CHAPTER IX 

 THE SUPPLIES OF CAPITAL 



THE detailed survey of the various surplus-producing area 

 made in Chapters IV. and V., above, served to show the 

 necessity for capital outlays for the proper development of 

 all the newer regions, whether temperate or tropical. Till the 

 present time share capital has been available for the construction 

 of such permanent undertakings as railways and freezing works 

 and the establishment of shipping lines, but seldom for the purposes 

 of ordinary agricultural production. As compared with mining 

 and industrial enterprises, agricultural industries have been a 

 neglected field for investment. They have been at a disadvantage 

 in attracting capital, because hitherto the system of isolated private 

 enterprises has held full sway. It is to be noted in this connection 

 that a much greater outlay of capital above the cost of the land is 

 required for stock-rearing than for simple crop -production. 



Recently, however, a start has been made in Brazil and other 

 tropical highlands, in organising cattle-rearing on a large scale 

 under company management, to supply an export trade. This 

 movement promises to develop in the future, as the whole industry 

 is essentially one where modern methods of stock-raising under 

 expert management, backed up by proper lines of communication 

 and coastal freezing works, will yield returns sufficient to encourage 

 investment. The future development of the pastoral resources of 

 the tropical highlands throughout the world lies more in this direc- 

 tion, as has been previously noted, than in the system of private 

 and individual exploitation. In view of the possible shortage of 

 capital in Europe for foreign investment after the close of the War, 

 it is possible that the capital for such enterprises will come largely 

 from North America ; this will all the more be the case, since the 

 technical side of cattle-raising and of meat-production on a large 

 scale in tropical highlands has hitherto received most attention from 

 American syndicates. 



Capital expenditure is also required for the further development 

 of animal industries in settled countries, whether densely or sparsely 

 populated. Some company enterprises have started freezing works 

 and meat-preserving plants, and butter and cheese factories, but 

 these efforts have not extended very far. Much has still to be done 

 in providing machinery, buildings, transport facilities, and buying 

 and selling agencies. At the present time, however, share-capital 

 will scarcely be invested in such undertakings, and still less in 

 direct agricultural production, while many other more desirable 

 fields remain open. The main effective alternatives are co- 

 operation and State assistance. 



