CO-OPERATIVE CAPITAL 



ditional charge would bo made for life insurance, to pro- 

 tect both the loan and the settler's family in case of 

 death. It is not expected that the wages will be such 

 as to provide for anything except the bare necessities of 

 life. The co-operative settler must be economical and 

 thrifty and work hard. It is not a case for the eight- 

 hour day. Men who are working for themselves rather 

 than for other men can afford to work long hours, as has 

 been done by most of those who have made themselves 

 independent. An incidental advantage of handling the 

 labor as a unit under good management is that it can bo 

 employed effectively throughout the year in developing 

 the colony and its surrounding resources, which is not 

 generally the case with individual settlers. 



There are two other striking advantages which result 

 from preserving the solidarity of both the labor and the 

 capital under this plan. All the supplies consumed by 

 the community, from potatoes to mowing-machines, can 

 be purchased at wholesale and at a great saving of cost. 

 Then the products of the land can be sold under a single 

 management and in large quantities. The result is a 

 great saving in the cost of living and a better net result 

 in selling. Both of these things enhance the settler's 

 prosperity and enable him to repay his borrowed capital 

 the sooner. It is not expected that all settlers will pay 

 out in the same time. Some will do so years earlier than 

 others, because more economical and ambitious. In 

 fixing the term of the loan at ten years, the maximum 

 period is taken. 



In estimating the settler's ability to repay borrowed 

 capital, one thousand dollars is taken as the unit of 

 the loan, and twenty acres as the unit of the farm. 



