The daily Argus. (Rock Island, Ill.) 1873-1877, 1874-01-24
THE PLow QUESTION
The Arency-sy.tem -plowmaker, VS.. People

NIT me to point out.
Mr.. Deere admits, at an early stage of
the conversation, that there are ''too many
dealers in agricultural implements in a
place. Undue efforts are made to overload
the purchasers, involving an unhealthy and
unsafe creIit-system.
In this he has stated the difficulty very
concisely; and it is strange that he has
not discovered what is clearly evident; that
the agency system adopted by the manu-
facturers has contributed, and will always
contribute, to such a result. The whole
system is pernlcious from beginning to
end. The proper order of business is ex-
actly reversed. 1t is the desire to sell
which becomes the controlling element in
the transaction, rather than the necessity
to buy. Let us have a glance at the pre-
sent agency-system
The wholesaling agent is sent out from
the works to make the grand rounds and
establish local agencies. These men COM
mand large salaries, and are expected to
make large sales. Here is the first induce
ment offered to overload the market If
the local agent is responsible, as each one
is always supposed to be, he is induced to
order just as many as there is any posi-
BILE expectation of selling. you may not
have enough when the market opens, and
so lose lose sales. ~ GU had best be sure
and order enough they are good stock to
carry over, and won't spoil, are among
the encouraging suggestions AS they are
not to be paid for in cash at date or order,
but time is granted, probably, until the sell
hing season has come. the agent is inclined
to provide for every anticipated demand.
We'll, the season comes other agents in
the same town have pursued the same pol
icy, and several agents are, therefore pro-
vlded with sufficient stock of each par
tlcular manufacture to supply the entire
demand. And now comes the competition
In selling. Each of these agents has pa
per maturing his stock must be paid for.
lie can't wait for the farmers to come and
buy as they need. He must go to them.
He is compelled to sell, or his paper goes
TO protest And as there are more than can
be sold for cash, it naturally follows that a
good note is preferable to dead stock !:
and SO the sales are pressed on time, and,
too often, on long time credits, He takes
these small notes to the bank, gets them
discounted, after giving his Endorsement,
and meets the large note to the manufac-
turer at its maturity Unfortunately, there
are very many farmers who cannot resist
the temptation to buy the new machine, -
especially when the saving it will effect is
SO very large-according to tie agent-if
they can get it ION time" And so the old
machine, which would have done very well
Tor year or two more, is cast aside, and
troublesome piece OF paper is lodged in
bank, or In the hands of some private note
shaver, waiting there fora few months I'M
til maturity, when n big hole in the grain
bin or vacant stall in the stock shed at
tests its payment. 1t is plainly to be seen
that the market is forced beyond real ne
cessity.
Now, if all these payments were actual
ly made at maturity, it would not be so bad.
But it is not so. A short crop leaves the
grain-bin empty, and there are not steers
enough to meet all such demands; and,
while the farmer may not fail, in the usual
acceptatlOn OF the term, if the agent fails
in making a number of these collections
his paper goes to protest and he does fail.
1t Is the experience Of the pillow makers
that such failures are common, and duo
percentage is added to the cost-price to
cover these risks.
Let us see now what proportion of the
500, which machine may sell for, the
manufacturer realizes A usual percen-
tage to the retailer is % per cent, and it
IS often as much as 40 per cent. This re
duces it to $75 The Wholesale agent will
get not far from 20 per cent of that which
reduces it to 500. Allow 10 per cent for
the risk of loss, and we have a net recent
to the manufacturers of $54. | am aware
that all lines of implements do not allow
quite such commissions; but / know from
experience that some of them allow more.
and this is not far from the truth in plows
and reaping machinery.
Let us take it the other way, now, and.
as / shall maintain, the only legitimate
way. True, there must be an agency svs-
TEN, but, instead of having the manufac-
turers to appoint the agents, ! would have
the purchasers make the appointments.
Let the farmers of county, we will say,
decide how many implements of any par
tlcular kind they need, and how many they
are able to pay for, cash down, or at least
on delivery. This may be decided lust as
long in advance as now, and the orders NAV
be made toras large quantities as practical
bic. The buyer comprehends the advan-
tage of carload lots as well as does the
manufacturer, and, if he does not it will
take but little time TO learn Is it not evil
dent that the manufacturer can afford to
fill such orders for the net cost of $54, and
be just as well off as now? The freight
would be an addition to first cost in either
case, but would be less to each purchaser.
since the present agent adds rather more
than the actual freight expense upon each
machine.
The agent who acts for the association of
farmers must have pay for his services,
certainly but, rs he takes no risk, he can
afford to serve for comparatively small
commission.
Now, / am well aware that there must
be an cy-system of one kind or the
Other, and.the one being already establish
ed, it must necessarily be employed I'M
til the other can be generally substituted,
so that neither party may be too much in
cOnvenienced for the time being,
Mr.. Deere says truly: THE adoption of
the cash system will check the extrava-
gance induced by long credits, and incul-
cate economy in the purchase of nipple
ments, as well as cheaper prices. Greater
care will be taken, and instead of the dam
age tofarming machinery by exposure when
not IN actual use-which is now estimated
TO be greater than the wear entailine an
actual loss to Western farmers of millions,
yearly,-we shall see these articles kent in
good order and properly housed f"
If he had added that the adoption of the
cash-system would go far towards removing
the necessity for these collecting and credit.
watching agents, he would have only ad
mitted the truth.
If the sales are graded by what the
farmer needs to buy rather than by what
the manufacturer wants to sell, it will 90
lar towards solving the middleman ques-