River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1878-08-15

bcbts aud credits, which will prove either
side of the question. Yet IL is self evil
dent fact that farming pays the nation.
1t is our great producing industry, the
handspring which keeps all the machin-
cry of transportation, commerce and man
utactures in motion, creating value OF
untold millions out of materials which
have no commercial worth until trans
| formed by labor. it therefore on the
one hand, farming does not pay the in
dividuals who pursue it, there must be
something wrong in the system by which
the wealth created by its labor is divided
or if on the other, it does pay the indi-
vidual there must be something wrong IN
the system by which his business &C
counts are kept, or he could show by his
ballance-sheets, his exact business income
and expenditure. the amount of his profit
or loss. The latter is probab the gen
eral fact; or more properly it IS the TACT
that the farmer has no business system
and does not keep his accounts in such
form and with such accuracy as TO exhi-
bit the true results of his business oper-
ations.
Business enterprises in their income
and expenditure are one thing, and the
support of family with ali its inciden-
tai costs, another and very different one.
The farmer usually does not notice this,
but assumes that the gross sum of his
yearly expenses are farm expenses,
though these may be but moiety of the
amount. In his calculations he is prone
to error in stating the capital invested In
his business, ia both its real and person
ly branches, by treating the entire value
of each as business investment just here
the farmer should act on the same prin-
cipal that would be adopted by a manu-
facturer to detirmine the amount of his
business capital. In it would be includ-
ed all buildings used for manufacturing,
and the land and privileges occupied by
the same. the machinery, implements,
vehicles and teams employed exclusive
" in the business, cash, and both raw
and manufactured stock ON hand, and
the credit balance between bills receiy-
able and bills payable. Bat he would
exclude from it his Westinghouse and
everything thereto belonging, both real
and personal, because they have nothing
whatever to do with his business, but
are an outside expenditure distinctively
differing from it.
The farmer should take an annual in
ventory, and it should include all his
farming lands, and if he owns it, enough
woodland to keep his farm fences and
ercluSiuely farm buildings in repair, all
his buildings erected and used exclusive
ly for the business of the farm, stock of
all kinds kept, all teams kept for farm
work, all cash crops and manures on
hand. and the credit balance between
farm bills payable and receivable. From
this inventory he should exclude the
dwelling house and all attached build
ings and grounds not used for farm pur-
ure poses, and all implements, vehicles,
teams and fixtures provided for the pleas
or comfort of his family, because, as in
the case of TIE manufacturer, they are all
an outside expenditure, and not essenti-
ally connected with his strictly business
opera, ions. In the transaction OF his at
fairs he should charge to the farm all
labor, including board, whether it be on
the farm or attending TO its business
abroad or whether performed by persons
nired, or by the farmer, his wife, sons or
daughters. But he should be very care
full to-eharge only for services actually
rendered.
III Is QuIic COlllAtOn iOl tllO ltCi ~
saw that himself and family have labored
the whole year, when the fact Is, some or
all the members have spent weeks and
even months In other business, attending
school, in travel, recreation or amuse-
ment: and it would be manifest injus-
tice to the farm to charge it for time thus
occupied. He should charge all seeds,
manures and fertilizers used, whether
produced on the farm or purchased, all
new implements purchased, and for all
repairs Of exclusively farm buildings, fix
lures, tools and vehicles, and also Tor
taxes and interest on all real and per-
sonal farm property. Contra: He should
give the farm credit for every kind of
crop or product sold from it, at the price
received, and for all the grain. meat
vegetables, milk, butter, cheese, eggs and
other products taken by his family, at
their value on the farm, and whether
wasted or consumed This last item is OF
the utmost importance, and should be as
rigidly adhered to by the farmer as by
the country merchant, who charges to his
family all the dry goods, groceries and
necessary supplies taken by them from
his stole. At the expiration OF the year,
new inventory should be taken, en-
bracing exactly the same items as the
original. and the sum of this inventory
and credits balanced with the sum of the
debts. and the first inventory will show
him his gains or losses for the year. To
many, perhaps most, farmers, the keeping
of books is irksome and perplexing, and
therefore neglected; but it is absolutely
necessary it conducted by those principles
hIISinnsc pnf0r-
prises.
No person, neither farmer or any body
else, can say that his business does or does
not pay, unless the exhibit is made by a
regular, correct account, kept by the
above or some similar method, and II
thus kept lie might, probably would, find
that his business was good one, the
trouble with his final bank account being
caused by deficiency of labor debts and
excess of family expenditures.
The person engaged III general farming
I is really pursuing several distinct KINDS
of business. each of which requires special
operations and has its own income amt
expenditure. He may be growing and
fattening meat stock, raising horses or
swine, growing the different kinds of
grain. roots or vegetables, producing
milk or butter as a market product.
Some of these branches may be very prof
table. To ascertain this, separate debit
and credit accounts should be kept with
each department, so that be may know
the source of his profit and losses, and
| know which department to abandon or
improve, and which it may be for his in
terest to enlarge. 1t is wise, ottentimes,
to keep accounts with the separate fields
of the farm, and always an exact detailed
record Of the expenditures of the farmers
family, including in the latter all it re-
ceives from the farm. Complicated and
| laborious as all this may seem, Ii Is no
more so than the accounts of intelligent,
/ accurate business men, whom 1t often
saves from failure, and guides to success.
Farming, in every sense, should be man
aged on strictly business principles, and
only when so managed have we any right
to expect it will pay.--I'rof. Stockbrtdge,