LARGER ASPECTS OF FARMING 95 



production, but we have learned to be skeptical of any alleged econo- 

 mies that cannot be reduced to a purely mechanical basis. For ex- 

 ample, it takes a large power plant and a lot of powerful machinery 

 to roll even one steel rail. When you once have this large equipment, 

 of course it pays better to keep it busy. Here you have a definite me- 

 chanical reason for fairly large-scale production. 



From the standpoint of bargaining, however, the large concern 

 has many advantages over the small concern. It can afford to main- 

 tain a larger selling organization with agents located everywhere, 

 which agents can "get there first," before the scattered agents of the 

 smaller concern can get around. Being able to buy its raw materials 

 on a larger scale, it may succeed in getting better bargains. It may 

 also be able to handle its labor situation more effectively and make use 

 of cheaper grades of labor than the smaller concern. In various 

 ways, by either buying or selling to better advantage than the smaller 

 concern, it may beat it out. 



The seller is a weak bargainer when the buyer has many other 

 opportunities to buy. The buyer is weak when the seller has many 

 other opportunities to sell. Collective bargaining on the part of sellers 

 reduces the number of other opportunities open to the buyer; when 

 practised by buyers it reduces the number of other opportunities open 

 to sellers. It is dangerous, first, because it is a game that both sides 

 can play ; second, because it may become a means of extortion instead 

 of a means of defense. 



WHEN DOES COLLECTIVE BARGAINING CEASE TO BE A MEANS OF 

 DEFENSE AND BECOME A MEANS OF EXTORTION? 



This is one of the most important questions now before the 

 world. When the world really answers it, things will begin to be 

 uncomfortable for those who are caught using it as a means of ex- 

 tortion, whether they call themselves merchants, manufacturers, labor 

 unions, or farmers. The world will tolerate a good deal of collective 

 bargaining so long as it is a means of defense on the part of those who 

 cannot bargain for enough to give them a decent living. It will not 

 stand much more than that. 



Just now our farmers are weak in bargaining power. They are 

 justly inclined to turn to collective bargaining as a means of defense. 

 I warn them, however, that their present weakness is temporary. 

 Europe is impoverished and not able to buy our surplus at remunera- 

 tive prices. Our farmers are therefore forced either to sell it to them 

 at prices which they can afford to pay, or not to sell at all. They are 



