Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1911-01-13

preclatlon. Regarding depreciation,
| it is impossible to lay down invari-
able rules as to the rates to be charg-
ed off annually. For the purpose of
general estimates, the following rates
on the cost or market value are fairly
accurate; Buildings, per cent;
horses, above years, 10 per cent;
mich cows, after years, per cent;
machinery and tools, 10 per cent.
The subject of cost accounting is
now emphasized in all branches OF
business, Not many generations ago
| it was considered sufficient for the
average business man merely to re-
cord his cash receipts and expendi-
lures and to keep a tolerably ac-
curate check on the cash balance. In
many instances the left trouser pock-
| ct served as the debit side and the
right as the credit side of the led
ger" Modern business methods and
sharp competition have changed
these notions until today it is neces-
sary to know the cost of production
| In advance to the smallest detail.
Ancient business methods prevail
yet very generally on the farm. Too
often a good farm is compelled to
carry improbable experiments and
failure with no adequate attempt to
find a remedy.
In certain respects farmer must
combine the methods of the manu-
facturer and the merchant. He must
learn not only how to increase pro-
duction. but also how to facilitate
profitable exchange of his products.
He must reduce the cost of produc-
ton to the minimum by increasing
! the quality and quantity of his pro-
ducts and by getting full value out
OF labor. This requires most skill
| full management in the rotation of
crops, in division of labor, in select
ing seeds, fertilizers, and stock; and,
above all, it requires great prudence
i'll purchasing equipment and sup
plies, and in marketing products.
The banks deserve more credit for
improving the business conditions on
the farm than any other single in
stitution. They serve not only as
markets for capital and credit, but
as business counselors and educators
to the farmers. The opening of a
bank account is a distinct step for
ward toward the improvement Of
ones business methods. Almost un-
consciously the depositor will acquire
some of the exact methods of the
banker, and his own business will
improve correspondingly. That the
| farmers all over the country are be-
ginning to appreciate the banks is
evident from the enormous growth of
deposits in rural communities.
But while the farmers derive great
| benefit from the banks, there re-
mains yet to be developed salts
factory system Of agricultural credit.
One Of the greatest drawbacks to the
| lack of working capital. For obvi-
GUS reasons it would be neither prac-
! teal nor desirable to secure capital
for farm operations in the same man
ner as it is obtained in the highly
organized lines of industry where
stocks and bonds are the easy means
of obtaining capital. But the farm
er has the means of obtaining capita
within his own control, if he will
! but use it. The German co-opera-
! tive societies are the models upon
which he can build ample credit for
| himself and his community. Coop
Grafton, self-help honor and public
| spirit are the corner stones upon
which the German credit banks rest
| 1t is said that no single movement
| has been so peworful in promoting
agriculture and in developing Coop
Grafton and public spirit among Ger
man farm ers as their well-developed
credit system. The mortgage loan
sharp would quickly go out of bust
ness could the farmers of a commun-
| ity come together and pledge their
personal security for small loans at
q reasonable rate of interest for the
! benefit of those who need assistance.
| This system acts much like a clear
ing house association, where the en-
tire membership lends it's assistance
| to banks in need of temporary aid; a
practice which has more than once
averted national disaster.
The doctrine of the old economist
that the small farm will yield the
largest return per acre, and is there
fore the most profitable from the ma
tional point of view, is now being
questioned by Investigators in rural