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Show 1 Why Farmers SIipuM Buy War Bonds ! by Richard L. Adams Professor of Fartn Management Univri-hily of California J : i -' .M Contrary to the views held by some farmers, Mt is extremely doubtful that we nre on a new and permanently hi;, her economic level. lev-el. World War I was proof of this. So the wise, farmer, looking ahead and plannim; for hiai future, Will rryJuce his debts to manageable manage-able proportions il and when lessened less-ened incomes must;, again be faced: resist the temptation to speculate iii (arm 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 o( a rising ris-ing tide of buying merely (or speculation's spec-ulation's sake. That reserve fund can be created by purchase of Bonds. Money (bus "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 even- tually be used for needed re-pairs re-pairs or improvements. Bonds can supply the "stake" to set sons up in business once they are mustered out pf service. WITH net farm income now, about three times that of 1938-1940, farmers and ranchers are in an outstandingly fine financial finan-cial position to buy War Bonds to an extent far beyond the total-good total-good as it is already reached. In the first place, it's the patriotic patri-otic thing- to do. There's ;o real sacnllee in using money to "back the attack." What is a loan of one's cash comjKii-fd to the sacrifices sacri-fices o( the boys vo are taking on more than a man-sized job? Secondly, it's the wise thing to do. I( history repeats itself and I (or 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 beea at so- called normal levels for three to four years for each year o( high returns. And note that these returns re-turns are net that sum remaining after (arming expenses have been paid. Thus allowance is made (or higher costs o( labor, if supplies, pf equipment, of taxes. - Without doubt present earn- , ings ef mst farmers are the highest in the history of United States agriculture. Today's high returns to agriculture agricul-ture make good reading. But with Agriculture is forthe time being in a strong financial position. Farmers, these days, are in a position to accumulate substantial "stockpiles" o 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 jour xuuiiU jv yourself and your children. U. S. Treasury Department the increased earnings there is bound to be a marked rise in prices for farm properties, in speculative buying of (arms, and (again if history repeats ilseK) in a marked-increase in the real estate es-tate mortgage .debt, (ollowed by mounting foreclosures if and when payments of interest -ancUinstatk- ments on principal cannot be met. |