 6.85 5.35 6.86 3.70 7.00 3.66 6.70 3.60 6.85 3.25 5.70 3.25 6.76 3.15 5.95 The following table sliows the range of prices of wool in the Eastern markets at the beginning of each calendar quarter during a period of forty three years : Prices of fine, medium, and coarse washed clothing Ohio fleece woolin the Kastern mar- kets for the months of January, April, July, and Ootoher of each year from 1&50 to 1892[, inclusive. [rrom Mauger & Avery's Annual Wool Circular. — This table exhibits, in a concise form, the prices ' of the three grades of a standard domestic ileeoe wool in the seaboard markets at the beginning of each quarter.] January. AprU. July. October. Year. Fine. Medi- um. Coarse. Fine. Medi- um. Coarse. Fine. Medi- um. Coarse. Fine. Medi- um. * Coarse. I860 Cents. 47 46 43 58 53 40 50 68 40 60 60 45 48 75 80 102 70 68 48 50 48 47 70 70 58 56 48 46 44 34 50 47 44 40 40 34 35 33 31 34 33 33 30 Cents. 40 40 38 66 47 35 38 50 33 62 50 40 50 68 78 100 65 53 43 50 46 46 72 68 54 66 52 43 45 35 55 49 46 43 .-4Q 33 36 38 35 38 37 37 35 Cents. 33 33 34 50 42 32 35 42 27. 45 42 37 50 70 76 96 50 50 38 48 44 43 66 65 47 47 42 36 38 32 48 43 37 33 34 29 32 34 33 33 29 31 31 1 Cents. 46 50 42 62 57 43 67 60 42 60 52 45 46 80 78 80 65 60 50 50 48 50 80 56 56 54 46 45 40 34 55 40 42 44 38 32 33 33 31 33 33 32 29 Cents. 37 44 36 56 52 35 • 45 56 35 40 45 37 45 85 77 80 60 65 48 60 47 ■ 52 80 53 66 52 49 40 ^43 34 60 44 45 44 38 32 34 37 34 37 36 37 34 Cents. 30 36 33 60 46 32 38 46 30 37 40 32 43 80 72 75 48 50 45 48 46 47 76 48 47 46 40 33 35 31 52 37' 34 37 34 28 30 33 33 31 29 31 31 Cents. 46 47 45 60 45 60 55 56 43 66 55 38 ,48 75 100 75 70 65 46 48 46 63 72 50 53 53 38 50 36 37 46 42 42 39 35 32 33 34 29 35 33 31 28 Cents. 37 42 38 53 37 40 42 50 37 40 50 30 47 70 100 73 67 49 45 48 45 60 70 48 53 49 35 44 36 38 48 44 45 41 34 31 33 37 33 ~ 39 -37 35 34 CenU. 30 37 33 48 30 33 36 40 30 35 40 22 45 66 90 65 60 45 43 47 43 55 65 44 46 46 31 37 32 34 42 36 34 33 30 28 29 34 31 32 29 29 30 Cents. 46 45 50 55 42 52 60 38 56 60 50 47 60 86 103 75 63 48 48 48 48 63 66 54 64 48 45 48 35 41 46 43 42 39 35 33 35 32 31 33 ' 33 81 30 Gents. 4q 40 42 50 36 41 55 30 41 60 46 48 60 80 96 75 60 46 48 48 48 62 60 53 54 50 40 44 37 43 48 t 40 34 35 38 36 34 37 37 36 33 Cents. ' 35 1851 35 1862 1853 37 48 1854 30 1855 1856 36 45 1857 •. 25 1858 36 1859 J860 43 40 1861 50 1862 63 1863 76 1864 100 1865 65 1866 56 1867 40 1868 46 1869 46 1870 ; 44 1871 58 1872 57 1873 1874 47 47 1875 . 42 1876 1877 33 36 1R78 42 1879 38 1880 33 32 18S2 - . «4 1883 34 188t 30 1885 32 34 1887 34 1888 31 1889 31 1890 1891 31 30 1892 29 20 AGRICULTURAL DEPRESSION. The average price of fine wool in January during the period of seven years from 1864 to 1870 was 66| cents per pound; during a period of seven years from 1886 to 1892, it was 32J cents— a decline of more than 60 per cent, and it was much greater for the other months. The average of same grade during the years 1850 to 1860, both incITis- ive, was 55J cents. The aggregate production, area and value of the cereals grown in the United States from 1867 to 1888 are shown in the table following. The committee have not the figures for all of the different grains since 1888, hence none are included in this table. Average prices of all of them except buckwheat wi]l be found in another table. : ^ :0 Calendar year. Total produc- tion. Total area of crops. Total value of crops. 1807* Bushels. 1,329,729,400 1, 460, 789, 000 1,491,612,100 1, 629, 027, 600 1, 528, 776, 100 1, 664, 331, 600 1,638,892,891 1,-454,180,200 2,032,235,300 1, 963, 422, 100 2, 178, 934, 640 2, 302, 264, 950 2, 437, 482, 300 2,718,193,501 2,066,029,570 2, 699, 394, 496 2, 629, 319, 088 2, 992, 880, 000 3, 015, 439, UOO 2,842,679,000 2,660,457,000 3,209,742,000 Acres. 65,636,444 66, 715, 926 09,457,762 69, 254, 016 65, 061, 951 68,280,197 74, 112, 137 80, 051, 289 86,863,178 93, 920, 619 93, 150, 286 100, 956, 260 102, 260, 950 120,926,286 123, 388, 070 126, 568, 529 130,633,556 136, 292, 766 135, 876, 080 141, 869, 666 141,821,315 146, 281. OOO $1,284,037,300 1,110,500,583 1, 101, 884, 188 997,423,018 911,' 845, 441 ,874,594,459 919, 217, 273 1,015,530,570 1,030,277,099 935, 008, 844 1, 035, 671, 078 913, 975, 920 1,245,127,710 1,361,497,704 1,470,957,200 1,469,693,393 1, 280, 765, 937 1,184,311,620 1, 143, 146, 76S 1,162,161,910 1, 204, 289, 370 1869 1870 : 1871 1872 1873 - 1 874 1875 1876 1877 ; ]878 „ ... . 1879 . . . . : 1880 .- 1881 1882 1883 - 1884 . . ... 1885 1886 1887 1888 ; . > ■^Oregon not included. From this table it appears that the value of all the wheat, corn, oats, rye, barley and buckwheat produced in 1887 was $80,000,000, in. round numbers, less than the value of half as much grain of same kind and quality produced on half as many acres twenty years before; and the difference is greater if we take 1888 in place of 1887. By way of showing fluctuations in the aggregates, we have made the following combinations— dividing the years from 1867 to 1888 into four three-year periods : Periods. Three years, 1867, 1868, 1S69 Three years, 1876, 1877, 1878 Three years, 1879, 1880, J 881 Three years, 1886, 1887, 1888 Total produc- tion. * Bushels. , 4,272,130,500 6, 444, 6]1,'696 7, 221, 706, 371 8, 712, 778, 000 Total area of croiis. Acres. 201, 810, 132 288, 027. 165 346-, 675, 306 429, 961, 971 Total value of crops.. $3, 496, 422, 07.1 2, 884, 655, 842 4,077,682,623 3, 686, 706, 678 The average price per bushel of these combined crops in the first period was 81f cents; for the second period, 44f cents; for the third ])eriod, 56J cents ; and for the fourth period, 42^ cents. It appears that the second period and the fourth period are very nearly alike in their averages of price. From the first period to the third period there was a drop from 81f cents to 56J cents, showing that the fall during that period was greater than it was during the last-named period. A6RICULTUEAL DEPRESSION. 21 Taking the crops separately we find similar fluctuations. Corn was rated at 75 cents a busliel in 1869; it has never been that high since, though it was 64 cents in 1874 and 63 cents in 1881. Wheat was $1.25 in 1871 and $1.24 the next year afterwards. It was above $1 in each of nine years of the twenty-four. Though the price in 1869 was 94 cents, that was 50 percent higher than the figures for 1892. The average for 1893 is 65 cents. The average price for the thirteen years, 1869 to 1881, inclusive, was $1.05; for the remaining eleven years, 1882 to 1892, the average price was 76 cents— 38 per cent higher in the first period than in the second ; or, what is the same thing, a drop of 36 per cent from the first to the second. Eye in 1867 and 1868 was $1.40"and $1.27, respectively, and it never reached $1 afterwards, though it was 93 cents in 1881. It was 52 cents in 1878 and 53 cents in 1886. Oats was but a trifle more than half as high in 1892 as it was in 1867 ; it was down to 22 cents in 1889 and to 24 in 1878. Barley was $1.30 in 1868, and less than half that twenty years later, though it was as high as 92 cents in 1874. Buckwheat ranged from $1.09 in 1867 and $1.04 the next year to 52 cents In 1878 and 54 cents in 1886. The yield per acre has been well maintained, but the values of the returns have been much lessened, as the following tables show: Yield per acre and value per aore of the cereal crops of the United States from 1S69 to 189S, inclusire.. [From the .iniinal reports of tlie JDepartment of Agriculture.] C!OEN. Calendar year. Averajre yield per acre. Average Value of yield per acre. Calendar year. Average yield per acre. Average value of yield per acre. Calendar year. Average yield per acre. Average value of yield per acre. 1869 BuJihels, 23-6' 28-3 29-1 30-7 23 -a 20-7 29-4 26-1 $17.75 15.57 14.02 12.24 11.41 13.40 12.38 9.09 1877 1878 1879 1880 1881 1882 1883 1884 Bushels. 26-6 26-9 29-2 27-6 18-6 24-6 22-7 20 -8 $9.54 8.55 10.93 10.91 n.82 11.04 9.63 9.19 1885 1880 1887 1888 1889 1890 1891 1892 Bus/ipls. 26-5 22 20-1 26-2 27 20 '7 27 23-1 $8.69 1870 8.06 1871 8,93 1872 8.94 1873 7.63 3 874 . . 10.48 1875. . . 10.97 1876 9.09 WHEAT. 18G9 13-5 12-4 11-5 11-9 12-7 12-3 11 10-5 $12. 76 12. 94 14.50 14.87 14.59 11.66 11.16 10. 86 1870 1871 .... 1872 1873 1874 1875 1876 1877 13-9 1878..- 13-1 1879 13 S 1S80 13-1 1881 1 10-1 1,S82 1 13-6 1883 ' 11-6 1884 1 13 $15.02 1(1. 16 15.27 12,48 12.03 12.02 10.56 8.38 886 ,887, 888 889, 890, 891, 892, 10-4 $8.05 12-4 58.4 12-1 8.25 n -1 10. 30 12-9 8.98 U-i 9. 2.S 15-;! 12.80 13-4 8. 35 RYE* 1867t. ....... 1868t 1869 13-7 13-6 13-5 13-1 14-3 14 1 13 1 13-4 $19.24 17. 37 13.20 10.72 11.35 10.84 10.04 11.52 1870 1871 r.. 1872 1873 1874 . ... 1875 1876 1877 1878 1879 1880 1881 13-0 13-8 14-9 15-9 14-5 13-9 11-6 $10. 02 9.28 8.87 8.38 9.54 10.50 10.80 882 383 ,884 885 886 887 13-4 12-1 12-2 10-2 11-5 10-1 12 $8.28 7.04 6.34 .5.92 6.19 5.50 7.07 22 AGRICULTURAL DP:PRESSIOIir. Yield per aore and valve per acre of the eereal crops of the United States, etc. — Cont'cT. OATS. Calender year. Average yield per aore. Average value of yield per acre. Calender year. Average yield per. acre. Average value of yield per acre Calender year. Average yield per acrek. Average value of yield per acre. 1867t 1868*; 1869 Bushels. 25-9 26-3 ■iO-i 28 1 80 '5 30-1 27-7 22 29-7 $16. 05 14.74 14.51 12. 18 12.26 10.14 10.37 11.47 10.86 1876 1877 1878. ..:--. - 1879 1880 1881 1883 1883 1884: BtisheU. 24 31-6 31-4 38-7 25-8 21-7 26-4 28-1 37-4 $8.44 9.25 7.74 9.50 9.28 11.48 9.89 9.20 7.58 1885 1886 1887 18S8 1889 1800 1891 1892 Sushela. 27-6 26-4 25-4 25.9 27-4 19-8 28-9 24-4 $7.88 7.87 7.74 1870 7.24 1871 6.26 1872 1873 8.40 9.08 1874 7.73 1875" 18671. 1868 1 . .1869... 1870... 1871... 1872-.. 1873... 1874... 22-7 $20. 00 24-4 31.79 27-9 22.79 23 '7 20.05 22-6 18.29 19-2 14.20 23-1 21.15 20-6 18.97 4 1875 1876 1877 1878 1879 1880 1881 20-6 21-9 21-3 23=6 24-0 24-5 20-9 $16. 73 14. 57 13.64 13.67 14.11 16.32 17.21 1882, 1883, 1884. 1885, 1886, 1887, 1888, 21-5 21 -1 23-5 21-4 22-4 19-6 21-3 $13. 54 12.38 11. 42 12.04 12.00 10.15 12.57 BUCKWHEAT. I867t 1868t J 869 17-4 17-8 16-9 18-3 20-1 18-1 17-2 17-7 $19. 11 18.68 15.87 14.38 16.67 15.04 14.05 14.31 1875 1878 1877 1878 1879 1880 iss; ' 17>S 14-5 15-0 18-2 20-5 17-7 11.4 $12. 45 10.53 10.76 , 9.59 12.28 10.65 9.90 1882 1883 1884 1885 1886 1887 1888 13-0 8-9 12-6 13-8 12-9 11-9 13-2 $9.49 7.36 7.45 7.72 7 04 1870 1871 1872 . . . 6 72 1873 8.36 1874 •Figures for rye, Barley, aod buckwheat for the years 1889 to 1892 are not at hand. t Oregon not.included. HAY. As to hay, the following table shows the estimated annual acreage, prodact, and value of the hay crop of the United States from 1867 to 1888, inclusive. Prices since 1888 we have not been able to procure: Year. Acreage, Production. Homo value. Year. Acreage. Production. Home value. ACT'e*. Tons. Acres. Tons. 1867 20, 020, 654 26, 277, 000 $372, 864; 670 1878 26, 931, 300 .39,608,296 $285,543,752 1868 21, 5+1, 673 26. 141, 900 851, 942, 930 1870 24,484,991 35, 493, 000 330,804,494 1869 18, 591, 281 26, 420, 000 827, 062, 600 1880 25, 868, 955 31,925,283 371, 811, 084 1870 19, 861, 805 24, 525, 000 338,969,680 1881 30, 888, 700 35, 135, 064 416, 131, 366 1871 19, 0C9, 052 22,239,400 351, 717, 035 1882 32,339,585 38, 138, 049 369,958,158 1872 20, 318, 936 23, 812. 800 345. 969, 079 1883 35, 515, 948 46, 864. 009 383,834,451 1873 21, 894; 084 25, 085, 100 - 339,895,486 1884 38, 571, 693 48, 470, 460 390,139,309 21,769,772 25, 133,J00 331, 420, 738 1885 .39, 849, 701 44, 731, 560 389, 752, 873 1875 23, 507, 964 27, 873, 600 342, 203, 445 1886 36, 501, 688 41,796,499 353,437,699 25, 282, 797 30,867,100 300,901,252 1887 37, 664, 739 41, 454, 458 413,440,283 18T7 25, 367, 708 31,629,300 271,934.960 1888 38, 591, 903 46,643,094 408,499,665 Productiveness has been well .maintained, but .the value per ton has fallen materially. The average prices per ton were as follows for the years mentioned: 1867 $14+ 1870 u- 1875 12+ 1880 $11+ 1885 . 9- 1888 8+ AGRICULTURAL DEPRESSION. 23 Potato lands produced well and maintained their average yield, bnt prices fell greatly, as the following figures show : Annual acreage, product, and value of ike potato crop in the United States from 1861 to 1888, inclusive. Tear. Acreage. Production. Home value. Tear. Acreage. Protluction. Home value. Acres. Bushels. Dollars. Acres. Bushels. Dollars. 18G7 1, 192, 195 97, 783, 000 89,276,830 1878 1,776,800 124, 126, 650 73, 059, 125 1868 1, 131, 552 106, 090, 000 85, 1^0, 040 1879 1, 836, 800 181, 626, 400 79,1.53,673 1809 1, 222, 250 133, 866, 000 71,651,730 1880 1, 842, 510 167, 659, 570 81, 082, 214 1870 1, 320, 119 114, 775, 000 82, 668, 590 1881 2, 041, 670 109, 145, 494 99. 291, 341 1871 1,220,912 120, 461, 700 71,836,671 1882 2,171,635 170,972,508 95, 304, 844 1872 1, 331, 331 113, 516, 000 68, 091, 120 1883 2, 289, 275 208, 164, 425 87, 848, 991 1873 1, 295, 139 106, 089, 000 74, 774, 890 1884 2,220,980 190, 643, 000 75, 524, 290 1874 1, 310, 041 105, 981, 000 71,823,330 1885 2, 265, 823 175, 029, 000 78, 153, 403 1875 1, 510, 041 166, 877, 000 63, 019, 420 1886 2, 287, 136 1^8, 051, 000 78, 441, 940 1876 1, 741, 983 124, 827, 000 83, 861, 390 1887 2, 357, 322 134, 103, 000 91, 506, 740 1877 1,792,287 170, 092, 000 76,249,500 1888 2, 533, 280 202, 365, 000 81,413,589 Average per bushel. Cents. 1867. 1870. 1875. 91 72 39 1880. 1885. 1888. Certs. .. 48 .. 44 .. 40 In 1868 the prodaction was 106,090,000 bushels and the aggregate value was $85,150,04:0; in 1888 the production was 202,365,000 bushels and the value was $81,413,589 — nearly twice as many bushels in 1888 as in 1868 and nearly $8,000,000 less in value. COST OP PEODUCTION. An important item bearing on prices and depression of farm prod- ucts is the cost of production. For interesting details on this point see statistics for Ohio, Michigan, and Illinois in "State statistics," beginning at p. 167. OHIO. The estimated cost of producing an acre of wheat in Ohio is $11.02. Allowing $2.06 for straw, at an average yield of 13-1 bdshels, worth 84.1 cents per bushel, we have a net profit per acre of $2.83. A larger yield, of course, increases the net gain. ^ In the same State it costs $13.29 to produce an acre of corn, and at the rate of 34 bushels per acre, making allowance of $1.82 net for fod- der, 52 cents a bushel gives a net profit of $6.21. ^ MICHIGAN. From reports for 1889, it appears that computing for the entire State the wheat crop paid, in addition to wages and other expenses, 4-2 per cent on the value of the land on which it was grown. The cost, exclu- sive of interest, of raising and marketing the three crops— wheat, corn and oats— was $6,651 more than the total value of the crops; that is to sav farmers lost on their three principal crops the interest on the value of the land and $6,651 in expenses. ' To make these crops worth as much at the prices ruling January 1, 1890 as it cost to produce them, an average yield in the State of 17-50 bushels of wheat, of 36-02 bushels of corn, and of 45-11 bushels of oats was necessary. ^4 AGRICULTURAL DEPRESSION. The following shows the value of the crops raised in 1889, figured from the best data available : Wheat .$16,728,803 Corn : .--.- 7,254,245 Oats 7,390,457 Hay 14,016,194 Cloveraeed : - 1, 295, 861 Potatoes ,.---'- • 5,279,971 Apples and peaches sold 1, 593, 877 Small frnits sold..'. - — '- -- 555,305 Market-garden products sold - - 384, 518 Total -'. - 54,499,231 The total value of the crops named above is $54,499,231. This is an average of 1395 for each farni, and nearly $7 per acre of improved land in the State. In Illinois it costs $10.20 to produce an acre of wh6at, and the aver-, age yield since 1 873 has been a little less than 14 bushels. The average price of wheat during the years from 1873 to 1882 was 94 cents per bushel, while for the years from 1883 to 1892, the average was 76J cents, a difference of 17^ cents a bushel, a decline of about 19 per cent. By comparison of cost and value of wheat crops in Illinois for each of the last twenty years, it is found that before the year 1882 there were fout years in which the crop was not worth as much as it cost, and that since 1882, there have been six such years. As to corn, it appears that on an average its value does not exceed the cost of production. From 1873 to 1882 the average price per bushel was 36^ cents, and since that time the average has been 33J, a decline of 8J per cent. KANSAS^ In this State, as appears in the report of the secretary of the State Board of Agriculture for the first quarter of the year 1890, it cost 50 cents to raise a bushel of wheat, allowing the average production to be 15 bushels per acre; and at 30 bushels to the acre it costs 21 cents to produce a bushel of corn. PENNSYLVANIA AND NEW YORK. In these two States the average cost of producing a bushel of wheat is about 65 cents, and corn about 30 cents. Having examined the subject carefully, and having viewed it from many points of observation, the committee have arrived at the conclu- sion that, while there have been fluctuations and while different condi- tions prevail in different localities, and prices have been maintained nearer a paying level in some places than in others, upon the whole, all things considered and taking the country over, there has been a settling downward of the general level of the prices of farm lands and . farm products since 1873, and that the depression has been on the average about 30 per cent. CAUSES OP DEPRESSION. Causes of the depression may be divided into three classes- First. Special causes, which affect particular classes or species of property locally. AGRICULTURAL DEPRESSION. 25 Second. General causes which affect particular kinds of property. Third. General causes which affect all kinds of property in greater or less degree. Special eattses.— Local prices of grain are more or less affected by local conditions, as increase or decrease of production in particular localities, state of trade in places near or remote from railway stations, increase or decrease of bulky and perishable articles, local demand to supply deflciencies in neighboring communities and the like. Local values of live stock are affected by prices of feed, conveniences for marketing, local competition, wtrifeamong breeders of different varie- ties of the same species of animals, disease, drought, storms, depreda- tions of wild animals, shortness of crops, etc. Local land values are affected by sparseness or density of settlement, by peculiarities of communities, by habits of thrift or carelessness among farmers, by local organization of citizens, by variableness or regularity of climatic conditions, by staying qualities of the people, by fruitful or barren soil capabilities, by healthfulness of climate, financial conditions of neighborhoods, etc. It often happens that the demands of a few men who want to enlarge their farms or want to buy land for future use or speculation, give an upward turn to land values in a whole county: and on the other hand, the sale of a few tracts by per- sons who want to find a "better place," or the advertising of lands by the sheriff', puts prices of adjoining lands on the downward turn. General causes ichich affect particular Jcinds of property. — The cereals being annual productions, their market values are affected more or less by large or small yields from year to year. This is true not only as to local prices but to market values of the surplus generally. Effects produced from this cause are much less now than in years before facilities for distribution had reached their present state of develop- ment. When thirty to forty days were required for the passage of a ship with a cargo of 10,000 bushels of wheat across the Atlantic Ocean, before telegraph wires and cables were used to convey information concerning crops, before the Suez Canal was opened for trafBc, and before steamships were built that can carry 100,000 bushels of grain from New York to Liverpool in ten days, a very heavy crop or a very light crop of any particular kind of grain in the United States mate- rially affected market prices here for the surplus. Now, however, with present conveniences for handling, storing, and shipping grain, with low rates of transportation over long distances, it is the world's production, and not that of any one country, that affects market values of grains thatgo into the channels of commerce. Competition among farmers affects prices of farm products just as competition in other departments of industry affects values in those departments. Farmers, however, are at a disadvantage in this respect on account of their comparative isolation. Manufacturers may and frequently do combine, forming corporations, syndicates, trusts, etc., and that is not difficult to do, because that class of producers oper- ate in densely populated places— in towns and cities where organ ization is easy and where community of interests logically tend to con- solidation for the purpose of preventing hurtful competition in business. Farmers are not in condition to make business combinations among themselves easy, and it is only the wisest of their calling that have begun to consider vs^hat may eventually be done in that direction with good effect. - . „ . ^. -, ■ • There is usuallymuch of sameness m farming methods m given com- munities- farmers there all do their work pretty much alike, and it is 26 AGRICTTLTUEAL DEPRESSION, only in exceptional cases wliere one greatly excels another in amount of production on the same quality and area of land. These local ine- qualities, however, have no effect on prices; they only add more or Jess to the success of individual farmers who are more or less careful, dili- gent, and frugal in their farming operations. But there is a kind of xsom petitioii -among grain farmers that does affect prices locally and generally — what haa been known as "bonanza" farming, as it is carried on by men who operate on large tracts of land acquired when land values were low. These great farms are commou in Wyoming, Montana, the Dakotas, and in the Pacific States. - The larg- est wheat farms east of the Eocky Mountains are found in North Dakota along the line of the Northern Pacific Hailroad. The Ofiicial Northern Pacific Eailroad Guide gives a description of one of them in the following paragraphs found on pages 126 et seq. Messrs. George W. Cass' aud Benjamin P. Cheney, toth heavy capitalists and directors in the railroad company, having faith in the fertility of the land, deter- mined to test its capacity for wheat prodnctron., They first boiight, near the site of the present town of Casselton, 7,680 acres of land from the railroad company, and then secured the intervening Government sections with Indian scrip, thus obtaining compact farming grounds of enormous area. Mr. Oliver Dalrymple, an experienced wheat farmer, was engaged to manage the property ; and in June, 1875, he turned his lirst furrow, plowing 1,280 acres, and harvested his first crop in 1876. The acreage was increased in each succeeding year, until in 1882 there were not leas than 27,000 acres under cultivation. This immense farm does not lie in one body. One part of it, known as the Grandin farm, is situated in Traill county, .SO miles north of Casselton'. The entire area embraced by the three tracts is 75,000 acres. Farming operations conducted on so gigantic a scale seem almost incrediljle to per- sons who are only familiar with th€ methods of the older and more settled States. In mannging the affairs of a "bonanza farni" ttoe most rigorous system is employed, and the cost of cultivation averages about $1 per acre less than smaller estates. The plan adopted by Mr. Dalrymple and all the other "bonanza" men is to divide the land into tracts of 6,000 acres each, and these are subdivided into farms of 2,000 acres each. Over each 6,000 acres a superintendent is placed, with a boolikeeper, headquarters building, and a storehouse for supplies. Each subdivision of 2,000 acres is under the charge of a foreman, and is provided with its Own set of build- ings, comprising boarding houses for the hands, stables, a granary, a machinery hall, and a blacksmith's shop, all connected with the superintendent's office by tele- phone. Supplies of every description are issued only upon requisition to the sev- eral divisions. Tools and machinery are bought by the carload from manufactur- ers; farm animals are procured at St. Louis and other principal markets; stores of every description for feeding the army of laborers are purchased at wholesale, and the result of the thorough system and intelligent economy in every department is found in the fact that wheat is raised and delivered at the railroad at a cost vary- ing little from 35 cents per bushel. The net profit on a bushel of wheat is seldom less than 10 cents, and the average yield per acre may safely be put at 15 bushels, although it often exceeds that quantity. On this great farm, or rather combination of farihs— the 20,000-acre tract at Cas- selton— 400 men are employed in harvesting and/ 500 to 600 in threshing. Two nundred and fifty pairs of horses or mules .are used, 200 gang plows, 115 self-binding reapars, and 20 steam threshers. About the first, of August the harvester is heard throughout the length and breadth of the land, and those who have witnessed the operation of securing the golden grain will never forget the scene. The sight of the immense wheat fields, stretching away farther than the eye can reach, in one unbroken sea with golden waves, is in itself a grand one. One -v^riter describes the long procession of reaping machines as moving like batteries of artillery, formed en echelon against the thick-set ranks of grain. Each machine is drawn by three mules or horses, and with each gang there is a superintendent, who rides along on horseback, and directs the operations of the drivers. There are also mounteA repairers, who carry with them the tools for repairing ai^y break or disarrangement of the machinery. When a machine fails to work, one of the repairers is instantly beside it, and, dismounting, remedies the defect in a trice, unless it proves to be serious. Thus the reaping goes on with the utmost order and the best effect. Trav- eling iQ line together, these 115 reaping machines would cut a swath one-fifth of a mile 111 width, and lay low 20 miles of grain in a swath of that great size in the course of a single day. AGEIOTJLTURAL DEPRESSION. 27 Tliis method of farming has brought the cost of producing wheat ^T^^^'i.^ .^^ , o®'^*® a bushel on an average yield in two States- North Dakota and South Dakota. The crop in 1889, which was below an average crop year there, yielded nearly 43,000,000 bushels (42,929,583 are the census estimates first published and subject to correction) of wheat, nearly 10 per cent of the total wheat crop of the whole countrv, and of this amount at least 30,000,000 bushels were surplus thrown on the market, an amount equal to more than one-fifth of our average annual exportation of wheat, including wheat flour. When it is considered that the market price of our surplus wheat is fixed m Liverpool, England, and that the export price to a large extent controls the price for what is s.6ld in the home markets, it is readily seen that so large a quantity of 35-cent wheat thrown on the market must have a depressing effect on the general average of profits in wheat farming. In California " bonanza" wheat farms are larger than those of Korth Dakota. It is not uncommon to find one man in this State exercising , rights of ownership over a tract of 50,000 acres of land, and from that up to 100,000. The committee heard of one case where two men claim to own 200,000 acres, and most of this is wheat land. Hon. John Boggs, president of the State Agricultural Society, thus describes the methods of raising wheat on the large farms of California : For instance, we do all our summer plowing (more properly speaking, spring plowing) with gang plows^ As large farming is doue with these gangs, which con- sist generaUj ot 8 plows attached together, or 8 plows in 1 frame, 1 mau witli a team of 6 'or 8 horses can plow 6 acres per day. In seeding the ground we use the common broadcast seeder followed by an 8-horse harrow. Under this system we can seed 20 acres per day in good order. In harvesting our crops we use the combined harvesters, which cut from 28 to 30 acres per day. A harvester with an 18-foot cut of sickle'will, in an average grain field, cut and thra.-ih from 350 to 400 sacks, or 800 to 900 bushels, per day, at a cost, counting wear and. tear of machinery, feed of animals, wages and board of men, not to'exceed $1 per acre. Under the old methods of farming in California the cost of produc- ing an acre of wheat was from $5 to $6, while now it is done for half that amount, and the cost of producing a bushel of wheat has been reduced accordingly to about 22 cents on an average crop. The wheat-harvest time extends, usually, over a period of sixty to ninety days. It is rare that rain falls on the wheat fields between May and September. The straw is short and stands erect, curing in the warm sunshine, and the heads bend over gracefully, holding the berries in place firmly to the end of the season. During so long a harvest one machine can cut over an immense area, and, a modern California har- vester is a ponderous machine. It is drawn by a team consisting (according to size and capacity of the machine) of 16 to 30 horses, and cuts, threshes and sacks the grain at the rate about an acre to the horse each day. CThe horses are worked 8 abreast the first two or three tiers, with 4 or 2 in the lead. A 26-horse team has three tiers of 8 horses each, with 2 horses in front, and a 28-horse team has 4 horses leading. One man drives the team, one looks after the machine, while a third -sews the sacks as they are filled. Thus 3 men dispose of 25 to ,30 acres — often much more — of wheat in one day. Men with two or four horse wagons follow the machines at proper intervals of distance and gather up the sacks and haul them to the owner's warehouses, on the railroad. These large farms extend many miles along the roads. In 1889 California produced over 40,000,000 bushels of wheat, of which at least 30,000,000 bushels were exported. This amount, added to 28 AGRICULTURAL DEPRESSION. Dakota's surplus, gives a total of 60,000,000 busliels of s^J-pl^s wheat more than two-fifths of our average annual export. If Dakota s c50,ouo,uou bushels of 35-cent wheat affects the general level of wheat prices, it is easy to see that the addition of an equal quantity of 22-cent wheat trom California must put that much more weight on the price to push it down. Our wheat prices are affected materially by competition of farmers in other wheat-producing couiitries. . The estimated average annual wheat production of the world is about 2,200,000,000 bushels. The wheat importing and exporting countries are -thus classified: Importing comines.— Belgium, France, Germany, Greece, Italy, Nor- way and Sweden, Netherlands, Portugal, Spain, Switzerland, United Kingdom. . • tj • Exporting cowntrjes.— Austria-Hungary, Bulgaria, Eoumania, Kussia, Servia, India, United States, Argentine Republic, Canada, Chile, Australasia. -, -r ^ ■, j Excluding the United Kingdom of Great Britain and Ireland, and Belgium, Europe is practically self supplied with wheat. That is to say, with these two exceptions, the .different countries of Europe are able to supply one another with all the wheat they need in average years. For all practical purposes, it may be said, therefore, that the wheat required by Great Britain and Belgium composes the quantity which is known as the world's demand, and to supply which the farmers of all wheat exporting nations are in continual competition. The following statement shows the wheat-producing portions of the world, and the months of their respective harvests : January. — Australia, Argentine, CMle and New Zealand. February and March.— E^ast India and Upper Egypt. April.— Asia, Minor, Cuba, Cyprus, India, Lower Egypt, Mexico, Persia, and Syria. Maj/.— Algeria, Central Asia, China, Florida, Japan, Morocco, and Texas. Jioie.— Alabama, Arkansas, California, Carolina, Colorado, Georgia, Greece, Italy, Kansas, Kentucky, Lpuisiana, Mississippi, Missouri, Oregon, Portugal, South of France, Spain, Tennessee, Turkey, Utah, an^ Spain. Jii?2/.— Austro-Hungary, Bulgaria, France, Germany, Illinois, Indiana, Iowa, Michigan, Minnesota, New York, Nebraska, Ohio, Roumania, South of Russia, Switzerland, South of England, and Upper Canada. August. — Belgium, Columbia, Denmark, Great Britain, Holland, Lower Canada, Manitoba, and Poland. September and October. — Norway, North of Russia, Scotland, and Sweden,. November. — Peni and South Africa. December. — Burmah. It matters not when our farmers market their wheat, it goes at a time when farmers in some other part of the world are harvestin g their wheat. It is "wheat harvest" in one place or another every day in the year. The average annaal demand for wheat in the " world's market" is now considerably above 200,000,000 bushels. From 1880 to 1888 the esti- mated annual average world's production was about 2,000,000,000 bush- els, and of that quantity the average annual requirement of the nations that buy was 203,000,000 bushels, of which amount United States farm- ers supplied the following percentages: Year. Per cent. Tear. Percent. 1880 69-13 55-70 - 49 -78 34-86 40-34 1885 89-44 1881 1836 18S7 47-95 1882 41-76 1883 1888 19-90 1884 AGRICULTURAL DEPRESSION 29 These figures do not include exports of wheat flour. They are given to show that the proportion of the world's demand for wheat which was supplied by American farmers has been falling off since 1880. The average annual percentage since 1888 has been about 35 per cent, one-half what it was in 1880. Much the larger proportion of our wheat exports go to Groat Britain. The following table shows who are our competitors there, and the extent of their competition : Wheat importations of the United Kingdom. [Yearly imports into the TTiiited Kingfloni, by countries, of wheat, and flour represeutert aa wheat in bushels of 60 pounds, for seven years, compiled by the Cincinnati Price Current] TJ. S. Atlantic ports . . . TJ. S. Pacific ports - . . . . "United States India -. Kussia Australia Jiritish K orth America Geramny Chile Jtoumania Turkey Egypt other countries Total 121,130,000 1892. 50, 435, 000 12, 811, 000 03, 246, 000 23, 325, 000 8, 144, 000 3, 765, 000 7, 233, 000 1,132,000 4, 270, 000 1, 377, 000 322, 000 719, 000 6, 997, 000 1891. 32, 661, 000 12, 503, 000 11, 998, 000 20, 111, 000 46. 164, 000 24, 278, 000 27. 165, QUO 3, 893, 000 5, 924, 000 1, 333, 000 3, 957, 000 2, 052, 000 2, 819, 000 1, 749, 000 5, 470, 000 32, 109, 000 17, 008, 000 36. 194 000 5, 708, 000 2, 106, 000 2, 065, 000 45, 000 8, 687, 000 1, 680, 000 793, 000 6, 600, 000 1889. 9, 417, 000 22, 347, 000 1888. 11, 618, 000 15,723,000 31, 764, 000 17,205,000 39, 800, 000 2, 625, 000 2, 181, 000 4, 739, 000 1, 070, 000 5, 343, 000 1, 246, 000 607- 000 2, 811, 000 27, 341. 000 15, 286, 000 39. 888, OL'O 4, 323, 000 2, 033, OOU 6, 094, 000 2, 774, 000 2, 649, 090 341, OCO 1, 362, 000 4, 729, 000 1887. 1886. 38,337,000 25,259,000 18,005,000 20,701,000 ,000! 45, :,000| 20, I, OOOj 6, i, OOOl 1, .0001 66, 941 15, 884, 10, 309, 2, 615, 7,401 2, 880, 0001 2, 4,118, ""' ■ 1, 093, 4, 2,617, ooo! OOO: OOOl 000; OOOj 900, 000 587, 000 926, 000 370, 000 761,000 460, 000 176, 000 542, 000 464, 000 76, 000 ,■167, 000 123,-784, 000 112, 885, 000 109, 391, 000 106, 820, 000 104, 132, 000 88, 488, 000 i L It will be seen that our strongest rival is India, whose farmers during the seven years furnished nearly one-half as much as we did of the wheat requirements Of our best customer. It is interesting to note that India's exports of wheat in considerable quantities began but about twenty years ago. Of the world's requirements of wheat in 1868, that country furnished only 558,852 bushels^but little over half a million. By 1887 her wheat exports amounted to 41,558,765 bushels. It has fallen off some since; the annual average from .1888 to 1891 was about 28,000,000 bushels. Our annual average export of wheat (exclusive of flour) has been about 80,000,000 bushels during the last seven years. If the Liverpool^ price governs prices at other places, it is easy to see that India wheat competition in that market, to the extent shown in the foregoing figures, does injuriously affect the price of American wheat. Some of our correspondents forcibly argue that the depreciation of the market price of silver bullion, as compared with the money value of gold coin, has had a good deal to do with lowering the wheat market at Liverpool, and that it has greatly augmented the force of India wheat competition. n .,, ■, ■ . • . ■^ India" has been a silTer-using country, and the depreciation of ^ilver bullion has enabled speculators to profit by purchasing buUion at mar- ket rates, and, after having it coined at India mints, purchasing wheat with it at coin rates. Doubtless this profit margin on silver has greatly stimulated the production of wheat in India. That country being a dependency of Great Britian, the Government has encouraged agricul- ture there in many ways. Improved implements have gone into use within the last twenty years, highways have been opened, railroads constructed, and facilities for harvesting, handling, and shipping wheat 30 AGRICULTURAL DEPRESSION. have been multiplied. The opening of the Suez Oanal has cheapened transportation from Bombay and Calcutta to Liverpool 50 per cent. Wages of India farm hands are from 6 to 10 cents of our money per day. Wheat costs but about 13 cents a bushel on the farm. Twelve cents more puts it aboard ship and 25 cents additional places it on the wharves at Liverpool or London. Thu« 50-cent wheat from India com- petes with wheat grown on American farms at an average cost of 60 cents a bushel. And, as we have seen, India has supijlied the English market with nearly half as much wheat as the United States has dur- ing the last seven years, and together they have supplied three-fourths of the wheat supply. The fact may be stated substantially thus: The American farmer supplies 2 bushels in a total supply of 4 bushels; the India farmer supplies 1 bushel, and in this proportion for all that is supplied by both. Query No. 1. How much effect on price has one- fourth the supply? Query No. 2. How much of the India wheat com- petition may_ be justly laid at the door of silver? When gom and silver are at par with each other, an ounce of silver bullion is worth a little more than $1.29 (exactly stated the figures are $1.2929). Our ratio between silver and gold is a small fraction legs than 16 of silver to 1 of gold by weight. The ratio in India is 15 to 1. Under the free coinage laws of India — free coinage was abolished in 1893 — a person purchasing bullion at reduced rates and having it coined at the mints of that country, made a clear profit of the difference be- tween the cost of the bullion and the money value of the coin. To illustrate: If a wheat dealer purchased silyer bullion when it was sell- ing for only 75 per cent of its coin value — that is, when 75 cents worth of bullion would make a dollar when coined— he would make 25 cents clear profit on every 75 cents worth of silver that he purchased at that rate. Say he purchased $75 worth of bullion; when it is coined he has $100. With the coin he purchases wheat and ships it to Liverpool, where he sells it in competition with American wheat. He gets $100 worth of wheat for $75 worth of silver made free into silver coins (rupees) of India. But while this speculator makes 33^ per cent on the deal, and he made it on the silver, not on the wheat, it will not do to say that the Ameri- can farmer lost an equal percentage on the wheat that he sold in com- petition with that of the India trader. Wheat competes with wlieat, not with silver. It is the competition with wheat that hurts, and not the competition of wheat with silver. The situation is plainly seen, by considering a wheat transaction with the silver question eliminated. Suppose there were no purchasing and coining of silver in the trade. A Bombay merchant purchases a cargo of India wheat and pays for it with silver rufjces that he has had on hand twenty years. He does not pay for it either more or less than would a trader who had pur- chased a like quantity of wheat and had paid for it with new coins made of depreciated silver bullion. The merchant ships his wheat to Liverpool, and at the same time the speculator ships his. The two cargoes of wheat arrive at Liverpool the saflie day, and they bring the same price per bushel, notwithstanding the fact that one of the ship- pers made a large profit out of a silver trade, while the other did not deal in silver at all. And the American farmer suffers no more from one than from the other of these two transactions. Let it not be understood, however, that no loss has occurred to-our farmers by reason of the decline in the market value of silver bullion as compared with the money value of gold coin. That subject will be fully discussed when we come to consider general causes which affect AGlilCULTUEAL DEPRESSION. 31 the prices of all commodities. We are now treating causes which affect prices of particular articles, and have in hand the effect on prices of American wheat produced by competition with India wheat. IMPROVED METHODS OF FARMING. •Improvements in farm Implements and machinery have had some effect on prices of things produced on farms. ^ The effect is most marked, however, on large estates where farming operations are cnrried on on a large scale. It is doubtful whether the cost of producing grain on small farms is much less now than it was before the use of machiuery became common. The object of using ma,chines is to save labor; hence if no labor were displaced there would be no gain. Where one man with his family can perform all the work required on his farm he would lose and not gain by the use of machines, because he would have to pay money for them and he is able to do the work without them. It is different in case of a large farm, where, if the'labor were all per- formed by hand, a great many persons must be employed. It would not be practicable now to conduct a very large farm by manual labor, for,-while men could be procured for this kind of work as well as for other kinds, at present prices for farm products, and at present prices of farm labor, the expenses would greatly exceed the profits. Bonanza farming has proved that with judicious use of machinery wheat ftirm- ing can be made to pay, even at very low prices for the product. The principal effect of using machinery on small farms is to get the same work done with less manual assistance. UH4e»-ttie-old-r6gime ic usuaUyixe.cpiiJ'edJihe-.aervices.of 124iLersQna to -put 12 acres of wkaat in to sheav PiUji-a^iajgs.: now 1 man with a machine and 3 or 4 horses-can do^atjBach. But the diittereuce in expense is not great. It costs about as much now, all things considered, to take care of a small wheat crop as it did when " harvest hands " were plenty on every farm during the harvest time. And as to farm work during other portions of the year, while labor is saved by the use of improved implements, wages are higher now, and, in many instances, enough higher to absorb the saving. It is true, however, that production in the aggregate has been mcreased by the use of labor-saving implements, and while the cost has not been greatly lessened on small farms it has been reduced materially on large farms; and, speaking generally, it may be said that the use of labor- saving implements_aJiliJiiachinexj2.has.had. some iniiuenee-m depress- ing the price of wheatr OVERPRODUCTION. Some of our correspondents are oi opinion that the low price of wheat has been occasioned by excessive production^ While full crops always tend to depress prices locally, if the surplus has ready market else- where the plethora is soon relieved and former prices restored. In 1891 farmers of the United. States produced a larger crop by about 25 per cent than they had ever done before, but that crop was sold at prices better than those of a much lighter crop the precedmg year. AnjuuisuaLdiimaiiA abEoa,d.j:elJg^^ not only maintain- ing prices but increasing them. . -^ • .p 1,„„4. Takinff our own country alone into tke account, if prices of wheat are raised or lowered from year to year as our cr©p is light or heavy, we should liave had lower prices in 1891 when our wheat crop was 32 AGRICULTURAL DEPRESSION. 611.780,000 bushels than we had in 1892 when the crop was 515,949,000, nearly a hundred millions less; and prices in 1893 ought to have been higher with a total production of 396,000,000 bushels, while in fact the average farm price was 53.8 cents a bushel. In fact, however, prices were higher in 1891 than in 1892, and lower in 1893 than in either ot those years. In 1884 we raised 512,765,000 bushels, and the average price for that year was 65 cents; in 1891 the price was .30 per cAiit higher with a crop 25 per cent larger and we had increased our popu- lation at least 8,000,000 persons. In 1893 the price was still lower on a reduced yield. As applied to our own country the overproduction theory does not hold good. Let us enlarge the view and take in the whole world. We haTC not been able to procure world estimates further back than 1884. For that length of time the figures are as follows : Jhe world's production of wheat. Tears. Bushels. Tears. Brishels. 2,'290,06g,000 2,104,034,000 2,198,997,000 ' 2, 227, 415, 000 2,212,843,000 2, 085, 505, 000 1890 2,170,123,000 1891 : 2, 238, 302, 000 1886 1892 2, 263, 860, 000 1887 2, 197, 912, 000 1889 The annual average wheat production of the world for nine consecu- tive years — from 1884 to 1892 — iis shown by these figures, was 2,192,- 138,600 bushels, and it appears that the product of 1884 was nearly 100,000,000 (exactly 92,157,000) larger than the average for the whole period, and 36,209,000 bushels larger than the crop of 1892, and, though the population of wheat-using countries had greatly increased in the meantime, the export wheat prices of this country were — for 1884, $1.07; for 1892, $1.03. Prom the figures in the table it a,ppears that the aiverage annual production for the first five years of the period was 2,066,671,600 bushels, and that the annual average for the last four years was 2,186,961,250 bushels — the average for the first five years being 19,710,350 bushels larger than the annual average for the last four years. The average annual export price of American wheat for the same periods was — from 1884 to 1887 — 92^ cents-; from 1888 to 1892 it was 90J — 2 cents lower on a less average production four years later, and with greatly increased population. It appears, then, that the over-production theory does not account for the decline in prices of American wheat. AMERICAN WHEAT IN ENGLISH MARKETS. The following table shows the average yearly prices of American wheat in English markets since 1870 to 1891. We have not the figures for 1892: Tear. Price. Tear. Price. Tear. Price. 1871 \ $1. 651 1878 $1,415 3.415 1.504 1.633 1.430 1.327 1.076 $1,032 1 o;i2 1872 1.740 1.858 1.681 1.416 1.415 1.622 1879 1886 1873 1880....". 1881 1874 1875 1882.... 1889 1 032 1876 1883 1877.... 1884 1891 1 179 AGRICULTIIEAL DEPRESSION. 33 ENGLISH WHEAT IN ENGLISH MARKETS. The followiug shows the yearly average price of English wheat in English markets iu cents per bushel: Tear. Cents. Tear. Cents. 172i 1731 178J 169i 137i UOi 172* 141 133J 134s 137i ISOf Tear. Cents. 1859 1321 161i 168 108i 135| 132 127 1514 195J 193J 156i Uli 1871 1883 126i 1085 99J 94 1800 1872 1861 1873 : 1885 . 1862 1874 1886 1863 1875 1864 1876 1888 96 1805 1877 90 96 112* 92i 1866 1878 1890 1867 1879 ]891 . 1868 1880 1892 1869 1881 1870 1882 DEALING IN OPTIONS AND PUTUEES. Farm prices of wheat are injuriously affected by the business com- monly known as dealing in "options and futures." It is not our inten- tion here to give details concerning the methods of this business. It is sufficient for our present purpose to consider the subject under three subdivisions. First. Where a farmer or other person, having grain of his own, sells it for a price then agreed upon, with the understanding that it is to be delivered within or at a certain time in the future. Second. Where a dealer, having no grain of Ms own, contracts a sale of grain to be delivered in future, expecting to purchase the grain in the market in time fofr delivery according to the terms of the contract, at a price agreed upon at the time of sale. , Third. Where two persons enter into a contract by which it is stipu- lated that one of them will deliver to the other, at a future time meu-l tioned, a certain quantity of grain at a price named at the time oil makliig tke contract, reserving the option to deliver the wheat or notl on condition that if any loss would come to the other by reason olt failure or refusal to make delivery, he will make good the loss. I . First— selling wheat actually in sight.— When one has an article to sell and does sell it to be delivered at a future time, he does what any- one may do without offense or injury. He simply arranges for the transfer of ownership in a particular piece of property. He neither enlarges nor diminishes the actual supply of that class of articles, and hence the transaction may have the widest publicity without affecting the market. A, B, C, D, and E, having each 1,000 bushels of wheat, in July, after threshing, may sell it all to F with the condition that it be delivered in September. The sale is published and the country learns that 5,000 bushels of wheat have changed ownership. The actual supply of wheat remains the same on the market reports and prices are "^Buf if P, after having purchased only 5,000 bushels of wheat which he is to haVe delivered to him in September, makes a trade with G by which it appears in the market reports that he has sold 50,000 bushels of wheat to G-, to be delivered in September, the country is given to understand that there is 45,000 bushels of wheatin existence more than there really is, and dealers will base their purchases on this inflated supply-offering less to the farmer for his wheat than they would have^ 15405 3 34 AGRICULTURAL DEPRESSION. done if the apparent supply had not been increased by this transaction of F, suddenly throwing 45,000 bushels, of (wind) wheat on the market. Business men, buying and selling, always look to the state of the market before concluding new transactions, and the rule of their con- duct, when normal conditions exist, is the rule of supply and demand. When demand is strong and supply short, prices advance; when sup- ply is abundant and demand weak, prices recede. The stock actually in existence, no mattep what the article may be, is always considered as a necessary factor in legitimate commerce. The prudent dealer in grain keeps himself posted as well as he can concerning the "visible, supply." When that is apparently increased or diminished prices are affected accordingly. When thesupply appears to be^eatly increased, prices go down; when the supply appears to be short, prices go up. It is often convenient for both parties to the contract that the deliv ery take place at a future time. The farmer may want to secure the contract so as to immediately avail himself of its benefits, and the other party may be quite as desirous to make sure of getting the grain, though he be not ready to receive it at the time of purchase. Nor is there any evU to come of the parties to such a contract transferring their rights under it to other persons, for that would not add to nor subtract from the supply of grain in existence, and it might be of direct advantage to both parties. To illustrate: Peter sells 100 bushels of wheat to Paul for $100, the wheat to be delivered on the first day of the third month after the day of sale, and he takes Paul's note for the amount of the purchase, at the same time giving his receipted bill of sale of the wheat with promise to deliver on the day named. Peter may deposit, transfer, assign, or sell the note and Paul may treat the bill of sale the same way. And this proceeding may be continued in- definitely by the new parties without injury to any and with benefit to all. No number of transfers could affect the supf)ly of wheat, because both the bill of sale and the note refer to a particular quantity of wheat known to exist. Second — Where the seller does not own the grain he sells. — This sub- division presents a different case. The particular wheat contracted for is not identified, though the market reports show a sale. It is not known that the person who is reported to have sold so much grain ^d no grain at all. This practice going on indefinitely has the effeclTof making the actual supply always appear larger than it is in fact. The logical result is a constant tendency toward a lower level of prices than would exist if future dealing were freed from its speculative attach- ment. The reasonable effect of such transactions is to appear to swell the quantity of grain actually on hand in that community to an extent equal to the amount reported in the sale. To make thje proposition plain we will present a published fact : During the year 1892, on the New York Produce Exchange, 1,151,448,000 bushels of wheat were reported to have bfeen sold, and the reports show that during the year 1893 the quantity of wheat sold at same place was 1,052,008,000 bush- els. There was not half as much wheat grown in the United States in the two years named as is reported to have been sold at New York City. The exports of wheat during the year 1892 amounted to 157,280,351 bushels, an unusually large quantity, and most of that ■was purchased in the West. The quantity of wheat actually sold at New York during both years did not probably exceed 75,000,000 bush- els — one bushel for every thirty bushels reported to have been sold. Such excessive selling tends to confuse the public mind as to the quantity of wheat actually in the country for sale, and prudent dealers AGRICULTURAL DEPRESSION. 35 will always feel safest to operate on the theory of a large supply rather than a small one. This reacts on the farmer and he must face the ineyitable depression caused by this over trading. It is true that tno amount of speculating does or can create or destroy a bushel of wheat ; but it is the speculative market that governs prices, and no man can know how much wheat is owned at any given time by a board of speculators, or how much actual wheat is included in the transactions of a given day or any number of days. It will not do to say that by multiplying transactions in actual wheat each contract may be fully carried out, as many debts are discharged by the use of one and the same piece of money, for wheat is not, like money, always in existence. Wheat is produced and sold and bought for consumption, for destruction if you please, while money Is made to last forever, and in order to apply the money comparison to wheat trading in fatures it would have to be conducted within certain limits, so that the quantity of wheat and the number of sales would, in the long run, balance each other. If it be urged that this does, in fact, take place, it is sufflcient to answer, first, that it can not, in the nature of things, be true, for in this respect there has never been, nor can there ever be, any rule of action but that of the individual interest of the speculator as he him- self sees his interest; that is the soul of speculation; and, second, that, if it were true, the fact remains that in the face of excessive trading DO man can know what is the true figure of the actual supply; and to be safe every prudent dealer will buy on the presumption of an abun- dant reserve, which necessarily keeps prices lower than they would be if dealers sold only the wheat they owned at the time of sale. Prices determined by the real supply and demand, and not by the spurts of the "pit," rise and fall slowly and regularly ; the highest or lowest mark is reached usually by slow and steady changes. Another fact worthy of consideration in this connection is the stand- ing temptation of every dealer who has to fill a "future" to interest himself in depressing the market so that he shall not be in danger of losing on the guess he made when he fixed the price of grain to fill the contract. If, on the day of delivery, the market price is less than his contract price he loses the difference. It is to his interest, therefore, to nut off making the purchase as long as possible and, in the meantime, to keep the price low. A agrees to deliver wheat to B on a future day at the price of 90 cents a bushel. If he can purchase wheat enough at 85 cents to fill the con- tract, he gains 5 cents on each bushel. If he has to pay more than 90 cents for the wheat he loses the difference. It is for that reason that his interests lie in the direction of lower prices. He is a bear in that case, and his situation is that of every dealer who contracts at a cer- tain price to deliver at a future time grain which he does not own. Every day of the interval he incurs risk of loss by a rise in prices; hence he wants low market until his contract is filled. Third. Option dealing where the seller is not obliged to deliver what he sells.— The third subdivision relates to that class of dealings in fatures which includes the option to deliver or not to deliver an article named in the contract. It amounts to a wager on what will be the market price of the article at the time mentioned for the delivery to take place. Silas and Andrew agree that Silas will deliver to Andrew 100 bushels of wheat on the thirtieth day thereafter at $1 a bushel. When the time for delivery arrives, if the market price of wheat is $1 a bushel there is neither profit or loss to either party. If, how- ever the market price on the day named for the delivery is less than 36 AGRICULTURAL DEPRESSION. $1, Andrew loses the difference and jnust pay it to Silas, who wins. If the price on that day be above $1, Silas loses the diflerence and he mustpavit to Andrew, who wins. In either case, no wheat changes hands; that was not intended or expected by either party. What is done, however, is the payment of the loser to the winner of an amount of money equal to the difference between the price agreed upotf and the market price on the day named for the delivery. The transaction is equivalent to a wager. Andrew says that on the thirtieth day there- after wheat will be worth $1 or more a bushel, and Silas says it Avill not be that high. The wager is then won by Silas if the price does not reach $1 at the time named, and he loses if the price be beyond that figure. It will not do to say that a sale and a purchase is bona fide involved in even such transaction, and that one is a set-off against the other, because, while it is impossible to add to or diminish the actual supply by selling and buying atxandom on the exchange, yet the very fact of reporting large sales for future delivery far above the actual supply on hand is evidence conclusive that all of them can not be made good, for there is not grain enough in existence to do it. But giving tlie sug- gestion all the force claimed for it, the fact remains that overtrading tends to create extravagant estimates of« the supply, and that of itself depresses prices. ' Take the case cited, where the wheat sales reported as having been made in JSTew York City in the two years 1892 and 1893 amounted to 2,203,456,000 bushels, or at least 30 bushels for every 1 bushel that was actually sold, or that was on hand to be sold ; an amount equal to more than twice as much as all the wheat grown in the country those two years, not more than one-thirtieth part of which could have been in New York for sale there. When prices are regulated by a market which appears to be very full they will tend downward. POWER OF THE GRAIN DEALERS. f Among other agencies in weighting the farm market for wheat may be mentioned the organization of facilities for quickly and cheaply collecting grain at the great centers where it is stored. By far the larger part of the surplus wheat of the country finds its way to the ciiiV elevators soon after it is harvested. At Toledo, Chicago, Miuneapohs; Kansas City, Topeka, and St. Louis the combined storage capacity ij^ about equal to the average annual export of wheat. The buyers at those points have their men scattered all through the wheat-growing regions when the crop is being thrashed. These agents amount to a smaU army if they were brought together. They are energetic, shrewd business men, and are in direct communication with their principals at headquarters. Market prices are telegraphed them daily and some- times oftener. Men dealing in millions can afford to play on ftactions. These grain dealers are men of great wealth or have unlimited credit, which amounts to the same thing, and though they are often open competitors, they will lose or capture a deal on a sixteenth or an eighth of a cent a bushel, which seems a trifle to an average farmer, but a small margin when multiplied by a million increases wonderfully. One- tenth part of a cent on a bushel taken from a load of 50 bushels cuts the aggregate price down only 5 cents on the whole load, while on a million bushels a profit of one-tenth of a cent on each bushel would amount to $1,000. The farmer once had control of his crops. He met the buyer at his AGRICULTURAL DEPRESSION. 37 home and contracted for as much wheat as he cared to sell at that time, provided the price offered suited him. He scattered his sales alone- through the year as he thought best. To some extent this good old custom still prevails, among Eastern farmers. But generally throughout the West and Northwest most of the grain is sold as soon as it is thrashed, and the parties who purchase it reside at the railroad centers. The country is rapidly drained of wheat, and while the process is going on every dealer is interested in keeping the price at the lowest point. The farmer is powerless to prevent it. He is isolated, living apart from his neighbors, while the great agencies by which and through which his crops are moved and the prices fixed are thoroughly organ- ized and beyond his influence or supervision. A penny from each of a thousand farmers is equal to $10 to the dealer who gets them all. MERCHANT MILLING, Men who engage in business enterprises do so because they expect to reap profits from them; and while millers claim that they prefer to buy wheat when prices rule high, and while that may be conceded, still they, like other dealers in wheat, are always found buying along the lowest and not the highest range of prices; and that is business. Millers will not pay more for wheat than other buyers pay, for that would soon leave them with a full stock on hand, and they being out of the market, prices would fall and flour would be affected accordingly. Millers are benefited by a high level of prices for wheat, provided the market is steady, for then flour commands a high price and the miller's margin of profit is larger. But all buyers find it to their inter- ests to get what to them is the best price, which means the lowest price. Millers could not, even if they so desired, form an exception to this rule. When men with large capital and with practically unlimited business facilities unite in establishing and conducting capacious milling estab- lishments, collecting their supplies from over a wide region, purchasing them from- a large number of individual farmers, their power over prices of wheat is very great. At Topeka, Kans., there are 5 merchant mills, with an aggregate daily capacity of 2,600 barrels. That is equivalent to an annual out- put of 813,800 barrels a year if the mills were run on full time, more than half enough to supply all the people in the State. This flouaris sold mostly in the South and East, a considerable proportion being ex- ported to foreign countries. In Kansas City, on the Kansas side of the State line, there are 8 grain elevators and on the Missouri side there are 13, with an aggregate storage capacity of 4,959,000 bushels. They have a receiving and discharging capacity of 1,230,000 bushels. A large quantity of grain is received at this place, but most of it is shipped Bast and South, a con- siderable proportion exported. There are 7 merchant mills, with an aggregate daily capacity of 4,000 barrels. Minneapolis.— There are 21 merchant flouring mills at this place, with an aggregate capacity of 45,000 barrels daily. This is what the mills could turn out if they were run on full time with plenty of wheat on hand for steady running. There are 15 grain elevators at Minne- apolis, with a capacity of 18,875,000 bushels. The quantity of wheat manufactured into flour by the millers is about 45,000,000 bushels annually, enough to feed a population of 10,000,000 persons. It is equal to nearly one-tenth part of an average wheat crop for the whole country. 38 AGRICULTURAL UEPEESSION. The shipments of flour have ranged from 4,814,424 barrels from the crop of 1883, to 9,123,125 barrels from the crop of 1891. Exports of flour made at the Minneapolis mills were: In 1888, 2,197,615 barrels ; in 1889, 1,953,815 barrels ; in 1890, 2,097,025 barrels ; 1891, 3,038,065 barrels ; in 1892, 3,337,205 barrels. This is equal to nearly 25 per cent of the total flour exportation of the country during the same years. Sixteen of the Minneapolis mills, with a reported maximum daily capacity of 41,550 barrels, are operated by 4 corporations. There are 6 private mills, reporting a daily capacity of 5,250 barrels. The influence of such a power concentrated on one crop must be tremendous. The principle involved here is the same as that which operates in all great combinations of men and capital in particular enterprises. They are there to make money, and their profits come from two sources, purchases and sales. It is to their interest to buy low and sell high. Of course, they are affected to some extent by market rates, but they themselves have much to do in regulating the market. When they buy, they are bears; when they sell, they are bullsj and they are are in a situation to operate with great force. LITE STOCK. Sheep. — The most noticeable feature in fluctuations in the sheep market during the years since 1868 is the great decline from 1883 to 1886. The average price of sheep throughout the United States during the year 1883 was $2.53 per head; the price fell to $2.37 in 1884, to $2.14 in 1885, to $1.91 in 1886, a fall of 62 cents a head in four years, a little more than 25 per cent. This decline may be attributed to fall- ing prices of wool during the same period. Sheep have advanced since 1886 and at the end of 1892 the price was 13 cents per head higher ' than it was in 1868. Horses. — Among general causes which have operated particularly in the horse market to depress prices has been, first, the general demand for finer stock; and second, less demand for draft horses, brought about by the introduction of different kinds of motive power in many departments of transportation where horses were used formerly. Within a 'comparatively short period steam and electricity have dis- placed a great many horses in street-car movement. It is but a few years since all surface street cars were drawn by horses, and the ordinary farm horse was as good as any for that purpose. The average life of a street-car horse is about three years. While the demand continued a great many horses were required annually for this class of work. Now, there is scarcely a town of considerable size in the country that has not displaced most of its horse cars with others propelled by mechanical power, and in some of the larger cities there is not a horse car running. Minneapolis, Minn., moves all her street cars by electrical power. And the bicycle is displacing saddle horses rapidly. Young men in all the towns and cities are using this late invention in greatly increas- ing numbers every year. Nor is their use limited to young men. It is common to see men far beyond middle age moving about the streets on bicycles, and women in large numbers use them. This practice is spreading, and its influence on the horse market is already plainly per- ceptible. Cattle. — Prices of cattle have been depressed more than any other class of live stock, and this has been occasioned largely by the abnor- mal development of the business of cattle-raising in Texas and the northwestern Territories, and by conditions that have grown out of AGRICULTURAL DEPRESSION. 39 ^o+fi!"l^™^^^" '^■? appreciate the magnitude of the range, and ranch fnteS.w''S«'* '' necessary to study its origin and history. Some mteiesting facts concerning its development were collected by Mr lyimnio, statistician of the Treasury Department in 1885, and sub- mitted by the Secretary of the Treasury to the House of Eepresent- atives in reply to a resolution of that body. It appears from that report that in 1860, and before that time, Texas cattle were slaughtered in immense numbers for their hides and tallow. Then the average Iq^a^ i!"^n*'"^f'"'"?^'K^*®^''^ °"*h® ^a^ch or range was only from $3 50 to 14.50 a head. But with the construction of railroads, Kansas Oity, tot. L/ouis and Chicago were soon opened to the Texas cattle trade, ihose cities had become not only great cattle markets, but also great slaughtering and packing centers, from which live cattle, fresh beef, salted meats, and canned beef were shipped to various parts of the United States, and also exported to foreign countries The construction of the Missouri, Kansas and Texas Eailroad, the St. Louis, Iron Mountain and Southern Eailroad, and the railroads extend- ing west into the State of Kansas— more especially the Kansas branch of the Union Pacific Eailroad and the Atchison, Topeka and Santa Fe Eailroad— had been greatly promotive of the cattle interests of Texas. About the same time began a movement of Texas cattle northward to the great ranges of Wyoming and Montana. It had been discov- ered that the native grasses of that region were nutritious and pecul- iarly suited to the growing of cattle. Young cattle were driven there in large numbers, and some were distributed through Indian Territory, New Mexico, and Colorado. It is estimated that the total number thus driven north, composed mainly of yearling and 3-year-old steers, since the beginning of the movement and up to 1885, amounted to about (3,000,000. The opening of these new and enormous commercial possibilities to the cattle-owners of Texas developed a vast amount of wealth, and had, of course, greatly stimulated the cattle industry of that State. Cattle, which about the year 1868 were worth only $4.50 a head, advanced in value to $15 and $18 per head. The opportunities for gain and the' wild fascination of the herdman's life had also drawn to Texas many young men of education and of fortune in the Northern States and in Europe. This had also been the case throughout the entire range and ranch cattle area of the United States. Not only was Texas a great breeding ground for cattle, but vast herds were also matured and shipped direct to market from that State. The northern and northwestern portions of the State were well adapted to the maturing of cattle. It was estimated that during the year 1884 about 300,000 cattle were driven from Texas to northern ranges, to be there matured for marketing, and that about 625,000 beef cattle were shipped from Texas direct to the markets of Kansas City, St. Louis, Chicago, and New Orleans. The Western and Northwestern range and ranch cattle area of the United States embraced the principal part of the Indian Territory, the western portions of Kansas, Nebraska, and Dakota, the Territories of Montana, Idaho, Wyoming, Utah, Arizona, and New Mexico, the States of Colorado and Nevada, andportiousof California, Oregon, and Washington Territory, and this vast area, embracing 1,159,907 square miles, or 742,340,480 acres, was largely devoted to the cattle business. For some time it was believed that Texas must continue to be the principal breeding ground, and that the Northern ranges would be the maturing and fattening ground for Texas cattle. But that belief was soon found to have been not well founded. Having learned the value 40 AGRICULTURiL DEPRESSION. of the native grasses, an imiiortant change took place in the cattle busi- ness of the plains. These grasses derive moisture mainly from the melting snows of winter and from the rainfall of the spriag months. During the summer months they are cured by the dryness of the air, thus retaining their nutritious qualities through the succeeding autumn, winter, and spring months. When these supplies are temporarily cut off by snow falls the cattle resort to the white sagebrush and the black sagebrush, -which, though not very nutritious, supply the crav- ings of hunger until the melting of the snows. It had been found also in Wyoming and elsewhere that the alfalfa or luceriie could be culti- vated to great advantage wherever irrigation was practicable. These discoveries stimulated the business in two directions. It brought about a movement of young steers from Texas to be matured on the Northern ranges, and also a movement of breeding animals from the States east and from Europe. Hon. Morton E. Post, delegate from Wyoming, made the following statement in regard to this' matter: The cattlemen of Wyoming realized at an early day the importance of improving the breed of .their animals, and accordingly began as early as 1874 or 1875 to import graded and thoroughbred bulla. The result is that the general average of the range cattle of Wyoming to-day is improved stock, having large frames and small bones. They are well-developed animals, furnishing a superior quality of beef. We have done more in Wyoming toward improving the breed of cattle than has been done in any other section of the range-cattle area. Our cattle to-day are of a very high standard, and wehave increased the value of our herds materially by systematic breed- ing. The success already attained is stimulating the cattlemen of Wyoming to still further efforts in the direction of improving the breed of their stock. The example of Wyoming is being followed very extensively throughout the range-cattle area. Our stockmen during the last few years have been doing their very best to get the best breeds, the highest class of bulls which they can procure. The cattle breeders of Wyoming have imported bulls quite largely from Europe,. The very best speci- mens of the fine breeds have been procured. The importations from England have been principally Herefords. Durham bulls have been imported mostly from the . States of Kentucky, Illinois, and other States of this country. The number of cows and heifers brought into Wyoming has been much less than that of bulls. The range- cattle business of Wyoming began along from 1868 to 1870. From that time to about 1876 or 1878 the great bulk of the cattle were brought from Texas. About three- fourths of the entire stock were steers, and the rest cows and heifers. After that the rangemen imported largely from Nevada and Oregon and the Territories of Montana, Idaho, and Utah, and also some from Colorado — mixed herds of cattle. The cattle imported from Utah, Nevada, Oregon, Idaho, and Montana were a good class of cattle, being composed mainly of improved natives and largely also of improved Texas stock. For many years the range-cattle business was carried on chiefly on the public Isinds where no rental was charged or paid and where feed cost nothing. The business grew rapidly, the cattle increasing in numbers at a high rate per cent, and with the introduction of better blood the forms of the animals were changed for the better, and the quality of the meat was correspondingly improved. At flrs.t there were a good many different herds on the plains belonging to different owners, but this, too, was changed. Great companies were organized with capital amounting to millions of dollars. The Wyoming Stockgrowers' Asso- ciation started out in 1873 with 10 members representing an ownership of 20,000 cattle, worth about $350,000, and in .1884 it had grown to a membership of 435, representing an ownership of 2,000,000 head of cattle, valued at $100,000,000. Describing this great company, Mr. Post, above quoted, said in 1885: The Wyoming Stock Association is one of the best organized and most effective in its workings of any stock association in the United States. It is controlled by stockmen for their mutual benefit. They have detectives and inspectors stationed at such points as may be necessary to look after stray cattle, and cattle being shipped or driven out of the country with' brands belonging to any mem- ber of the association. They arrange for the spring " rouud-ups," so as to work in AGRICULTURAL DEPRESSION. 41 linrmony, and havo each man's interest looked after, and to see that each owner fur- nishes his proportion both of cowboys and snpplies. Those " round-ups " are under the control of captains Of oflicers appoinl.^l under the association, and have entire charge. In case of a dispute as to the different brands, instead of having recourse to law, such matters are referred to a disinterested party as arbitrator, and his deci- sion 18 usually accepted as tinal. In regard to the inspection system, it has proven very beneficial, as cattle some- times stray some distance from the ranges. The inspectors are stationed at Omaha, KaJisas City, and other points where cattle are shipped through by rail. When a tram of cattle arrives at any one of these points the inspector looks through the cattle, and, if he finds cattle whose brand indicates that they belong to a member of the Wyoming Stock Association other than the shipper, such cattle are consio-ned to some commission merchant in Chicago for sale and the proceeds are remitted to the association, and by it handed Qver to the proper owners. The stock-growers' association of the States of Colorado and of Nebraska and Dakota work in harmony with the Wyoming association. The detectives of the associations look after cattle thieves and men guilty of altering brands, etc. The cattle business up to the present time has been the great business of Wyoming. The laws of the Territory have been framed specially with the view of protecting this interest. The number of cattle on the ranges east of the Eocky Mountains and north of New IVEexico and Texas in 1884 was estimated to be 7,500,000 head, valued at $187,500,000. The following table shows the estimated number and value of cattle in the United States, in Texas, and on the northern ranges in 1884: !N"uTiiber. Value. The TTnited States - . . 49, 417, 782 9, 000, 000 7. 500, 000 $1,180,577,000 153, 000, 000 The State of Texas .■ 187 500 000 According to these figures the number of cattle in Texas and on the northern ranges constituted about 28 per cent of the total value of all the cattle in the United States at that time, and the value of those on the northern ranges amounted to about 16 per cent of the total value for the whole country. It is not pretended that this table is altogether accurate, but it is approximately so. From the best data which Mr. Nimmo was able to procure in 1885 it appeared that the total number of beef cattle marketed in 1884, outside of Texas, and mainly at New Orleans, Chicago, St. Louis, and Kansas City, was about 625,000, reahzing on the average about $25 per head, or a total sum of $15,625,000. The number of northern range cattle marketed at Chicago, St. Louis, and Kansas City, making proper allowance for. duplication, was about 400,000, and their average value about $40 per head. The number of beef cattle shipped from Texas and from the northern ranges during the year 1884, and their value at shipping points, was, therefore, according to the best available data, as follows : From Texas - From tlie northern ranges Total Number. 626, 000 400, 000 Average value. 1, 025, 000 Total value. $15, 625, 000 16, 000, 000 31, 625, 000 1885 The range cattle business reached its highest level about the year ;85. As a rule the business yielded very large profits. There were 42 AGRICULTURAL DEPRESSIOK. i«xceptions, of course. All localities were not equally favorable to the success of the business. This was due chiefly to differences of condi- tions as to water supply, the quantity and quality of grasses, shelter, the number of calves produced, extent of winter losses, and the man- agement of herds. But as a whole the business was very profitable. Large fortunes were made at the business within a comparatively brief period. Hundreds of men who embarked in the business with exceed- ingly limited means ranked as "cattle kings." The average cost of raising a steer on the ranges, not including interest on the capital invested, was usually estimated by the large stock-owners at from 75 cents to $1.25 a year. Thus a steer four years old ready for market had cost the owner $4 or $5 to raise. When driven to the railroad he was worth from $25 to $45. The following table shows the monthly and the monthly average receipts by the year of cattle at Chicago since 1878, from which ''it will be seen that there was a steady gain from a monthly average of 82,000 Ln 1878 to a monthly average of 290,000, or 3J times as much, in 1890. There was a slight falling off in 1891, but it was made up in 1892, when the total receipts for the year were 2,571,796 head, a monthly average of 297,649 head. Monthly receipts of cattle at CMcago, in thousands. Tears. Jan. Feb. _Mar. Apr. May. June. July. Aug. Sept. Oct. Nov. Dec. ^y ^ 1878.. ■ 1879.. 1880 . . 1881 . . 1882 . . 1883 . . 1884.. 1885.. 1888.. I 1887.. 1888 . . 1889 . . 1890 . . 1891 . . Mthly At. 000 92, 000 96. 000 114, OO0I139, 000 182, 000 000 000 202, 169, 000 140, 000 148, 000 149, 000 161, 000 160, 000 181,000 97, 103, 112; 122, 100, 134, 124, 150, 138, 182, 206, 248, 299, 221, 000 2:12, 000 297, 000 294, 000 261, 96, 120, 126, 145, 166, 172, 168, 171, 198, 218, 000111, 000 120, 127, 187, ooo;2eo, 000:276, 000 333, 0001358, 000 200, 000 i81, 000331, 000:382, 000,372, 000151 000 162, 000 227, 090 260, 000 261, 000 264, 000 290, 000 212, 000 250, 000 278, 000 281, 0001219, 000 183, 000 174, 000 172, 000 82,000 99, 000 115, 000 124, OOO ISijOOO ISijiU 158, OW 163, 000 198, 000 218, 000 252, 000 290, 000 271, ono Increase in numbers and improvement in breeds of range cattle pro- duced on public lands at nominal cost seriously interfered with the raising and marketing of high-grade and flrst-class beef on improved lands, where a 3-year-old fat steer cost anywhere from $35 to $60, according to location and value of land and feed. The range cattle business reached its best estate in 1884^'85. Here are figures showing — Highest prices paid for faiicy cattle at Chicago fm' ten years. Months. 1891. 1890. 1889. 1888. 1887. 1886. 1885. 1884. 1883. 1882. January ... February . . Marcli April May June July August September . October — November . December. . $5.65 5.60 6.36 6.40 6,60 6.85 6.40 0.25 6.40 0.60 0.40 7.15 $5.25 s:30 6.25 6. 35 5.40 5.30 6.10 6.60 6.87i 6.35 6.25 6.40 $5.40 6.00 4.86 4.75 4.60 4.70 4.55 5.00 4.80 6.16 6. ,60 6.10 $5.85 6.65 6.70 6.30 6.30 7.00 6.25 6.60 6.86 6.50 6.10 -7.00 $6.60 5.50 6.66 5.60 5.15 5.15 4.75 6.60 6.40 5.40 5.76 6.60 $6. 12J 6.25 6.60 6,35 6.10 6.00 5.60 5.25 6.50 5.60 6.46 6.60 6.60 6.10 6.05 8.00 6.25 6.20 6.25 6.25 6.25 6.00 6.80 $7.15 7.30 7.25 6.86 7.00 7.26 7.12i 7.35 7.60 7.30 8.00 8.00 $6.50 7.00 7.30 7.10 6.75 6.30 6.40 8.65 8.50 7.35 7.36 8.25 $7.00 7.15 7.65 8.00 9.00 9.30 8.25 8.00 7.75 6.85 6.70 7.00 Higliest in fourteen years, June, 1882, $9.30. AOKICULTURAL DEPRESSION. 43 Since 1885 the range cattle business Las not been as profitable as it was before, but its decline has been slow until within three or four years past. Its influence on the cattle trade of the country maintained an even level about five years— from 1884 to 1889— since which time its influence has not been so much felt. At the request of the chairman of this subcommittee, Mr. E. M. Allen, now of Ames, Nebraska, a very competent person, prepared a paper on the general subject of the range and ranch cattle business. Mr. Allen is an extensive cattle-raiser, and was some years engaged in the ranch business in Wyoming. He is now raising cattle on a 6,000- acre farm in the Platte Valley in Nebraska. His article is printed in the appendix to this report. PACKING HOUSES. While the cattle business in Texas and the West and Northwest was growing, great packing houses at the points of collection and distribu- tion were developing in corresponding proportion. This had the effect to diminish the number of buyers and to greatly augment their influence and power. Under the old regime small butchers bid against their more wealthy rivals, and competition was active without cutting down to the cost line. The extent to which the packing business has grown is wonderful and the power of the packers is enormous. The estab- lishment of Armour «& Co., at Chicago, claims to have done a distribu- tive business during the year 1892, amounting to $75,000,000— distrib- utive sales of its products. The house slaughtered 1,750,000 hogs; 850,000 cattle; 600,000 sheep. The company reports that 8,000 hands were employed, to whom $8,000,000 in wages were paid. The ground covered by this immense establishment is 55 acres; the floor space is equal to 1 45 acres, and the chill room and cold storage area is 40 acres. The cold-storage capacity is 150,000 tons, enough to load 75,000 2-horse wagons with two tons each. It would load 7,500 railway cars with 20 tons each, and these, if divided into trains of 20 cars each, would make 375 trains. If they were massed in one train, allowing 25 feet space to each car, they would make a train nearly 36 miles long. Packers claim that by means.of improved processes for utilizing what was formerly wasted under the old methods of butchering they are enabled to clear a profit in their business even though they gain noth- ing on the carcass. In other words, enough is made out of the "by- products" to show a profit on the entire business. Mr. Edward Mar- tyn, representing Armour & Co., in the statement which he filed with the subcommittee, sets out in detail the uses to which the various parts of the animal other than the flesh are put : In the cattle business, after the dressed carcass has heen delivered to the retail dealer and the hide to the tanner, the slaughterer has the following products, which were formerly almost all waste, to utilize and dispose of: The caul fats, which formerly went into the cheap product of tallow, are now utilized for the manufac- ture of oleomargarine oil, the primary component of oleomargarine. * * * The common fats, which are unfit for this purpose, are rendered into tallow. The ton gue, liver, and heart are sold to the marbetmen separately, unless the liver and heart are utilized in making sausages. The intestines are cleaned and utilized in covering hologna and other sausages. The bladders and -weasands are used to pack snuff and putty in. From the stomach we make our plain and honeycomb tripe. The ox gall i» used by printers and painters. The horns, shin bones, and blade bones are utilized for knife handles and bone buttons, and for other like purposes. The heads and small bones, the knuckles, cattle feet, sinews, pizzles, hones from extract depart- ment hoofs hide trimmings, and calves' feet are utilized in the glue department to he manufactured into glues and fertilizers. The blood is collected and dried, and all the oifal which can not otherwise be utilized is made into fertilizers. 44 AGRiCtTLttiRAL DEPRESSIOJf. • An establishment doing such an amount of business- of this char- acter can afford to compete with other like concerns with very small margins on units. The' total number of animals slaughtered "by this company alone the last year reported (1892) was 3,200,000. One cent profit on each animal would amount to $32,000, which is equal to 4 per cent on a capital of $800,000. If the whole business can be car- ried on successfully on the profits on by-products alone, this $32,000 would be that much over and above a fair profit on the whole. While it is not pretended that cattle are not purchased with a view to profit on the carcasses as well as on the separate parts, the fact that this can be done without sustaining loss shows how closely prices for live ani- mals may run along the cost line without injuring the packing business.. And while competition, when it is open and fair, tends to keep prices up, that is only when the market is not fully supplied. When buyers go into a full market, and especially when it is overfall, crowded, glutted, they can safely bear the market without opposition, for there is plenty for all. * A fat ox, as soon as it is ready for market, becomes expensive prop- erty. Every bushel of corn fed to him after that is a bushel of corn lost. And when fat cattle are once on the market — in the car or stock pen — every day of delay in sale is attended with additional expense. So, if the farmer, having his steers in the stock yards at Kansas City or Chicago, thinlss he ought to have $75 a head for them, in order to pay him what it has cost him to put the animals there, if the price offered to-day does not suit him, a lower bid to-morrow with an ecjually full market is suggestive, and a few days of such experience has the effect to make him anxious to sell at whatever the bid may be the next day. Such cattle being wanted only for slaughter, and the packers haviilg control of the beef business, a full market gives them abun- dant opportunity to supply themselves at their own prices, and this without maintaining a combination for that purpose. Under such con- ditions the farmer can not help himself. Prices declined in spite of his efforts to prevent it. Cheap cattle of the ranges fed the market to fullness and kept it there. The company of which Mr. G. P. Swift is the head slaughtered, in 1892, of cattle, 1,189,498 ; of hogs, 1,134,692 ; of sheep, 1,013,527. Armour & Co., the same year, slaughtered over 3,000,000 head of animals, and Morris killed 646,026 head of cattle. These three firms killed more than two-thirds of all the cattle, one-third of all the hogs, and about one-half of ail the sheep that were brought to Chicago during the year. It is impossible to estimate the power which such great concerns have and exercise over the market jirices of articles in which they deal. Mr. Swift says their sales of packing-house products during the year 1892 amounted to $90,000,000, and Armour's amounted to $75,000,000. Two such houses in full markets without any combination between them are able to handle the market to suit themselves. If they could not do so they could not afford to carry on such immense business. The larger the business the greater the influence over the prices of materials purchased for use in the business. The influence of such large establishments extends all over the region from whence they draw their supplies. Here is a list of the States from which Chicago receives her supplies of live stock : Ohio, Michi- gan, Indiana, Illinois, Wisconsin, Minnesota, Iowa, Missouri, Kansas, Nebraska, Nevada, Colorado, Arizona, New Mexico, Texas, North Dakota, South Dakota, Idaho, Montana, Wyoming— nearly half the States of the Union. AGRICULTURAL DEPRESSION. 45 The packing houses of Chicago, Omaha, Kansas City, St. Louis, Indianapolis, and Cincinnati drain all the region west of the Alle- ghany Mountains of its surplus live stock. It is safe to say that these houses constitute the entire list of bidders who could have any influ- ence on prices. These great packing establishments are object lessons which farmers may study with advantage; not because they receive any peoauiary benefits from the existence of such establishments, but because they will learn from the study how greatly the efficiency of labor is aug- mented by being massed and operating under a single management, how wonderfuUjr the effect of money is magnified when used in large amounts in one enterprise, and how vastly the influence and conse- quent power of one man is increased by giving him control of men, money, and business. The chairman of the subcommittee visited the grounds of the Armour packing establishment and examined the methods of operation and the manner of doing business. As before stated, the buildings occupy a ground space equal to 55 acres, and as some of them are three or more stories high, the floor area is equal to 145 acres. The floor area con- tained in the cold storage room amounts to 40 acres. The plans, ma- chinery, and devices for handling everything about the premises work with the perfection of mechanism. The grounds and buildings are lighted by electric lamps. The local transportation is done on a 3-foot gauge electric railroad about 3 miles in length. This railway connects the warehouses and slaughtering houses, aud is so laid out that the entire product of the establishmentcanbereadily moved from one point to another at the minimun of expense and labor. Five hundred thou- sand pounds of product can be easily handled daily on this road with a force of 10 men, where previously 200 men were kept wheeling trucks all day to move the same quantity. For moving barrels an endless chain arrangement with gripping attachments is provided. The chain is something more than half a mile in total length. A stream of barrels is kept moving from the pork-packing floor up two stories and along almost the entire length of one large warehouse, across a bridge to the opposite side of the tracks, and then on to the loading platform and into another warehouse. Formerly this work was done by hand, a man to each barrel. Now a barrel is rolled into the mouth of the groove in which the chain moves and the chain does all the rest. When cattle are to be slaughtered they are driven into narrow passage ways beside the pens, each com- partment being only large enough to hold two animals. The cattle are killed by the stroke of a l^rge hammer; death is immediate. Directly opposite the steers as they fall is a sliding door which is lifted, the floor is raised behind, and they are rolled out on the floor of the beef house, when they are immediately suspended by a chain quickly put around the hind legs and pulled up by machinery, when a gang of men begin work on each animal. The head is cut oft' and the tongue removed by one man, the feet stripped by the next, the eutraUs are removed by an- other, the hide stripped off by one, and a general finishing touch given by another. After dressin g, washin g, and weighin g the carcass it is slid down to the chill room, a spot large enough to hold 15,000 beef car- casses and it is kept constantly at a temperature near the freezing point There are about 1,200 men employed in the beefhouse,andits daily capacity is 5,000 head, equal to an average of 8;!^ steers every minute for a day of ten hours. The entrails are separated, cleaned, and cured being chiefly for sausage skins. The tongues go to the canning 46 AGEICULTUEAL DEPRESSION. department; the shanks and heads, after being trimmed, are trans- ferred to the glue works; the hides are taken to the cellars underneath, where they are packed in layers of salt to cure, and the general offal directed towards the fertilizer department. The livers and hearts are shipped with the dressed carcasses to sup- ply the Eastern demand The bladders are dried and sold; the stomach makes tripe. The tallow is saved and refined, and the sweet fat is transported to the oleo factory to be transformed into oleo oil, and subsequently into butterine. The horns are sold to comb makers, and the shin bones to knife-handle and koitting-needle inanufacturers. Neat's foot oil is made from the feet. Phosphate is produced from some of the bones, and the ox tail is the basis of the soup of that name. The switches, or tail ends, find a ready market with hair-mattress man- ufacturers. The company have taken steps looking to the establish- ment of tanneries connected with their business. When hogs are to be killed they are driven from the yards up elevated roadways into pens adjoining the slaughterhouse, and after a sufficient delay to permit them to cool off, they are driven into the building 100 or 200 at a time. Eunning directly over the slaughter basin are rails with wheel and pivot attachments. Boys pass a chain' over one hind leg of each animal. The chain is quickly wound up and the hog lifted completely off the floor. The rail on which the pivot wheel rests is on an inclined plain, and in a moment the hog is brought right in front of the sticker. The blood drains off into a reservoir below, to be afterwards dried, pulverized, and used for fertilizing. The hog is then brought over an immense vat of boiling water, into which it is plunged, left there a few moments, and then, by means of a gate connected by revolving pivots at the sides, swung onto a table. Passing through the center of the table is an endless chain, with hooks attached, one of which is fastened into the nose of the hog, and by this nieans the animal is carried along through the scraping machine. This machine is made of steel blades, mounted on inverted cylinders, and so constructed that contact is easily made with every portion of the body as it passes through. In less than ten seconds the hog is clean. The bristles are saved and sold to brush makers; the hair falls into a receptacle on the floor beneath and is dried, cleaned, and sold to curled-hair manufacturers. The hog is thoroughly washed by a strong stream of water from a hose. The gambrels are then cut and the hog is once more suspended. The carcass is cut, cooled, and salted. The various parts are utilized by means similar to those employed in disposing of beeves. Sixteen hogs are thus disposed of every minute. The storage capacity of the pork cellars is about 25,000,000 pounds. This is equivalent to the dressed meat of 125,000 hogs averaging 250 pounds, live weight. In connection with the lard-reflning business of this company they bring to their factory large quantities, of lard in its first and unrefined state from small packers in the West, and transfer it to their refinery to be relieved of coarseness and impurity. In the transporta- tion of this crude lard to Chicago they employ a line of tank cars, thus saving largely the expense of cooperage and labor incurred under the old method. The lard is pumped into the tank cars and pumped out of them, reducing labor to the minimum. In the sausage room a large force of hands is employed in chopping meat tor sausage and mince pies and stuffing all varieties of sausages. in the canned meat department they put up not only beef in cans, AGRICULTURAL DEPRESSION. 47 but likewise a great variety of other viands, such as ox tongues, lunch tongues, canned soups, potted ham, potted tongue, roast beef, brawn, compressed ham, canned tripe, canned pigs' feet, chipped dried beef, Oxford sausage, strips of breakfast bacon, etc. Connected with this department is a tin shop, in which it is reported 25,000,000 tin cans of various patterns and sizes were made during the year 1892 for use in the canned goods put up here. The glue works are located on the Chicago Eiver, about 2 miles from the stock yards. ' They cover a ground space of 18 acres, employ about 800 hands, and in 1892 turned out 12,000,000 pounds of glue and 12,000 tons of fertilizer. There are many details that would add to the interest of the descrip- tion, but our object is only to direct attention to the vast amount of work done in one of these great establishments at the lowest cost and the least expenditure of human labor. So large are their purchases that the company can make immense profits on aujmals that do not net owners the cost of their raising and feeding, and the packing goes ou in summer as well as in winter. A butcher whose sales do not require more than one carcass a day must have $5 off that single ani- mal, or he does not make money ; but a packer who uses a thousand car- casses a day, and makes a good profit out of the by-products alone, can afford to underbid the little man on the market for live cattle, because he can dress the beef in a big packing house and ship it to the local butch- er's customers cheaper than he can i)repare it himself. During the year 1892 I*f elson Morris kiUed 646,026 head of beef cattle and shipped dressed beef carcasses to a few of the principal cities as foUows : Shipped for consumption to — Head. Boston 10,608 Brooklyn 22,877 Philadelphia. 22,421 yv ashington 9, 383 New York 10, 894 Baltimore 16,104 Mr. Swift's Chicago plant occupies a ground area equal to 40 acres, and he has branch houses in Omaha, Kansas City, and St. Louis. His company uses nearly 3,000 railway cars In their business, and pay out about $3,750,000 for domestic transportation, and nearly one-third as much for ocean arid foreign fi-eights. A refrigerator car costs about $1,000. The extent of the local meat live-stock trade of Chicago is seen by comparing the figures in the two tables following. The first table shows the total receipts; the second shows the shipments; the differ- ence shows the local consumption. 48 AGRICULTURAL DEPRESSION. Total rccdpts of stock for Iwenty-sevcii years 1865, 5 days 186T. 1868. 1889. 1870. 1871. 1872. 1873. 1374. 1875. 1876- 1877. 1878. 1879. 1880- 1881. 1882. 1833. 1884. 1885- 1888. 1387. 1888. 1889. 1890- 1891. 1892. Cattle. Total ■' 40,618,336 Calves, 48, 948 24, 966 30, 223 52, 353 58, 600 61, 290 05. 859 96, 080 122, 968 175, 025 205, 383 197,576 1, 129, 176 Hogs. 17, 764 961, 746 1, 836, 738 1,706,782 1,661,869 1, 293, 158 2, 380, 083 3, 252, 623 4, 437, 760 4, 258, 379 3, 912, 110 4, 190, 006 4, 025. 970 6, 389, 054 6, 448, 330 7, 059, 365 6, 474, 814 6, 817, 504 5, 640, 025 5, 351, 967 '6,937,536 6, 718, 761 6, 470, 852 4, 921, 712 6, 998, 526 7, 663, 829 8, 600, 805 7, 714, 436 131, 353, 711 Slioep. 1,433, 207, 987 180, 888 270, 891 340, 072 319, 863 815. 053 ■310, 211 291,734 333, 655 418, 948 364, 096 310, 240 310, 420 325, 119 335, 810 493, 624 623, 887 749, 917 801. 030 1,003,698 1, 008, 790 1,360,862 1, 516, 014 1, 832, 469 2, 182, 067 2, 153, 537 2, 145, 079 20,542,483 Total shijimcnts of stock for twenty-seven years. 1866. . 1867 -- 1868.. 1869. . 1870.. 1871.. 1872.. 1873.. 1874. . 1875 -. 1876.. 1877.. 1878.. 1879.. 1880. . 1881.. 1882. . 1883 -. 1884.. 1885.. 1886.. 1887- . 1888.. 1889.. 1890 . 1891.. 1892- . Cattle. Total 19,624,251 263, 693 203, 580 215, 987 294, 717 391, 709 401,927 510, 025 674, 181 622, 929 696, 534 797, 724 703, 402 609, 108 726, 903 886, 614 938, 712 921, 009 966, 768 791, 884 744, 093 704, 676 791, 483 968, 385 1, 259, 971 1, 200, 309 1, 066, 264 1, 121, 675 Calves. Hogs. Sheep. 33, 466 10, 229 12, 671 31, 089 33,610 18, 657 15, 966 23, 663 36, 576 61, 466 48,331 31,004 355,717 482, 875 758, 789 020, 329 086, 305 924, 453 162,236 835, 594 197, 557 330, 361 §82, 643 131, 035 951, 221 266, 906 692, 361 394, 990 289, 679 747. 722 319, 392 392, 616 797, 446 090, 784 812, 001 751, 829 786, 659 , 985, 700 ;, 962, 514 926, 145 75,447 SO, 275 81, 634 108, 690 116, 611 135, 084 146, 016 115, 235 180, 665 243, 604 195, 925 155, 354 166,737 169, 266, 156, 610 263, 938 314, 200 374, 463 290, 352 260, 277 266, 912 446, 094 601,241 711, 315 929, 864 688, 205 483, 368 7, 695, 252 KANSAS CITY. The packing trade of Kansas City is enormous. The tables pre- sented to the committee by Mr. E. E. Richardson, secretary of the Kansas City Stock Yards Company, show in detail how many animals are bought by the packers at that place. By way of showing the AGRICULTURAL DEPRESSIOK. 49 aggregate local trade for a series of years, we submit the foUoiving tables, showing total receipts and total shipments by rail, the dif- ference being the numbers of animals annually "driven out" to supply the home markets for live animals: Total yearly receipts. Year. 1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 1885 1886 1887 1888 1889 1890 1891 1892 Total CatUe. 120, 827 236, 802 227, 689 207, 080 174, 764 183, 378 215, 768 176, 344 211,416 244, 709 285 863 439, 671 460, 780 533, 526 506. 627 490, 971 669, 224 1, 056, 086 1, 220, 343 1, 472, 229 1, 270, 917 •1, 479. 078 11, 883, 081 Calves. 76, 568 70. 570 02, U77 245, 216 Hoga. 41, 036 104, 639 221, 815 212. 532 63, 350 153, 777 192, 645 427, 777 688, 908 676, 477 014, 304 963, 036 379, 401 723, 586 358, 718 264, 484 423, 262 008, 984 073, 910 865,171 599, 109 397, 477 Sbe.'li. 4,527 6,071 5,975 8, 85.'; 25 ;i27 65! 045 42, 190 36, 700 61,684 50,611 79, 924 80, 724 119, e(i5 237, 964 221, 801 172, 659 209, 956 351. 050 370, 772 635, see 386, 760 438, 268 3, 502, 397 Yearly shipments iy railroads. Tear. Cattle. Calves. Hogs. Slieop. 100, 481 106,467 182,245 166, 519 126, 262 120, 340 126, 570 131,761 155, 831 194,421 223, 989 359, 012 387, 698 443,001 402,381 370, 350 483, 372 682, 622 744, 510 923. 552 739; 093 810, 016 1,397 8,593 33.610 114, 569 15, 790 26, 264 15, 973 91, 671 208, 861 162, 920 195. 524 191 ; 325 313, 879 690,133 801,162 538, 005 624,492 413, 937 331,434- 558, 227 605, 467 591, 623 1872 1874 - 1 875 1876 22, 460 1877 1878 30 4^'-i J879 . . - 47 7S" 1881 ^. - 61, 078v 1882 . - 52 652 1883 qi,977 105, 973 115,7.55 1584 ...^. , 1886 1886 - 83, 234 1887 103, 1 26 169,932 1888 174, 8.'il 1890 -^ 56, 851 38, 975 40, 900 336. 207 1891 178, 271 1892 219, 230 Total i- 8, 071, 393 135, 726 6, 324, 836 1, 865, 937 15405- 50 AGRICULTURAL DEPRESSION. Total driven out of yards yearly. Year. 1871.. 1872.. 1873.. 1874.. 1875., 1876., 1877. 1878., 1879., 1880., 1881., 1882- , 1883., 1684., 1885., 1886.-, 1887., 1888- , 1880., 1890., 1891., 1892., Total 3,809,939 Cattle. 20, 313 30, 332 45, 421 40, 650 47, 949 62, 910 89, 201 43, 788 66, 630 49, 8G0 62, 145 8fl, 509 73, 000 90, 991 104, 190 120, 656 185, 690 372, 925 474, 885 549, 301 533, 156 676, 725 Calves. 20, 862 37, 606 51, 256 109, 723 Hogs. 38,705 95, 806 186, 964 98, 145 47, 306 126, 916 177, 231 334, 684 380, 943 623; 928 819, 923 770,681 1, 065, 126 1, 134, 154 1,657,866 1, 726, 318 1, 899, 064 1, 595, 813 1,741,880 2, 306, 127 1, 995, 652 1, 805, 114 20, 426, 735 Sheep. 644 660 1,663 1,901 7,568 32, 369 14, 004 6,529 13,375 14, 719 18,770 28, 056 57, 201 131,241 107, 333 89, 163 106, 366 181, 834 195, 027 199, 000 209, 641 218. 909 1, 366, 002 The packing business of Kansas City lias grown ftom 80,509 cattle, 770,681 hogs, and 28,056 sheep in 1882 to 676,725 cattle, 1,805,114 hogs, and 218,909 sheep in 1892. This is an increase of 740 per cent in the number of cattle, 134 per cent in hogs, and 700 per cent in sheep in ten years. OMAHA. The Omaha business is shown in the following table and summary taken from the figures submitted by Mr. William !N. Babcock, general manager of the Union Stock "Yards Gomi^any at South Omaha: Amount of live stock received at the yards since their establishment. Years. Cattle. Hogs. Sheep. Horses. 86, 898 114, 163 144,457 236, 723 340, 469 476, 340 806, 699 738, 186 1,863 130,867 390, 187 1,011,706 1,283,600 1,206,605 1,673,314 1,705.687 4,188 18,985 40, 195 76,014 158, 503 159,053 170, 849 185, 457 466 1885 1,959 3,028 3,202 5,085 7,695 8,602 14,183 1886 .' 1887 1888 - ... 18S9 1890 1892 Total 3, 326, 979 8,866,662 969, 430 49, 378 About 65 per cent of the cattle received during the last nine years have been slaughtered by local packers, the rest having been shipped ~ to feed lots in Nebraska, Iowa, Missouri, Kansas, Illinois, Kentucky, and Indiana, to be fattened; and to eastern packing centers, includ- ing Illinois, New York, Massachusetts, Pennsylvania, Ohio, and Kew Jersey. About 80 per cent of the hogs received at these yards have been slaughtered by local packers, the others having been purchased by outside packers for shipment to New York, New Jersey, Oonnectitot, Massachusetts, Ohio, Indiana, and the Eepublic of Mexico. AGRICULTURAL DEPRESSION: 51 Without pretending to cover the whole country, enough has been presented to show that the magnitude of the meat-packing business is very great. The sales of Armour and Swift alone during the year ] 892 amounted to upwards of $165,000,000, and their goods are shipped to all parts of the world. Their combined export trade is about $15,000,000 a year. Branch houses are opened in many of the large towns of the country, and "beef houses" are opened in many small ones. Twenty- five per cent of the home business is done through these branch oflices, which are all in charge of salaried agents. No local butcher can com- pete with the beef houses. This practically destroys the local market for fat stock. The farmer must send his animals to Kansas City, Chi- cago, Cincinnati, or other packing towns and sell there to buyers who represent the packers. The headquarters are in direct telegraphic communication with all parts of the country and of the world. An order from Europe is received and filled in the same time it takes to attend to a message from a town a hundred miles away. This powerful combination of men and money in one business puts them in position to keep prices on the level of the cost line. Concentration of labor gives greater efficiency to individual exertion. Concentration of capital enhances the value of every dollar invested. Combination of labor and capital multiplies effort, increases value of money, cheapens production, reduces the number of buyers and gives them control of the markets. Animals for slaughter, shipped to the great markets, are bought by agents of houses which deal in the par- ticular class of stock, and such houses are comparatively very few. The strong packing houses in Chicago can be counted on the fingers of one hand, and they are virtually the only bidders for all the fat stock that reaches that city. Out of the millions of fat cattle, hogs, and sheep, sold every year at Chicago, half a dozen great establish- ments buy nearly all of them, excepting such as are bought by repre- sentatives of packers at other cities. The following table shows the movement of cattle, sheep and hogs at Chicago since and including- 1880. We have not the reports for 1893. Tears. Eeceipta. Shipments. Cattle. Calves.* Hoga. Sheep. Cattle. CalTes." Hogs. Sheep. 1880 1,382,477 1, 498, 6S0 1, 582, 530 1,878,944 1, 817, 697 1, 905, 518 1, 963, 900 2, 382, 008 2,611,543 3, 023, 281 3, 484, 280 3, 250, 359 3, 571, 796 7, 059, 355 6, 474, 844 5, 817, 604 5, 640, 625 5, 351, 967 6, 937, 535 6,718,761 5, 470, 852 4,921,712 5,998,526 7, 663, 828 8, 600, 805 7,714,435 335, 810 493, 624 628, 887 749, 917 801, 630 1, 003, 598 1, 008. 790 1,360;862 1, 515, 014 1 ,.832, 469 2, 182, 667 2, 163, 537 2, 145, 079 886,614 938, 712 921, 009 966, 758 791,884 744, 093 704, 675 791, 483 968, 385 1, 259, 971 1, 260, 309 1,066,264 1, 121, 675 1,394,990 1, 289, 679 1,747,722 1, 319, 392 1,392,615 1,797,446 2, 090, 781 1, 812, 001 1, 751, 829 1,786,659 1, 985, 700 2, 962, 514 2, 926, 145 156,610 253, 938 314, 200 374, 463 290, 352 260, 277 266, 612 445,094 601, 241 711,315 929, 854 688, 205 483 368 1881. • 1882 1883 1884 1885 1886 1887 1888 1889 1890 1891 1892 . . 48, 948 24, 965 30, 223 52, 353 58, 500 51, 290 65, 869 96, 086 122,968 175, 025 205, 383 33, 465 10, 229 12, 671 31,089 33,610 18, 657 16, 956 23, 663 35, 576 61,466 48, 331 * Prior to 1881 calves were included with cattle. GENERAL CAUSES WHICH TEND TO DEPRESS PRICES OE ALL FARM PRODUCTS. Transportation. — While it is true that cost of transportation has been greatly reduced within twenty-five years last past, it is still exces- sive. We do not wish to be understood as saying that stockholders in 52 AGRICULTURAL DEPRESSION. railway corporations are receiving a higher rate of profit on t^^^^. shares than bankers or money leader.^ are receiving on t^ieir loans, nor are we saying that railway sh ues aie particulnrly profitable invest- -meuts. What we do say is, that railway companies as a rule are capi- talized twice as high as they ought to^be, and hence f ^P™^* large, and patrons of the I'oads specially, are taxed a hundred per ^nt more than a fair rate on all they send or rcceiv^over the roads, ine total capitalization of all the raili oads in the country in 1892 was near y $10,000,000,000, more than twice as much as the roads are actually worth. This capitalization consists of stock and bonds m nearly equal proportions. The stockholders own the stock, the bondbolders own the bonds, and the railroad property is held for both. Eates ot change for carrying peisons and property are intended to be so regulated as to allow a fair rate of profit on the aggregate investment. It on pres- ent capitaUzation one ton of freight is carried one mile for one cent, on a proper capitalization the cost would be one-half a cent. Some roads are carrying more watered stock than others, but there is not one road in the United States that is not capitalized far beyond its actual pres- ent worth; and our railway system has become so completely one, that charges are all fixed on the same high and unjust level without regard to the amount of its capital stock or the extent of its indebtedness. We are not unmindful of the fact that consumers share more largely than producers in the benefits of reduced transportation charges. If all the farmers of the United States were located in Kansas and all their surplus grain and stock were to be sold in New York City, a reduction of 5 cents a bushel on the transportation of wheat would hardly be felt by the farmer*, the benefits of the reduction being enjoyed almost if not quite wliolly by the consumers. On the other hand, the farmers would get thb benetit of any reduction on supplies coming ^o them from New York. Farmers are not all in Kansas, however; they are scattered over all the great country; they nearly all raise wheat, and they ship it over a thousand difierent lines of road. , One road ser ves as a sort of regulation of other roads, and a great many influences local and general tend to remove friction, to minimize cost, and to equaLze ad\ antages. With this tendency naturally growing out of the nature of the busine^s and the restraining influences of the law, the burdens of this unjust taxation must be borne by farmers and other classes in proportion to the amount of business they have to transact with the railroad comi)a- nies, and there is no escaping the conclusion that the prices of the property carried mast be injuriously aifected and depressed by reason of the extra charge for transportation. The market value of every item of surplus property on the farm is thus affected. FOREIGN COMPETITION. Our farmers have foreign competitors in the production of wheat, corn, cattle, sheep, cotton, tobacco, wool, hides, animal products, wheat, . flour, and fruit. In one case at the World's Columbian Exposition there were samples of wool from each of the4bllowing-named countries, States and cities: Silesia, Germany; Cape of Good Hope, Africa; Port Philip, Sydney, Australia; Texas, Nevada, Colorado, East India, Bagdad, Persia, Georgia, Egypt. Of the 243,000,000 bushels of wheat annually required to supply the foreign demand, we furnish, on the average, about one-third. Our AGRICULTURAL DEPRESSION. 53 l)riiicipal competitors for the foreign wlieat trade are Austria- H uiigary, Bulgaria, Roumauia, Russia, Servia, India, Argentine Republic, Can- ada, Chile, and Australasia. Our home prices for wheat are largely controlled by the foreign wheat market, and that is regulated by those who supply the greater part of the demand, and the effect on our wheat market is to bring down prices. The principal wool exporting countries are the Australian colonies, Argentine Republic, Uruguay, and the British Possessions in Asia and Africa. The Argentine Republic exports anmially about 266,000,000 pounds, and New South Wales about 200,000,000 pounds. The total product of the United States is about 300,000,000 pounds, on the aver- age, annually. .In 1890 our production was 285,000,000 pounds, and we imported 126,000,000 pounds. In 1891 we produced 307,000,000 pounds. We produce about 70 per cent of the wool we consume. Thirty per cent is imported, and it comes chiefly from Australia and South America. LAND. Mortgage debt. — Land values have been specially depressed by two causes which may be classed as general^ and these are themselves effects rather than causes — debt and taxation. Where indebtedness of farmers becomes so onerous or so common as to attract public attention in any way, values of laud fall, just as those of any other species of property fall when an unusual quantity is thrown on the market. Debt breeds discontent, and the complaints which follow remove the props that sustain prices. When it appears that farming does not pay as well as it did in past years, purchasers are more timid, and the demand falls off. If failure to pay maturing obligations results in litigation and lands have to be sold to satisfy judgments, that tends to depress values, and the more sales are adver- tised the harder the pressure becomes. The indebtedness of farmers hasbeen audnow isveryheavy. The cen- sus reports for 1890 are not completed, but enough has been given to the public to show that the aggregate is almost incomprehensible. The farm mortgage debt due in the several States and Territories, excepting "Virginia, Washington, West Virginia, and Oklahoma, on the first day of January, 1890, was estimated by the Census Bureau to be $5,832,493,204. Of this total the farm debt was $2,127,626,449, and the debt on town and city lots was $3,704,866,755. The average per capita debt on real estate — farms and homes — for the entire country was $101. That is to say, the land mortgage debt owed by individual owners was equal to a debt of $101 to each person in the United States. So heavy a burden on land, and especially during a period of falling prices, can not but be depressing. The average situation in this respect was fairly expressed concerning the farm lands of New York by the State assessors for that State in their report to the legislature under date I^ebruary 3, 1890. Among other things the assessors say: "There continues to be a marked depreciation in the value of farm lands in nearly every county, and the depression among farmers con- tinues while the prospect for improvement is not good ; many assert that after paying expenses they can not realize from their farms suffi- cient to pay the interest on the mortgage against them and conse- quently thousands of farms are falling into the hands ox mortgagees." Taxation. — Much complaint is made that a large amount of personal property escapes taxation, thus throwing a greater burden on real 54 AGRICULTURAL DEPRESSION. estate. The reports of officers charged with matters relating to assessment and taxation show a steady decline in the proportiou ot personal property to real estate on the tax rolls. We present a few tables and call attention to the steady increase ot real-estate values and the comparative diminution of personal values. Tears. 1884. 1891., Real estate. .$565, 900, 254 797, 038, 859 Personal property. $238. 391, 019 288, 038, 869 The gain on real-estate values from 1884 to 1891 was 41 per cent, while that on personal property was only 21 per cent— a trifle more than one- half as much. OHIO. Land. Personal , Acres. Valne. property. 1874 25,416,998 25,458,323 25, 350, 658 25, 426, 707 25,201,743 25, 376, 264 25,383,785 $697, 408, .537 696, 883, 323 704,940,269 705, 896, 953 709,223,985 716, 111, 437 705, 821, 074 $528,121,588 635, 660, 888 1876 520, 681, 600 490,190,387 461, 460, 552 1879 442,979,885 1880 .--. 456, 166, 034 Land values increased $8,412,537 from 1874 to 1880, while the value of personal property fell oft' $71,955,f)54. * NEW YORK. Aggregate valuation of real and personal property as assessed for taxation for the years 1870 to 1890 : Tear. Eeal estate. Personal property. 1870 $1, 532, 720, 907 2.316,400.526 3,213,179,201 3, 298, 333, 931 $434,280,278 322 468.712 1880 1889 354,258,656 385, 329, 131 1890 In New York the reported value of personal property in 1890 was $48,951,147 less than in 1870. WISCONSIN. Beal and personal property. Tear. Seal estate. Personal property. 1886 $398, 372, 090 534,276,218 8104,713,164 118,724,782 1892 In Wisconsin real estate values gained 34 per cent, while personal propery reached but 13 per cent from 1886 to 1892. AGRICULTURAL DEPRESSION. 55 MINNESOTA. Tear. 1878. 1892. Real estate. $183, 015, 738 541, 406, 379 Pei'sonal property. $46, 17B, 304 96, 043, 049 Gain on real estate since 1878 was 250 per cent; on personal property 108 per cent. IOWA. Equalized asaesament of lands and the assessment of personal property for a period of txventy-two years. Year. 1870 1871 1873 1873 1874 1875 1876 1877 1878 1879 1880 Equalized lisaessiueut of lands and town lots. $222, 561, 061 273, 836, 469 273, 836, 469 278, 586, 019 278, 586. 019 294, 313; 368 294, 313, 363 302, 277, 061 302, 277, 661 303, 381, 498 303, 381, 498 Assessment of personal property. $71, 971, 191 75, 201, 88.T 73, 880, 076 71, 683, 367 74, 030, 734 79, 0J2, 896 84, 288, 071 79, 971. 680 77, 485, 822 79, 618, 995 82, 638, 655 Year. 1881 1882 1883 1884 1885 1886 1887 1888 1889 1890 1891 Equalized assessment of lands and town lots. $303, 870, 303, 870. 336, 323, 336, 323, 353, 614, 353, 614, 359, 982, 359, 982, 374, 753, 374. 753, 376, 181, Assessment of personal property. 97, 103, 101, 101, 100, 103, 105, 109, 327, 400 136, 476 809, 203 653, 463 372, 905 654, 942 665, 098 799, 562 564, 136 543, 264 715, 691 Eeal estate increase, 70 per cent; personal increase, 53 per pent. KANSAS. Year. Heal estate. Personal. $250, 070, 144 295, 230, 181 $60, 796, 746 47,401,227 Eeal estate gained 18 per cent, while personal property lost 21 per cent. CALIFORNIA. Valuation of real and personal property. Year. - Total assessed value of property in California. Value of personal property. Porcentase of personal property. 1867. 1868. 1869. 1870. 1871. 1872. 1873. 1874. 1875. 1876. 1877. 1878. 1879. 1880. 1881. 1882. 1883. 1884. 1885. 1880. 1887. 1888. 1889. 189(r. 1891. 1892. $212,205, 237, 483, 260, 563, 277, 538, 267, 868, 637, 232, 528, 747, 611, 495, 618, 083, 595, 073, 686, 953, 584, 578, 549, 220, 666, 399, 659, 835, 608, 642, 765, 729, 821, 078, 859, 512, 816, 446, 956, 740, 1, 107, 952, 1, 111, 550, 1,101,137, 1, 239, 647, 1, 275, 816, 339. 00 175. 00 879. 00 134. 00 126. 00 823. 00 043. 00 197. 00 315. 00 177. 00 022. 00 036. 00 968. 00 985. 00 762. 00 036. 00 430. 00 767. 00 384. 00 700. 00 805. 00 700. 00 979. 00 290. 00 063. 00 228. 00 $100, 105, 105, 112, 104,723, 108, 001, 86, 174, 219, 942, 118, 425, 210, 779, 199, 243, 140, 431, 128, 780, . 118, 304, 112, 325, 174, 614, 160, 058, 134, 048, 167, 338, 166, 304, 172, 760, 151, 937, 195, 663, 173, 273, 170, 661, 169, 489, 189, 599, 187, 008, 600. 00 083. 00 592. 00 588. 00 230. 00 323. 00 520. 00 127.00 292. 00 866. 00 824. 00 451.00 850. 00 906. 00 309. 00 419. 00 644. 00 997. 00 681. 00 132. OO 387. 00 458. 00 836. 00 475. 00 783. 00 874. 00 47-17 44-26 4ri-19 38-90 32-17 30-40 22-20 34 -46 32-07 25-27 21-77 20-23 20-46 26-18 24-24 22-02 21-85 20-26 27-00 18-60 17-31 15-63 15 -35 15-39 15-29 14-66 56 AGRICULTURAL DEPRESSION. The percentage of personal to total property in Californiafell from 47 in 1867 to 14 in 1892. ^ ^ . A committee of the Massachusetts State Grange, appointed to inves- tigate this subject, reported fully on the 17th day of December 1890, and among many oth^r things, said: Some authorities claim that the personal property in Massachusetts is four times the value of the real estate. Those who claim to he very conservative estimate it to be at least douhle. We have no doubt the latter estimate is low. Then the committee show that the real estate valuation for 1889 was $1,530,000,000, and while the personal property ought to have been listed at least as high as $3,060,000,000, it was reported at only $1,050,000,000, thus alleging that at least $2,000,000,000 worth of personal property in Massachusetts wholly escapes taxation. If this amount had borne its proper share of tax, the committee say the average rate of taxation would have been reduced irom $15 on the $1,000 to $8.44 on the $1,000, nearly one half. In the annual report of the comptroller of the State of H'ew York, submitted January 20, 1891, that officer, at some length and with par- ticularity, calls attention to the fact that personal property in New York State does not " bear its equitable and fair rate of taxation." He says "real estate is continually overlDurdened, while personal property everywhere escapes its due i^roportion of liability." Again, he says: " It is, I believe, an incontestable fact that over $2,500,000,000 of per- sonal property escapes taxation." He expresses the opinion that "the effect Qjf this unjust discrimination against real estate in levying taxes has been to largely depreciate land values throughout the State * * * *. Such depreciation in real estate values in the rural dis- tricts of the State during the past few years has been most marked, resulting, as I believe, in an appreciable loss to owners of at least 33^ per cent in shrinkage of values, with corresponding loss in profits derived therefrom." The same officer again calls attention to the same facts in his report submitted on the 31st day of December, 1891, and he repeated his argument in 1892. The governor of Pennsylvania, in his message to the legislature, delivered January 6, 1886, discussing this subject, used the following language : An examination of the subjects of revenue and taxation induces the belief thatthe time has arrived for the State to do something to equalize the burden of taxation upon real and personal property. It is true the State imposes no direct tax upon real estate, but it is equally true that that species of property in this Commonwealth furnishes four-fifths of all the revenue raised within its borders. The figures are indeed suggestive. As far as ascertained, it appears that for State, borough, town- ship, county, municipal, and all other purposes, there is yearly raised by taxation about $38,000,000. Of this sum, real estate pays about $30,000,000 and personal property about $8,000,000. . One would suppose from these figures that the difference in value of the two species of property would be in some proportion to the difference in the amount each con- tributes to the public revenues. The facts, however, do not support such a supposi- tion, llie value of the paid-in capital of corporations (largely below the author- ized capital) IS about $1,200,000,000. The value of money at interest, horses, carriages, watches, etc., amounts to about $300,000,000, making as the total valueof these forms ot personalty $1,500,000,000. Of course these figures are very much below the actual value of all the personal property in the Commonwealth, as the means for the valuation of that form of wealth are very imperfect, and a true appraisement, from the nature of such property, is diiHcult to obtain. The real nnnnnn in.t^fiff"''"'^'''/,^^' f^^-^rag to the latest returns, is valued at $1,600,- 000,000. The difference, therefore, in the value of these two kinds of DrotTertv is $30,000,000. This 18 surely an unwarrantable and unjust discrimination, oppressive AGRICULTURAL DEPRESSION. 57 to roal estate, and. giving personalty an exemption from the jniljlio bunions in con- travention of tlie spirit of the constitution and natural equity. There is no reason why the capital of the farmer should he taxed four times as much as the wealth of another citizen. to the rJiy tne capital ot the farmer should he taxed four times as much as the we uother citizen. Two years later, in his message, the governor, referring again saine matter, said : If our laws were competent to an exact and truthful assessment of the value of personal property, it would, without a douht, equal and most likely largely exceed the value of the real estate. As a matter of fact, therefore, real property in this Commonwealth is burdened by taxation four times as heavily as personal property. This " unjust discrimination " against real estate is matter of gen- eral complaint among farmers in all parts of the country, and the figures and statements above given show that the complaint is not unreasonable. That it has a depressing influence on land values does not, in the opinion of the subcommittee, admit of any reasonable doubt. Money. — As to particular species of personal property which escapes taxation we are not prepared to give details, yet we find that in some States money bears so small a proportion of taxation as to be scarcely worth mentioning, though the amount of money reported to be in the country is equal to 6'7 per cent of the assessed valuation of all the tax- able property. In most of the States money is not reported separately in the State returns, so that it would be difficult, without great labor and expense, to ascertain even approximately how much money, in the aggregate, is - taxed. In four of the States we find reports of the aggregate amount of money taxed in those States. Taking California, to begin with, the following statement shows the amount of money assessed for taxation for the years 1875 to 1892 : 1875 $15,011,777 1880 24,678,330 1881 13,597,566 1882 12,702,056 1883 11,152,463 1884 $10,874,971 1885 10,483,087 1886 9,069,601 1890.... 9,933,997 1892 11,538,028 The following table shows the value of all the property assessed for taxation in California the same years — 1875 to 1892 : Tear. Total assessed value of property in California. Year. Total assessed value of property in California. 1875 $618,083,315 595, 073, 177 586, 953, 022 584, 578, 036 549, 220,^968 666, 399, 985 659,835,762 608, 642, 036 765,729,430 1884 $821,078,767 859,512,384 1876 ' 1885 1877 1886 816, 446, 700 1878 1887 956, 740, 805 1879 . 1888 1, 107, 952, 700 1880 1889 '. . . . 1, 111, 650, 979 1881 1890 1, 101, 137, 290 1882 1891 1, 239, 647, 063 1883 1892 1, 375, 816, 228 It will be observed that while the amount of money taxed fell steadily from $15,011,777 in 1875 to $9,933,997 in 1891, and rose about a million and a half in 1892, the total property valuation rose steadily from $618,083,315 in 1875 to $1,275,816,228, more than 100 per cent, in 1892. In Nebraska the total amount of money (outside of banks) assessed for taxation rose from $546,308 in 1881 to $654,822 in 1892, while the assessed value of improved lands alone rose from $30,736,418 in 1885 to $49,356,703 in 1892. , In-Kansas the amount of money taxed fell from $4,263,848 in 1887 58 AGRICULTUKAL DEPRESSION. to $1,749,386 in 1892, While duriug the same ^w y^^^*J^V|^^^^^^ value of all property in the State rose from $310,866,890 to $342 63M08. This great falling off in the amount of money reported ^r taxation may, perhaps, be partially accounted for on the ground t^at most ot the money used by the people is paper money, and paper money is not subject to taxation under our laws. of „+„„ Sections 3701 and 5413 of the Eevised Statutes of the United States read as follows : Skc. 3701. All stocks, bonds, Treasury notes, and other obligations of tlie United States shall be exempt from taxation by or under State or municipal or local ^"snaslia. The words "obligations or other secnrity of the United States" shall be held to mean all bonds, certificates of indebtedness, national bank currency, coupons, United States notes, Treasury notes, fractional notes, etc. National bank notes and silver certificates are not money; one is the note of a bank, the other a certificate showing that the money it repre- sents is in the United States Treasury. On the 3d day of December, 1893, the New York. World published near a column and a half of descriptive matter, introduced by head- lines in large letters, as follows: "Diamonds at the opera— A mag- nificent display of gorgeous jewels in the boxes estimated to be worth $19,000,000— Several millions more in the stalls— A spectacle whose regal splendor commended as great attention aS the opera itself." The reporter says there were at least 4,500 persons in attendance. •It was the opening night of the opera season at the Metropolitan opera house and " society" was seen at its best. After two introduc- tory paragraphs, the sketch proceeds: MANY MILLIONS IN DIAMONDS. With the turning on of the electric lights, flashes of many hues scintillated from the tiaras and necklaces worn by society's queens, for Monday night was a veritable blaze of diainonds. The wearers displayed themselves in the cushioned, padded, and silk-lined boxes much as casket jewels are shown in the stores. Somebody has figured up that twenty-iive hundred millions of dollars are possessed by the men who own the grand tier of iirivate boxes, and somebody else of the same inclination estimated that in the two rows of boxes last Monday night $19,000,000 worth of jewels were displayed by the occupants. Allowing that at least $10,000,000 worth were scattered over the remaining parts of the house, for diamonds were in profusion in the orchestra and many gems were noticed as high up as the family circle, that would make altogether a rough estimate of at least $29,000,000 worth of diamonds in the general display. That may seem impossible until you stop and think how easily a few thousands and tens of thousands multiplied again and again and scattered here and there and everywhere foot up a million. A $1,000 diamond does not spoil the dainty contour of a woman's ear, but on the contrary heightens its shell-like transparency.. A $20,000 "necklace only sheds a tiny thread of light upon the perfect neck, while a $30,000 tiara neither looks awkward nor too heavy on the graceful head of its wearer. Fifty thousand dollars' worth of diamond sprays, ornaments, and pins do not make more than a superb finish to a magnificent chest and dimpled shoulders. A jeweled fan with which to gracefully accentuate one's remarks can easily cost $5,000. And then there are bracelets and rings and all those indescribable costly trifles which a woman of luxurious wealth regards as essential and which she knows just how to wear. All these were common possession in the opera house last Monday night. They were far commoner than" gilt pins among the shop girls of Sixth avenue. Twenty-nine million dollars taxed at 2^ per cent would yield $725,000 —a handsome bit of revenue. But it is not at all probable that any part of it is regarded as anything more— for purposes of taxation — than the value of mere personal adornment, a ceol sort of wearing apparel, and therefore not subject to taxation. I The amount of personal property of thlis general character that is AGRICULTURAL DEPRESSION. 59 used only by rich people and because they are rich, that escapes not only its just share of taxation, but all taxation, is inconceivably great. What such luxuries ought to bear in the way of tax burdens must be borne by persons whose property is visible to the eye of the assessor. This inequality bears most heavily on farming lauds, and is therefore a factor in depressing land values. GENERAL CAUSES WHICH TEND TO DEPRESS PRICES OP ALL ARTICLES. Having considered special causes which affect the prices of farm products locally, aud also general causes which affect prices of particu- lar articles, it remains for us to point out what the committee believe to be general causes affecting prices generally. If farm products were the only articles which have fallen in price, we would probably find some special reasons for it — reasons not, how- ever, broad enough to cover the whole iield of commerce. Depression has been so general, affecting so wide a range of prices, that where articles are found whose market values have been well maintained, they appear to be exceptions which may be explained by circumstances and conditions that are exceptional rather than general. At all events it maybe stated that depression is found to exist among many articles of manufacture as well as of the products of agriculture. A committee of the Senate (Mr. Aldrich, chairman) submitted a report March 3, 1893 (Senate report 1394, 52d Congress, 2d session), containing elaborate tables showing the average of prices since 1840, and also the trend of priceSj taking those of the year 1860 as the basis of comparison. We quote from p. 11 of part 1 of the report: In the analysis agricultural products have been treated separately. For fifteen products prices have been obtained. The list includes the great staple products of American agriculture, and the summary gives a fair picture of the relative prices of these products. In 1891 the relative price as a whole stood at 97"1, being a fall oi^ about 3 per cent since 1860. The course of prices throughout the period from 1860 to the present time is shown ia the following table, where the prices from 1861 to 1878 are expressed in gold : Average prices of agrioultural products in gold, 1860-1891. Year. Simple av- erage of 15 products (from Table 33). Tear. Simple av- erage of 15 products (from Table 33). 1860 100 '0 91-7 128-5 121-7 187-1 90-0 122-6 127-3 124-8 119-8 121-1 117-8 118-4 117-7 123 -4 112-1 1876 102-0 1861 1877 104-2 1862 1878 97-0 1863 1879 98-4 1864 1880 109-9 1865 1881 121-1 1866 1882 111-4 1867 1883 100-3 1868 1884 104-7 1869 1885 93-9 1870 1886 96-5 1871 1887 94-9 1888 95 -7 1873 1889 91-3 1890 97-4 1891 97-1 Since 1885 prices have been uniformly lower than in 1860. At the same time it will be observed that the fall is not so marked as in the price of commodities in general. Tables contained in the body of the report show that prior to 1860 prices were notice- ably lower than they are at the present time. Thennmberof articles for which prices in that period are given is too small to justify the formation of an average. There- fore, reference must be made to the individual products. 60 AGRICULTURAL DEPRESSION. The fifteen articles included in the table are: barley, clover seed, corn, cotton (upland middling), flaxseed, hemp, hides, meat (beeves), meat (hogs), meat (sheep), oats, rye, timothy seed, tobacco, and wheat. It -will be seen that while depression has been much greater in some cases than in others, on the general average the prices of these fifteen articles the dechne has been from 121 in 1881 to 97 in 1891, a drop of 20 per cent in ten years, and the prices of 1860 are taken as the base. The figures from 1861 to 1878 represent gold prices. In the same report, beginning at p. 67, is found a series of tables representing prices of different classes and grades of manufactured articles (cloths) arranged in nine groups, the prices being, compared with the average prices of the same classes of articles in 1890. The following table shows a summary of the comparisons: Relative prices of clotha and clothing compared with 1890. SUMMAEY. Tear. 09 1 1 1 P< I' d3 1 1 a i g .1. || l.g o f 1 1 c6 1 ■s s c5 1860 122-7 122-7 136-6 179-4 205-5 222-8 204-1 170-7 166-5 144-9 141-8 149 157-7 153-1 145 1 137-1 122-8 115-6 109-5 107-2 117-7 113-5 113-9 109-5 108-0 103-8 106-1 104 -2 101 100-4 100 99.4 127-1 123-4 131-5 186 219-6 337 289 287-6 230-9 231-5 226-3 194-8 211-5 191-9 187-9 180 -5 182-7 161-8 136-7 125-5 138 134-2 133-8 133-2 120-9 109 110-4 108-5 103-2 100-1 100 107-5 123-2 113-5 131-3 139-7 14] "3 145-3 180-3 120-4 112 1 116-1 122 127-1 148-4 148-8 132-7 131-9 119-5 107-5 104-6 104 113-5 109-1 105-5 101-5 95-9 95-5 100-9 100-8 99-7 102-1 100 98-6 138-9 132-3 177-2 352-1 446-4 650-4 468-5 336-7 216-4 231-4 222 189-5 195-3 )92-5 171 151-5 136-8 125-4 116-6 105-6 124-7 120-6 122-3 116-1 106-9 100 96-4 99-9 104 103-8 100 98-2 133-4 117-3 135-2 162 201-7 213-8 176-5 177-8 168-6 169-5 165-4 160-8 154 154-9 152-6 141-2 1.35-3 137-2 124l4 120 122-2 126-1 127-3 124-8 121-7 122-7 117-9 118-8 110-6 108 100 104-5 131-3 1861 124-4 1862 151-8 1863 1864 296 -1 1865 1866 327-5 1867 181-1 143-2 205-6 208-1 211-6 180-1 184 130-4 171,-6 122-5 158-5 151-4 138-4 144 1 138 126-6 121-5 117-8 107 102-3 107-5 104-2 96-2 100 101 1868 160-4 160-4 354 -7 185 162 176-5 172-7 163-9 160-4 147-6 136-2 123-4 133-2 120 117-9 117-9 113-3 105-8 108-1 103-2 105 100-8 100 101-5 189-7 195-5 186 172-7 174-2 171-6 157-8 147-1 135-5 128-8 120 114-9 124-1 120 119 114-6 109-5 105-5 104-6 105-9 103-8 102-9 1869 1870 .. 189-9 188-7 180-4 177-9 160-3 168-3 140-2 133-6 146-6 129-7 121-2 119-9 115 tf 1)0-2 107-6 112-2 117-6 110-8 111 100 94-4 116-8 111-2 111-2 108-4 108-4 101-8 115 112-6 106-3 102 102-8 93-9 95-5 94-9 94-4 97-3 94-8 94-8 93-2 99-2 100 100 1871 1872 1873 1874 1876 1876 1877 1878.. 1879 1880 1881- . 1882 1883 1884 1885 1886 1887 . 1888 1889 1890 1891 99-9 On page 91 of the same report we find a table showing the general average prices for each year from 1840 to 1891. This table is made up of eight different classes of articles, the averages for each class having been found and stated on other pages of the report. On examination of these figures it will be found that since 1883 the general level of prices has fallen about 10 per cent. AGRICULTUKAL DEPRESSION. 61 licJat ire prices in each year, 1840-1891, by grovps of articles. General average of prices. Comparing these figures with those representing particular products of the farm, as grain and livestock, it will, be seen, that while, on the general average, all prices have declined about 10 per cent since 1883, the average for the farm has been three times as great as that. And while the immediate causes for this difference are general m their nature, they have borne with -greater weight on agriculture than on any other department of industry. INDUSTEIAL COMBINATION. This includes railroad transportation and manufacturing establish- ments whose operations concern agriculture, as merchant miUs and packing iouses. 62 AGRICULTURAL DEPRESSION. i2aiZroad!s.— Discriminations by railway companies, while they may affect consumers as well as, and as much as, they affect producers, yet, as we have shown before, farmers are consumers of a great many arti- cles produced in other parts of the country and of the world, as well on farms as in shops and mines. Farmers in some States purchase vast amounts of things produced by farmers in other States. Much of the surplus corn, wheat, beef, pork, and mutton grown m Kansas and Nebraska are consumed on farms in Louisiana, Mississippi, Alabama, Florida, the Oarolinas, and other States. It now costs twice as much as it ought to cost^-even at present high rates in other parts of the country, to carry grain from States west of the Missouri Eiver to those of the Southern coast. The Mississippi River is a line between railway divisions where freight rates are changed. It has cost more to bring fruit from California to Denver direct than it does to take it over the same road to Kansas City on the Missouri Eiver, and then back to Denver, nearly 600 miles west. This was true in practice only a year or two ago, and, although it was ruled against by the Interstate Com- merce Commission, it is not clear that there has been any substantial change ^y the railroads. It costs as much to carry graiit from Kansas City to Chicago, 600 miles, as it does to carry the same quantity of same grain ftom Chicago to New York, twice as far. It costs more than corn is worth on the farm in Kansas to carry it to Galveston, Tex., 600 or 700 miles away. Like discriminations are noted in all the great farming regions of the country. Special complaint is made in California and at points between that State and the Mississippi River. One orange grower in California stated to the chairman of the subcommittee that on account of excessive freight charges his net returns on 111 boxes of oranges carried from Anaheim to Minneapolis, Minn., was only $6.66. Five ca.r loads of potatoes raised by another California farmer and by him shipped to Chicago, netted him $58. Farmers in the West and farmers in the East complain alike of rail- road discrimination against them, and while their grounds of com- plaint are substantially the same, the effect on the farmers is not the same. They all complain that local freight rates are too high in com- parison with through rates, thus giving farmers at a long distance away an unjust advantage over them. This discrimination, whether it be great or small and whether the farmers' estimate of its magnitude and effect be overdrawn, it is not to be doubted that when considered in connection with other influences and agencies tending in the same direction, it does injuriously affect the prices of things produced on the farm -for sale. MERCHANT MILLS AND PACKING HOUSES. Having heretofore called attention to the relation which great mill- ing centers bear to agriculture and the natural effect of such powerful purchasing agencies on the general level of market prices of wheat, and the effect of the packing house business on prices of cattle, we need do no more, in this place, than to summarize the principles there set out and apply them generally in their relations to prices of all farm products. It is an invariable rule in business, that men who purchase to con- sume m manufactures buy as low as they can ; and this rule, when applied in all departments of manufacturing industry, has the effect to AGEICULTURAL DEPRESSION. 63 keep prices as low as the interests of the manufacturers require. And this comes about naturally— it is a law of trade. When a new depar- ture is made in any particular line of business, combinations may be formed for the purpose of " freezing " out small competitors in order to get their trade away from them, as In the case of merchant flouring mills and packing houses. The same thing often takes place without any combination, for one man or one company alone, may have acquired influence enough in his busiuess to crowd small dealers to the wall, by taking one or a few of them at a time. If it be to the interest of a packing house or a mill to secure the trade of a particular town or com- munity, it need only send its goods there and undersell the local dealers until they quit of their own accord. This the great and powerful con- cern can afford to do, because it is strong and the local dealer is weak. It has been common among farmers and working people generally to charge the hard effects of this practice to combinations formed by millers and packers, and they have not been able to understand why no such combinations have been proven by positive evidence to exist. It will be observed, on examination of testimony presented to this sub- committee, that millers and packers state positively that there is no such combination, and we are satisfied that the great packing houses and merchant mills of the United States are quite strong enough, alone and acting separately, to accomplish in their own interests all that they have done. When we consider the vast amount of capital necessarily employed in packing establishments where cattle and hogs and sheep are slaughtered by the million every year, and in merchant flour mills where flour is turned out at the rate of a million barrels a month; and when we consider, further, that these great concerns are in constant telegraphic communication with all parts of the country and of the world ; and when we consider, still further, that they have agents wherever the interests of their business require their presence, and that they gather their supplies from a large area of country and distribute their products over a much larger territory, it is not difficult to comprehend the meaning of the proppsition that these powerful ■ industrial agencies are strong enough alone and without any private understanding among themselves and" without any conspiracy among them, to produce the effects which have followed their business opera- tions. In other words, it is the logical result of such vast combinations of men, money, and means to keep prices on the lowest level of the range. For further illustration: A local butcher whose business requires but 10 beeves a week, needs to make a profit of $10 on each animal in order to make a good living above expenses; but the packer whose business disposes of 20,000 beeves a week can get along very well if he clears a profit of 10 cents ahead, for that would net him $2,000 a week or more than $100,000 a year. And when, by reason of utilizing all the different parts of the animal a satisfactory profit can be made without any gain whatever from the carcass, the effect on prices of animals is all the greater on that account, because it allows closer buying on animals. The complement to that illustration is this : The farmer who has but 10 beeves a year to sell needs to make $20 a head clear in order to make a fair profit, but the great packers do not need much margin on carcasses, for their principal profits do not come from the carcass, and when they buy on a full market they can supply themselves leis- urely. The inevitable result is to keep the market well in hand, for the rule of business is to buy on the lowest level of prices. 64 AGRICULTURAL DEPRESSION. Briefly, the situation may be stated in two propositions: First, the rule of the buyer is to purchase at the lowest price; second, concen- tration of great business interests under one management diminishes the number of buyers and increases their influence- in the market. CONCENTRATION OF THE MONEY POWER. If our conclusions thus far are correct, it is evident that the depres- sion in agriculture can not properly be attributed to one cause only. Manv things have operated, each in its own peculiar way, to aid m the general decline. In the opinion of your subcommittee, the most pow- erful factor in this downward trend of market values of farm lands and farm products is the concentration of the money power. The great bankers and speculators at centers of trade exercise a controlling influ- ence in our financial legislation and dictate the policy of our Treasury Department. An officer of the Treasury— the assistant treasurer at the subtreasury in New York— is a member of the New York Bank Clearing House, not by authority of law, but by regulation of the Treasury Department. It has been customary since the beginning of the war of the rebellion for the Secretary of the Treasury to consult the powerful bankers and brokers of New York City in cases of danger to the national finances ; and, on the other hand, the bankers and brokers have appealed to the Secretary when they found themselves facing a " stringency in the money market." Three notable Instances may be cited. When the " gold corner" of 1873 collapsed the bankers of New York appealed to the Secretary of the Treasury and through him to the President of the United States for assistance, and personal confer- ences w6re held with those officers, resulting in the putting out of a large amount (about $13,000,000) of money from the Treasury into the banks. The facts are set. out in the finance report of the Secretairy of the Treasury for the year 1873 at pp. xi to xv. We quote three para- graphs showing the temper of the bankers of New York : The Executive Department of "the Government was anxious to do everything in its power, under the law, and with due regard to the protection of the Treasury and the maintenance of the public 'credit, to allay the panic and to prevent dis- aster to the legitimate commercial and industrial interests of the country; hut it was found impossible to afford the relief in any of the many forma in which that relief was asked. It was decided, therefore, to adopt the only practicable course which seemed to be open to it, the purchase of bonds for the sinking fund to such an extent as the condition of the Treasury would allow, and thus release a considerable amount of currency from its vaults. Purchases of bojids were com- menced on the morning of the 20th of September, and were continued until the 24th, when it became evident that the amount oflering for purchase was increasing to an extent beyond the power of the Treasury to accept, and the purchasing was closed after bonds to the amount of about $13,000,000 had been bought, and without the use of any part of the forty-four millions of United States notes, generally known as the reserve. It should be stated that in the excitement there were many persons in the city of New York who insisted with great earnestness that it was the duty of the Executive to disregard any and all laws which stood in the way of affording the relief suggested by them— a proposition which indicates the state of feeling and the excitement under which applications were mpde to the Secretary of the Treasury to use the public money, and which, it is scarcely necessary to add, could not be entertained by the officers of the Government to whom it was addressed. ' These facts are recited in order to lay before Congress, and place on record in a concise form, exactly what the Treasury Department was asked to do, and what it ■ did, in the late financial crisis. Again, in 1890, because of a long-continued " stringency in the money market" at New York, the Treasury purchased $70,000,000 worth of Government bonds at a premium ranging from 25 per cent upward AGRICULTURAL 'depression. 65 and ill addition made an advance of nine months' interest on bonds not purchased. The premium amounted to over $17,000,000 and the advanced interest exceeded $12,000,000, making a total principal, pre- mium and interest, of nearly $100,000,000 paid out of the Treasury on obligations not due, all at the request of and to accommodate the great bankers of New York City. [See finance report 1890, pp. xvii to xx.] After reciting the principal facts showing the state of feeling in financial circles, and referring to what the Treasury had done to relieve the "industrial and commercial interests," the report says: Notwithstanding the disbursements resulting from purchases and redemptions of bonds under the circulars of July 19 and August 21, the industrial and commercial interests of the country required that large additional amounts should be at once returned to the channels of trade. Accordingly, a circular was issued August 30, 1890, inviting the surrender of an additional twenty millions of 44 per cents upon the same terms as before. This was followed by another, dated September 6, invit- ing holders of the 4 per cent bonds to accept prepayment of interest on those bonds to July 1, 1891, a privilege which was subsequently extended to the holders of cur- rency 6's. Under the circular of August 30, there was redeemed $18,678,100 44 per cent bonds, and under that of September 6 there was prepaid on the 4 per cent bonds and currency 6'8 interest amounting to $12,009,951.50 , Collecting the sevieral amounts paid out on bonds and interest, the facts are thus summed up : It will be seen from the above statement that during the three and one-third months from July 19 to November 1, 1890, over $99,000,000 were disbursed in pay- ment for bonds and interest. While this is being written, January 30, 1894, a proposition to issue and sell $50,000,000 Grovernment bonds is pending, the authority of the Secretary of the Treasury to make the issue and sale is disputed, and the Senate is discussing the subject. The following is taken from the New York Sun of January 29, 1894. It is submitted as an important item of current news showing present relations between the Treasury of the United States and the banks of New York : " The Secretary, on his arrival at the hotel, issued Ms statement printed in yester- day's newspapers. After issuing his statement Mr. Carlisle directed Mr. Jordan to invite the iinancial men to meet him at the subtreasury, and accordingly Mr. Jordan sent out the fol- lowing early yesterday morning: " OFiriOE OF Assistant Tebasukbk United States, "New York City, January 29, 1894. "The assistant treasurer of the United States has the honor to request your pres- ence at a conference with the Secretary of the Treasury at the subtreasury at noon to-day. • " Very respectfully, "C.N. Jordan, " Assistant Treasurer United States, New York." Promptly at noon Secretary Carlisle arrived at the subtreasury. He was accom- panied by Assistant Secretary Curtis and Assistant Treasurer Jordan as he made his way to the private conference room in the upper story. Those who had assembled to meet him were George F. Baker of the First National Bank, William L. Strong of the Central National, Brayton Ives of the Western National, J. Edward Simmons of the Fourth National, Henry W. Cannon of the Chase National, A. B. Hepburn of the Third National, J. T. Woodward of the Hanover National, Frederick D. Tappen of the Gallatin National, George G. Williams of the Chemical National, James Stillman of the National City Bank, William W. Sherman of the National Bank of Commerce, Edward H. Perkins, jr., of the Importers and Traders', Ebenezer K. Wright of the National Park, Ebenezer S. Mason of the Bank of New York, all presidents ; Vice- President Dumont Clarke of the National Bank of Exchange, President William A. Nash of the Corn Exchange, and President William H. Perkins of the Bank of Amer- ica. State banks: President Stephen Baker of the Bank of the Manhattan Com- pany, President Frederic P. Oloott of the Central Trust Company, President Edward King of the Union Trust Company, President John A. Stewart of the United States 15405 5 66 ■ AGRICULTUKAL DEPRESSION. Keu of August Belmont & Co., and L. Vou Hoifuian. Tliere were no representatives from Drexel, Morgan & Co. or Morton, Bliss & Co., whicli two firms in times past have been famous in floating Government loans. What was done, if auy thing, will be officially reporled in due time* The interview is said to have lasted about two hours. It has become a custom of late years for Treasury officials to attend social as well as business gatherings of bankers and brokers and to deliver addresses on the business situation generally and particularly on the policy of the Treasury Department of the United States. So intimately related have the business of the Treasury at Washing- ton and that of the banks at New York become that the influence, of the banks on Government policies is virtually supreme. In twenty-four hours these powerful institutions could command every dollar of gold owned by the Government. They need only present coin notes enough and demand the gold. Outstanding notes amount to about $500,000,000, payable in coin, which is construed to mean gold. The business of the United States Treasury is conducted (1erate zone are raised in great quantities. Ten acres of irrigated land is worth niore to the owner than a quarter sec- tion (100 acres) under natural conditions. In the region o^ Garden City, Kaus., experiments have been in progress ten years or more, and the crops there grown under irrigation are luxurious and of the best quality. In the valley of Salt Lake farmers ijroduce abundant crops by means of irrigation on land that otherwise is without value. Wheat, corn, oats, fruit, and all sorts of vegetables grow to perfection. Sugar beets, alfalfa, cabbage, and their kinds are produced in great profusion. The little farms of 10 acres to 20 acres are supporting families well. In Yakima Valley, Oregon, in laud that wagon wheels will cut into 88 AGRICULTUEAL DEPRESSION. deep dust as fine as that made in a mortar by a druggist, tlie Northern Pacific Eailroad Company has a large irrigating ditch m successtul operation. Without water the land is useless, producing only a sort ot brush commonly called grease brush. Under the fructifying influence of irrigation little farms are multiplying along the ditch, and grains, grasses, trees, and vegetables are.growing most encouragingly. In southern California, on lands which forty years ago were barren almost as Sahara, now orange groves and orchards of prunes and olives are seen on every hand, and sugar beets and other vegetables are produced in wonderful abundance. While many wheat farmers in California cultivate very large farms, the growers of fruit and vegetables need but 1 acre in their productive lands under irrigation, while the grain farmer needs 10 acres or more. If colonies of farmers who are now renting other people's lands, would "pool their fortunes " and move to the regions where irrigation is or can be successfully applied, and procure small tracts of land, 10 to* 15 or 20 acres each, and build their dwelling houses near each other, village fashion, they could soon, with reasonable success, enjoy life better than the average of farmers on large places. This, of course, involves a necessary prerequisite — water; and that requires an outlay of large amounts of money — something that renters do not have. The suggestion may reach the eye of some farseeing man who desires to mingle usefulness with selfishness, and he may see in the reclamation and settlement of the arid regions a great opportunity to invest means which will not only add to his personal fortune, but open the way for millions of small farmers to secure their own homes. The Government of the United States may yet find it wisdom to undertake a movement of this kind. Why not? WOOL-GROWING. American farmers ought to produce every pound of wool consumed in the country. They are now and have been many years supplying but about 70 per cent of the total consumption. The wool product of our farmers is about 300,000,000 pounds a year, and we import nearly one-third that much. It is not profitable to produce any but the best grades, and at present prices even the better grades can not be profitably growu in large quantities on high-priced lands. A small flock of good sheep can be maintained profitably on any farm where the conditions are favorable for the health of sheep and for the pro- duction of a good quality of wool. SUGAR-BEET FARMING. Among the new avenues open to American farmers, more especially- those in the region west of the Mississippi Eiver, is the growing of sugar beets and sorghum to be manufactured into sugar. This is fhe only department of manufacturing yet discovered which can not be carried on far away from the farm. A woolgrower in Nebraska may have his wool made into cloth 1,000 miles away; but if a Massachu- setts sugar-maker wants to use Nebraska beets or Kansas sorghum he must go to those States and put his factory right among the farmers that raise the plants. Not simply that it is the cheaper way, but that it is the only practicable way. Beets and cane are so heavy and bulky that they will not bear transportation more than a very short distance. A beet-sugar factory that will work up 600 tons of beets a day uses AGRICULTURAL BEPRESSION. 89 beets grown on about 5,000 agres of land, and when the beet fleMs are scattered among- lields in other crops, the distance from the outer fields to the factory is quite far enough to transport beets on wagons drawn by horses. When the fields lie along or near a railway track and the , station is not far away, the beets may be carried 3.5 miles without appreciable loss. The loading and unloading on the wagons is the same whether the beets are taken to tbe factory a mile away or to the railway station the same distance. In any event, no sorgham or beet sugar factory can be successfully conducted anywhere but near the supply of raw material. A successful sugar factory in a neighborhood is a pioneer. Others will follow at convenient distances away, and the fact that good mai;- ketable sugars in profitable quantities have been and are now being produced from both sorghum and beets is encouraging, to say the least. Kansas has been producing sorghum sugar ten years or more, and suc- cessful experiments have been made at Medicine Lodge, in that State, with the sugar beet. Nebraska has two beet-sugar factories now in successful operation, one at Norfolk, the other at Grand Island. At Lehi, Utah, some 30 miles south of Salt Lake City, is a beet- sugar factory which has been doing good work some three or four years. There are three successful factories in California, at Watsonville, Alvarado, and Chiuo ; the last named in 1892 and 1893 turned out more sugar than the largest cane-sugar mill in Louisiana. The writer hereof personally visited all the mills here mentioned except that at Watsonville ; he visited the beet fields at all of them and witnessed the processes and methods of growing beets; he studied all the details of preparing the ground, planting the seed, thinning the plants, cultivating the beets and raising them out of the ground, load- ing tl^em, and hauling them to the factory; and he carefully examined the machinery for taking care of the beets from the time they are dumjjed into the bins until the sugar is sacked eighteen hours after the beets enter the factory. And during the eighteen hours not a human hand touches them; everything, even to the sacking and weighing of the sugar, is done by machinery. A plant like that at Norfolk or Chino costs about $500,000 ; but, though it costslialf a million dollars to make the first pound of sugar, after that the way is clear. In the appendix to this report will be found a brief history of the beet-sugar industry in foreign countries and in the United States, together with descriptive matter relating to the soil, culture and handling beets, and the manufacture of beet sugar. It will be seen by an examination of tbe matter referred to that the growth of the beet-sugar industry in foreign countries has been slow and costly. Individual fortunes were spent in it, as inventors and dis- coverers are always subjected to losses, for it is by their mistakes and misfortunes that their successors learn what to avoid and what to adopt. Prance, Prussia, Russia, Austria, and Germany encouraged the pioneers by direct appropriations, and protected the industry after- wards by bounties, drawbacks, and in other ways. Now it is one of the most important industries; the exports of sugar from Prance and Ger- many are very large. Among the advantages attaching to this industry is that the farms may be small and the profit fair. A few acres of suitable ground is enough to neatly support an average family. Pive hundred 10-acre and 15-acre and 20-acre farina spread out with a COO-ton factory in the midst brings the people close together in communities; they are farmers, 90 AGRICULTURAL "DEPRESSION. manufacturers, merchants, teacliers— a .complete social body, a village of farmers and their helpers where all the advantages of towns may be enjoyed out on the farm. . The Ohino Eanch, on which the Chino factory is located, is a large tract of land recently owned by one man, Eichard Gird. He entered into a contract to grow beets on his land dui'ing a term of years for the Oxnards, who erected a factory. Within three years from the starting of the works a village of nearly 2,000 persons grew up around the mills, and last summer the factory owners erected at their own expense an $8,000 schoolhouse for the iise of the people. Mr. Gird early had in mind the parceling out of his laud among small farmers, and he found the way open by this beet contract. Many men have already paid for little tracts of 10 acres ormore eaci, and they say they are making satisfactory progress. At Anaheim, some 25 miles southeast from Chino, an organization of farmers is preparing to erect a factory on the cooperative .plan. We heard a good deal of talk about new enterprises in this line, but the movers were hesitating through uncertainty as to what Congress would do concerning sugar in revising the tariff schedules. There are two principal considerations which have led us to commend this subject to the consideration of farmers. The first is, that grain farming has become unprofitable and some change of crops seems manifestly desirable; the second is, that the quantity of sugar con- sumed by our people is so large that a great many farmers could be profitably employed in it, and to that extent relieve the pressure on the rest. The following article from the Louisiana Planter and Sugar Manu- facturer of September 2, 1893, expresses the general opinion of the beet- sugar industry among men who have studied the subject: To an observer well informed in sngar matters it is becoming daily more and more evident that the beet-sugar industry is destined to soon figure immensely in the agri- cultural industries of the United States, and especially in Colorado, Utah, and Cali- fornia. The so-called silver States will be known as the beet-sugar States before the end of the century. An agriculturaland industrial revolution is now impending that is not dreamed of by the unfamiliar with sugar production. The practically rainless climate of the silver States and of California and the excel- lent facilities for irrigation so largely developed there give a degree of control over sugar-beet production that is simply ideal, that can not be reached elsewhere in the agricultural world, and which places those States in the front as ecouomic sugar pro- ducers. American 'enterprise has always stood ready to avail itself of every chance to get wealth. We have had a so-called aristocracy formed on our fishing industry and distinguished by the suggestive name of codfish. The five years preceding the' war, and all the years since, have built up another class from those who struck oil. The dreary days of the war developed a more ephemeral class, whose fuaudiUent work gave them the significant name of shoddy. Someway or other the sugar planters of Louisiana, while always able to keep the wolf from the door and to pay their debts, never accumulated large fortunes. A man who raises sugar cane,' who then manu- factures it into sugar and who then seeks a market and sells it can never become very rich. He can't do enough business to enable him to accumulate wealth. The beet-sugar industry of the United States is founded and conducted on differ- ent lines. The territory adapted to the production of beets of quality superior to the European standards is practically unlimited. The beet-sngar people are building the factories, «ind the farmers are producing the beets. The ideal central factory plan of sugar production is being inaugurated successfully in Nebraska and California, and thu new factories that now work from 300 to 600 tons per day can readily be enlarged to work 500 to 1,000 tons of beets per day. Sugar beets of better quality than those of Europe can be produced in the United States, and the climatic conditions facilitate the keeping of the beets much better than is usual m Europe^vhero constant deterioration is the reootd from the moment the beets are placed in siloes. AGRICULTURAL DEPRESSION. 91 What hindrance is there, then, to the quick, possihlv sudden, development of the heet-sugar industry in thi« oountry ? It is said to he the laik (jf skilled lahor, the lack of -willing labor, and the lack of I he inclination among onr farmers to engage in the industry. All this would seem now to be in the way of quick settlement. The low prices of wheat necessitate the consideration of other crops; we are securing skilled labor as rapidly as we need it; successful machine work has been introduced and the unemployed thousands will respond to the demand for common labor. We find the California journals relating the visits to their beet-sugar factories of representative Germans Investigating on sugar-prodncing advantages at Chino. Some two weeks ago a party of distinguished German sugar experts visited the factory. Prof. Dr. Alexander Herzfeld and Dr. Waldemar Frentzel, of Berlin, George Scheller, of Breslau, and F. Heeker, of JIagdehurg, made np the party. They were sent here by the German Government to examine into our agriculture, and especially into our beet-sugar industry. They had been to Chicago and to Nebraska, had gone to Watsonville and thence to Chino. Referring to the American sugar industry. Prof. Herzfeld K;iid that if this country continues the bonnty on sugar live or ten years Germany will not only lose her pres- ent American market for beet sugar, to which she ships largely, but will also lose the English market, as we shall have the ability to take it from them. In Germany we have some factories that handle 1,200 tons of beets per day, and iii France one factory that uses the juice from 2.5,000 tons of beets per day.' He says we have a material advantage in our long workiug season and will soon have so many beet- sngar factories that we shall be sending beet sugar to Europe. Every acre devoted to beets or sorghum is 1 acre less for wlieat and corn. The more farmers raise sugar plants the better it will be for those that raise grain. Thepeople of the United Statesuse about4,000,000,000 poundsof sugar a year now. The average production of sugar beets is 10 tons to the acre, and the average yield of sugar is 165 pounds to tlie ton of good beets. This gives 1,650 pounds of sugar to the acre of ground. A factory that works up the beets grown on 5,000 acres of land will produce 8,250,000 pounds of sugar yearly, and at that average for the whole country it would require 436 factories to supply the present demand. To raise the beets for these 436 factories would need the use of 2,181,818 acres of land, and 218,000 farmers with their families, as many as there are in Kansas and Nebraska both, would have employment at living wages. This includes only the land actually used for beet cul- ture. In practice a body of land producing that quantity of beets would be but a part, and probably a small part, of the whole region devoted to beet-growing with other crops. Prices now paid range from $4 to $5 a ton at the factory, measure^ according to the quality of the beets. The quality is determined by chemical tests showing the percentage of sugar contained. in the sub- stance of the beet. At the average of 10 tons to the acre this returns about $45 an acre to the grower. Some farmers produce 15 to 20 tons to the acre, just as some wheat farmers grow 30 to 40 bushels of wheat, and these more successful men receive larger returns. It is to be expected of course that prices for beets will not always remain at their present level. As machinery becomes perfected and processes more simplified, and as the industry becomes firmly estab- lished prices of raw material will be forced down by the same laws of business and trade that have forced down the market for wheat, cotton, and other farm products. Sugar factories will have the same effect on the price of beets that mills, packing houses, and cotton factories have had on the prices of wheat, cattle, and cotton. To begin with, the plant costs nearly $500,000, and that amount of capital requires careful watching; every point must be guarded; for, after all, in any large business the profits come chiefly from savings, and the place to l)6gin the saving process is at the counter where the raw materials are paid for. Buy low is the motto. And it will make no difference 92 AGklCULTURAL DEPRESSION. ill this respect if farmers themselvos are owners or part owners of the plant. Farmers are just like other men. They buy low as they can, and expect profits, if they secure any, out of what they sell. An organization of farmers making sugar out of their own beets would pay themselves out of the profits on the sugar they turned out and not on the beets they raised. But prices could be cut down 30 per cent from present rates and still sugar-beet growing (with a factory near to work up the beets) would pay 100 per cent better than wheat or corn or cotton farming, at prices ruling the last ten years. Bight dollars an acre is more than the present average returns on wheat and corn land. For 1893 the average farm value of an acre of wheat was $6.16. It is not to be expected, however^ that farmers will or can go into the business of manufacturing sugar without the assistance of men who have or can procure ready money to invest in the enterprise, and such men will not move in that direction without study and carefal preparation. Nor will they engage in it at all unless they expect to profit by the transaction, and this brings before us the obstacles to be overcome. In the first place, there are few trained sugar-makers in the United States who are not now employed every hour of their time. Kor is there a school in the country devoted to teaching the art of sugar-making. And we have no men who understand how to handle sugar making machinery except such as are now busy at work in factories already established. What is still more in the way is the fact that farmers have to learn how to raise good sugar beets, and there is the beginning point. The ground requires special preparation and special tillage. Plant- ing the seed and taking care of the plants requires much studious and hard labor, and all these things must be learned under instruction of experienced persons. It would not be prudent to begin the erection of a factory until after the farmers who expect to supply the beets had at least one year practical experience to justify an estimate of what they can do. To acquire this necessary experience is a costly proceeding — not to the farmer, because he can use his beets for cattle feed, and he has improved his land by more careful tillage than he ever gave it before. But the projectors of the enterprise or they who are expected to furnish most of the ready money and the business management will take no risks without well-grounded expectations of making a good reward sometime, and they must wait to learn how the farmers succeed in thfe first move. The early success of the beet-sugar industry in the United States largely depends on State and national legislation. Kansas, in 1887, granted a bounty of 2 cents a pound on all sugar made in that State from cane or beets grown there, and a good deal of money has been' paid out as bounties on sorghum sugar in that State. At one time there were five Kansas factories turning out merchantable sugar. Only one was operated in 1893. The others failed from one cause or another, but none of them because sugar can not be successfully manufactured from sorghum cane at a profit. The principal difiSculty has been the lack of experience and money on the part of the managers. Of the factory and fields located at and near Medicine Lodge, a local paper, in September, 1893, thus said : The mill located iu Medicine Lodge is, as is well known, the largest Borghnm sugar factory in the world and one of the largest equipped mills- in the United States, having al] the latest improvements in machinery. We have every confi- AGRICULTURAL DEPRESSION. 93 dence in the persevering enterprise of the English capitalists who own the mill and that they will be well content with the measure of success which will be tlie result of this season's working. The fact that whilst every other crop in the United States has been a partial failure, in the Western States even a well-nigh total failure the sorghum crop will show a full average half yield of cane of increased sugar con- tent, speaking volumes lor the stability and remunerative character of the industry. We fully expect that when the tacts concerning this season's workino- becomes known numerous other sorghum sugar mills will before long be established in this the sugar bolt of Kansas. The idea that a sugar factory for successful operation cari be erected without heavy outlays has been abandoned. It would not have been entertained at all if in the beginning the history of sugar-making had been more carefully studied. The history of beet sugai* in th^ United States is not unlike that in foreign countries. Disaster and failure resulted from our first attempts, and no small amount of capital was swallowed up. The early experience of our venturesome capitalists in behalf of this industry commenced in 1828 and ran down through 1863, 1879, culminating in our recent and sitccessftil efforts. It has been the same as that abroad. Consul Potter, writting from Stuttgart under date of November 1, 1879, says : It may be oonsidertd a fortunate circumstance for the United States that the manufacture of beet sugar has not heretofore been attempted on an extensive scale. The European farmers and manufacturers have suffered all the discouragements and losses incident to twenty years of experiment in developing the industry before it began to pay. Ootemporaneous with the firm establishment of this industry in France, in 1830, two gentlemen of Philadelphia entered upon an experi- ment, but it failed because they were ignorant of the method of culti- vating beets and of the extraction of sugar. In 1838 Mr. Childs, who had spent nearly two years abroad studying the industry in Europe, undertook an experiment at Northampton, Mass., but he had been unable to ascertain abroad the necessary information concerning the extraction of sugar unless he wqtild purchase the exclusive right to use the method in the United States. He therefore operated with his own machinery, and it resulted in failure. He obtained only 6 per cent of saccharine and his sugar cost him 11 cents a pound. In 1863 the Gen- nert Bros., of New York, started an enterprise in the direction of obtaining sugar from beets at Chatsworth, 111., which failed there in 1870 because of bad management, lack of knowledge, too much rain in 1869, and a drought in 1870. The management removed to Stephen- son, 111., where failure also overtook the effort, and from there the plant was removed to Black Hawk, Wis., and was merged with a plant which had started there one year previous, but it seems not to have arrived in time to be of use in 1871, and the ^ater supply having dried up, the experiment there was a failure. Previous to this some good results, however, had been obtained at Fond du Lac, but the two Germans (Otto and Bonesteel), who had been operating it, accepted an offer made them by a company organized about this time at Alvarado, Gal., where Mr. Otto became superintendent. He subsequently went to SoqtTel, Gal., where as late as 1876 a factory was reported as in successful operation, but it soon failed. In 1876 drought destroyed the beet crop at Alvarado and the com- pany failed. The Sacramento Valley Company, in CaUfornia, com- menced operations in 1870, and it too went into liquidation in 1875, at great loss. Over $1,000,000 of capital was sunk in California. The Alvarado works were resuscitated, and after a tedious struggle became 94 AGBICULTURAL, DEPRESSION. able, in 1892, to make a small dividend after several years of losses. A factory was erected in Maine, and one in Delaware, at Portland, and at Wilmington, but notwithstanding that bounties of $300 and $1,500 were offered in Delaware, and notwithstanding premiums, by way of exemption from taxation, were offered also in N'ew Jersey and Massa- chusetts, and encouragement in Maine in 1870-'71, the experiments went to the wall. , The successful era of the production of sugar from beets may be dated from the organization of the factory at Watsonville, Cal., and the reorganization of the Alvarado factory in 1880, followed by the building of three factories in 1889, 1891, and in 1893 at Grand Island, and at J! > . Put in another form, allowing for differences between wholesale and retail prices, we have — Total consumption of sugar mtTieUniteil States iu 1892, accordino- to Willett and Gray T.n„n,no " /< nc noo oxn Average price before 1890 was.... ::;:::;:::;;;:;;;::;:;;:P°j;^'J^:; ^'i^^- 0^2,240^ Total cost to consumers «qAq Rnc skq Under the bounty policy the average bas'beeu but'.^;' c'cntV,"or"a *''*^' """' "^'^ ^"^""^"^ - 226,384,523 DiiTGrGnpp — — — ^-^^— .^^^.^— . Out of this we couidhav'e paid a" 2'-cent duty" on our'im- ^^^' ^^^' ^^'^ ports of sugar in 1892, say ^m nnn nnn Also the bounty, say... .'.. .^. ::::-.:;::::::: *Io;5Soo 82, 000, 000 And have left iu the pockets of consumers 34 628 330 The per capita consumption in 1892 was 64-^ pounds A familv of SdeTTheSvnXT*?rf.I ''!,* P^^*^^' ^^-^cl^^oW^li^"-^^^ rdiffLenreof «q^^"?^ '^^t';'"*^ ^''**^^' *h« bounty policy $17.65|, T^^'c,^^^^ *9-132i; enough to pay the taxes of many a farmer ...Jt^ f '^^^T^ V^ "^'^ «f ^^S^^ «nder the old and nerjolicv™creases as the production increases on the basis stated. Z^SS^IZ AGEICULTUEAL DEPRESSION. 99 bounty policy a very much larger sum would remain in the pockets of the consumers and taxpayers tlian the total bounty or the bounty for any one year. For instance, if the people were called on to pay 8J cents per pound for the sugar, they will probably consume, if the price is low in 1905, 5,440,000,000 pounds, at 84 cents, would be $453,330,000 ; at 5 J cents it would be §299,200,000 ; at 6* cents, if a duty of a cent per pound was put upon sugar, it would be $353,600,000. So that in either event the people in 1905 would be gainers of from 153 to 100 millions. If the dual policy of a cent duty and a cent bounty was adopted, then in 1905, out of the 100 milHons of difference the rev- enues could receive about 25 millions and the bounty be fully paid. The statistical abstract shows that prior to 1890-'91, in about forty- one or forty-two years the people paid in duty on sugar the enormous sum of one billion, one hundred and fifty millions of dollars, and that we sent abroad for sugar in that time, in gold or its equivalent, over three and one-half billions of dollars. If the policy of free sugar, or without any protection to our domestic manufacturers, is to be inaugurated at this time, it would doubtless have the effect to check the development of our sugar industry; for, while existing factories might be able to cripple along in the face of foreign competitors so strong as to be able at all times to control the price in our own markets, no prudent capitalist would care to enter the field as a beginner as long as he could make his money earn 3 per tent interest in other enterprises. But we beg leave to submit, that as loug as the i)eople maintain a protective policy as to manufactures of cotton, wool, iron, wood, clay, rags, and other articles in a thousand forms, it is no more just than it is patriotic to close the doors against farmers who see a profitable bus- iness open to them, if the Government will assist manufacturers to develop the sugar industry as it has helped other classes of manufac- 4;urers to develop other industries. All the farmer needs is fair play. We have devoted our attention to beet sugar chiefly, because it is just entering the American iield. The Southern cane sugar industry has been with us a long time, and though it was almost destroyed dur- ing the war, it has remained, and as our figures show, it is now devel- oping rapidly. SOE&HUM-SUaAK MAKING. From accidental discoveries in the early history of sorghum-sirup experiments in the United States it was believed some years ago that sugar making on a small scale could be made successful, so that farmers might produce their own sugar as they made cider and apple butter. After many attempts and failures the project was abandoned. It was then thought that small aggregations of capital, within the range of a few farmers' means, could be used advantageously in the manufacture of sorghum sugar. This, too, was tried and had to be abandoned, for good sugar could not be made in paying quantities that way. Then stronger companies were organized, and large and costly mills were erected, and the State and the Government assisted under appropria- tions of money by Congress. This step demonstrated the practicability of making sorghum sugar at a profit, and also it made plain the fact, now undisputed, that final success can be accomplished only by the use of large amounts of money and the investment of strong capital. Farmers alone, and without the aid of men who have or can procure ready money to start the business, can do nothing beyond the mere making of sirup. With the necessary professional and business talent 100 AGRICULTURAL DEPRESSION. to conduct the operations of a factory the investment of $250,000 to $500,000 in a single plant almost anywhere in the United States, not further north than 40° of latitude, sorghum-sugar making can be made a commercial success. This is especially true of the region west of the Mississippi Eiver, extending, from the north line of Missouri south- ward. What has been done and is now being done in Kansas demonstrates this proposition clearly. Should Congress continue the protection policy of the country and let the present bounty law run its course, or restore the old duty on foreign sugar, it may be reasonably expected that the sorghum sugar industry would develop rapidly, much to the advantage of farmers in the region above described. The foundation is now begun in Kansas, where two factories are in successful oper- a'ion. The sugar output as reported by the state sugar inspector for 1893 was 934,172 pounds. Of this, 730,372 pounds was made at the Fort Scott works of the Parkinson Sugar Company audiS03,§flO ,4)0unds by the Medicine Lodge Sugar Company, upon which the total State bounty, under the laws, amounted to $7,006.-9. In closing his report of the year's results, the inspector submits an observation of his own as follows: "An important factor in the ques- tion of successful sugar-making presents itself to the manufacturers in the relations of the National Government to the iudustry. Should the Government bounty be removed and no duty on imported sugar be imposed, it would seem futile to discuss further the subject of sugar- making in Kansas. If, however, the present conditions are not dis- turbed or materially changed, there is reason to believe that those now in charge of the business will workout some plan whereby the industry will become self-sustaining." Kansas soil and climate are peculiarly well adapted to the growth of sorghum, and experiments thus far made with sugar beets give fresh encouragement. All doubts as to the final outcome have been dis- pelled. What is needed now is capital, experience, and good business management. But without the bounty or its equivalent in duty on foreign sugar, new factories will be built slowly — so slowly as not to affect the price in our favor, and sorghum and beets will soon be worth less than half as much as they now are. The inducement will not be suf- ficient to encourage either capitalists or farmers to go into the busi- ness of making sugar. [In the appendix will be found much detailed information concerning the culture of beets and the manufacture of beet sugar.] REMEDIES BY STATE LEGISLATION. Remedies by legislation are of two classes — State and national. States can do much to relieve agriculture by keeping freight charges uniform and reasonable on State traftic, and by establishing a warehouse and grading system so that fanners mayhave convenient and common warehouse and elevator privileges. They could then store their grains under State regulations, where it would be safe, and warehouse receipts could be used in trade when necessary and, in emergencies, might be used in payment of local taxes. . A warehouse receipt for wheat is good collateral at any local bank. With warehouses regulated by State laws farmers could better suit their convenience and inclinations many times in the matter of disposing of their grains. Where there are no conveniences on the farm for storing grain it must be disposed AGRICULTURAL DEPRESSION. 101 of all at one time, and this tends to inflate the market and reduce prices. State laws can do much to aid not only farmers but all classes of producers by regulating charges in all quasi public institutions, as mills, express companies, and in keeping cliaiges of public officers within reasonable bounds. State laws can and ought to establish and maintain a just and equitable system of assessment and taxation, and protect all rights under collection laws. EQUALIZE TAXATION. Among remedies by State legislation, perhaps none is more impor- tant than to equalize taxation. Let owners of all iiroperty bear their proper proportion of the public obligations. Prom what has gone before in this report it is evident that an immense amount of personal property wholly escapes the eye of the assessor, and hence its value never gets onto the tax rolls. Whatever people regard as of sufficient value to them to put money in is fit property for assessment. If a man invests $10,000 in a horse, that is his own estimate of the horse's value, and it ought to be assessed the same as common horses — at a fair rate on the estimated value. So a rare painting, that none but persons of wealth could afford to purchase, may have cost its ovrner $25,000. Is there any reason why that amount of money, represented by the picture, should not be taxed? It may be inquisitorial, but that is not a sufficient reason why luxuries of various kinds — statuary andpaintings, curtainsand carpets, jewelry, diamonds and other precious stones, etc. — should not be taxed. There are at least two good reasons why such property should not be permitted to escape taxation : (1) It is unjust to persons who are not able to own and enjoy such luxuries; (2) persons who do own prop- erty that is too costly for common people to have are usually per- sons of great wealth and are more able to pay taxes on their luxuries than common people are able to pay taxes on their necessaries. There is no room for doubt on the proposition that with a just and equitable system of assessment and taxation in force farmers would be relieved from one-fourth to one-third of the taxes they are now pay- ing, and this, of itself, would afford much relief, for, as we have before ■ stated, saving is an important item in the success of any business. The total number of persons who paid taxes on incomes in 1867 was 259,385, and in 1868 it had fallen to 233,497. This shows how few of our rich people are caught even with a tax on $1,000 incomes. Assessment laws, after being just, ought to be rig- orously enforced. Ifit be inquisitorial, honesty in making returns would soon disarm the inquisitors. And if it be found that a just system of personal-property taxation can not be enforced, let it be abandoned; abolish all personal taxation and place taxes on land exclusive of improvements, so that a 25-foot lot in a city that is worth, for merchandising or manufacturing, $100,000 shall be taxed at one hundred times as much as a farm that, without its improvements, is worth only $1,000. REMEDIES BY NATIONAL LEGISLATION. Concerning remedies by means of national legislation, we suggest- First. An improved system of Government crop and market report- ing. 102 AGRICULTtTEAL DEPEESSION. Second. Suppression of tlie business commonly known as dealing in futures and options. Third. Consolidation of the transportation business to the end that charges may be uniform in all parts of the country and that carriage shall not cost more than it is reasonably worth. Fourth. Cease class legislation. Fifth. Improve our monetary system and change our financial meth- ods in the respects following: (a) Eestore silver coin to its ancient place as money; (b) provide an abundant legal tender national cur- rency; (c) abolish banks of issue, establish public savings deposito- ries, and keep all banks under direct surveillance of the Government; (d) reduce rates of interest to a reasonable and uniform standard. Sixth. Divorce the Grovernment from the moneyed interest and Umit the exercise of its powers to purely public affairs. CKOP AND MARKET RBPOKTS. The only objection to present Department reports which we have observed among farmers and dealers in farm products are such as relate chiefly to estimates and arguments printed in the reports, and which are used, or believed to be used, by speculators in their manipulations of the market. There is a general demand — it is practically unanimous among farm- ers — for a system of crop and market reporting by the Government that will give facts only and get them to the people as soon as possible. And in addition to this farmers want correct statistical information concerning what has been done in matters appertaining to their busi- ness in past years. The Department of Agriculture, they say, was established in the interest of agriculture, and they want all the good influences it can exert in their behalf. Frequent communications from the Department, showing present conditions of home and foreign markets, and convey- ing to farmers information relating to methods of dealing in farm products in all parts of the world would be of great benefit. Farmers pay their full share of taxes; they furnish more of the things that keep the world of business moving than any other class of workers, and they justly demand that the Government pay attention to their interests as well as to the interests of other classes of citizens. FUTURES AND OPTIONS. Having discussed this subject somewhat at length when assigning causes of depression, nothing further is needed in this place than to demand that the business be abolished and prohibited under heavy penalties. It ought to be made a felony and pnuished by imprisonment. If the business is wrong in itself and hurtful it ought not to be toler- ated. COXSOI.IDATION OF THK CARRYING BUSINESS. Transportation of persons and property from place to place is so purely the exercise of a public function that its benefits and its bur- dens can be justly distributed only by bringing the various depart- ments of the business into one, and establishing uniform rates of com- pensation which shall be reasonable and just to the carriers and the l)eople. This would be for the whole country no more than the carriers them- AGRICULTURAL DEPRESSION. 103 selves are now doing in their own interests for particular districts. There are many difierent associations of railroad companies now in existence having for their object to "maintain rates" iu the territory in which their roads operate. To " maintain rates" is a way the railroad people have of establishing and maintaining uniform rates in the district where they do bnsiness. There is nothing unreasonable or illogical in this practice, and if there had never been anything vicious connected with it farmers would not have interposed any objections to it. Farmers do not object to paying reasonable compensation for every service rendered them, but they do object to unjust discriminations against them and m favor of other. classes. They do object to paying higher rates in one part of the country than in another for carrying their products to market. They want a uniform system of transporta- tion, so that benefits and burdens may be fairly distributed among the people. Let all the railroads of the country — those which are in any way con- nected with interstate commerce — be brought into one system, with uniform rates based on the actual value of the roads. Let the different classes of property be fairly scheduled and average rates for each class determined. Let all diftereutials be adjusted and settled in one ofSce, all the companies reporting there, the whole business to be under the supervision of a board of competent men. Details are matters for Congress to determine. We suggest only a a general outline of the plan. CLASS LEGISLATION. From what was said and shown in our treatment of the concentra- tion of the money interest, the extravagant capitalization of railroad and other corporations, waste of the public lands, and the business relations of the Government with the banking interest, it is clear that much of our legislation may be properly regarded as class legislation, hurtful in every sense so far as the public interests are concerned ; and there is no better rule to apply ia this and all like cases than that laid down in the "blessed book" — cease to do evil and learn to do good. There is only one proxier ground on which governmental interference with private business interests can be justified, and that is the public good. Private property may be taken for public use; a schoolhouse may be turned into a warehouse, a church into a hospital, a garden into a railway station, and so on; but in every case of appropriation of prop- erty by the public it must be for public use — the object being the public good. The Government interferes with private business when it assumes charge of the people's correspondence and carries their mail for them; so Avhen it establishes a ferry, a wagon road, or a bank. The same principle applies in the taxation of certain foreign commodities in order to insure or encourage the establishment of some great national indus- try at home. It is applied where bounty is paid for the production of a particular species of property for the general good; but whenever legislation is intended to benefit a particular person or class of per- sons, independently of the common welfare, it becomes class legisla- tion, and ought to be avoided for that reason. The dangerous influences now possessed by the powerful banking houses, the leading railway corporations, and the great manufactur- ing establishments is the result of legislation in favor of private inter- ests. The aim of all legislation ought to be to promote the general welfare. 104 AGRICULTURAL DEPRESSION. iiXCESSIVE CAPITALIZATION OF INDUSTRIAL ENTBEPEISBS.. / ' /\ . ^ A uew system of industrial capitalization has become common in this country as well as in England within a comparatively short period of time. Much of the business that was formerly done by individual per- sons or by partnerships is now done by corporations. A partnership is dissolved in law by the death of one of the partners, but a corporation lives on until its charter expires by operation of law. The property of a partnership is owned by the partners in proportion to the amount of capital each one puts into the business, and nobody but the partners themselves can lawfully control its management. One of the partners can not sell his interest to any person without the consent of the other member or members of the firm. A corporation is based on a capital stock which is divided into shares, the shares being of equal value, usually $100 and upwards, in a large business, and the persons owning the shares may dispose ot them at any time, to any person, at any, price, by simply directing a transfer on the company's books. In this way the person or persons who own a majority of the shares of stock control the management of the business, and the corporation continues, notwithstanding the change of control or ownership. The object of changing the old system of partnerships to the new system of corporations is to place business on a speculative basis. A owns 100 shares in a particular business and wants to sell them. Not knowing where he may find a purchaser he advertises and eifects a sale. Stock exchanges are organized to assist persons in making such exchanges. The owner puts his shares "on the market" through a stockbroker. A person wishing to purchase stock puts bis business in the hands of a stockbroker; and thus, through the bankers in the stock exchange, selling and buying shares of stock in corporations is kept up as a regular business. Some of the great railway corporations are composed of thousands of shareholders. By watching reports of stock exchanges from day to day one will see quotations of railway and other stock, just as prices of wheat and cotton are quoted in reports of produce exchanges, boards of trade, etc. It is common, under the new system, to start business with a compar- atively small capital — just enough to launch the business — and then to sell bonds to increase the capital (water the stock) and strive to make profits on the whole at rates which, on paper, would be regarded as rea- sonable on any investment. The corporation is made to run a long time — ninety -nine years is a common period; often the term is unlimited. This method of capitalization has been and is being applied to a great many different kinds and classes of business. It has passed beyond rail- ways and canals. We now have gas, sugar, lead, cordage, rubber, and a hundred other branches of business capitalized in strong corporations. All of them are carried to greater or less extent on borrowed money. In such corporations the stock account represents the investment of shareholders ; the bond account represents the company's debts. The bonds usually run a long time and bear high rates of interest, payable, principal and interest, in gold coin. The ultimate object in this excessive industrial capitalization is to supply interest-bearing investments for speculators. The bonded debt of the railroads. in the United States is upward of $5,000,000,000, and their stock account is nearly as large. Not one of the companies, probably, expects to ever pay its bonded debt; the per- AGRK^ULTURAL DEPRESSION. 105 sons wLo own tlie bonds do not want tliem paid as long us the interest is forthcoming regularly. It is the interest only tliat induced the investment. And be it remembered that this bonded debt is a perpet- ual burden on the producing masses. Every debt of this character, every debt which may in any sense be regarded as a public debt, whether it be owed by a State, a county, a city, a railroad, or a great manufac- turing or business establishment, must be paid, if paid at all, out of the net savings of the people who produce property. And the interest, as long as the debt remains unpaid, is an annual charge upon the labor of men and women who toil. There is no escape from it. Every business which depends upon the public for support is, to that extent, a public business, and its debts and the interest thereon are charged up to the people in prices for the particular property dealt in. If a merchant is doing business on borrowed capital he must pay interest, of course, on what he owes, and the profits of his trade must be large enough to pay the interest and leave him a net gain for him- self. He makes the interest out of his business; he must do it or he fails. So it is with a manufacturer. If he is working on other people's money he must get his ijiterest money out of profits on the goods he sells. The rule holds good in all departments of trade, even down to the cobbler and the village blacksmith. They draw their interest money out of their customers. In the case of these highly capitalized (watered) industrial organiza- tions their debts are perpetual burdens on the public, who must respond or they themselves are lost. It is thus made plain that what we denom- inate the money power in devis'ng these methods of drawing usury indirectly from the producers have invented a process of extraction which can be neutralized only by national legislation. Eailway bonds running fifty years fix a half-century load on thepeople, and every bond represents a debt unfairly incurred. The stock account, ifanyt'hing, ought in honesty and common fairness to justly represent the value of the road. And it would do so if the capital it is made to repre- sent had aU been paid in. The bonds represent a debt over and above the actual value of the road, on which alone freight charges ought to be based. The $5,000,000,000 debt of the United States railroad compa- nies is all charged up against the people, who must pay interest on it twice a year out of their own earnings. The jjayment is forced from them through charges for passenger and freight fare. And railroads do business in every State in the Union; they were constructed, in theory at least, for the public convenience. Congress has exclusive jurisdiction "to regulate commerce * * * among the several States." Other industrial organizations having large capital, though they may not appear to be so directly related to the people, are, nevertheless, so related, and are measurably subject to national legislation. If in no other way, they can be reached by taxation. IMPROVEMENT OF THE MONETARY SYSTEM. The concentration of the mojiey power being, in the opinion of the subcommittee, the most powerful agency in depressing prices, it fol- lows that the principal remedy— so far as this agency is concerned- consists in removing, as much as possible, the baneful influences ol that power from the business affairs of the people; and in order that we may the more readily comprehend the nature of the remedy it is 106 AGRICULTURAL DEPRESSION. necessary that we consider briefly the nature of the thing from whose control comes the dangerous influences complained of. "ihe love ot money is a root of all kinds of evil." -? • -, Money is the most subtle agency among the material torces ot civil- ization. Its possession is power. So Important is money that society could not exist beyond barbarism without it. To appreciate the importance of money, let us suppose that all money were abolished to-morrow. How quickly anarchy would come. Disaster, destruction, and ruin would follow. Advancement would cease, and all the prog- ress of the ages would disappear as fast as the necessities of famish- ing men and women should drive them to desperation. There is a very important element in money which can not be omitted if we would have a complete comprehension of i ts uses an d fnn^tinnsj namely, the element of credit. Money is any devic'e( brovided byla^ nd used by common consent among the people to effect their cash excFanges and to pay their debts and taxes. Money represents credit as well as value — credit in its highest form — the very essence of the best credit— the credit of all the people organized. It will besuggested, probably, that gold and silver coins are money, actual moiiey, wholly devoid of and apart from every element of credit. To see that the suggestion is without force it need only be supposed that the Government should proclaim that hereafter gold and silver coins will not be received in payment of taxes and other public dues, and that such coins are no longer tender in payment of judgments in court and of private debts among the people. If it be objected that such a proclamation will not be issued, the answer is, the fact that its issuance would destroy the legal-tender quality of the coins and there- fore render them useless as money, proves that the people's faith in the Government is worth more than the metal in the coins, and that faith is the Government's credit — the credit of the whole people organized in a nation — credit operating through metallic coins. A piece of money serves as an order and a receipt. It is an order on the merchant, the creditor, and the officer to accept it in satisfaction of the purchase, debt,' or demand, and when accepted it is a receipt. The use of United States notes (greenbacks) and of Treasury notes is a use of credit — the Government's credit, the credit of the nation, the joint credit at this time of nearly 70,000,000 people. If it be argued that the credit is based upon gold, be it so, if that view be preferred; still it is credit — the faith of the people that gold coin will not be dis- credited as silver coin has been. When the banks suspended specie payments in December, 1861, the Government was comi^elled to make money out of notes representing its credit. There was little gold in the national Treasury at the time — not enough to be of considerable service; and credit, the credit of the loyal people represented in the Government of the United States, had to be used, and the Govern- ment's notes, in many forms went out among the people, doing duty as money everywhere and in all transactions — not an atom of anything valuable about them except credit. And those notes were the only money the people had or used during twenty-five years. By act of Congress, approved May 31, 1878, greenbacks, such of them as had not been retired, were required to be paid out again whenever received by Government ofiftcers and kept in circulation. That is the law. now. The Government does not intend to redeem them except in the sense of exchanging coin for them whenever holders so request; and even then the notes must be presented in amounts of $50 or upwards. The intention is to keep them in circulation. No political party would dare propose a law now to retire them. AGRICULTURAL DEPRESSION. 107 Still, it nay be urged that, Laving resumed specie payments, we are now on a specie basis and that fact gives vahie and therefore currency to notes which are passing for money among the people. Considering the subject even in that light, it is the element of credit which controls and gives value to the paper. The Government has not been able at any time to redeem all its paper in coin, unless it use silver coin as well as gold. The common people are not demanding, nor have they ever demanded the redemption of Government notes in anything. What the people want is money, something that will be taken in pay- ment of debts and taxes, and they are quite willing to accept and use the public credit. It is the speculators and great bankers that want gold redemption, and therein lies their power and the public danger. The'men who own the notes, the mortgages and bonds, they want gold, while the people must use paper. A borrows $1,000 from a bank, or a loan agency, he receives it all in paper money though he promises to pay the debt in gold coin. Here is a statement of the minimum debt of the people of the United States on the 1st day of January, 1890, as prepared by George K. Holmes, of the Census Btireau, and published in Political Science Quarterly, December, 1893: Minimum debt of the United States, 1890. PErVATB DEBT. Quasi-public corporations: Steam railways (funrled) $4, 631, 473, 184 Street railways (fauded ) 151, 872, 289 Telephone companies (funded) 4, 992, 565 Telegraph, public water, gas, elrctric-ligbtiug, and power companies ( estimated) 20Q, 000, 000 Other quasi-public corporations (to make round total) 11,661,962 Total $5,000,000,000 Private corporations and individuals: Real-estate mortgages (estimated) 6, 000, 000, 000 Crop liens in the South (estimated) 35 , 000, 000 Chattel mortgages (estimated) . ; 300, 000, 000 National banks (loans and overdrafts) 1, 986, 058, 320 Other banks (loans and overdrafts, not includ- ing real-estate mortgages) 1, 172, 918, 415 Other private debts (to make round total) 1, 191, 023, 265 Total 11,000,000,000 Total private d ebt 16, 000, 000, 000 PUBLIC DEBT. United States $891,960,104 States 228, 997, 389 Counties 145, 048, 045 Municipalities 724,463,060 School districts 36,701,948 2, 027, 170, 546 Grand total 18,027,170,546 Here we have a debt of $18,000,000,000 owed by the people of the United States alone, and the total amount of gold money in the world, according to the Director of the Mint, January 12, 1891, was $3,727,018,869. Only about one-flfth as much gold money in the whole world as would pay the gold debt of this peojjle alone. Now we can see why gold has become so valuable and other property so cheap. Debts payable in gold — a few men own or control the gold. The world of business lies at the feet of the money changers. 108 AGRICULTURAL DEPRESSION. We have seen that only about 1 per cent of the biisiness transactions of the people who have bank accounts is done with gold, and it does not need to' be stated that people who have no bank accounts have no gold. Only 6| per cent of the business is done with paper money of different kinds, and 92 per cent is done with individual credit. But while checks, drafts, and notes may be good in bank, they are worthless in court or in settlement with an obstinate creditor. They are not money because they will not pay debts nor judgments; nor will they pay taxes either to the State or nation.. They are not a law- ful tender for any purpose. And if a note or other obligation provides that the debt shall be paid in coin, no kind of paper money will discharge it. And if the stipulation is for gold coin, silver money will not pay it. The men who own or control the gold coin of the world are the world's rulers. On page 15 of a work entitled Twenty-eight Years in Wall Street, this language is found : In fact, Wall street has become a necessity as a healthy stimulant to the rest of the business of the country. Everything looks to this center as an index of its prosperity. It moves the money that controls the affairs of the world. If ote the language. Those are pregnant words. Wall street does not own, but it moves the money that "controls the affairs of the world." Why should Wall street be permitted to move so much money not its own? Still more, why should the bankers and brokers of Wall street be permitted to move the money that controls the affairs of the Government of the United States and the business affairs of the people? The banks of New York do an immense business. Their clearings aggregate upwards of $50,000,000,000 annually. This and many times more is moved by the great bankers of Wall street. There were 3,796 national banks doing business at the close of 1893. Their capital was $683,598,120; and of the 4,837 State banks report- ing at latest report the capital was $400,007,240. It is safe to put the gold reserve of these banks at $150,000,000. Many of the greenbacks are held by banks as "lawful reserves." The ISTew York banks and other money-lending institutions of that city, bought nearly all the bonds just sold by the Treasury. They pay in gold, of course, and they have plenty of greenbacks and Treasury notes, whenever they wish to present them for redemption, to draw out all the gold they have just paid in. And the banks are now so well supplied with both gold and notes that they can speculate at will on the necessities of the Gov- ernm^t, as long as the single gold basis is maintained. All the great nations of Europe are hoarding gold— some of them, Austria, Italy, and Russia, are buying it. The world's supply of gold coin is rela- tively decreasing every year, which occasions anxiety among gold-basis countries— this adds to the power of the men that "move the money that controls the affairs of the world." The latest reports from the 'New York City banks show that they have upward of $100,000,000 money on hand in excess of their lawful reserves. It is not five months since (September 5, 1893) they had $38,280,000 worth of clearing-house certificates out in settlement of ba,lances— that much of their own paper out in place of money. These • clearing-house certificates were secured by "collateral," but the "col- lateral" was worth no more than the bank's own paper. Narrowing the money basis to one metal, and that the dearer and scarcer one, drives the people to the immoderate use of individual credit, beats down prices, paralyzes business, discourages the working masses, and brings disaster on tl>'i country. AGRICULTURAL DEPRESSION. 109 Enough has been said to show that practically a few men control the financial methods, and through those methods control the business affairs of the nation and of the people. Our monetary system is unscientific, illogical, and impracticable. We are trying to perform impossible things. We do an annual business amounting to $100,000,000,000 and we are proposing to do all of it on a basis of $100,000,000, a ratio of 1,000 to 1, a business of $1,000 to be done on a basis of $1. To state the proposition is to show that it' can not be maintained. , The remedy consists, first in widening the base by restoring f^ilssjij coinage and supplying -the rest of the money needed with full legal- tender Government paper, and in bringing the banldng business of the country under Government control. Onr mountains contain large supplies of silver, and men and machin- ery are ready to perform all the work required to procure the metal. We have 5 mints fully equipped for coining large amounts and the people have faith in silver money. ITatlon.al banks are now Government institutions, under charge of an ofiQcer at Washington. They were established for the purpose of providing a " national currency," and not to manage the Government's business. The notes they use and lend to the people are all prepared by the Government and are secured by the Government; when any of them fails, the Government takes charge of the business and settles with the creditors. The most important thing needed to make the national banking system perfect for this age is to place it wholly under Government control. Let the Government furnish its own jjaper instead of bank paper, pay the officers' salaries, the same as postmasters and other public officers are paid, and require them to lend money at 4 per cent instead of at 12 per cent, as the custom now is. National-bank notes are redeemable in greenbacks. Why not issue the greenbacks in the first instance'? National-bank notes are based on Government bonds, and the bonds represent the Government's credit — the same credit that is represented by the greenback. The amount of paper money out at the close of the year 1893 was : United States notes, $366,681,016; Treasury notes, $153,160,151 ; silver certificates, $334,584,504; national-banknotes, $208,538,844, a total of $1,042,964,515, all of which is Government paper money in one form or another. The U. S. Treasurer shows in his last report that — The business of the Treasury has been conducted through the main office at Wash- ington, the snbtreasuries at Boston, New York, Philadelphia, Baltimore, New Orieaus, St. Louis, San Francisco, Cincinnati, and Chicago; the mints at Philadel- phia, San Francisco, New Orleans, Carson, and Denver; the assay offices at New York, Boise City, Charlotte, Helena, and St. Louis, and a varying number of national banks designated to act as United States depositories, there being 158 at the open- ing of the fiscal year, and 159 at the close. Each of these institutions held part of the public funds. With this showing it is not difficult to perceive that but little change is required to make the national banks our faithful and obedient serv- ants instead of remorseless masters, as they are under the present system. Say the banks were doing a yearly business of $2,000,000,000 with Government paper and they charged interest at the rate of 4 per cent per annum. Two per cent would pay all expenses of conducting the business, aiid the Government would have 2 per cent profit — $40,000,000, a considerable item of revenue for the public treasury and an enor- mous saving to business men. 110 AGEICULTUKAL DEPRESSION. With a loan department fortlie accommodation of long-time borrow- ers at 2 per cent, which would net the Government 1 per cent; and with a savings' department where money in small amounts could be deposited and draw 2 per cent interest, our national banking system would be serviceable, profitable, popular, and safe. Business men could then aiford to borrow and enterprise would show itselt m every quarter. Farmers could safely use borrowed money at this rate", and persons whose homes are mortgaged could hope to pay out. And this beneficent consummation would work a wholesome revolu- tion in industrial conditions. It would encourage the people and restore confidence among them; it would insure the safety of bank deposits, and provide a good currency of equal value m all parts of the country; it would raise the level of prices, and place debtor and creditor on the same level; it would revive business and promote gen- eral prosperity. Its good influences would be felt on every farm and in every home. All of which is respectfully submitted. W. A. Peffee, Chairman Subcommittee. APPENDIX 1. TABLES RELATING TO DISPOSITION OP PUBLIC LANDS. Staienient showing land certified and patented eaoh fiscal year under grants by Congress for railroad purposes, from 186Z to 1893, both inclusive. Tear. Acres. Tear. Acres. Tear. Acres. 3,264,314-42 3, 107, 643 -14 1, 001,-778 -34 700, 791 -96 606,340-65 278,334-11 1,157,375-01 1, 049, 440 -76 ■178, 406 -66 477, 740 -24 647,162-37 1885 1,153,950-00 1, 338, 949 857, ISO 607, 415 94, 596 233,525 697, 2.'i7 742, 200 996,685 2, 911, 938 3,554,887 6, 083, 536 31 87 39 99 87 67 44 28 36 58 57 1875 1888 10 ',823 -02 1870 1887 196,034-98 1877 1888 . 829, 162 -45 1878 1889 435, 046 -02 1867 1879 1890 363, 862 -15 1880 1891 3,088,679-23 1869 1881 1892 1, 088, 081 -56 1882 1893 1,726,179-95 Total 1884 40, 164, 450 -35 1873 Statement of the quantity of land entered under the homestead act of May SO, 1S6B, during each fiscal year, beginning July 1, 1862 and ending June 30, 1893. Fiscal year. Acres. riscal year. Acres. Fiscal year. Acres. 1, 040, 988 -51 1,261,592-61 1,160,532-92 1, 892, 516 -86 1,788,043-49 2, 328, 923 -25 2,737,365-05 3,698,010-05 4, 600, 326 -23 4,671,332-14 3, 793, 612 -62 1874 3, 518, 861 -6^ ■- 2, 356, 057 -69 1885 7,415,885-53 1864 1875 1886 9, 145, 135 -76 1876 2, 875, 909 -67 2,178.098-17 4,418,344-92 5,260,111-29 6, 045, 670 -60 5,028,100-69 0, 348, 045 -05 8, 171, 914 -38 7,831,509-88 1887 7, 594, 360 -16 1866 1877 1888 6, 676, 615 -98 1867 1878 1889 6, 029, 230 -26 1879 1890 5, 531, 678 -60 1869 1880 1891 5, 040, 393 -72 1881 1892 7,716,062-33 1871 1882 1893 6, 808, 791 -56 Totol 1873 1884 ..; 144,964,811-45 AGRICULTURAL DEPRESSION. Ill Statement ahoiving fhe qvanlilii of land sold during each fiscal year, for casli, at and aiove the minimum price of ■^1.::'5 per acre, from July 1, 1S62, to June 30, 1880. Year. Acres. Year. Acres. Year. Acres. 91, 354 -10 432,773-90 657, 212 -53 388, 294 -15 756, 619 -61 914, 941 -33 2, 899, 544 -30 1870 2,159,515-81 1,389,982-37 1, 370, 320 -15 l,62ti,266-03 1, Oil, 343 -46 745, 061 -30 640,691-87 1877 740, 686 -57 lg(34 1871 ]878 877, 555 -14 1S73 1879 622, 573 -96 1866 1873 1880 . 850, 740 -63 1874 Total 1875 18, 105, 479 -21 1869 1876 Tear. Sales of land, private eulry. Sales of land under pro- eniptiou laws. Year. Sales of land, private entry. Sales of land under pre- emption laws. 1881 Acres. •666,-i29-ll 1,924,496-15 2, 179, 955 -14 1, 550, 314 -35 473, 023 -84 632. 221 -36 1,523,546-77 1, 457, 500 -56 Acres. 721, 146 -26 i; 351, 380 -85 2,28.1,710-35 3,206,095-86 2,311,296-71 2, 279, 218 -39 3, 172, 411 -80 3, 463, 306 -65 1889 : Acres. 156,272-85 38, 617 -79 30,955-50 15,071-65 14, 819 -96 Acres. 2, 902, 028 -16 1890 2, 204, 905 -07 1883 1S91 1,391,413-31 1S93 913, 782 -94 1893 718,336 27 Total . 10, 663, 025 -03 26,921,032-61 1888 The number of acres disposed of for cash from July 1, 1862, to June 30, 1880 18, 105, 479 -21 Disposed of at private entry from July 1, 1880, to .Tune 30, 1893 10,603,025-03 Di.sposed of under the preemption laws from July 1, 1880, to June 30, 1893 26,9-21,032-61 Entries under the homestead act from January 1, 1803. to June 30, 1893 144, 964, 811 -45 Note.— The annual reports of the Commissioners of the General Land Office do not show thenumber of acres disposed of under the preemption laws and at private entry, separately, from 1863 to 1880, in- clusive, both classes of entries being included in the aggregate area of cash sales, amounting to 18,105,479-21 acres, as per above statement. APPENDIX 2. LETTERS FROM FARMERS NOT RECEIVED IN TIME FOR INSER- TION IN REPORT SUBMITTING TESTIMONY, LETTERS, AND STATISTICS. ["Wm. F. Kelso, The Kelso Farm.] Hallock, Kittson Co., Minn., July 17, 1893. Dear Sir : Replying to inclosed circular letter— Wtiile there may be a lack of intelligent system and in cases indifferent cultiva- tion, under existing prices of all lariu products, other conditions in transportation, national taxation, monetary systems, etc., remaining in present condition, neither superior skill, judgment, or w*kmanship can maki3 the farm return to its owner a satisf ctory revenue. ,. . , , , . j. ■ j With the decline in values the same excessive freight charges are maintained; incidentals, commissions, handling charges, arbitrary gradings rather increase. National taxation through the tarifl'. State and local exactions lor pubUc purposes, all increase a monetary system by -which the farmer is removed from the center of distribution and is the largest interest payer while givmg, generaUy, the best I favor an extensive inland water navigation system under national control and o-w'uership, aradical reduction of the tariff, placing raw matengjaoa the- free list, a monetary system b!ls6d UU a =,l,aude foregoing short sketch will answer your purpose, and regret exceedingly that circumstances prevented our being honored with your intended visit. Respectfully, ,„ . „ Western Beet Sugar Co. Hon. W. A. Peffer, Chairman ScnaU; Subcommittee on Agriculture and Forestry, Topeka, Kane. ANAHEIM COOPERATIVE BEET SUGAR COMPANY. Santa Ana, Cal., August 14, 1S9S. My Dear Senator: According to your request, I have prepared a statement of our sugar-beet industry, embracing its cooperative features, as we are trying to establish it here in Southern California. 1 have endeavored to make it plain, simple, and to present the exact facts. We trust that your broad comprehension of the wants of this new industry will enable you to secure such legislation in its behalf as will not wreck all our hopes for the future. If the bounty can be retained it will have ten times the stimulating effect in pro- moting the establishment of beet-sugar factories that the tariff of the same amount •would. We trust you may succeed in obtaining such legislation as will meet the wants of the crying millions. I am, with great respect, H. A. Pierce. Hon. W. A. Peffer, U. S. Senate, Washington, D. C. Anaheim, Orange County, Gal., August ;?, 1S9S. Dear Sir : We herewith present you some facts pertaining to the sugar-beet in- dustry, which is assuming considerable importance here in southern California We need not call your attention to the long struggle; the costly experiments; the wreck of many fortunes during the last thirty years, in efforts to profitably establish the manufacture of sugar from sugar beets in the United States. These are a part of the history of our country. The generous aid given by Congress to the encourage- ment of this industry, after long years of experiments and the development of advanced scientific methods, have overcome in a great measure the difficulties here- tofore encountered in the extraction and crystallization of the sugar contained in the sugar beet, and we may now look upon it as one of the great future industries of the United States.^ The bounty of 2 cents per pound, granted by Congress by section 3 of the McKinley tariff law, has done much to stimulate this new and important industry. Before its passage we only had two small factories iu our whole domain — one located at Alvarado and the other at Watsonville, both in California — and even now there are but six in the United States. Besides the two named, there is one at Norfolk, Nebr., one at Grand Island, Nebr., one at Lehi, Utah, and one at Chino, in this State. The total production of beet sugar in the United States in 1891 was, 12,204,838 pounds and in 1892 it incrrased to 27,083,322 pounds. The principal gain was in California, which produced 8,175,438 pounds in 1891, and 21,801,322 pounds in 1892, and we think the production for 1893 of our State will reach fully 40,000,000 pounds. This is only the third year of the growth of this enterprise, and its progress has been most gratifying. 140 AGRICULTURAL DEPRESSION. But there are features pertaining to this influstry which peculiarly commend it to our American farmers. The most of the sugar manufactured from the beet in Ger- many — from whom we get our largest supply — is manufactured by factories owned and operated by the raisers of the beets— small farmers— on the cooperative plan, and it has been the means of bringing untold wealth and prosperity to the localities where it is most thoroughly established. This feature is already appealing strongly to our people. We have organized a company here on that basis, which comprises some 200 farmers and represents $500,000 of capital stoct, divided into four thousand shares. Every share is represented by one acre of ground, which ip deeded in trust to the company, and which must be cultivated in sugar beets for five years. Our farmers, like most of the farmers of America, have but little money; but the land so deeded by them to the cooperative company furnishes a security upon which to borrow the money to establish and successfully operate their factory. And here is seen the wisdom and beneficence of the present bounty of 2 cents per pound on domestic sugar. The farmer, having nothing but his land and his labor, finds it almost impossible to borrow from capitalists the large sums required to establish a successful sugar pliint. - It has been demonstrated that a factory must have a capacity of at least 330 tons per day, to yield a profit on working, owing to the heavy expense — and such a plant, fully equipped, costs from $400,000 to $500,000. But we have found that by pledg- ing and putting aside the Government bounty as a "sinking fund," with which to meet the interest on our bonds, we can borrow all the money necessary to build a hundred factories, and have every one of them owned and operated by the people, whose products they will convert into an article of commerce, tlie demand for which is world wide. We have been at work nearly'two years in perfecting this coopera- tive organization and to secure the funds necessary to build its factory — $400,000 — but already there is a widespread interest and demand for the extension of this work. We are making arrangements for the organization of four more cooperative com- panies in Orange and Los Angeles counties, which will include 1,000 farmers, and every dollar of this bounty will go to the producer and help establish an industry that will give employment, within the next fifteen years, to 5,000,000 of people, save hundreds of millions of money to our own countrymen, and render us independent of • reliance upon foreign supply of sugar. The possibilities of this industry are hardly dreamed of yet by our people. We have in Southern Califoruia alone, not less than 1,500,000 acres of land adapted to the growing of sugar beets, and probably 4,000,000 to 5,005,000 acres in the entire State which will yield an average of 10 tons of beets per acre. The experiments of our national Department of Agriculture have also demonstrated that there is a wide belt or zone extending from the Great Lakes to the Pacific, capable of produc- ing this valuable root so as to yield a profitable return to the' farmers, but probably nowhere on earth are all the conditions so favorable as on this coast for the pro- duction of sugar from the beet, except the one great question of labor. We can not compete with the cooly labor of the Sandwich Islands or the West Indies, nor with the pauper labor of Europe, where they can manufacture sugar for 3J cents per pound. The average price paid for laborers in the foreign beet fields is only $6 per month, while here th'e average price is $25 per month. In order for this industry to become firmly established, our farmers must have the protection either of a protective tariff of at least 2 cents per pound, or the bounty should be contin- ued until 1905, when it expires by its own limitation. If this can be assured so that our farmers can be relieved of the fear of its removal and the loss of the homes they are willing to pledge to raise the necessary capital, there will be hundreds of cooperative beet-sugar factories established throughout the length and breadth of our land, and in ten years we will manufacture all the sugar required for home consumption. There is another feature which should commend this industry especially to the favorable consideration of the Senators and Representatives from California. 0)ir soil is prolific of nearly all the products of earth — but we have to seek a market for our fruits and vegetables from 2,000 to 3,000 miles away, and this places the pro- ducer completely at the mercy of the great transportation companies that span onr continent, and the experience of the last ten years with them has been very dis- astrous to our confiding farmers, who have sought a market in Chicago, St. Louis, New York, and Boston. L^t this beet-sugar industry be successfully established by the building of cooperative plants, and the great question of "transportation" is solved. It gives us a home market for our products and unites the manufacturer' and producer. Every acre put into sugar beets takes an acre from competition with overburdened markets in the fruit, grain, and vegetable line, and enhances the value of those products to that extent. It will solve the great question of cap- ital and labor as to this industry, for there will never be a strike nor lockout in a cooperative sugar factory. By fostering this industry and enabling it to become self-sustaining, we will relieve the overcrowded marts of labor — reduce the num- A6RICULTURAI, DEPRESSION. 141 ber of the unimployed— make productive vast areas which now yield no remunera- tion— teep our gold at home— give impetus and encouragement to a thousand other industries now languishing- and make America what she ought to be— free, pros- perous, independent, and self supporting. '^ A few millions of dollars given by the Government to the aid of this new and struggling industry, for the next ten years, will bring a return of many fold to the whole people. If the bounty is retained, sugar can remain on the free list and everv poor man s sugar bowl in our nation can bo full. If a tariff is placed on sugar, with 2S,lS?n?r?*'°'' "f-, o^er 3 000,000,000 pounds, it will cost our people notfess than $60,000,000 annually and the working man will only be able to buy 10 pounds for a dollar, where he now gets from 1.5 to 20 pounds. This question reaches every home in America, no matter how rich or how poor. The bounty which will be paid to enable our farmers to establish this industry will not cost over 15 cents per capita, while the tariff will amount to $1 per capita per annum. These are the plain, simple facts. ' We appeal to you in behalf of this new and important industry, in behalf of American farmers and American interests, to support and retain the bounty now granted to domestic sugar. With such an assurance of success to the farmers, the progress in this enterprise will be so great that a very few years will see the enter- prise so firmly established in our country, so prosperous from the impetus given, that the Nation will be repaid a hundred fold for having been interested in its behalf. Very truly yours, ^ Richard Gird, H. A. Pierce, E. J. French, Frank J. Capitain, Thos. J. Jones, E. P. Fowler, Direolors of Anaheim Cooperative Beet Sugar Company. Hon. W. A. Pkffer, U. S. Senate, Washington, D. C. ALAMEDA SUGAR FACTORY. San Francisco, Gal., August 19, 1893. Dear Sir: Through unavoidable interruption I have been delayed in giving you the data for which you asked until the present. In looking into the details of the work of our factory I have found that we give employment directly to about 100 men for 100 days ; that we have contracts with 200 farmers for the cultivation of 2,500 acres of bieets, and that each acre requires the labor of one man 25 days to plow, cultivate, and harvest the crop. This would make 62,500 days' labor for our whole acreage. Add to this the factory labor and we have 72,500 days' labor given entirely to the crop and its working. Aside from this we use this year 4,000 tons coal, 2,000 tons limestone, 200 tons coke, 80,000 bags, 6,000 yards filter cloth, besides an infinite variety of smaller articles. The production of the coal and other materials and the transportation thereof will add greatly to the days' labor provided by the factory. As the value of an article or commodity depends entirely on the amount of labor required to produce it, I am justified in taking the total amount of our expenditures, less that paid for beets and wages, and dividing it by the average cost of a day's labor, which I will assume to be $2. Last year the cost of all other items of expense besides beets and labor was $3 per ton of beets worked. This year we shall have over 20,000 tons, which would give $60,000 as the value of these expenses. Divide 60,000 by 2 and we have 30,000 as the number of days' labor required to produce the materials to finish the manufacture of sugar from beets. Adding this to the 72,500 already obtained, and we have 102,500 day's tabor to plant 2,500 acres of land to beets and to put the fin- ished product in the market. Our factory is a small one, only having a capacity of 200 tons of beets daily, but the disbursement of $200,000 yearly, the great bulk of which is distributed immediately around the factory, adds greatly to the prosperity and welfare of the agricultural community in which it is situated. Five years ago the town where our factory is located was one of those dead and alive places; stagnating for lack of something to do. Nothing doing and no one moving. With the advent of the beet-sugar industry, or rather its successful develop- ment, the entire aspect of the place has changed, and I am credibly informed that more money has been distributed there in the past four years than during the previ- ous thirty, and I believe it. That the cultivation of beets is remunerative to the farmer in this locality is amply demonstrated yearly by the recurrence of contracts by the same parties, for 142 AGRICULTURAL DEPRESSION. unless they profited by the industry they would be loath to go on year by year at a loss. If all the sugar consumed by the people of the United States eould be produced at home (and it can be) it Is easy to see to what extent labor in its most diversified forms could be employed and to what extent. The annual consumption of sugar in the United States is about 2,000,000 tons, of which about one-eighth is produced at home. Of this one-eighth all except 20,000 tons is produced from cane grown in the Gulf States. Leaving the question of the possible extension of the sugar-cane industry to other hands, let us see what would result from the development of the beet-sugar industry. A 500-ton factory is not excessively large and may be taken as the basis for calculation. The manu factnring period is generally 100 days, and a factory as above would consume 50,000 tons during the season. A ton of good beets should produce 200 pounds or 10 per cent of its weight of white sugar; consequently to prodnce 2,000,000 tons of sugar we should be obliged to grow 20,000,000 tons of beets. Four hundred factories each of 500 tons daily capacity would be needed to handle this immense crop. Each factory would require for its operation 240 men for 100 days. Four hundred factories would need 69,000 men for 100 days, or 9,600,000 men for one day. To cultivate 20,000,000 tons of beets with a yield of 10 tons per acre (Germauy produces nearly 13 tons) would necessitate the employment of 2,000,000 acres of land. From our experience in America it has been found that each acre requires one man's labor for twenty-five days from plowing to harvest time, and the 2,000,000 acres would furnish 50,000,000 days' labor. (In France, the factories alone, in 1890-'91 furnished 5,500,000 days' labor. See French table appended.) Each factory would consume fuel (coal) to the extent of at least 10 per cent of the weight of the beets worked, making a total consumption for 400 factories of 2,000,000 tons of coal. The amount of limestone needed would be 6 per cent of the weight of the beets, or a total of 1,200,000 tons, and as this limestone must be burned to produce lime it would require for this pur- pose IJ per cent of the weight of the beets in the shape of coke, amounting to 250,000 tons. The packages to contain the finished product amount to no small item. Custom has established the use of a double bag (one of cotton and one of jute) holding 100 pounds of sngar as the standard package, and to pack the 2,000,000 tons 80,000,000 bags must be furnished annually. The matter of freiglit and tvausportation in and out is no mean item in this bill of particulars, as there would be of — Tons. Beets (in) : 30, 000, 000 Sugar (out) 2, 000, 000 Coal (in) 2, 000, 000 Limestone (in) 1, 200, 000 Cote (in) : 250, 000 Bags (in and out) 27, 000 Molasses (3 per cent of the beet weight) (out) 600, 000 Or a total of : 26, 077, 000 It is possible to extend the details much farther, but with a reference only tc the pulp, a waste product of the factory, attention will be called to other items. The pulp amounts to 38 per cent of the beet weight and is of great value as a fodder for cattle. There would be 7,000,000 tons, enough to feed 1,400,000 head of beef cattle 100 days, the usual time required to fatten them. There yet remain other supplies to be furnished in the way of agricultural implements, seeds, castings, forgings, lumber, oil, electric lamps, filter blankets, etc., enough to establish industries them- selves. The stimulus given by the sugar industry would extend to every art, trade, aud profession. Assuming that 20,000,000 tons of beets at 10 per cent yield of sugar would supply our present needs, nnd that they could be produced and worked at a total cost of $7 per ton (it Costs $9 now), with labor worth $1.50 per day, it follows that this industry could furnish 93,333,000 days' labor, including the 9,600,000 days above mentioned. The annual disbursement of money for each factory would be $35O,0C0, a golden douceur to the community where situated. The ramifications to which these golden streams would extend would be innumer- able, and every occupation would in greater or lesser degree be a gainer by having the United States produce its own sugar. Annually upwards of $140,000,000 is sent out of the country, and for it we have the sugar; but the sugar is consumed or disappears and the tax for its cost is an- nually taken from American channels of trade and presented to foreign nations. AGRICULTURAL DEPRESSION. 143 Could the sugar be produced at tome, all this vast sum now sent away would remain here iii circulation, adding greatly to our wealth. The consumption, instead of being lessened or remaining stationary, would with the increase of population also increase, so that in ten years the annual needs of this country would be close upon 3,000,000 tons. The production at home, and the maintenance in this country of the circulation of $140,000,000 annually, would be of infinite value to all interests of labor and capital. The beet-sugar industry furnishes from 53 to 54 per cent of the total sugar of the world, and is at our service, for the results of the past live years have shown that it can profitably exist over a great area of our country. Beginning experimentally in the early part of this century, it was not until 1888, when under tli.^ stimulus of ample capital and with intelligent methods under the management of technical men, that the production of beet sugar became a financial success; and every fac- tory erected since that time has also proved successful. In the early stages, previous to 1888, great difficulty was experienced, and it was thought that tlie trouble lay entirely with the manipulation of the factories. No strictly technical men were in charge of the early factories ; that is, no sugar tech- nologists, men who knew every practical and theoretical detail of sugar manu- facture. Under the new era it was soon found that the supply of beets was inade- quate; that the agricultural development must precede the establishment of the factory; that the farmer must be shown how to grow beets at a profit. Having reached this conclusion, they set out to produce beets in sufficient cnuantity and of good quality, the two absolutely necessary conditions for the successful operation of the factories; but, at the same time, they looked to it that the farmer should be a gainer. To insure both quantity and quality the factories imported the best vari- eties of seed from Europe, and they brought over expert agriculturists to teach the farmer how to plant the seed and cultivate the crop, so that the laud should give the greatest yield both in roots and sugar, well understanding that tonnage and quality must go together for mutual advantage. The factories imported European agricultural imxilemcnts and devised new ones. They stimulated agricultural implement makers and others to invent seed drills, cultivators, and harvesters suited for American use. The farmer received his seed at cost for first planting, and, if for any reason the seed failed to sprout, gave him more without charge. More than all this, if his crop was insufficient to pay his indebtedness to tliem, they forgave the debts. In every way they aided and stimulated the beet-grower until he made a success of the agri- cultural part. The manufacture of good sugar from good beets is easy, and to get large quanti- ties of good beets they worked with tireless energy. Still we are