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In the interest of a square deal for the farmers VOL. 10, NO. 13. WHOLE NUMBER 236 MINNEAPOLIS, MINNESOTA, The author of this article, a student of economics of national reputation, has recently been appointed director of statistics and publicity for the Bank of North Dakota. Professor Roylance has spent many years in the study of the farm credits and farm-marketing systems of Europe and America, In this installment he treats of the con ditions in Europe that made reforms necessary. In the second installment the actual working of the European co-operative system is explained and conclusions are drawn as to how to apply European experience in this country. BY W. G. ROYLANCE IS the purpose of this paper briefly to set forth the chief features of European systems of farm marketing and farm credit, and to explain those features through an analysis of the conditions under which they have grown, in order to determine what, if any, aid can be derived from the experiences of the old world in the solution of like problems in the United States. In Europe and in the British Isles, as indeed throughout the civilized world, three principal methods of marketing farm products are found: 1. The competitive system, conducted by indi viduals or by private In Europe, as in this country, vastly the greater part of all farm products are marketed by the first method. As a rule the farmer has no share in the control of the mar kets. He delivers his products to the nearest dealer or exchanges them with the local shopkeeper for the things he has to buy. He is still, in the great majority of cases, an isolated unit in the economic scheme. Until near the end of the last century the like was true with regard to the farmer's credit. He either got along without credit or secured it from the local shopkeeper in the shape of a charge account, or from the local money lender at what ever usurious rates the latter chose to exact. IN ANCIENT TIMES FARMER WAS SLAVE Earlier in the history of civilizaT tion the condition of the actual pro ducer of food products was no bet ter, though there had been times and places where the situation of the owners of the land was incom parably superior to that of the farm er-owner of the modern period. In olden times the cultivator was a slave in the Middle Ages he was a serf. At the beginning of the modern era, in one country after another, he threw off the yoke of Official Magazine of the 'National Nonpartisan League—Every Week MARCH Farm Credits and Marketing in Europe The Condition of Farmers and City Workers in the Nineteenth Century— Birth of the Co-Operative Movement serfdom, only to find himself within a few genera tions fast bound in the service of a new master, the lord of trade, who controlled his credit and his market, as the feudal lord had controlled the land. Indeed, in may localities, there was no interval be tween the old and the new servitude. Long after the agricultural serfs had partially emancipated themselves from the absolute control of the lords over their persons, their families and the land they used, they were required to have their grain ground at the lord's mill and their meal baked in the lord's oven. They could buy salt and other special ar ticles only from the lord. The lord dictated what they should plant and when and where they should sell it, and the price they should receive. During the industrial revolutions that ushered in the modern period the peasants, by associating to gether in the manner of the mediaeval guilds, were sometimes able partly to control the prices of their products and of the things they had to buy. They established, in co-operation with the workingmen and trades people of the towns, public markets corporations for profit, each usually conducted in conjunction with the annual In France the old regime held on to near the end 1—1 1. I*....™™ -v.n lAWQof nnnoo faira But one after another these free markets +*10 '"OTihu'w arni »not individuals corporation buying at the lowest prices fairs possible. and selling at the highest prices obtainable. 2. The co-operative system, oper ated by associated producers and consumers, or both, the purpose be ing to secure the highest possible prices to producers, the lowest to consumers, or, if including both pro ducers and consumers, to get prod ucts from the producer to the con sumer at the least possible cost. 3. Public markets, owned by mu nicipal or state governments, and op erated in the interests of the people. FORECAST—FAIR AND WARMER —Drawn expressly for the Leader by W. C. Morris. The article on this page tells of the discouraging conditions ^faced by Europe an farmers whose governments were controlled by special interests.^ Amer ican farmers are righting such conditions by organized political action. JJAGE THREE •m 29,1920 12.50 PER YEAR IN ADVANCE A magazine that dares to print the truth disappeared and all buying and selling came to be controlled by business and financial interests far removed from the farmer. The same interests obtained control of his credit, of the government which imposed his taxes, of the markets that sup plied him with clothing and agricultural imple ments, and finally, in most countries of the old world, of the land out of which he made his living. In other words, he had passed from one slavery to another. MECHANICAL INVENTIONS USHER IN NEW INDUSTRIAL ERA Industrial organization in European countries began to assume its modern form towards the end of the eighteenth century. In England the great mechanical inventions of the latter half of the eighteenth century made it possible greatly to speed up and to centralize manufactures, which in augurated the modern era of rapid transit and communication, and which completed in England the transformation from feudalism to plutocracy. of the century and had to so great an extent made common cause with trade monopoly —the bourgoisie—that the latter nearly perished in the deluge that swept away the former. While the French revolution fell far short of bringing about the industrial eman cipation of all classes it did prevent that combination of land and trade monopoly that in other European countries, and especially in England and Ireland, has been so destructive to the' liberties of the people. As a result the small land-owning farm ers of I ranee have been the freest, the most prosperous and the happi est rural population of modern times. Nor have other classes been exploit ed to the same extent in France as in other countries. Independent business has had a better chance. Food products have reached the city populations with less cost for han dling. Big business has indeed thriv ed along some lines, but it has not to the same extent grown fat upon the labors of the common people. Generally throughout the German ic countries, in Italy, in Spain and in Russia, the worst forms of in dustrial oppression persisted far into the nineteenth century. The attempt ed revolutionary movements of the first half of the century were as much industrial as political. Cul minating in the revolutions of 1848, which mostly failed, they left Euro pean peoples subject to the tyranny of rulers whose pretensions to di vine right were strongly supported by a landed aristocracy, an arrogant military caste, and the modern great industrial and financial combinations. This was the power with which the cultivators of the soil in most Euro pean countries had to contend dur ing the latter half of the nineteenth century. And they had to carry on their fight for the most part without the aid of the workers in the cities, no less oppressed than they. The