Herald and tribune. [volume] (Jonesborough, Tenn.) 1869-current, 1871-06-15
The Application Of Capital in Far
ming.

Ourfarmers do not sufficiently under
stand this subject as well as they ought
to. nor do they und erstand the applica-
ton of capital as we'll as do the average fc
business men. This is a notorious fact
and one which deserves the earnest consid-
Grafton of every farmer whe desires TO do
well. In the first place, then, most far
mers cripple themselves by investing the
greater part of their available capital in
the purchase of more land than they can
properly manage. In other words he
puts his capital into unproductiye real
estate, and augrnents the amount of taxes
be has to carry. Then he must make his
improvements on borrowed capital which
costs him ten per cen. and expenses. The
demand on his resources thus created
more than offsets the rise in the value of
his land. If he cannot borrow capital, OF
if any, to 4 limited extent, then his i'm
provements must be restricted and he
cannot stock the farm to an extent equal
to its producing capacity. causing an ad-
ditional loss. Nothing is so common as
for farmers to have just twice as much land
as they can cultivate or stock. The rule
is for Z farmer to have just as much land
as he can manage to the greatest advan-
tage and nuke Il curry all the lie: stock it
can take. This is the sure road to wealth
under good management. Ii every far
nIer would sell his surplus land and turn
the money into stock, and the best Of tools
to work the balance. he would quickly
perceive the immense advantage Of the
new arrangement. Or if he cannot sell
his surplus land, then put i mortgage
upon it and convert the money into stock
and thus make the money pay its taxes
and a profit on the capital invested. Such
Il course would be the shortest route to an
~afluent Independence. Then, too, far
mers make commonly not the best use of
capital when it accrucs. Their plan :
either to invest it in stocks or bug more
land. Many of our farmers have from
$500 to many thousands to put out at
the end of each year. The true plan of
investment IS to put the money into the
farm by the purchase of the most improved
machinery. which will make ono mans
labor equal to five, the purchase of the
best stook for breeding. and a fair allow
ance for permanent improvements, all
which vastly increase the value of the
farm, double and treble above the expend.
iture, and also raises the annual yield
thereof, accompanied by an increased pro-
portion of profits over working expenses.
In short, this Is the same rule followed by
business men they put they put their
accumulated profits into their business,
developing it to the largest possible extent
increasing its receipts and diminishing Its
expenses, carrying as little dead capital
as possible. Most of our farmers are made
poor by carrying dead capital in wild
land which yields nothing. The land
Spectator who can wait long years for the
Improvement OF the country. may, in the
end realize a profit for his land, but the
of small means must so invest il
the profits are always available. Too
many farmers are ambitious to get rich at
once BY buying a large farm getting in
debt for labor and materials. are compel
led to sell at a bad stage of the market.
and if they DO not fail, they have hard
to get along Had they operated
with their own capital and labor, buying
no more than they could well stock and
manage, they would have risen and en-
their operations. When farmers
understand thatthe amount ofcapital they
put into stock and the requisite appliances
Tor thoroughly cultivating their, land is
he true way to realize continuous and
profitable interest and capital, and not the
humber of wild acres they own. then and
lot till then can they expect to make
money. Working capital, not sunk, CAPT
al makes the pro6ts.-Ee.