The Brookhaven ledger. (Brookhaven, Miss.) 1875-1883, 1881-04-14
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The Credit system in the Soutl

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The Credit System in the South.
1t is about time that Southern
planters and farmers abandoned the
pe-nicious credit system. In the
cotton States particularly, where it
prevails extensively, it is the great
drawback to their prosperity. How
ever good their crops may be, they
find themselves as rule, in debt at
the end of the year. The profits Of
their years work go into the pock-
cts of the country merchants who
furnish them their supplies. As
system is practiced the planter or
farmer gives the merchant lien
ON his crop to be grown, and
the merchant, being secured,
furnishes the necessary supplies.
There is no agreement about the
price that shall be paid for the sup
plies, but the merchant is careful to
extact interest on the advances
which he makes. When the lien is
given the planter or farmer is in the
power of the merchant. His credit
is destroyed so far as obtaining
anything elsewhere is concerned
and his merchant can, and does, in
majority of cases. charge him just
what he likes for the supplies which
he furnished. These charges are
generally from ninety to hundred
per cent higher than the ruling mar
ket rates. The planter or farmer
may complain of the exorbitant
prices which he is forced to pay,
but what can he do? He must have
supplies and he hasn't either cash
or credit. He is therefore forced to
comply with the terms of the mer
chant who holds the mortgage on
his growing crops. The Supreme
Court of Mississippi, a few days
ago, rendered a declssion that will
afford the farmers Of that State
some relief. A merchant who held
a mortgage on the crops of a farmer
foreclosed it. The lower court al
lowed his bill against the farmer,
although it was shown that the pri-
ces charged were at least double
those charged for the same articles
when sold for cash. The case was
appealed, and the Supreme Court
reversed the decision of the lower
court. The higher court said: THE
purchaser was not in a condition to
be free TO decline the purchase of
the supplies on account Of the pri-
cess from an overruling necessity.
His extorted assent to the prices
fixed was without consideration, and
therefore void" This decision fix
es the law with respect to such con-
tracts so far as Mississippi is con-
cerned. but there are very few plan
ters and farmers who will risk the
expense and trouble of a law suit
to right their wrongs. The thing
to do is to get rid of the credit sys-
TEN. How is this to be done is
question not free from difficulties.
1t is certain, however, that before
the planters and farmers can have
any real prosperity they must be
able to secure their supplies at mar
ket rates. They will never be able
to get ahead as long as they are the
slaves of the present credit system.
The decision referred to by the
N. o. Times was rendered by two
of the Judges only. Judge Campbell
dissenting and holding virtually
that under the mortgage the mer-
chant had the right to charge exces-
sive prices. The decision is an
important one to both the merchant
and farmer; and it would doubtless
be productive of much litigation,
were it not for the fact, as The Times
points out, that most men would
rather submit to a definite loss than
risk the trouble, expense and delay
of law suit. We think certain
remedy for the evils Of the credit
system can be found in the old pres
cription-"Hog and Hominy.' We
do not call to mind solitary far
mer who has made a practice of
raising his own bread and meat,
who is not entirely independent of
the mortgage system.-N. o. Times.