CAPITAL 



295 



to 43 per cent on farms that derived their chief income 

 from flowers and plants. The amount invested in ma- 

 chinery and implements was 3 to 4 per cent of the total 

 capital with most types of farming, but was 22 per cent 

 on sugar plantations. The investment in live-stock varied 

 from 1 per cent on flower and plant farms to 21 per cent 

 on live-stock farms. 1 



TABLE 63. AVERAGE CAPITAL AND ITS DISTRIBUTION ON 

 FARMS IN THE UNITED STATES 



187. Relation of capital to type of farming. The 



types of farming that require little land usually require 

 more capital in other forms, so that the amount of money 

 required for a given labor income is not strikingly different. 

 In general, it appears that persons with small capital had 

 best put most of their effort into raising crops to sell rather 

 than in raising too much live-stock, because live-stock 

 calls for additional investment above that required in crop 

 production. (See pp. 94 to 96.) 



188. Economy of cash purchases. In most parts of 

 the United States, there are no adequate facilities for ob- 

 taining credit for farmers. As a result, the manufacturers 

 of machinery and fertilizers act as bankers as well as 

 doing their regular business. So little farm machinery is 



1 Twelfth Census, Vol. V, p. Ivii. 



