The Dawson journal. (Dawson, Ga.) 1878-18??, 1883-02-15
LOANS AND ADVANCES.
How the Farmers of Georgia
Get Supplies and What
Becomes of Them
When They DO.
Post A nuaoI
NN I
st-Appeal.
THE OLD SYSTEM.

In what may be said IN this and fol.
lowing articles, if any conclusions are
reached. they will ouly be the logic Of
facts and events, Early in his travels
areporter came across a set of facts,
partly known to him before. 1t is pre-
missed that the person spoken OF was
not citizen of Atlanta, and the name
Will not be given. Shortly after the
war he found himself possessed of the
following property: A plantation on
the State Railroad, worth then $40.
0O0;a house and To- in large Geor-
gia city worth. $1,000; a small farul
near the same city, $4,000; three 9TH
er small places worth $4,000 in all !;
city store property for which he refus-
ed S53, 900, and on which he was get
ting 10 percent on $4,000. total in
unincumbered real estate, $68,000.
For farming purposes mainly, and for
current expenses of q refined family,
he borrowed $4,000 at percent per
month and 8 percent per annum, on
two years time. Before the paper
matured the lender died. ond his exc
cutor demanded the money. By some
informality he had right to so de-
mand it, and the store was sold at pub
lie cutlery for what it would bring.
1t brought just $4,000, out of which
the expenses we're paid. 1t was a
forced sale, and the loss was at least
$4,000 on the transaction. The gem
tleman went to the country for quiet
life, but carried with him similar
debt, not seeing how he eoull get along
without cash capital. While his NOM
inal interest had been only 8 per cent
per annum, he had paid, az said, enc
percent a month fer the accommodation.
So his real interests was 20 per cent.
The debt with its renewals and other
needs, soon ran up to $4,000. Five
years interest at 20 percent exa5tly
doubles the principal. The $4,000 in
estate had gradually deprecated with
the hard times until $4,000 was its
full value. The rate of 30 per cent
was then considered favorable, and it
was thought quite favor to get money
so low. Yet the above Is the brief his
tory of an estate for six years and a
few months, and at the end, compar-
atively rich man, had not dollar.
The fact that he has since recover
ed lis losses in another business, does
not destroy the plain lesson of the eat
ing capacity of usury. Ii is easy to
calculate when the interest at any
given rate will equal the principle.
When interest is added to principle
every year and compounded, the rap
i'd rate of growth is familiar to every
school boy.
A Government contracting bonded
debt, as ours did from 1861 to 1865,
has to calculate its income from all
sources, and so regulate its expenses
that a sinking fund, sufficient to pay
its interest and gradually pay the
principle, will exist above current an
nual expenses. A planter Is a little
government, Suppose his legal life
were to continue in his succesSoeS, he
is private body corporate, having
certain naedS and certain resources.
No government will be considered safe
if in debt over one tenth of the actual
value of all it's property. A planter,
being subject to fix laws and having
personal integrity considered, may
safely be in debt in sum equal to
one-third of all his property. This In
Georgia is lesseOel by homestead
right, which, however, he can relin-
quish to an extent hereafter to be mem
toned. In borrowing then, the sole
question for him to SJnsider is SIM
pie one. If he keeps books with him
self as Ill sensible men do, he should
know approximately what it will cost
him to live for one year That has to
be made on the year crop, if he has
no other resources. Next, he calcu-
lates the interest on his debt, aud that,
too, the crop has to pay. Lastly, he
has to erea tea sinking fund of so mach
"a year, which will iii the given time
allowed him. pay the principal off the
debt He must live, he must pay the
interest, and he must pay the debt at
maturity. A renewal only puts off the
evil day, and the land is at the mer
oy of the creditor, under a forced sale
if the debt is not paid. Horace Gree
ley was once interviewed on the ques-
ton of "How to pay debit" Looking
over his glasses the old mad seid The
only way know of to pay debt, is