The Newberry herald. [volume] (Newberry, S.C.) 1865-1884, 1881-08-10
Ehe Financial Condition Of the
NcwDerry FarMerS---AnG
the Lien Law.

the Lien Law.
The drought and it's effects on
crops have caused much specula-
tion as to the condition and pros
poets of the farming population.
In connection with this fact the
Lien Law has been very fully dis
cussed. As appears by extracts
elsewhere quoted this subject is
exciting attention in the different
sections of the State. The general
impression, Judging from the tone
of the newspapers and from the
action of the State Grange, is that
this law should be repealed. There
is no doubt that the law, (whose
purpose is q good one,) has been
abused both by some farmers, who
have made it a source of unnecessa-
ry and extravagant credit, and by
some merchants, who have used it
to extort an exhorbitant interest.
We believe, however, that the evils
attending the law, though great,
are not near so bad as they are
represented to be, and that they
are, as q general thing, necessary
evils. It is-recklessly stated that
the farmer, under his lien, pays
from 40 to so per cent. interest,
and even higher. This may be so
in isolated cases, but we do not be-
liere that any respectable merchant
charges any such rates-a few shy.
locks, here and there, may do so.
From personal interviews with sew
eral of the merchants in Newberry
who do the largest lien business
We learn that the usual rate is about
Is per cent. It should be remem
bered that there is a very small
profit in the cash sales of groceries.
The per cent. paid for ''supplies" to
the grocery merchant on liens is no
greater than the per cent. paid to
dry goods merchants in cash for
dry goods.
When men pay their debts and
''square up" once year it shows
that even if they are not prospering,
they are rot going deeper and deep
er into debt every year," as it is so
often said that they are doing. That
they do pay their debts the accounts
in the Bank will show, and the
merchants will testify to the same
state of facts as regards their
store accounts. And another very
significant and gratifying fact is
that more mortgages have been
marked satisfied in the Clerks Of
fee during the last two years than
in the four years preceding. So
that we are not going to ruin, as
some would make believe. The
drought and the consequent poor
prospects have demoralized the
people and frightened them. When
people get into trouble they are
disposed to grumble, and they soon
find something to put the blame
upon. This time it happens to be
the lien law. But it is we'll enough
to remember that the lien law did
not cause the drought and the con.
sequent poor prospects. It is pro-
badly true that the provisions of
the lien law have been abused, and
that it has been carried to excess.
AS will be seen further on, there is
a very large lien debt to be met
and paid by the growing crops !;
but comparatively small portion
of this debt rests either upon the
land or upon the landowner. If
one will take the trouble to exam
inc the record of liens, as we have
done, he will find that far the great
er portion Of the liens has been
given, not by the landowners, but
by renters. The landowner gets q
good profit out of his land, the
renter gets living and as much
over besides as he would get if he
worked the land as simple labor
er, and the merchant gets fair
profit upon the supplies he fur
nishes. We're the landowners to
hire laborers to work their lands
they would have to furnish sup
Plies. Instead of this they rent out
their lands, and the merchants fur
nish the supplies. The amount Of
;debt" involved is about the same
in either case; but in the latter
case it is seen more plainly, because
then it becomes matter of record.
The figures we are about to give
are rather startling; yet there is no
cause for alarm or would be none
in an ordinarily good crop year.