4. The development of the local supply. Scientific meth- 

 ods of farming will turn the attention of more of the neigh- 

 borhood boys to farming and hence will add to the supply. 



5. Rewarding expert labor by higher wages. Custom 

 now gives but little higher reward in wages to the good labor- 

 er than to the poor. 



Capital. One of the most marked changes in the business 

 of farming during recent years has been the great increase in 

 the use of capital goods, of horses, stock, tools, machinery, etc. 

 This increase in the amount of capital necessary to run a farm 

 is having the effect of bringing better organization to the coun- 

 try and is making the farmer more and more a modern busi- 

 ness man. Perhaps the keenest need of farmers today is that 

 of more capital which may be used in the business. Many a 

 farmer strips his land, of its fertility by selling the hay, wheat, 

 and oats from the land, when, if he had a little more capital or 

 some means whereby he could secure it, he would buy stock and 

 feed the products of the farm to the stock, thus saving the 

 manure besides adding to his profits by giving him employment 

 during the winter. The lack of capital has caused farmers to 

 cultivate extensively rather than intensively because putting 

 in a large number of acres of some crops is less costly than a 

 smaller number of acres of a crop requiring a larger amount of 

 expenditure for labor. 



Agricultural Credit. The need of more capital in farming 

 today raises the question of the means of providing it. Cap- 

 ital comes into existence only by saving. Some of the capital 

 which is saved in the country is deposited in urban banks, pri- 

 vate, state, or national. It is loaned by these banks to both 

 urban and rural borrowers when security may be given. Urban 

 banks however, do not meet the demands of the farming 

 people. They desire to make short time loans in order that 

 they may turn their money over quickly, while farmers can 

 not borrow conveniently for the customary sixty or ninety 

 days because the money is needed for a longer period. Again 

 the rate of interest charged by these urban banks is of- 

 ten higher than farmers can afford to pay because the banks 

 are accustomed to meet the needs of urban rather than rural 



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