LEADING FEATURES OF THE WHEAT INDUSTRY 207 
will be high. Though much of farm capital is durable, 
there are a large number of goods which the farmer finds 
it necessary to renew annually, and thus his outlay on 
working capital is increased. It would be a difficult 
matter to arrive at a definite statement as to the actual 
outlay on capital ; for the size of the holdings, the method 
of cropping, the general outlay of the farm, the system 
of farming pursued, all differ greatly in different com- 
munities, and even in the same community. The ratio 
of the amount paid in wages to the interest on fixed 
capital plus the amount spent in circulating capital 
is undoubtedly smaller in agriculture than it is in 
the manufacturing industries. This fact is often lost 
sight of in discussing the relation of the rural industries 
to the urban industries. It should be remembered that 
the smaller the above ratio is the greater is the total 
output per individual, and the more productive is an 
industry. 
(0) Financing of Farmers.— But having arrived 
definitely at the conclusion that the necessary capital for 
farming is a relatively large sum, in logical sequence 
we must ask ourselves what facilities are found in the 
wheat growing area for the provision of this capital. 
Two main sources of credit are open to the farmer. 
These are ‘‘stock and station’’ firms, and the banks. The 
former are more enterprising in this matter than the 
latter. That such should be the case is not surprising; 
for the banks have eall obligations which demand a 
more cautious policy than is the case with commercial 
firms. In consequence we find that the banks prefer to 
have as customers only those men who have considerable 
securities in land or buildings to offer as a basis for 
credit. Thus, a man who has the freehold of a con- 
siderable area can obtain at the bank a substantial over- 
draft as working capital; but on account of the nature 
of the security the banks do not make it a part of their 
