16 THE RURAL PROBLEM. 



is quite as important. The real study of methods of business in 

 relation to the agricultural industry in this country has only just 

 begun, but farmers can obtain help in the methods of keeping 

 accounts and advice as to marketing. The work of the Agricul- 

 tural Organization Society is important m the latter sphere. 



More co-operation in its various forms is urgently needed. 

 Besides organizations for buying and selling, co-operative societies 

 for the purchase and use of implements and machinery are needed, 

 and some are being formed. But nowhere is there greater need 

 for education and co-operation than in the provision of credit and 

 capital. On small holdings the formation of credit societies will 

 be necessary before much advance is made, but no generally 

 acceptable scheme has yet been devised ; and such credit societies 

 as have been organised have had a chequered experience.* But 

 it is essential that any scheme adopted shall be of a self-supporting 

 character, without Siny element of subsidy, except perhaps for a 

 little encouragement in the initial stages. If larger farmers kept 

 more accurate accounts, and were better informed on banking 

 methods, they could secure more credit from existing banks. 

 There is little demand for more credit from this class, unless it 

 were of an especially cheap nature ; and joint-stock banks assert 

 that they grant large amounts of credit to the farming class, 

 although the}^ fail to produce any figures. There is already some 

 provision of capital for the permanent equipment of estates by 

 o^vners under the Improvement of Land Acts,t but on many 

 estates new or improved equipment is needed. Before much 

 advance can be made, the development of more business interests 

 and knowledge of management amongst owners will be required ; 

 and in cases where equipment continues to be inadequate, the 

 State or local authorities should take over the land. But until 

 the State has recognised the necessity for a better policy of 

 management of the land it already controls, little progress would 

 be made hj a change to public o\^Tiership. There is need of an 

 educated public opinion in regard to the use of land under both 

 public and private control. 



The demand for financial inducement for the increase of pro- 

 duction arises from the fact that arable farming depends largely 

 upon the price of cereals for its success ; and the fear that prices 

 may not be high enough, or stable enough, to induce farmers to 

 put more land under the plough. But before the war most arable 

 farms were returning a fair rate of return on capital ; and there is 

 reason to believe that the pre-war rate of prices will be maintained, 

 even if they are not increased, for many years after the return of 

 peace. The American price is the determining factor in the world's 



* The Agriculturnl Orjjanization Society is now making a study of credit 

 conditions in Engiaiid and Wales, and hopes "as a result to be able to put forward 

 a scheme of agricultural credit of a comprehensive character. 



t The number of applications for funds in 1913 was 185, and the amount raised 

 £104,000. (Cd. 7386, 1914.) 



