The spring drought was unquestionable. Niall looked around, and there were hardly any farmers plowing their fields. It was clear to everyone that farming this year would result in losses. Even though the seeds had been sown, they would likely not even recover the cost of the seeds.
"Don't look at it anymore; with this kind of weather, nothing can grow," Patrick said, carrying two huge hay bales that were nearly twice his height, preparing to feed the cattle.
"Maybe we can plant some potatoes," Niall suggested. Of course, he knew that it was hopeless this year, but leaving the land abandoned felt wrong. Farmers, at their core, never liked to see their land go fallow. They always wanted to plant something, even in the nooks and crannies. This was true for farmers across the world, both ancient and modern—after all, they depend on the land for their livelihoods.
"Better to plant some peas," Patrick replied.
"True," Niall agreed.
He moved forward to help Patrick with the hay bales, but Patrick paused. Not only did he not need help, but he also walked steadily, proving that it wasn't difficult to carry the load. It wasn't like a shoulder pole where you had to switch sides every so often.
Well, if the big brother was so capable, Niall felt unnecessary. So, he turned around and quickly released the cows and sheep, making it easier for Patrick to feed them. The piglets hadn't been brought home yet this year, as last year's pigs had all been made into sausages. As for the old hens, they had been roaming around the front door. Niall gathered a few eggs, and his morning routine was done.
Aunt Ginny was already busy in the kitchen, taking the eggs from Niall and cracking them straight into the frying pan. Patrick was a big eater and worked hard, so he ate a lot. However, the farmers didn't have much variety in their diet—just enough carbohydrates, since they didn't plan to sell any of the grains they grew.
The farmer's morning was simple. Aunt Ginny led them in a brief prayer before breakfast. Niall got up and turned on the radio, which he had bought secondhand at a ridiculously low price, thanks to the plummeting prices of industrial products.
These kinds of items flooded the market, with people who had borrowed money to buy such originally high-value items, but now couldn't repay the loans, putting them up for sale in secondhand markets. With just a little bargaining, you could pick up a decent deal. Niall was even considering swapping for a refrigerator, to enjoy popsicles and ice-cold cola in the summer. Though there were no good ones on the market now, he wasn't in a hurry.
By the way, in the coming months and year, over 500,000 homes in the eastern United States would be repossessed by courts and banks due to unpaid loans, and then auctioned off. These properties would often be sold for only about 55% of their price before the economic crisis, and possibly even lower.
Of course, buying these foreclosed homes wasn't really a good move at the moment. It would require massive amounts of capital and the payment of substantial taxes. Even if the housing market eventually recovered, it wouldn't be until after 1952. Anyone who could wait that long would find that the houses were no longer in their prime—they'd be old second-hand homes.
Be warned!
"What's the government going to say today? That the economic crisis will soon pass? That the market is improving? That production is based on solid demand?" Patrick mimicked the official tone from the radio, sounding like a bureaucrat.
"Nothing can stop you from talking," Aunt Ginny quipped, setting down a plate of steamed potatoes.
"Listening to the government's orders might have some benefits," Niall said. He just wanted to stay informed about the outside world. After all, while they knew about major events, the small details were still unknown to them.
"Exactly," Aunt Ginny agreed.
The four of them sat down to eat. Today's breakfast was a bit more lavish than usual, with oatmeal, fried eggs, and bacon. With the prices of all goods plummeting, it was better to eat the food than sell it—at least they could enjoy it and fill their stomachs.
The radio broadcast came to life with a familiar, authoritative voice, and sure enough, as Patrick had predicted, the government was still giving false reassurances, claiming that the economic crisis would soon end and the market would recover. To quickly revive the market and protect domestic farmers, the federal government had officially passed a new bill.
"I hereby announce that, to fulfill the promises I made during the election, and to protect the interests of the 18 million farmers in America, we are raising tariffs on all foreign agricultural products entering the United States!"
Wow!
After several days of political broadcasts, the four of them had all become more politically aware, and none of them kept stirring their porridge. The three of them looked directly at Niall.
"What does the president's announcement about raising tariffs on farm products mean?" Patrick asked, still holding a potato in each hand.
"Because our agricultural level is quite high, and mechanization is developing rapidly, the truth is that our agricultural products, including wheat, corn, cotton, and tobacco, not only meet domestic needs but also have significant surplus. Over the past decade or so, the price of our agricultural products has been steadily dropping," Niall explained.
"So, what does that have to do with tariffs?"
"It's simple. The price of our wheat is already very low, but Soviet and French wheat is even cheaper. Even with the shipping costs, it's still cheaper. So, people will naturally buy Soviet or French wheat. This means that our farmers will have to lower their prices even more, leading to even smaller profits."
Niall tried to explain the situation in simple terms. After all, Patrick dropped out of school in ninth grade, and Aunt Ginny had never attended school, only recognizing a few words from the Bible.
"So, does this decree from the president benefit us?" Aunt Ginny asked, aware of the ten-year decline in agricultural prices.
"Not necessarily…" Niall shook his head.
The bill was called the Smoot-Hawley Tariff Act. The legislation raised tariffs on over 2,000 imported goods to the highest level in history.
It wasn't just agricultural products—many industrial raw materials and semi-finished goods were included as well. For example, Japan's silk exports to the United States were cut by 72% due to this bill. Japan's over 4,000 silk factories lost 3,000 of them, resulting in over four million unemployed workers and bankrupt silkworm farmers. This caused widespread unrest and economic decline in Japan.
To shift domestic tensions and lower unemployment, the Japanese government began focusing on the Manchuria region and ramped up its military and industrial production.