The provisions of the Federal Farm Loan Act afford an excellent illustration of how government promotes citizen cooperation.  The government does not lend the money to the farmers; it merely provides the machinery by which the farmers may cooperate among themselves, and also secure the cooperation of investors in all parts of the country, to obtain capital necessary for the proper development of the land.  As a rule the farmer can borrow money from the land bank only by being a member of a local “national farm loan association.”  His dealings with the bank are through this association.  His membership in the association gives him better standing and secures for him better terms than he could get if acting separately.  Moreover, the money that the bank lends to the farmer comes from the farmers who belong to the association, and from investors in all parts of the country, who buy shares of stock in the bank and bonds issued by the bank on the security of the farmers’ land and equipment.  The whole scheme is one of cooperation which would be impossible but for the legislation, financial support, and supervision of the government at Washington.

PARTNERSHIP IN THE NATION’S BUSINESS

It will be seen then that much of the capital that a farmer uses is borrowed, and is made up of small savings of other people—­some of them his neighbors, others in distant places.  The same is true with respect to the capital used in all other businesses.  The enormous capital of railroads is derived chiefly from the savings of millions of people, some of whom buy shares of railroad stock directly, but most of whom deposit their savings in banks or other institutions which, in turn, lend it to the railroads or invest it in their stock.  The farmer or the school boy who has a savings account in a neighboring bank thus may become a partner in various business enterprises of the country.  His dollars or dimes, added to the dollars and dimes of many other people, are used to buy machinery and tools and materials, and to pay labor.  Because of the service performed by his savings he receives interest on his money.

OPPORTUNITIES FOR INVESTMENT

There are many opportunities for young people to invest savings in productive enterprises,—­perhaps more in rural communities than elsewhere.  The different kinds of boys’ and girls’ clubs illustrate the variety of channels through which money may be both earned and invested.  As soon as a boy invests a little money in a pig, or a calf, or garden tools, he becomes a capitalist to that extent.  It is to be hoped that not many have the experience of the boy described in the following lines:  [Footnote:  Read by R.H.  Wilson, in an address before the National Council of Education, N.E.A.  Proceedings, 1917, p. 133.]

    Johnnie bought a little pig with money he had earned,
    He named her Nell and fed her well, and lots of tricks she learned. 
    But Nellie grew to be a sow, had piggies quite a few,
    Then father up and sold them, and kept the money, too.