The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1875-03-03
Capital and Agriculture.

Ii the course of some remarks on
the distribution of American capital,
the Financial and Commercial ChroR-
icte takes occasion to say that it has
in the course of the last half century
poured itself too exclusively into the
channels of commerce, aud has left
those of agriculture too meagerly
supplied. BY the channels of COM
merce Sc presume railways to be
meant by the burdens they bear. 1t
is. however, probable that the ex-
preston is in some degree only M
other way of referring to "overtrad-
ing,p which always comes in for so
liberal a share of. ~censure, although
it would be difficult for the people of
this country to equal the excessive
devotion of the British islands TO
commerce. Still, it is undoubtedly
true that more capital has been al
WAYS put into more trade could pos
sibly pay a profit, and the result is
seen in the predigious volume OF
bankruptcies.
AS a general rule it is safer to adj
wise a man to put his capital into
agriculture than into commerce, be-
cause the one isa production that is
sure to bring a return of some kind,
| while the other is mere buying aud
selling, in which the chances Of profit
seem to be very few. But if all
were TO do this, agriculture would be
excessive. as, in fact, in many dis
tricts, is really the case. The grain
growers Of the west make very small
profits or none at all. Broad and
general propositions, therefore, like
The one quoted cannot stand the test
of examination. A diversified agrl-
culture, including pastoral pursuits,
nav be truly said to be worthy OF
all encouragement. But so are a
diversified industry and diversified
commerce. What our cotemporary ap-
pears to mean is that loans to iarm-
ers should be as freely accessible as
loans to merchants and tradesmen-
OF course in the abstract this is
right. But if the merchants organ
ize banks. make free use of them, put
their money there, buy bank stock,
and transact all their fiscal business
through the banks, and the farmers
put their money in old stockings, or
invest their spare cashin land they
cannot cultivate, and, in fact do not
''bankn at all, it is not a matter OF
surprise that the merchant gets
credit and the farmer does not. We
NAV cbecrfully admit that more capt.
tai put into agriculture would be
beneficial. But what is agriculture!
1t is not the holding a great deal OF
useless land and c~ultivating a small
part. 1t is the raising of crops OF
some sort. Upon that pursuit we
should think it would never be diff
fcult to raise money, the land being
good security. And it is not.
The real trouble in the west aud
south is the total inadequacy of the
banking capital to furnish the desir-
ed facilities to agriculture, especial
ly for such crops as cotton, tobacco.
rice, sugar, grains, provisions and
livestock. Commerce is based upon
all these, as the commerce of foreign
lands is in like name based upon
the products thereof. And hence
merchants take a broad and deep
interest in crops of every kind, since
upon their condition depends the
profits. From the high prices paid
in the west and south for c%ashloans,
it is evident that capital is active
there in private hands, But It seems
that the demands for money in such
regions are excessive because every
body there has views in advance OF
means. 1-r--
That in q country like ours, so vast
and diversified in its interests and
resources Tiers can ever be for 8
century TO come anything else than
Just such o demand, we are inclined
to doubt. 1t is true that American
capital has made wonderful strides.
And yet in prosperous times capital
is nowhere in excess; and even at
the present time, IN the midst of
stagnation, it is only in surplus from
o~ver-caution as to investments. When
we look at the immense development
Of western agriculture, ond to the fact
that the crops Of that region exceed
those of the east, and that the rural
wealth of such States as Ohio and
Illinois rival that Of Pennsylvania,
we begin to feel some surprise at the
complaint of an inadequate supply
of capital for agriculture.
The true remedy would seem to be
the one found so effectual in New
England and New York, where the
savings banks hold some FIVE hun
dred millions of dollars of deposits,
and where the loans are correspond
ingly great. There is no security Of
money in such States because the
whole people understand the uses of
money and Bow TO create capital and
to render it active and useful. The
people Of the west have wisely en-
deavored to help themselves by os-
tablishing manufactures, mining and
railroads, and into these channels
rather than into commerce they have
put their surplus capital. The sav-
ings banks ought to come next in
order to accumulate and render ac-
tive and useful the earnings and saw
ings of the masses. And this advice
viii answer at the south as well as
at the West,-Germanto,ou Ieie-
graph.
The National Corn Crop.
nI ITsz-1 To-