Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-01-23

The farmer Is the most individualist&
and independent citizen among us. he
comes nearest to being self sufficient; but
precisely because of this he has not
claimed for himself the right to employ
those meaDs Of cooperation, coordination,
and consolidation which serve so use1ully
In other industries. A score or more of
manufacturers consolidate their interests
under q corporate organization, and at
tain a. great Increase Of their power IN
the markets. whether they are buying or
selling. The farmer, from the very mode
Of his life has been stopped from these
effective combinations therefore, because
he buys and sells an individual II is
his fate to buy in the dearest ana SCI!
in the cheapest market.
THE great industrial corporation sells
its bonds in order to get what we may
call it's fixed or plant capital. just as the
farmer sells a mortgage on his land in
order 10 get at least a large part Of his
fixed or plant capital l am not com
mending the bonding or mortgage sys-
tenn Of capitalization, rather only recog-
niziug fact But there in large part the
analogy ends Both the manufacturer and
the farmer still require provision OF
working capital The manufacturer, whose
turnover is rapid finds that in the sea.
sons when he needs unusual amounts OF
working capital he can go to the bank
and borrow on short time notes. His
turnover is rapid. and the money will
come back in time to meet his short-term
obligation. The merchant finances his
operations in the same way. But the
farmer Is in n different case. His turn
over period is a long one: his annual
production is small compared to the
amount Of investment. For almost any
crop the turnover period is AT least
year for livestock Ii may require two
or three years forAa single turnover. Yet
the farmer is conAelled[ If he borrows
bis working capital to borrow for short
period. 10 renew his paper several times
before his turnover is possible, and to
take the chance that II he is called upon
untimely to pay off his notes he may he
unfinished livestock Obviously. the
farmer needs to have provisions. adapted
10 his requirements, for extension OF
credit to product his working capital
Under the necessities Of jXar time CON
solidatiOn and Capitalization of credit
resources and financial capabilities went
far 70 sustain the struggle. Essential
industries We're extended the help and
support OF society because recognized its
dependence on themt Much that was
economically unsound and unfair was
perpetTated under cover Of this effort to
uphold necessary industrial factors. But
the lesson was useful and tustifes In
quiry as 10 whether. properly adapted to
peace conditions, the methods of larger
Indignation and wider cooperation might
not we'll be projected into times of peace,
The need Of better financial facilities for
the farmer must be apparent on the most
casual consideration Of the profound Ii
vergence between methods Of fnauciop
agriculture and other industries The
farmer who owns hts farm is capitalist
executive, and labOrer all in one As
capitalist he earns the smaller return on
his Investment. As executive, he is lit
tie paid and as laborer he IS greatly un-
derpa'd in comparison to labor in other
occupations.
There is much Instrumentation regard
ing the hnanclaI status Of agriculture
II the mortgage indebtedness Of farms
shows, over given period n marked
I. tendency to Increase, the fact becomes
occasion for concern. II during the same
period the railroads, or the grent indus
, tries controlled by corporations, find
f. themselves able TO increase their mort
gage indebtedness by dint Of bond is
sues, the fact is hcraldNd as evidence
Of better business conditions and of cant
tails increased willingness to engage In
these industries and thus insure larger
production and better empI0vment of
labor. Both the mechanism Of finance
md the preconceptions Of the community
are united In creating the impression
that easy access to ample capital is a
disadvantages TO the farmer, and an evil
den"e Of his decay in prosperity: whllA
precisely the same circumstances are con.
strued, In other industries. as evidence
Of prosperity and Of desirable business
expansion.
"In the matter Of what NAV he called
fixed Investment capital the disadvan-
take Of the farmer 80 strongly impressed
public opinion that a few wears ago the
Federal Farm Loan Board was estab-
lishcd TO afford better supplies Of cant
tal for plant Investment and to insure
moderate interest rates. But while un-
questionabiy farm finance has benefited
the board has thus far not extended It's
operations TO the provision Of working
capital for the farmer az distinguished
from permanent Investment In the plant
There should be developed n thorough
code Of law and business procedure, with,
the proper machinery Of finance, through
some agency, TO insure that turnover
capital shall be as generously supplied
70 the farmer and on as reasonable terms
as to other Industries An industry, more
vital than any other In which near half
the Nations wealth is invested can be
relied upon for good security and Ger
tain returns.
In the aggregate, the capital indebted
ness Of the country $ agricultural plant Is
small, not large. Compared with other
industries the wonder is that agriculture,
thus deprived OF easy access to both in
yestment and accommodation capital, has
prOspered even so well.
REFERS TO PLAN OF
FARM LOAN BOARD.
The lines on which financial support
Of agriculture may be organized 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 cOOpera-
tive loaning associations Of Europe have
been. effective in :eutives to united action
by farmers. and have led them directly
into cooperation in both production and
marketing which have contributed greatly
to the stabli2atiOn and prosperity of ag-
riculture. Where we examine the co
operative societies Of Russia, now recog-
nized as the most potent support in that
disturbed country for orderly society. or
whether We turn to the great and illu-
minated cooperative associations which
have strengthened the California agri-
cultural industries; whether we examine
the cooperative societies Of Ireland and
Denmark or the like organizations which
handle the potatoes of Maine. or the
cautal0upes of Colorado: whether we
consider these organizations as means to
buying the farmers requirements In a
cheaper market or to selling his products
IN more remUnerative one. the con
clusion is in all cases the same 1t is
that the farmer is as good business
man as any other when he has the
chance; that he Is capable OF organiza-
ton. cooperation and cOordination that
he will apply sound methods to his
business whenever he has the chance;
that his credit can be better established,
his particulalkgeeds Of capital on terms
suited to Requirements can lie met;
that. these things accomplished. he ceases