236 THE FARMER AND THE NEW DAY 



stock add to the initial cost. Many farmers are 

 obliged to borrow in order to secure these require- 

 ments, and the loan usually takes the form of mercantile 

 or " store " credit. Unfortunately, there are thou- 

 sands of fanners who are obliged to seek similar credit 

 during the crop-growing season for household supplies. 

 Mercantile credit at its worst is sheer robbery, and 

 even at its best has two serious drawbacks. Actual 

 interest charges are likely to be high, if not exorbitant, 

 and are elusive because hidden in the price. Pressure 

 for payment tends to compel the grower to sell his prod- 

 uct at the bidding of his creditor almost inevitably 

 to the farmer's disadvantage. Our farmers should 

 have a system that suits the need for short term credit 

 for making crops to best advantage. 



In all forms of credit to farmers two principles 

 should be more fully recognized by farmers themselves, 

 by bankers and by the government: The great possi- 

 bilities of capitalizing character, by which a man's in- 

 dustry and integrity become a substantial collateral for 

 loans; and the financial power of the collective assets 

 of a community of farmers, once all its members are 

 willing to share in a common financial responsibility. 



There is a form of assistance to farmers, of vastly 

 increasing importance, theoretically belonging partly in 

 the domain of natural resources and being partly a mat- 

 ter of credit, while practically it involves the efficiency 

 of government. The use by farmers of various forms 

 of mechanical power is destined to be a large factor 

 in their enterprise. Public control of water, not merely 

 for irrigation but also for power, is indispensable. 

 The use of electricity on the farm and for the develop- 

 ment of community manufactures and similar services, 

 must not be dependent upon the accidents of corporate 



