ans may be made and a credit established against
which purchases are charged. There is no question that both farmer and
merchant would be better off if credit were carried by a financial
institution. The farmer is being rapidly educated in business practices,
and it will be surprising if some enterprising corporation does not
establish a chain of village stores which will do a cash business, but
which will arrange for separate credit on a strictly business basis. If
one looks at the trend of business in the cities and towns during recent
years, he cannot but come to the conviction that either country
merchants will have to get together so as to pool their purchasing power
and get the advantages of expert assistance in advertising, accounting,
store arrangement, and other technical services which the chain store
enjoys, or they will be forced to content themselves with the poorer and
less profitable class of trade. I have seen no studies of the matter,
but it would be interesting to know how large an amount of farmer trade
is now enjoyed by the chain groceries in our larger towns. My own
impression is that they are a much more serious competitor of the small
country merchant than is the mail-order house. These are but a few of
the forces which will bring better service from the village merchant.

There are also ways in which farmers may secure better service without
attempting to operate a cooperative store of their own or deserting the
local merchants. Farm Bureau associations have in numerous cases made
arrangements with a local dealer whereby he would handle their seeds,
fertilizers, or spraying materials at a specified rate of profit, upon
condition that they give him all their trade in these articles and place
their orders in advance. This principle of collective buying through an
established merchant at an agreed rate of profit has much to commend it,
and is being utilized by the Grange-League-Federation Exchange in New
York state to take care of its local business as far as possible. The
fact is that the profits of a strictly cooperative store, after paying
the salary of a competent manager and other costs of operation, which
would make a very attractive income for a single merchant, do not make a
dividend to each of its many patrons much more than a good rate of
interest on the total cost of purchases. It may as well be recognized
that unless there be a strong loyalty to the cooperative principle by a
considerable