The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-01-24

smaller return on his investment.
As executive he Is little paid. and
as laborer he Is greatly underpaid
in comparison to labor in other
occupations
There Is much misconception re-
garding the financial status of agri-
culture. IL the mortgage indebted
ness of farms shows. over a given
period, a marked tendency to in
crease. the fact becomes occasion
for concern. II during the same
period the railroads or the great
industries controlled by corpora
lions find themselves able to in
crease their mortgage indebtedness
by dint Of bond issues. the fact Is
heralded as evidence OF better bust
ness conditions and of capitals in
creased Willingness to engage in
these industries and thus insure
larger production and better en-
ployment of labor.
Placed ut Disadvantage.
Both the mechanism of finance
and the precSnceptions of the COM
munity are united in creating the
impression that easy access to
ample capital is disadvantage to
the farmer. and an evidence of his
decay in prosperity, while precisely
the same circumstances are con-
strued in other industries as evil
dence Of prosperity and Of desir-
able expansion.
In the matter of what may be
called fixed investment capital the
disadvantage az the farmer so
strongly impressed public opinion
that a few years ago the Federal
Farm Loan Board was established
to afford better supplies of capital
for plant Investment and to insure
moderate interest rates. But while
unquestionably farm finance has
benefited, the board has thus far
not extended its operations to the
provision Of working capital for
the farmer as distinguished from
permanent investment in the plant
There should be developed a
thorough code of law and business
procedure. with the proper ma
chinery OF finance. through some
agency, to insure that turnover
capital shall be as generously sup
piled to the farmer and on as rea
sonable terms as to other indus
tries. An industry. more vital than
any other, in which near half the
nations wealth is invested, can be
relied upon for good security and
certain returns.
In the aggregate. the capital in
debtedness Of the country's agri-
cultural plant is small. not large.
Compared with other Industries. the
wonder is that agriculture. thus
deprived OF easy access to both in
vestment and accommodation capt.
tai, has prospered even so well
Benehted by Co-Operation.
The lines on which financial sup
rort of agriculture may be organ
lied are suggested in the plan Of
the Federal Farm Loan Board. and
in those rural finance societies
which have been so effective in
some European countries. The CO.
operative loaninC associations of
Europe have been effective incen-
tives to united action by farmers.
and have led them directly into CO.
operation in both production and
marketing. which have contributed
greatly to the stabilizatioH. and
prosperity Of agriculture. Whether
we examine the cooperative Socie-
ties of Russia, now recognized as
the most potent support in that
disturbed country for orderly socI-
ety. or whether we turn to the
great and illuminated cooperative
associations which have strength
ened the California agricultural in
dustries. whether we examine the
cooperative societies of Ireland and
Denmark or the like organizations
which handle the potatoes of Maine
or the cantaloupes of Colorado.
whether we consider these organ
izations as means to buying the
farmers requirements in a cheaper
market or to selling his products
In a more remunerative one the
conclusion is in all cases the same.
1t Is that the farmer is as good
a business man as any other when
he has the chance: that he is capa-
BILE of organization. co operation
and co-ordination: that, he will ap-
ply sound methods to his business
whenever he has the chance: that
his credit can be better established.
his particular needs of capital on
terms suited to his requirements
can be met; that, these things ac-
complished, he ceases to be an I'M
derpaid laborer. an unpaid eXecu-
tive, and a capitalist with an I'M
remuneratlve investment.
SeIf-HeIp Necessary.
1t cannot be too strongly urged
that the farmer must be ready to
help himself. This conference would
do most lasting good il it would
find ways TO impress the great mass
of farmers to avail themselves of
the best methods. BY this I mean
that. in the last analysis. legisla-
ton can do little more than give
the farmer the chance to organize
and help himself.
Take cooperative marketing.
American farmers are asking for.
and 1t should be possible to afford
them. ample provision OF law I'M
der which they may carry on in
cooperative fashion those business
operations which lend themselves
to that method, and which, thus
handled. would bring advantage to
both the farmer and his consuming
public. In countries where these
facilities and opportunities have
been afforded such cooperative or
ganizations have been carried to the
highest usefulness and are recog
niEed as aiding both farmer and
consumer The he form,