110 



This is about the limit of risk which the average 

 land owner in the Argentine will run in getting a return 

 on his capital, as represented by the land, when it comes 

 to cereal fanning. 



Only on 30 per cent, of the farms growing cereals 

 does the capital invested in the land belong to the man 

 working the land, and therefore exclusively depend on 

 its owner for an adequate return. In the greater percent- 

 age of the cases, the return on the total sum invested by 

 the two parties depends on the efforts of one party, the 

 farmer exclusively. 



All then that tends to assure adequate profit or to 

 increase the return or profit must necessarily be advan- 

 tageous to both parties, yef apparently the difficulties of 

 one pass unheeded by the other. 



The predilection of the Argentine capitalist is to in- 

 vest his mone3 T in the land : it is the safe investment he 

 seeks, he cares little whether others make largely from his 

 investment. On the other hand the fanner or colonist is 

 out for quick gains he chooses to risk what capital he 

 has in active exploitation of the land. This difference in 

 point of view, in favour of the farmer may be attributed 

 to the insignificance of the capital which he stands to 

 lose by his spirit of enterprise, or in favour of the land 

 owner to the facilities for exploiting the land, to the 

 more economical results than if lie were to attempt to 

 work the land himself. Whatever is the true explanation 

 of the causes which have led up to the adoption of the 

 present system of laud exploitation for cereals, in con- 

 trast to that, adopted on the cattle, runs or "estancias"' 

 where the owner generally prefers to take a hand in mak- 

 ing the profit from his investment , the present system, 

 which has led many to put forward the theory that the 

 Argentine or "criollo" has no aptitude for cereal farm- 

 ing, has greatly contributed to the extension of sowings, 

 to the progress of agriculture throughout the laud. Whe- 

 ther it will continue to do so is the question to-day. 



FARMER'S CAPITAL. 



Capita!. I use the word in the accepted sense, i.e. 

 money, although it has really to be distinguished neces- 

 sarily from money, that is, the gold, silver, or paper in 

 circulation, and too, from the money deposited in banks. 

 is dependent on profits : where its profits are greatest it 

 goes. 



Either in - the past the profits on capital invested in 

 cereal growing 1 were greater, it was more remunerative 



