LEADING FEATURES OF THE WHEAT INDUSTRY 205 



5. Capital. 



According to economic analysis, the third factor in 

 production is capital. The industries least commonly 

 associated with capitalistic production are the agricul- 

 tural and pastoral ones. Closely connected with the 

 conception ''capitalistic production" is the factory 

 system, or modern means of transportation, or the 

 enormously increased use of machinery in the extractive 

 industries. To the minds of many, the pursuit of agri- 

 culture still signifies the direct application of human 

 labour to the soil, with little intervention of machinery. 

 If this machinery is considered, it is subordinated to the 

 other two factors. 



Such a view obviously betrays incomplete observation. 

 Many believe that all one needs to begin farming is a 

 sum sufficient only for a deposit on the purchase of the 

 land, which need only be a small fraction of the total 

 capital value. Having obtained the land by this means, 

 the fortunate individual can at once proceed on his way 

 to riches with little thought of the necessary outlay. 



That the absolute amount of capital required for 

 manufacturing industries is greater than that required 

 for agricultural industries, as such, the least observant 

 would not deny. But what of the relative proportions 

 of capital and labour in the two groups? The farmer 

 employs but one or two labourers, while the "captain" 

 of industry gathers together in one business, scores, 

 hundreds, and even thousands. On this account the 

 ratio of the amount paid in wages to the amount of 

 capital required, it is not unreasonable to conclude, is 

 greater in manufacturing industries than in the purely 

 agricultural ones. In other words, the provision of 

 capital to the farmer is a relatively greater problem 

 than it is to the manufacturer. Such, then, being the 

 case, it is a matter of paramount importance that in his 

 quest for capital adequate for the most efficient pro- 



