At that point began the advance in the value of land. The government
had no more choice corn land. The two acres necessary to keep a cow
during the summer and two more acres, the hay from which would keep
her during the winter, doubled in price within the next fifteen years,
but it did not increase in actual value as determined by the amount of
grass or grain it would produce. It was at that time the people were
confronted first with dear land, stockers, feeders, corn, hay, and
beef. This all led the cattle feeders and the corn growers to begin
studying out a method or system by which they could profitably grow
corn to make beef instead of growing beef to market corn. The prices of
fat cattle were very tempting, something unheard of ever before, but
when it came to buying feeders, the margin was very little greater than
it had been in previous years, and besides, corn was higher than it
had ever been. The problem then was, how to get the most beef out of a
bushel of corn.
Experiment stations had been doing work along that line for several
years. They pointed out that the younger and smaller the animal is, the
less will be the grain required to sustain the life-giving forces, or
to run the machine, and a greater proportion will go to the building up
of body tissue, hence the greater the profit in feeding young animals.
Feeders began to drop out the two and three year old steers and replace
them with baby beeves. Many feeders tried it but somehow or other they
could not make it work according to the experimental evidence. They
found no profit in feeding any kind of cattle. Many feed lots became
empty and blue grass and clover pastures were plowed up and put into
corn fields. If corn was worth more outside of the steer than it was
in the steer, the farmer argued, why feed cattle? The landlord could
get more rent from corn land than from grass land devoted to cattle
grazing; therefore, he saw no profit in building expensive barns,
sheds, and fences for cattle feeding.
In the summer of 1907, business was flourishing and packers were in
need of money. To meet their needs, they flooded the western banks with
commercial paper. They bought so few cattle that the price fell off
at least 30 per cent in three months' time. The loss accrued by such
a rapid decline in the price of fat cattle was so great that it paid
for the commercial paper that had been issued by the packers. Such
conditions as these hastened the process of depleting the feed yards
and decreasing the number of cattle on the market.
Public-domain text, read in full here on John Shaqi.
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