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Show Wliv Farmers Should Buy War Bonds by Rkliard L. Adams i lessor of Farm Management , L niversity of Calif uruia ' A ' WITH net farm income now about three times that of 1933-1940, farmers and ranchers are in an outstandingly fine financial finan-cial position to buy War Bonds to an extent far beyond the total good as it is already reached. In the first place, it's the patriotic patri-otic thing to do. There's no real sacrifice in using money to "back the attack." What is a loan of one's cash compared to the sacrifices sacri-fices of the boys who are taking on more than a man-sized job? Secondly, it's the wise thing to do. If history repeats itself and I for one firmly believe it will these present-day high net incomes can, after the war is over, go into a "tail-spin" to levels far below what is deemed normal. Over the past one hundred years agricultural agricul-tural earnings have been at so-called so-called normal levels for three to four years for each year of high returns. And note that these returns re-turns are net that sum remaining after farming expenses have been paid. Thus allowance is made for higher costs of labor, of supplies, of equipment, of taxes. Without doubt present earnings earn-ings of most farmers are the highest in the history of United States agriculture. Today's high returns to agriculture agricul-ture make good reading. But with the increased earnings there is bound to be a marked rise in prices for farm properties, in speculative buying of farms, and (again if history repeats itself) in a marked increase in the real estate es-tate mortgage debt, followed by mounting foreclosures if and when payments of interest and installments install-ments on principal cannot be met. Contrary to the views held by some farmers, it is extremely doubtful that we are on a new and permanently higher economic level. lev-el. World War I was proof of this. So the wise farmer, looking ahead and planning for his future, will reduce his debts to manageable manage-able proportions if and when lessened less-ened incomes must again be faced; resist the temptation to speculate in farm lands; and create cre-ate reserves. The reference to "resist speculating" specu-lating" doesn't mean no buying. There may be need to enlarge a farm, or to acquire additional lands for business reasons. But caution suggests that one not be caught in the excitement of a rising ris-ing tide of buying merely for speculation's spec-ulation's sake. That reserve fund can be created by purchase of tionds. Money thus "salted away" can create a cash reserve for use when times may not be so good. It will serve as "an anchor an-chor to windward" for times when cash is an asset. And when isn't it? Bonds can eventually even-tually be used for needed repairs re-pairs or improvements. Bonds can supply the "stake" to set sons up in business once they are mustered out of service. Agriculture is for the time being in a strong financial position. Farmers, these days, are in a position to accumulate substantial "stockpile's" of crops, livestock, and livestock commodities, but, as well, of good United States Bonds. Think it over. Then invest to your limit in order to insure a real future for your country, yourself, and your children. U. S. Treasury Department |