480 IOWA DEPARTMENT OF AGRICULTURE 



pound, it means that each creamery has sold $61,852.17 worth of butter 

 Only 8,481,940 pounds of the entire product was consumed in the state. 

 Therefore, over 90 per cent of the money paid to patrons came from the 

 large cities of the East. This not only makes a large business for the 

 local banks, but assists materially in an even distribution of money at 

 all times. 



In the community that has no creamery and where the products of the 

 cow are only used to pay the grocery and meat bills each month, the 

 supply of currency is more spasmodic. The farmer who raises grain and 

 disposes of it directly to the elevator, receives his money only during the 

 marketing season. The extensive beef and hog raiser likewise receives 

 compensation for his stock only once or twice a year when the animals 

 are marketed. This system brings large quantities of money to the bank 

 at certain seasons. 



The small institution, in order to make a profit on its deposits, is 

 forced to send the money to other localities where it can be disposed of 

 at a profitable rate of interest to the large business houses and manu- 

 facturing plants of the cities. By doing this the money which originates 

 in the small town and which rightfully should be used for the purpose of 

 upbuilding the local community is used for assisting business in other 

 states. 



The farmers' co-operative creamery is especially valuable for building 

 up the town as well as the surrounding community, because it brings heavy 

 deposits to the bank at frequent intervals, as well as a check to each patron 

 once a month. This supplies ready cash for the living expenses of the 

 farmer, which, in turn, makes it possible for the merchants to conduct 

 a cash business. 



A creamery in the community is also a means of bringing the mer- 

 chants and farmers into closer contact. It intensifies their business rela- 

 tions and is a mutual benefit to the surrounding farmers, as well as to 

 every business man in the town in which it is located. 



