THE NEED OF CAPITAL 



449 



327. Need of Capital. It was stated in Chapter IV 

 that the per cent of tenant farmers in the United 

 States is increasing. The following census table shows 

 this: 



This growth in tenancy is more of a symptom than a 

 cause of any fundamental disturbance in our country life. 

 It is a symptom that more capital is needed in successful 

 farming to-day than was required a generation ago; that 

 small farms poorly equipped with machinery and stock 

 are placed at a disadvantage when competing with larger 

 farms under modern management. Even small farms of 

 less than 100 acres equipped in modern fashion may now 

 be laboring under a handicap. Large farms of several 

 hundred acres fitted out with up-to-date appliances can 

 often produce yields most economically. All this means 

 large capital. 



In early days little capital was needed for farm purposes. 

 If farmers did lay aside a little money each year, they 

 were more likely to buy some municipal bond or well- 

 advertised stock calculated to improve a distant city or 

 industrial center than to invest these earnings in farm 

 improvements. A few simple tools, many of which 

 were made at home or at the local blacksmith shop, 

 were all that they knew how to use. Land was either 

 free or very cheap. Not only land, but expensive stock, 

 tools, and machinery, are necessities in present day agri- 

 culture. 



Our industrial development has outrun our agricultural 

 development. We have watched the building of great 



