11., 



;is the real interests of ihc nndertukin^ mi^ht 

 one to think expedient, appeal to his first capitalist, (or 

 land owner) for whom as a rule all interest in the busi- 

 ness lias disappeared oner he has secured his rent or 

 his share in the enterprise. He must rely on an entire- 

 ly new party and this is the person interested in se- 

 vuring the results of his labours in the majority of 1h 

 ruses. He demands credit, or what is the same thinir 

 practically, additional capital, when he has something 

 definite to offer as security; he calls for money when 

 production is accomplished. Tp to this time, with a 

 minimum of capital he has achieved production. 



ECONOMICAL CAPITAL. 



The alternative of the present system, a limiting 

 t>f the area sown, of the scope of action commensurate 

 with the funds available, in order to carry on with- 

 out the aid of further capital, would reduce produc- 

 tion generally, A^X without adequate preparation the 

 same, results would not be attained from a small area, 

 tior would that produced cost less than under the ex- 

 ist in system. 



The minimum 'of capital backed by the energy and 

 enterprise of our farmers can produce abundantly and 

 economically : the absence of adequate capital to begin 

 with is not the real reason of our farmer 's distress. His 

 distress commences much later, when the results of his 

 labours are- apparent, when logically his difficulties 

 should cWse. With the entry of the third party in fi- 

 nancing Hie erop arise all his difficulties. 



Economically speaking it is not the want of Ca- 

 pital from which the farmer suffers, but from the 

 want of an intelligent system of credit; this is now be- 

 in u; more and more understood, and that attempts are 

 being made to remedy the want* is evident by the innu- 

 -merable projects which,, are annually proposed. 



Why that which exists in amplitude for commerce 

 and industry should fail for the farmer is hard to ex- 

 plain rationally! The easiest explanation is the absence 

 of real knowledge as to the causes, and the indifference 

 on the part of both the parties concerned; the one in 

 remedying them, and the. other, in the remedy the 

 State on one band, and the farmer on the other. 



The difference as to rural credit is not to be attri- 

 buted to the precarious nature of the undertaking, for 

 credit is nearly always sought when production is 

 Achieved. The speculative nature of the security is a 



