131 



that is, if he has anything: with which to mafre it worth 

 while going so far. In the worst of reckonings for the 

 average farmer the debt, if any, will be allowed to run 

 over to the next year, so if he grumbling agrees he ac- 

 cepts the conditions. 



As far as the farmer is concerned, his part of the 

 transaction is pure speculation; he may or may not be 

 left with profits. The chances of gain at the conclusion 

 of his labours are few. They have been passed to the 

 other party, who has stepped in to his aid at the last 

 moment . 



SPECULATIVE LENDING. 



Normally, then, the farmer is financed by the par- 

 ties interested in his products, the grain brokers, 

 who, in order to conduct their business, are obliged to 

 turn themselves into financing agents. 



Under normal circumstances, this, while pointing 

 to limited financial combination in the organisation of 

 the agricultural or cereal growing industry, in con- 

 junction with a primitive system of land tenure which 

 allows the land being exploited by those without the 

 customary resources for such undertakings, would not 

 necessarily mean that anything objectionable was to be 

 found in the system other than its costliness to the one 

 party. However, when we examine the actual workings 

 of the system in all its branches, especially, that part 

 dealing with the sale 011 the markets and the costly ma- 

 nipulations which the system permits, real hardships 

 and injustices become decidedly apparent. , 



GRAIN-BROKER'S LOANS. 



Grain buyers advance the money to the farmer, 

 under the guarantee, first, of the signature of the farm- 

 er on frs k 'pagare" at 9 per cent, interest for the two 

 months, second, against the evidence of a standing crop, 

 likely" under normal conditions to cover the bill ; thus 

 far all is well, but the additional clauses, those refer- 

 ing to the sale of the crop, the date of delivery and the 

 price, are evil. 



The date of delivery is fixed for the mutual ben- 

 efit supposedly of both parties, the buyer because it is 

 essential to know when he will dispose of what he has 

 partly purchased, the farmer because he wants to know 

 when he has to respond for his debt. A certain latitude 

 is allowed, generally the contract fixes, at the best of 



