64 BETTER DAIRY FARMING 



104. Ways in which feed can be bought.— Leaving out of 

 the discussion now the question of buying feed co-operatively, there 

 are several ways that feed can be purchased: the feed can be 

 bought of a local dealer, 100 pounds at a time, on credit; 100 

 pounds at a time for cash; a ton at a time for credit or for cash; or 

 the number of tons of each kind may be ordered through the dealer 

 in advance for future delivery and cash paid on delivery. 



105. Buy for cash. — The place to buy money is at the bank. 

 That is what banks are for. They will keep your money and pay 

 you interest on it or they will sell you some money to use for a 

 time. The thing to do is to establish a line of credit with your 

 banker and learn to use that line of credit properly. What we 

 mean by a "line of credit" is to arrange with the banker with whom 

 you have your checking account to allow you a certain amount of 

 credit on notes signed by you and secured by collateral security 

 such as bonds. Or, the note may be endorsed by your wife and the 

 credit extended to you by your banker upon the deposit with him of 

 a definite statement of the condition of your finances which shows 

 that your business is in such condition that he would be safe in 

 extending to you a certain amount of credit. Then when you need 

 the money you can get it and pay cash for the feed. 



106. Expensive to buy in small quantities. — It costs too 

 much to buy a bag of feed at a time. The only way to buy feed is 

 to order it for future delivery at the time when you think the price 

 is right, take it off the car when it comes, pay the dealer cash for 

 it at the wholesale price agreed upon at the time the feed was 

 ordered, plus a small margin to the dealer for doing the business. 

 That margin should not be more than one dollar a ton over the 

 wholesale price to the dealer if you pay cash and take the feed off 

 the car when the dealer calls you up and tells you to come and get 

 it. So long as you do not yourself buy feed in carloads you must 

 expect to pay for the service rendered by the dealer and the 

 amount of profit to which he is entitled is determined by the service 

 he renders. But there is nothing secret about it. You should 

 know through your dairy paper about what the wholesale price of 

 each feed is. Then it is a matter of a business deal between you 



