APPENDIX 393 



or more elements that can and should cooperate for their 

 mutual benefit? We think not, as long as each element in 

 question is operated with the view of making as much profit 

 as possible. 



As stated previously, it makes no difference financially with 

 the farmer whether this apparent favoritism exists or not. He 

 should be interested, however, in seeing each element dealt with 

 fairly. 



A charge of the corn to the hogs at market price is the way 

 to relieve the apparent favoritism referred to above. It also 

 results in an even distribution of the advantage arising to each 

 productive element because of its juxtaposition to the other. 

 This is analyzed in the four possible cases below: 



(a) // corn is sold on the market at market price it brings 1 

 65 cents (70 minus 5 for marketing), to be used in paying the 

 cost of 55 cents, leaving 10 cents net profit. 



(b) // corn is sold to the hogs at market price it brings 70 

 cents (there being no cost of marketing), to be used in paying the 

 cost of 55 cents, leaving 15 cents net profit. 



(c) // the hogs buy corn on the market at market price, they 

 pay 75 cents (70 plus 5 for bringing from market). 



(d) // the hogs buy corn from the corn crib on the farm at 

 market price, they pay 70 cents (there being no cost of bringing 

 from market). 



By comparing (a) and (b) above, it is seen that corn makes 

 5 cents a bushel more by selling at market price to the hogs 

 rather than on the market. 



By comparing (c) and (d) above, it is seen that the hogs 

 save 5 cents a bushel by buying at market price from the corn 

 crib on the farm rather than on the market. 



Conclusions : x Conditions in other classes of productive live- 



1 The conclusions drawn ignore any element of storage of grain 

 on the farm. It might be said that the crop should be credited with 

 more than market price because it is charged with building expense; 

 also that the crop might be sold, thus bringing in cash that could 

 draw interest. Such a statement does not have much weight in a 

 discussion of this sort, because market conditions are so uncertain, 

 that the crop might have been held anyway. 



