14 The Farmer^s Business Handbook 



the former case, the deception is likely to be 

 corrected in time, but in the latter case the de- 

 ceiver and the deceived are the same person and 

 there is no outside party to correct the error. 



It may be said that the bills receivable, $689.25, 

 and the cash, $250, together, are more than equal 

 to the unpaid mortgage, and that it might have 

 been better financiering to have paid off all the 

 mortgage, although the working capital would 

 have been reduced to $123.75. Just here, how- 

 ever, is where most farmers make their mistake. 

 They provide too little working capital and are 

 thus debarred from taking advantage of " selling 

 money dear," or of purchasing something cheaply 

 which may be turned into more money later at 

 a profit. It should be said, however, that if a 

 man has little business ability he would better 

 "keep near shore" — that is, pay off the mortgage 

 and carry on a smaller and safer, though less 

 profitable, business. 



It will be noticed that the financial condition 

 of the farmer whose business has been set forth 

 briefly is most excellent. The mortgage, so far 

 from being a dangerous incubus, is a positive 

 stimulant to intellectual effort. Most eminent 

 financiers secure profits by the judicious use of 

 other people's money. As the secretary of a 

 flourishing western building and loan association 

 puts it, "We buy money (borrow it) at five per 



