The Colfax chronicle. [volume] (Colfax, Grant Parish, La.) 1877-1981, 1885-04-25


commented upon the apparently in
ccngruous fact that though money lie
sufficiently abundant in the city for
all legitimate purposes, the great
body of planters throughout the
State are unable to ATTAIN accomoda-
tions, except upon terms which pre-
clude the probability of profits in
their business. Here, loans are
often freely made ct five and six per
cent. and there is rarely a season
when good time paper can not be
readily discounted ct the usual rate
of eight per cent, and sometimes on
easier terms. In the meantime, the
planter pays an average of eighteen
per cent for the funds which he needs
to make Q crop. There is small won
der that with this tremendous per
centage OF interest against the agri-
culturists, We should hear well
grounded complaints that they can
not get ahead.
This variation of the usual laws,
by which the supply refuses to re-
spond to the demand is, of course,
to be accounted for upon quite
natural principles. 1t proceeds from
the different methods of doing bus
mess by the money lenders and the
planters. The banks loan money for
short periods-on call, and ct thirty,
sixty and ninety days; whereas, the
planter needs longer time He can
do nothing with ninety day loan,
Is he can not plant, gather and mar
ket his crop in much less than Q year.
The banks exact punctual payments,
while the planter, whose ability to
pay depends upon his crop, is rarely
ever in Q condition to take up his
short loans when due. There is in
the country no suoh custom as pro-
test, which. in the city, affords the
banker o tremendous lever to enforce
payments. Besides, banks require
collateral security which can readily
and without expense be converted
into cash, or city names Of undoubted
commercial credit. The planters can
only offer real estate security. which,
under the laws and customs Of this
State is not mobile enough to suit
the needs and requirements of the
banks. Hence the planter is obliged
to interpose an intermediary between
himself and bank. This middle man
is usually the city merchant. who,
with perhaps less wealth than his
client, has q good standing in bank.
He therefore takes notes from the
planter for a. much money as the
latter is expected to require for the
year, endorses and discounts them,
and has the proceeds placed to his
own credit. The merchant exacts
generally not less than fifteen per
cent. and pays the bank eight.
The fact that many of the COM
mission merchants are also bank d.
rectors may possibly have something
to do with keeping up this custom
from year to year, to the great profit
of one of the parties to the trans
action, and the corresponding loss OF
the other. But there are other and
strong reasons why the banks do not
accept planters as direct customers
and allow them regular banking
terms. One of these reasons 10, no
doubt, a. intimated above, that it 10
not the habit in the country to live
mp to the stern and inAexible rules
of commercial honor which prevail |
in the city. Here, it is considered
that . protest is nearly as disgrace-
full az an indictment for larceny, |
while in the country they are as in
different to it as q Washington poll |
tician is TO q Louisiana affidavit of
election frauds. And, further, we |
are informed that the collection of |
a debt in the parishes by legal pro-
cess is attended with 30 yuany diff |
culties that resort to this remedy |
is almost equivalent to an abandon
ment of the claim. In case city |
creditor employs city lawyer to sue
for him in country court, he will
he obliged to travel to and fro until
at least all the profits Of the venture |
are spent in incidental expenses.
The local lawyers are snre to trump |
up some excuse for postponement,
and the judges are probably obliged
to grant it. Besides these difficult
ties, the people Of the country have
so persistsntly and successfully con-
tended for the reputation Of solemn
public obligations that they have
raised reasonable presumption that
they have but loose ideas OF personal
integrity. It is too fashionable for
them to put mp poor mouth and
lay their vicissitudes to something
else than their own Encouragement
The war, which occurred q quarter
Of century ago. stands in good