99] ECONOMIC WORKINGS OF THE SYSTEMS 99 



ing, therefore, that the elimination of this risk would tend 

 to effect changes in the relative number of farms under the 

 several systems. Before passing on to the consideration 

 of other and more important forms of risk, it should he 

 noted that the risk of "crop failure" also exerts an in- 

 fluence in the plan of agricultural credit, tending, of 

 course, to elevate credit prices. These credit prices are 

 so related to other risks also, and to other economic 

 forces that their consideration is deferred a bit. 



There are other elements of friction which are in the 

 nature of risks, inasmuch as they too involve uncertain- 

 ties as to the product of a given combination of labor 

 and capital. The risks above described are due to the 

 irregular action of physical nature and would exist even 

 on the supposition that man's conduct always conformed 

 to the dictates of highly wrought and uniform economic 

 motives. The uncertainties now to be considered are 

 due to the irregular action of economic motives in men 

 and might exist even on the supposition that physical 

 nature's action were uniform from year to year. As a 

 general thing it may be said that the presence of the 

 latter risks really intensifies the action of the former ; for 

 if the latter perversions were absent, the risks of nature 

 could be brought within the scope of a pretty definite 

 insurance fund. 



It is now proposed to analyze the workings of these 

 more powerful elements of friction. The proper approach 

 to the problem is through the avenue of wants. Just as 

 the satisfaction of wants is the terminus ad quern of all 

 economic activity, even so wants are the terminus ex quo 

 of all sound economic analysis. Economic activity nor- 

 mally arises in response to economic wants. If the 

 wants be defective in that they are not well balanced with 

 reference to the individual's temporary and abiding well- 



