Report of Missouri Farmers' Week. 349 



increase in acreage for growing cereals was 4.2 per cent. The 

 cereal decrease per capita was nine bushels. The indications from 

 the United States census also are that farm indebtedness is on the 

 increase. Tenancy is also on the increase, and these conditions 

 obtain, no doubt, for the greatest reason that the farmer is not 

 realizing a sufficient amount from his operations to meet increased 

 obligations. With an average annual crop of eight billions of dol- 

 lars he is using six bilHons of borrowed capital to produce it. When 

 his interest, commissions, transfers, and other incidental accessories 

 are paid, he pays in round numbers $500,000,000 interest on the 

 money he has borrowed. This approximates a rate of Sy^ per 

 cent. 



In 1911 the American farmer exported $385,000,000 in food 

 products. This paid about 76 per cent of the interest that he paid 

 on his borrowed capital. During some of the years between the 

 dates mentioned his exports were actually exceeded by his imports 

 of food products. 



From the above facts gleaned from the late census it should 

 be made clear why such an enormous interest is being manifested 

 in the farmer's welfare. Unthinking persons have criticised bank- 

 ers, railroads, manufacturers, merchants, etc., for taking such 

 active interest in the promotion of better farming, but when we 

 recognize the fact that the farmer is using six billion dollars of 

 the bank's money or 75 cents on each dollar of the products he 

 produces, it should be reasonably clear why the banker is interested 

 in the farmer, 



Railroads and transportation companies make their living by 

 transportation. If the farmer produces no more than he consumes, 

 or a surplus is not produced upon the farms, these industries en- 

 gaged in hauling must suffer in proportion. 



Practically 75 per cent of the raw material for the factory 

 comes directly from the farm. If the farm does not produce the 

 raw material, the factory must close its doors. 



At least four-fifths of the products that the merchant handles 

 come either directly or indirectly from the farm. If the farm 

 does not produce the products, the merchant, the manufacturer, the 

 railroad, and the banker must suffer correspondingly. 



However, the most disastrous part, as a result of low produc- 

 tion by bad methods or otherwise, falls most heavily on those who 

 till the soil. If the conditions that have been mentioned above are 

 to continue unchecked for a few generations, the farm people will 



