CHAPTER II 



ANARCHY OF AGRICULTURE 



AGRICULTURE at present is an unorganized industry, carried 

 on by millions of competing units. The man on the farm cooper- 

 ates with nature, but not with his fellow-farmer. The so-called 

 trusts and large combinations of capital have done much to inte- 

 grate the other industries. Agriculture remains individualistic. K 

 Where industries have reached the monopoly stage or the stage 

 of strong centralized control, we witness a coordination of produc- 

 tion and consumption impossible elsewhere. Production is planned 

 to fit the need; overproduction and underproduction are both to 

 a certain degree avoided. This is illustrated in the case of refined 

 petroleum. Many other large industries, without the monopoly 

 element, yet involving the investment of considerable capital, 

 show a reasonably close coordination of production and con- 

 sumption. Take the mining of coal, for instance. Consumption 

 needs increase as population increases, and as industrial expansion 

 grows. Hence production of coal should increase in a constantly 

 growing and unbroken ratio to meet this upward-moving demand. 

 And such we find to be the case. A glance at the census figures 

 reveals the situation: 



Coal production 

 Year (tons per capita) 



1849 0.28 



1859 0.46 



1869 .. 0.95 



1879 1.43 



1889 2.24 



1899 3.34 



1909 5.00 



In manufacturing the same coordination is found, although not 

 so perfect. The demand is estimated in advance, and this forecast 

 is fairly accurate. However, competing manufacturers may over- 

 produce or underproduce and in this manner cause supply to be 

 out of line with demand. And, of course, in manufactured goods, 

 we enter the field where there is more elasticity of demand, 

 and hence more likelihood of failure of coordination of supply 

 and demand. 



When we come to the field of agriculture we find the greatest 

 failure to coordinate supply and demand. Here we have an indus- 

 try whose product is in universal demand. And this demand, 



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