82 The Condition of the Western Farmer. [360 



totally wiped out, or even to suffer quite a heavy loss if the 

 season should be very bad; for the margin between the 

 normal net inccme and the sum of the living expenses and the 

 interest on the investment is often very narrow. Thus while 

 a well-to-do farmer may be able to recuperate in succeeding 

 years from a heavy loss of crops, yet such a blow may be too 

 great for one who is poorer or deeply indebted, and may 

 effect his ruin before he has time to attempt to repair his 

 losses. The effects of bad management in wiping out this 

 margin of profit are very similar to those of bad seasons, and 

 when poor management and poor crops are found in con- 

 junction, there is little hope for the farmer. 



T f should be remarked, however, that while the crop failure 

 of 1890 ruined many farmers who were already heavily 

 encumbered with debt, still in some cases indirect results of a 

 very different kind can be traced. For many of those farmers 

 whose affairs were in moderately good condition and who 

 had sufficient energy to cause them at once to set to work to 

 recover their lost ground, have really profited by their 

 experience. They have become much more conservative, and 

 are less inclined to enter upon speculative transactions, 

 especially where they would have to make use of credit. Con- 

 sequently they will soon be in better position to resist heavy 

 losses, should such again befall them. 



Next, in regard to direct taxes, it has been seen that these 

 are by no means so high as seriously to affect the farmer's 

 prosperity, being probably in no case above four or five mills 

 on the dollar of true valuation. 



Freight rates have played a more important role, especially 

 since of late years it has become necessary to ship large 

 amounts of surplus products to distant markets; and they 

 often absorb a large part of the gross price for which the 

 product sells. Whether the responsibility for this deduction 

 from the fanner's receipts lies with railroad companies which 

 charge excessive rates, or with the conditions which make 

 necessary the shipment of grain for such great distances, 

 must be decided from other evidence than that which we have 

 gathered. 



