30 DEPARTMENT OF AGRICULTURE

prise very properly goes to those wNho invested their
capital in the business.
 42. Q. IS THE COOPERATIVE MOVEMENT AN-
 TAGONISTIC TO DEMOCRATIC GOVERN-
 MENT?
 A. A cooperative is simply a democratic way of
 doing business and thrives best in democratic soil. In
 England and Scandanavian countries, where coopera-
 tives have operated for a century, authorities find the
 cooperatives a steady influence in times of unrest.
 43. Q. WHAT IS THE ATTITUDE OF THE FED-
 ERAL GOVERNMENT TOWARD FARMERS'
 COOPERATIVES?
 A. The Congress has recognized that farmers need
 a special type of business organization. The Capper-
 Volstead Act set forth the purposes for which coopera-
 tives may be organized and the powers they may exer-
 cise. The Farm Credit Administration, created by Act
 of Congress, provides credit to meet the various needs
 of cooperatives and set up a research service which is
 now the Farmer Cooperative Service of the U. S. De-
 partment of Agriculture, to develop facts and informa-
 tion helpful to cooperatives. The President of the United
 States sent a commission to Europe in 1936 to study
 cooperatives and to report its findings. There are many
 evidences that the Federal Government is sympathetic
 with farmers in their efforts to help themselves.
 All of our recent U S. presidents and Secretaries of
Agriculture have praised cooperatives as a farmer self-
help tool. The report of the Committee on Small Busi-
ness of the House of Representatives contains the follow-
ing paragraph:
 "The enactment and reenactment of section 101 (12)
and (13) of the Internal Revenue Act appears to repre-
sent a continuing attitude on the part of the Congress
that the maintenance of a sound agricultural economy