August, 1922 



SCIENTIFIC AGRICULTURE 



395 



pay the highest price for it. It must not be 

 supposed, however, that all people with low 

 standard of living have high competing 

 power; but those people who have a lower 

 standard of living and equal industrial ef- 

 ficiency seem to be supreme in the matter of 

 economic competition; in other words, it is 

 not the cheap standard, but the efficient 

 standard that wins. 



The economic value of a man to his coun- 

 try depends upon the amount by which his 

 production exceeds his consumption; that is, 

 his contribution to his country's strength and 

 wealth is equal to the difference between 

 what he adds to its resources and what he 

 takes or consumes from its resources. There 

 are, therefore, two ways in which a man's 

 economic value may be increased : first, by 

 increasing his productivity, and. second, by 

 keeping his consumption within efficient 

 limits. The nation which will win against 

 another in the struggle of economic compe- 

 tition, supposing both to be equally efficient 

 as producers, is the one which has the wider 

 margin between production and consumption. 



It must not be supposed from what we 

 have said that an expensive standard is in- 

 consistent with efficiency in production. In 

 the case of many people, just as soon as they 

 begin living on the expensive standard a 

 large amount of their income goes for those 

 luxuries and elements of display which do 

 not maintain them as efficient producers. 

 They cease to keep themselves keyed up to 

 proper pitch for the best productive effort. 

 On the other hand, if while living upon the 

 expensive standard they spend their income 

 upon such foods, social life, relaxations, 

 amusements, reading and study as will keep 

 them phyisically fit and mentally keen and 

 alert, their productive efficiency may . be 

 maintained or even increased by their high 

 standard of living. 



tt is, therefore, highly desirable that the 

 farming community should have" available 

 everything which will give mental stimulus, 

 wholesome recreation and the best education 

 to fit them for holding their own, and even 

 for making large advances, in the realm by 

 domestic and international competition. Only 

 in this way can the native population retain 

 their hold upon the land of their ancestors 

 and carry on from generation to generation 

 the spirit and the institutions which have 

 been handed down as worthy monuments 

 from the past. 



There is the opinion in some quarters that 

 if we can keep out , of the country those 

 which have the lower standard of living we 

 shall be safe from any effects of their. com- 

 petition. This is not true. In reality, by 

 this course we are simply widening the field 

 of competition from tiie domestic and na- 

 tional to the international. In the interna- 

 tional market that people which can put 

 their products for sale at the lowest price, 

 provided they are equally good, will out- 

 rival those who cannot produce these same 

 products except at a higher price. So that 

 really the low standard of living, if it be 

 efficient, will win the day over the high 

 standard which is not more efficient. It is 

 the rational and productive standard of 

 living which must be maintained among the 

 rural classes, as well as other classes, if the 

 native is not to be displaced by those of 

 lower standard, 



IV — The Effects of Borrowed Capital 



In order that we may have a clear back- 

 ground for considering the effects of bor- 

 rowed capital, some preliminary statements 

 are necessary as to the character of the 

 farmer's business and his need for credit 

 facilities. 



In recent years, both in Canada and the 

 United States there has been a great move- 

 ment for providing farmers with credit. Le- 

 gislatures, provincial, state and federal, have 

 been seeking means by which credit could be 

 granted to the agricultural classes upon a 

 basis that would be commensurate with the 

 credit facilities of the industrial and com- 

 mercial classes. Farmers' organizations of 

 all kinds have passed resolutions in favor of 

 additional credit and governments have 

 listened to these appeals and have, in some 

 cases adopted means by which effect was 

 given to this desire for credit. We are con- 

 fident that in some instances farmers could 

 profit by an acceptable line of credit ; but 

 we are equally confident that more care has 

 been taken to provide for credit than to 

 protect the welfare of the farmers against 

 the use of too much credit. Too much at- 

 tention has been devoted to the benefits 

 which, under certain conditions, are possible 

 from the employment of borrowed capital ; 

 and not enough attention has been given to 

 the other aspect of the problem, namely, the 

 disadvantages which ensue from undue bor- 

 rowing. 



