Stock farm

“ In a self-contained farm—that is, one which raises sufficient food for the requirements of the live stock—ten dollars an acre may be considered a moderate investment for animals. If, however, the plan is to raise only the coarse feed, while the necessary grain as well as other concentrates is largely purchased, a farm may easily carry from $25 to $35 worth of live stock per acre. Lack of capital is one of the most potent influences in preventing a larger production of animals and animal products. ”

“ The least trouble, not the best stock, seems to be the question with most. The discouragement of debt, the low prices of all farm products, the habits of arrant carelessness which naturally belong to large farms, of rich lands, removed from a ready market, and on which there is more than enough for home use, and much waste of the surplus because a poor sale for it; these things are the causes why but little attention is paid to good stock. ”

“ In large cities the brokers naturally unite for convenience of business in the so-called stock exchange, in which the market price of all current forms of indebtedness or deferred payments is fixed from day to day, or from hour to hour, by the higgling of the market, just as the price of produce is fixed in the produce exchange. Naturally, as in the case of produce, a fictitious business, purely speculative, grows up around the legitimate dealing [pg 163] in stocks and bonds. ”

“ It is a tax upon the supposed profits of the farmer, which they estimate by the stock that he has upon the farm. It is his interest, therefore, to appear to have as little as possible, and consequently to employ as little as possible in its cultivation, and none in its improvement. Should any stock happen to accumulate in the hands of a French farmer, the taille is almost equal to a prohibition of its ever being employed upon the land. ”

“ Many farmers, hoping to offset the low prices with higher yields, took advantage of the new technology to produce bumper crops; the result was an additional surplus and even lower prices. Throughout the 1920s, the farm situation remained critical. [211]
The stock market crash of 1929 marked an extension and exacerbation of the grim farm conditions rather than a sudden decline. It rocked the farmer's market, of course, by further decreasing the amount of raw products being sold; unemployed workers bought less of everything, and often kept gardens themselves. ”

“ The fact that warehouses and granaries are full leads to the assumption that over-production has destroyed the market and the demand for labor. This is quite probably true of all articles of such a nature as to be held for speculative purposes. The staple grains and fancy live stock are illustrations of these. An universal over-production, so long as the articles produced are adapted to current wants, is impossible, since every man's product, if needed, is his means of securing another man's product to meet his own wants. ”

“ He becomes interested in market conditions and prices. He grows more commercially-minded. He views the farm no longer as a fixed area, but one that may be enlarged by purchase or by rental, and that may be reduced by selling or letting the less needed parts. One-fifth of farm owners now rent additional land. In commercial farming the land is not contrasted with capital as something apart, consisting of the value of the equipment and stock; but the whole complex of land and other goods is thought of as a capital-investment. ”

“ All owners of productive wealth gain interest in its use as truly as in lending it. The farmer is not a money-lender in general, because his wealth will bring him larger profit by its use as stock or machinery. Even when he borrows from his neighbors, it is possible that he secures a larger interest, though he calls it profit, than he pays the lender. ”

“ I have not increased my plant during the past four years. My stock consume a little more than I can raise; but there are certain things which a farm will not produce, and there are other things which one had best buy, thus letting others work their own specialties.
If I had more land, would I increase my stock? No, unless I had enough land to warrant another plant. My feeding-grounds are filled to their capacity from a sanitary point of view, and it would be foolish to take risks for moderate returns. If I had as much more land, I would establish another factory ”

“ If they judge by the market today, they are in danger of two errors: first, of overestimating the future demand, which may be satisfied before the new crop comes; second, of diverting from ordinary staple crops too large a portion of the crop-raising force. Common experience has taught that a high price of hops or onions or broom corn has almost certainly wrought a reduction of the price for succeeding crops below the normal cost. Still larger foresight is needed with reference to the raising of live stock, which requires more than a single season's investment of capital. ”

“ In any community where enterprise is great and industrial forces are unusually productive, the interest rates are high as compared with another community with few competitors in industrial enterprise and less productive forces. Thus in countries having new land producing large crops with moderate exertion and an increasing population ready to put in such crops, the return for the use of capital in provisions, stock and machinery is great, and the lender gets high rates of interest. ”

“ Fixed capital is always secured by consumption of circulating capital. The extension of railroads always implies great reduction of ready supplies. Money between individuals and communities ranks as circulating capital, but within any community the stock of money needed for domestic trade may be thought of as a permanent machine. Even machinery may be circulating capital in the hands of one who manufactures or sells it, though fixed when located in its work, and for the whole community is “fixed” as soon as its destined use is determined by its form. ”

“ Farming pays in proportion to the amount of work intelligently applied to this manner of increasing values. It is difficult to make a profit growing and selling grain. Grain may sell for more than the labor and seed, but it takes so much vitality from the land that depreciation of capital often is greater than the margin of apparent profit. When grains are grown and fed to live-stock on the farm, business methods demand better [78] buildings and more power, which means that the farmer is employing auxiliary machinery and other modern methods to enhance values. ”

“ A farm well equipped can not be handled to advantage without a proportional investment in current supplies. Many a renter cannot pay his rent for want of means to work his farm profitably. If the farm were given him, he would still be hampered by the same lack of consumable goods to turn at once into larger products. Many a “land poor” farmer would gain at once by exchange of acres for more “current supplies” for his farming, such as food for help, feed for teams and stock, seed or fertilizers for his crops, or young stock to consume the raw product of his fields. ”

“ The use of machinery and blooded stock can certainly be greatly increased by careful adjustment of interests. Great improvements in seed and in methods of culture may be discovered by agreement among a body of farmers that certain individuals shall make a specialty of those improvements. It is even conceivable that a rotation of crops might be carried on upon a dozen farms, while each farmer gives his attention to his specialty. It would require, of course, a much closer combination in credit with each other than has yet been found among farmers. ”

“ Where many animals are kept and their manure properly cared for and returned to the land, the soil becomes richer and crop-production steadily increases. And the farmer grows rich with his land.
Further, the keeping of live stock distributes the farm labor and the farm income over the entire year. This is true whether meat, milk or eggs are the money crops. And certainly both factors are worthy of consideration from a straight business standpoint. With labor as valuable as it is at present, lost time cuts into the profits. ”

“ In stock-farming the chief thing is not to have too many beasts. They used to say that half-stocking was whole profit, and whole-stocking was half profit. If the animals have plenty to eat, and the rent isn't too high, they'll take care of their owner. ”

“ In many instances, it only gives the actual cost of the raw material used in construction. This capitalization does not seem so large, when we consider the small individual holdings. Having a par value of $250 a share, we have only $500, in the two shares, for each one of the five hundred co-operators. I think it has been wisely determined by a majority vote, that as the resources of the farm continue to develop and mature, the increase of profits shall come to the individual stockholder in the shape of larger wages, instead of by dividends on stock. ”

“ In the fourteenth century the stock of European farms was worth three times the value of the farms. Similar conditions are found now in some newer portions of the United States. It is impossible to estimate exactly the existing ratio between fixed and circulating capital from statistics at hand. ”

“ In order to secure and maintain a supply of these six classes of stock it is necessary to provide a force of three kinds of artificers, namely: fowlers, hunters and fishermen, or else you may buy breeding stock from such men, and trust to the diligence of your servants to rear and fatten their offspring until they are ready for market. ”

“ The immediate object of watered stock in fairly managed companies is the immediate distribution among shareholders of any increased value without increased cost. As the farms along a line of railway may have doubled their value with no expenditure in improvements, so the railroad itself may have doubled its value in the possibility of earnings through the rapid development of settlements along the line. ”

“ Seventh, they may extend their operations even to the taking of jobs that require a variety of work continuing through a period of time. Eighth, they can, under most favorable circumstances, undertake various stock enterprises, especially coöperative stores, thus securing an incentive to saving, and diminishing the spirit of antagonism against the profit-makers. ”

“ We have arrived at the period when we enjoy the fruits of competence—some of us, the luxuries of wealth. A taste for superior domestic animals has been increasing, and spreading over the United States for many years past; so that now, a portion of our farmers and country people understand somewhat of the subject. It has been thoroughly demonstrated, that good farm stock is better, and more profitable than poor stock. Still, a taste for good stock, and the advantages of keeping them, over 347 the common stock of the country, is not generally understood ”

“ Just so, great public improvements upon rivers, harbors and highways are a part of economy and prudent investment of wealth only when a community is able to use them to advantage. The test of prudence in capital saving is in its nice adjustment to the abilities of the users.
Prudent adjustment of capital.—A still further adjustment is required by prudence between the capital put into fixed forms and the circulating capital needed for best use of the more lasting machinery. A farmer is said to be stock poor when he overloads his farm or crowds his farm buildings with growing stock. ”

“ Every improvement has certainly given a larger enjoyment and better employment to the masses of people. The enterprise which invents better ways of accomplishing anything is the best possible means for enlarging and stimulating the wants and abilities of the whole people. The very profits themselves are sure to [pg 201] awaken larger enterprise, and even if the accumulated surplus is distributed in so-called watered stock, it does not cease to promote production. The wider the distribution of stock, the more permanent and more generally satisfactory is the working of the great combination. ”

“ Especially designed machinery, accomplishes this otherwise unpleasant task, quickly and easily. By this convenient arrangement, with a very little labor, these buildings, and the stock housed in them, can at all times, be kept healthy and clean. A most important consideration!
Everywhere, appear evidences, of the farms increasing wealth in live stock. Great herds of fine cattle, are fattening in the fields, pastures and barns. Prize collections of choice sheep, are roaming over grassy slopes. ”

“ But it's no easy matter to keep a farm in good heart. That's another reason why I'm so glad I won't have to sell my stock. A farm run without stock is sure to grow poor, and if the farm grows poor, the owner does as a matter of course. ”

“ The total value of real estate in farms was over four times as great, and the total value of live stock exactly corresponded. The number of cows, sheep and hogs had not kept up with the population; while the number of beef cattle and horses and mules had increased much more rapidly. The fact that the value of live stock had increased in much greater proportion than the numbers shows that there has been great improvement in the individual character of the animals. ”

“ The art of feeding live stock should really be divided into two branches, as is not yet fully appreciated, one relating to the stock kept at the steading, the other to the stock pastured in the fields. ”

“ Besides the usual profits of stock, farmers would expect to be compensated for the risk which they incurred of a sudden influx of corn, and therefore the370 price to the consumer, at the seasons when he most required a supply, would be enhanced, not only by the superior cost of growing corn at home, but also by the insurance which he would have to pay, in the price, for the peculiar risk to which this employment of capital was exposed. ”