MANAGEMENT 



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large orders. Sometimes, however, these large orders might as 

 well be placed through the local merchants as through coop- 

 erative organizations pure and simple. 



Credit. The question, with what to buy, involves the question 

 whether to buy always with cash or to make a judicious use of 

 credit. What advice to give farmers in general on this subject 

 is an exceedingly delicate question. The farmer who has not 

 a very keen sense of values or is not in the habit of keeping 

 accurate accounts, who does not understand the importance of 

 charging for deterioration, etc., would better avoid the use of 

 credit as he would the plague. If he never makes use of it, he 

 will probably not achieve a large degree of success as a farmer ; 

 but if such an unbusinesslike farmer does make use of it, he is 

 pretty certain to become bankrupt. But the farmer who has a 

 keen sense of values, who understands business methods, who 

 keeps accurate accounts and knows what to charge for deteri- 

 oration, and who at the same time is a successful manager in 

 the sense that he is able to grow good crops and to sell them 

 to advantage, should not hesitate to make a large use of credit. 

 By means of it he saves time. He can secure fertilizers, farm 

 machinery, live stock, etc., much earlier than would otherwise 

 be possible. If he is very wise in his purchases or skillful in his 

 management, he will make enough from the use of the credit 

 he has borrowed to pay the interest and leave a handsome 

 profit besides. This profit, that is, the sum which he makes 

 from the purchases over and above enough to pay principal and 

 interest, represents the advantage of making use of credit. 



Sometimes the political and social conditions are such that 

 capital cannot be borrowed except at exorbitant rates or under 

 very unfavorable conditions. Under such circumstances the 

 honest and capable farmer is a victim of his bad social surround- 

 ings. Therefore one of the most valuable things for the honest 

 and capable farmer is a good system of credit by means of 



