Signal-Copiahan. (Hazlehurst, Copiah County, Miss.) 1885-1888, 1885-12-10
RUNNING INTO DEBT.
The Failure Of Many Farmers Due to Their
Assumption Of Largo Liabilities.

Assumption OF Large Liabilities.
A farmer In New Jersey asks our adj.
vice In purchasing farm which is Of.
ferod him In Central New York. The
farm contains two hundred acres, and
the price Is $50 an acre, or $4,000 for
the whole. Tho proposed purchaser
has only means enough to purchase the
nSbossary Implements and TO stock It,
and no would have to run in debt for
the farm itself. He asks: "Can I make
enough from the farm to pay for 1t In
timer"
Not knowing anything OF his ability
as n farmer. and his financial skill In
carrying heavy debt, it would be diff.
fioult to say what would be the success
Of any purchaser working out from
even moderate incumbrance; but We
would not advise any one to incur n
loan Of $4,000, the whole Of which
was to be paid from the proceeds OF q
northumberland place, by tho COM
mon profits Of farming. At six per
cent. there would be no less than $3.50
to be raised and paid every year. be-
sides all the expenses Of cultivating the
land, hiring help. paying taxes, repair.
ing and purchasing tools, and support
Ing q family. An unfavorable season
might prevent any surplus above oil
these running expenses, leaving unpaid
the interest on the debt, and the next
year It would be doubled, or become
1890. The amount for the principal
would still remain as large as ever. 1t
would require unusual ability on the
part of the purchaser, and an uncom-
monty productive farm to meet every
thing and pay both interest and princi.
pal. Final success would BIO rare ex.
ception. A heavy debt Is always a
nightmare. Those who have the most
confidence in working through ore
often the first to 60 under.
We have known u number Of cases
of failure in other business than farm.
ing, solely or mainly from the large in.
terest to be constantly paid on heavy
bank debts made to carry on the bust.
ness.
Place two laborcrs at work in field
Of corn, the one light and unincum.
bered. aud the other with burden.
which he must carry all the time, OF
one hundred pounds, and observe
which will succeed best With his labor.
These two men may properly be com.
pared with tho two farmers, one free
from debt and the other heavily incum-
bered.
Peter Cooper once illustrated the
folly Of paying usury in carrying ON the
business Of trade. An acquaintance
told him that he had to pay three per
cent month for n half year. "Why
do you borrow for so short o timer"
asked Mr.. Cooper. because the brok.
en will negotiate bills no longer. 81
will discount yous note at that rate for
three years." remarked Mr.. Cooper.
care you in earncst?" asked the bor'
rover. Certainly; will discount
your note for $4,000 for three years,
at that rate; willyou accept the offere"
"Of course I will," said the merchant.
every WELL" said Mr.. Cooper" just
sign this note for $4,000, payable in
three years. and give me your check
for $500, and the transaction Is com.
plete." "But where is the money for
mer" asked the astonished merchant.
"You don't get any money" was the
reply. "Your interest for thirty-six
months, st three per cent month,
amounts to $4,000, and your $500
check makes rs even" Six per cent.
agar on . $4,000 farm, Of course,
does not run up the account so rapidly,
but As farming counts by years instead
Of by tho month, the interest transac.
lions, though Of slower movement
often bring about similar results In the
snd.-Country Gentlemen.