The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1885-03-13
THE CREDIT SYSTEM.
Tho Losses Sustained by Farmers In Conse-
Quence Of tho Liberal Use Of Credit.

aYS 1@e Cntcdg0 Times, almost all the
trade of farmers was carried on by
means of barter. They exchanged the
products of their farms not only for
goods, but for the services of mechan-
les. A farmer took a load of grain,
fruit, or meat to the nearest town, and
exchanged it on the best terms he
could for articles he wanted for him
self or family. Sometimes farmer
would make contract with some
country merchant to take his surplus
grain at the current price and receive
the worth of it in goods as he wanted
them The majority of men hired to
do work on farms received little or no
cash. They took orders on the mer-
chants with whom their employers
traded. Hired girls received orders
for dry goods instead of money. IN
less cash was expressly stipulated, the
majority of laborers expected to re-
ceive ''store pay" for their work. In
many of the northern states, butter,
eggs, sheep pelts, and dried apples
took the place of money. They form
ed the great bulk of the currency, and
without them it would have been diff
cult to carry on retail business.
They constituted the common circulat-
ing medium. They were refused by
scarcely any one. except the tax col
lector, the postmaster, and the travel
ing Snowman.
The civil war and the general intro
duction of railroads changed all this.
The former was. the means of causing
money to circulate freely, and indi-
rectly produced safe paper currency.
The latter brought a cash market to
the neighborhood where almost every
farmer lived. At nearly every rail-
way station persons established them
selves who were ready to pay cash for
every article produced on farms.
Farmers now receive, or may receive,
cash for whatever they have to dispose
of. They also have the means of as
certaining in every considerable town
on any day the price of every COM
modify in all the principal markets in
the world. A few traders in some
sparsely-settled districts continue TO
doa barter business tor the accommo-
dation of some of their customers.
But it is conducted on q cash basis.
The farmer knows the cash price of
the articles he sells as we'll as of those
he buys. In most towns, however,
one set of men buy products of farm
ers and pay money for them, while an
other set sell the goods that farmers
desire to purchase. The farmer no
longer asks how many pounds of SUI
gar he can get for crock of butter at
a certain weight. Neither does he in
quire as to how many clothespins he
can obtain for dozen eggs.
Trade in one respect is now con-
Quoted in the country in the same
way that it is in cities. 1t is carried
on through the agency of money. 1t
is to be regretted that it is not always
conducted on a cash basis as well as
on a money basis. The credit system
prevails to an almost alarming extent
among the farmers of the northwest.
Some classes of goods, notably agri-
cultural implements, are generally
sold on credit. The high prices asked
for most of them are chiefly due to the
fact that they are sold on long time.
Cash was required to purchase mate
rials to make the implements and to
pay workmen for putting them to-
gether. Manufacturers and dealers
make large addition to the prices of
articles that are sold on time. If the
practice of selling them on credit is
general, the cash buyers are assessed
10 make up the losses that occur. In |
some sections of the west it is rare to |
lind a farmer who is not in debt for |
plows, harrows, seeders, moving and |
reaping machines. The purchases are
made in anticipation of
large crops, which in many cases are
lot raised. In the event of a satisfact-
Dry crop, the money received for it is
all required to pay for the
purchased to help produce
The practice often INDUCED in by
armers of having an open account
With merchants is not in the interest
If thrift and economy. Persons often
purchase articles that they do not
eally need when they can obtain them
Without the payment of money. They
ee them in a store, know that they can
'btain them on credit, have them added
O their account, and take them home.
When all the members of farmers
amily are allowed to obtain goods in
his way, it is no wonder that the ac-
cunt becomes very large, and that it
all on one side of the journal or
edger. The wonder is, taking the sea-
ons as they go, that the farmer has
ny money after he has settled his
tore bills with the money received
rom the sale of his crop. There is
enuine pleasure in having money in |
ne's pocket. There is also genuine
leasure in having money to spend for
rticles wanted for present or future
Sc. Very few persons, however, ex-
erience much qualification in paying {
ut large sum of hard-earned money t
,r clothes that have been worn out, t
'od that has been eaten, and fuel that i
as been burned. There is very little c
easure in paying for past enjoyment. c
o one is happy in paying for frollc $
lat occurred so long ago that it is /
most forgotten. v
Much of the misery and many of the I
isfortunes of society come from an q
,ipating money that is to be earned. C
any persons living in large towns v
end their wages week or month in S
Vance of the regular payday. They "
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