117 



pigments by the farmer, can be more easily replaced 

 in our farming: by proper credit than, for example, in 

 the ease of commerce or industry. Tin- establishment 

 of ample forms of credit will free our farmer from 

 all the natural difficulties of his enterprise (generally 

 put down to the want of initial capital which I have 

 endeavoured to show is more imaginary than real) . 

 The use of credit stimulated his progress in the past, 

 on credit he has achieved his success of to-day, and on 

 still ampler forms of credit there is every reason to 

 believe he will accomplish greater things; primarily 

 increased production with increased gains for himself. 

 When dealing with facilities for trade, all tenden- 

 cies of modern thought are for ample and extensive 

 credits, and it must be apparent to serious reflecting 

 persons, that the same question underlies all the solu- 

 tions regarding our farming and agricultural progress- 



FARMERS' WAYS OF RAISING MONEY. 



Previous to entering on the ways and means by 

 which agricultural credit may be extended or ampli- 

 fied, let us examine the methods whereby the average 

 farmer satisfies his needs for money under the present 

 circumstances. 



Generally speaking the securities in which money 

 can be raised are : on the land, by mortgage : on the 

 implements, by the Prenda Agraria ; on the products, 

 by warrants or by advances from the purchasers, brok- 

 ers of grain, etc. ; on personal integrity, from banks 

 or private parties, by means commonly of his signa- 

 ture backed by two other responsible parties or finally 

 hy partnership or pajrticipatioii in the final profits, 

 according to the sum loaned. This latter is rarely ac- 

 cepted as a recourse except under dire necessity by a 

 farmer. 



Oh a 1 ! the modern -methods of raising money only 

 that of Warrants is not in common use among our 

 farmers . 



Funds are obtained either direct from the capital- 

 ist, through the intervention of the banks, or through 

 the local tradesman, the grain brokers or almaceneros; 

 in practice the money is rarely handed over, commonly 

 an equivalent is accorded in credit, to be drawn on as 

 required. 



Statistics show that the sums accorded on an aver- 

 age are small; relatively the demand is for small sums, 

 $10.000 m|n. in the case of the average cereal farmer. 



