Statistics

There is an old adage that figures never lie, but that liars frequently "figure." Few readers stop to ponder statistical articles in the press, to which headline writers sometimes give a peculiar interpretation. As a result, the public is misinformed by the presentation of half-truths.

Recently, the Department of Agriculture, after grave and profound researches for "several years," issued a statement that the U. S. farmer is not getting an adequate return on his investment or for his personal labor. This is based on figures taken in 1920-1922. The farmer, according to the Department, is not receiving any "managerial reward." The impression conveyed by the statement is that the U. S. farmer is much abused, and that something should be done about it.

The study of American farming is, however, strangely partial. It leaves out of all account what the farmer earned during 1915-1920, under very high prices for farm produce and reasonable labor and other costs. It omits all his profits from land speculation, except to charge their resultant losses against 1920-1922 earnings. Nor does it dwell upon present high prices for grain and cotton.

After all, if the farmer wants a "managerial reward" he must earn it by using good judgment during prosperity, like everyone else. In 1922-24, the farmer earned only about 3% on his investment. Yet this compares favorably with earnings of most shipping companies in 1921 or of many railroads in 1918-1921.