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the situation in China. For Land Tenure. Apparently there 

 is none except as illustrated by family ownership. The village 

 clan and family life, however, form a basis for co-operative 

 land tenure, if it should seem to be desirable. For Production. 

 There is much co-operation in the way of exchange of labor, 

 but doubtless this could be extended. The whole field of 

 organized co-operation in farm work, as well as in the use of 

 power and farm machinery, still remains for the future. For 

 Credit. There are now village societies for credit, but they are 

 used largely for non-economic purposes. It is doubtful if for 

 some while to come there will be much purchase of land; if so, 

 there will not be much demand for long term credit, except for 

 rebuilding and replenishing after floods. Interest rates run 

 from 2% to 6% per month. Borrowing for non-economic needs 

 is a great bugbear to a successful credit system. On the other 

 hand, the clan custom of assuming liability for members of the 

 clan ought to be a good basis for co-operative credit. For 

 Plant and Animal Improvement. After the scientist has done 

 his work, the farmers must co-operate if they are to make 

 improvement possible on a practical scale. It cannot be done 

 by individual farmers. For ^Purchasing of Supplies. At pre- 

 sent not much is purchased by the farmer. But as his require- 

 ments increase he will need co-operative purchasing societies if 

 he is to buy to advantage. For Manufacturing. There is 

 probably very little local manufacture of soil products on a 

 co-operative basis. There is a large field here, but experiments 

 and demonstrations should be undertaken first. The village 

 industries would lend themselves admirably to the co-operative 

 method; there are those who believe China offers the best 

 opportunity in the world for applying the co-operative idea to 

 small manufacture. For Selling. At present the farmers have 

 a relatively small surplus to sell. Middlemen are few, and 

 direct sales are the common practice. The need, however, is 

 beginning to be felt in the sale of cotton and silk, and, as 

 industries and cities develop, will be felt keenly in food 

 products. It is none too early to experiment with co-operative 

 sales societies. For Insurance and Protection. There is now 

 co-oper.ation against thieves, but apparently no insurance 

 against fire, flood, or other similar catastrophe. 



Experience seems to show that agricultural co-operation 

 depends upon pressure and habit. The Chinese farmers 

 already have the habit of co-operating for certain ends, but 



