chartered by the Colonization Board, and to individual
settlers. There must be certain safeguards against loss. To accomplish
this there could be established a settlers' credit division in the
Federal Farm Loan Bureau, with a special land colonization credit fund.
A similar plan was proposed in the bill introduced by Representative
Knutson, May 27, 1919.[19]

Some such provision is indispensable in any comprehensive land policy,
and should secure a place in legislative enactment.

CO-OPERATION INDISPENSABLE

No amount of legislation or smooth-running administrative machinery can
provide, however, for one of the most fundamental factors in modern
small-farm production.

Every colony of small farmers nowadays needs to provide for co-operation
among its members. There is no other way for them to enjoy the technical
advantages of large-scale farming in the buying of seeds, stock,
fertilizers, tools, machinery, and other necessities at wholesale
prices, in the selling of farm products at the best prices; in the
establishment of creameries, etc. The buying of necessary costly
machines, such as stumping machines, tractors, threshers, headers, is
beyond the financial power of an individual settler. Even should he be
able to acquire them, he cannot use such machines to their full capacity
on his small piece of land. But in co-operation settlers are able to buy
the heavy machinery and to use it to its fullest capacity. Mutual
insurance and credit established through co-operation are another
substantial assistance to the success of the settlers.

[Illustration: THIS SETTLER STARTED TEN YEARS AGO WITH NO MONEY]

The co-operative buying and selling organization of a Finnish farming
colony in upper Michigan which the writer investigated in detail proved
to be a great money saver to the settlers. The enterprise has grown from
a small undertaking into the largest business organization in the town,
with its great warehouse overshadowing the railroad station. In the
beginning the surrounding native farmers and townspeople were hostile
toward it. They both feared the competition as well as the broader
results of an undertaking of "foreigners," led by their "demagogic
leaders." Its former opponents have radically changed their attitude,
and many are joining the organization. They find that co-operation means
voluntary, concerted, and co-ordinated action for the common advantage,
and that it is not contrary to the American spirit.