Show how inflation hurts farmer period of false prosperity Is always followed by distress by WALTER E secretary economists national committee on monetary policy and member of the national advisory council of the american liberty league while currency inflation Is taking place some classes appear to benefit DO notably bably tably the fa fanner riner for this reason the principal farm leaders are advocating currency inflation drives for currency inflation in this country have have been and are today to LA a large extent agrarian movements the benefits lu ILI the case of the farmer as with other classes are apparent and nol noi real they fade into distria dismal I 1 disaster several important factors con contribute tribute to the relatively favorable posit position an given iven the farmer by cu currency arency in inflation fla lion the prices of his products rise akse ra rapidly ill d ly at the same time he tends to hold bold his expenses per unit of product time he delays considerable down for a new equipment he does his investments lit in land or not add to buildings ile he holds down his labor supply the these se things give tile the farmer an unusual and most welcome margin of profit with which to pay his debts accumulates debts after thee debts are paid however he will be begin n to consider ways ue he will restore expansion and means of his depreciated property buy increase ills his number of new equipment employees and perhaps purchase new nev buildings and land when he be begins ins buying he will vall find that the prices are risen to startling have rising rapidly or before prices rise heights to buy the tendency further will seem prudent to borrow in order to buy will increase thus as inflation continues farm debts will mount steadily the burden and distress associated will be forgotten the debts old with ith steadily steadily rising prices of agricultural products will appear to provide am ample ale that all is well tile the more assurance ls 13 ed the till higher ber the the curnkey curn U j ena Ky f prices roecs will till ils rise 6 an a alic greater greatti will le be the amount of new debts accumulated conditions after 1920 then comes the headache in time the inflation of the currency will come to an end prices will collapse and the dangers and burdens of the debts will become painfully apparent enforced liquidation will begin its d destructive course distress and suf suffering dufferin ferin will become widespread farmers will realize then that once again they are living through the hard times which invariably follow an inflation the difficulties difficult les which farmers barme r s have experienced since the collapse of 1020 1920 have been due largely to the credit inflation which tool took place during the world war and to the related maladjustments just ments which the war and inflation generated periods of falling prices and liquidation ar are e almost invariably caused ili by a receding perlo d of currency antl inflation aaion therefore to urge inflation as a weans means of overcoming the distress of depression Is but to prepare the way tor for another period of distress |