CAPITAL 



293 



large loss with a small capital. If one has $15,000 invested 

 and is not in debt, and if the farm receipts are $300 more 

 than the farm expenses, there will be $300 for the family 

 to live on. But the labor income will be minus $450, 

 since the farmer has made this much less than 5 per cent 

 interest on his capital. 



Six of the 57 farmers with capital of over $10,000 failed 

 to make 5 per cent on their capital or had minus labor 

 incomes. One of these had more farm expenses than 

 receipts. The largest loss was a labor income of minus 

 $948 made by a man with $22,385 capital. 



Records for 578 farms in northern Livingston County, 

 New York, give the same result. The farmers who are 

 using a capital of less than $5000 are on the average not 

 making as much as hired-men receive. They would be 

 better off if they lent their money and hired out at farm 

 wages. (Table 61.) 



TABLE 61. CAPITAL RELATED TO LABOR INCOME. 578 FARMS, 

 NORTHERN LIVINGSTON COUNTY, NEW YORK 



Of the 87 farmers who used less than $5000 capital, 

 only six made labor incomes as large as $1000. One-third 

 of those who had $10,001 to $15,000 capital made labor 

 incomes of $1000 or more. Half of those who had 



