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to RECORDS SERVICES - 2 - In five quick years nearly half a million farmers went broke. And that was bust -- a tragic, happiness-shattering bust from which agriculture was not to recover for many years. Industry, on the other hand, was soon back on its feet and the 1920's were known as prosperous years. Producing There were people in business and agriculture -- and for Surplus in government, too -- who were so impressed with the needs of the world and of our own domestic economy that they could see no limit to the market for American products. Their watchword was: "Produce: They completely ignored the basic difference between needs alone and needs backed up by ability to pay. And farmers followed the text, probably less because they believed it than because they had no other practical al- ternative. They planted and they produced in a desperate attempt to make up by larger output for low prices and high fixed costs of land, interest and taxes. The result was surplus -- price- crippling surplus in one crop after another. Wheat A surplus of wheat undermined the income of the wheat grower in 1922 and 1923. Potatoes Potato growers had bumper crops in 1922, 1924 and 1926 They sold what they could for a song and wasted and fed the rest to live-stock. Cotton In 1926 the cotton surplus became very large. We shipped huge exports of cotton away for less than the cost of production. The 18 million bale cotton harvest of that year brought farmers only three-fourths as much return as the 132 million bale crop of 1924. Another wheat surplus in 1928 brought the price so low that farmers realized less than they had from the smaller crop of 1927. Agriculture was caught between the upper and nether millstones of its own productive abundance and the consumer's limited buying power. Meantime, what was government doing to help the farmer? In the summer of 1921 a Joint Commission of Agricul- tural Inquiry was set up. Its recommendations were so limited and ineffectual that agricultural distress was in no way abated. "Help Yourself" In January 1922, a National Agricultural Conference convened in Washington. President Harding told the conference:

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    "ocrText": "to\nRECORDS\nSERVICES\n- 2 -\nIn five quick years nearly half a million farmers\nwent broke.\nAnd that was bust -- a tragic, happiness-shattering\nbust from which agriculture was not to recover for many years.\nIndustry, on the other hand, was soon back on its feet and the\n1920's were known as prosperous years.\nProducing\nThere were people in business and agriculture -- and\nfor Surplus\nin government, too -- who were so impressed with the needs of\nthe world and of our own domestic economy that they could see\nno limit to the market for American products. Their watchword\nwas: \"Produce: They completely ignored the basic difference\nbetween needs alone and needs backed up by ability to pay.\nAnd farmers followed the text, probably less because\nthey believed it than because they had no other practical al-\nternative. They planted and they produced in a desperate attempt\nto make up by larger output for low prices and high fixed costs\nof land, interest and taxes. The result was surplus -- price-\ncrippling surplus in one crop after another.\nWheat\nA surplus of wheat undermined the income of the wheat\ngrower in 1922 and 1923.\nPotatoes\nPotato growers had bumper crops in 1922, 1924 and 1926\nThey sold what they could for a song and wasted and fed the rest\nto live-stock.\nCotton\nIn 1926 the cotton surplus became very large. We\nshipped huge exports of cotton away for less than the cost of\nproduction. The 18 million bale cotton harvest of that year\nbrought farmers only three-fourths as much return as the 132\nmillion bale crop of 1924.\nAnother wheat surplus in 1928 brought the price so\nlow that farmers realized less than they had from the smaller\ncrop of 1927.\nAgriculture was caught between the upper and nether\nmillstones of its own productive abundance and the consumer's\nlimited buying power.\nMeantime, what was government doing to help the farmer?\nIn the summer of 1921 a Joint Commission of Agricul-\ntural Inquiry was set up. Its recommendations were so limited\nand ineffectual that agricultural distress was in no way abated.\n\"Help Yourself\"\nIn January 1922, a National Agricultural Conference\nconvened in Washington. President Harding told the conference:"
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