The semi-weekly Republican. (St. Francisville, La.) 1872-1872, 1872-03-08
.lPpLlCA 1JON or CAPITAL IN
FARMING.

NtSASpt"i1SA IA4o jew 80 NSAA t1o eA.\,Y
ought to, nor do they understand the
Of capital rs we'll ,,s do the
average of business men. This is !,
fact, and one Which deserves
the earnest consideration of every far
NOR who desires to do we'll. In tll,,
first place, then, most farmers cripple
themselves by investing the greater
part Of their available capital in the
purchase of more land then they can
properly manage. In other words nc
puts lis capital into unproductive real
estate, and arguments the amount Of
taxes he has to carry. Then he must
make his improvements on borrowed
capital which costs him ten per cent
and expenses. Tho demand on his
resources thus created more than off
sets the rise in the value of hia land.
If he cannot borrow capital, or if any,
to limited extent, then his improve
,nents must be restricted and he can
not stock the farm to al extent equal
TO its producing capacity, causing an
additional loss. Nothing is SO COM
mon as for farmers to have just twice
as much land MS they can cultivate o,
stock. The rule is for farmer to have
Just us much land us he can manage
to the greatest advantage and make it
curry nN the lice stock it can take.
This is the sure road to wealth under
good management. If every farmer
ecouM sell Ills surplus len0 and /,n'n 'he
nao,.ev into STOCK, and tho best Of
tools to work the balance, he would
quickly perceive the immense aovan-
tage of the new arrangement. Or if
he cannot sell his surplus land, then
put q mortgage upon it and convert
the money into stock and thus make
the land pay its taxes and n profit on
the capital invested. Such course
would be the shortest route to All at
fluent Independence. Then, too, far
mers make commonly not the best use
of capital when it accrucs. Their
plan is either to invest it in stocks or
buy more lind. Many of our farmers
have from $500 to many thousands to
"put out" ut the end OF each year.
The true plan of investment is to put
the money into the farm by the pur-
chase Of the most improved machinery.
which will make one mans labor eqn;ll
to five, the purchase Of the best stock
for breeding, and a fair allowance for
permanent improvements, all which
vastly increase the value of the farm
double and treele above the expenai-
ture and also raises the annual yield
thereof accompanied by an increased
proportion of profits over working ex-
penses. In short, this is the same
rule followed by business men they
put their accumulated profits into
their business, developing it to the
largest possible extent, increasing its
receipts and diminishing it's expenses,
as little dead capital rs posi-
BILE. 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 profit for his land,
but the farmer of small means must so
invest it that the profits arc always
available. Too many farmers are am
bilious to get rich at once by buying
a large farm getting in debt for labor
and materials, are compelled to sell at
a bad stage of the market, and if they
do not fail, they have hard times to
get along. Had they operated with
their own capital and labor, buying no
more land than they could we'll stock
and manage, they would have risen
and enlarged their operations. When
farmers understand that the amount
of capital they put into stock and the
requisite appliances for thoroughly
cultivating their land, is the true way
to realize continuous and profitable
interest on capital, and not the num-
Der of wild acres they own, then and
not till then can they expect to make
money. Working capital, not sunk
capital makes the profits.
This Number, Of tic SEMI WEEKLY
REPUBLICAN. is sent to such persons as