The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-04-12
The Rurden ofInterest.

from the western fNtn JOuruhL
There is probably no burden felt so sorely
by the farmers OF the West at this time as
the burden of int rest. They do not COM
plain OF the longtime loans bearing from 0
to per cent. interest procured for needed
improvement or for improved stock which
has proved profitable. They do complain,
however, OF the rates charged for short-time
loans amounting in some counties to per
cent. per month II the prices Of stock were
proportionally high they would not care
but as now situated many OF them are COM
PEELED TO sacrifice stock or pay the exorbi-
tant rate, and often have to sacrifice stock to
pay the interest. A silver dollar in many
parts Of the West looks as big as a cart wheel.
Wherever such a condition OF things exists
there can be no prosperity to any part of the
community except to the men who have
money to lend, aud this is but temporary.
Where the farmer is not prospecting there
can be no permanent prosperity TO any com
munty in the West. Where this condition
of affairs is but temporary, cauged by fail
urc of crops or glut in the market, II can
be endured, but when II Is the normal con-
dition there is something seriously wrong
with the country, aud the sooner a farmer
gets out Of IL nj any sacrifice the better.
IL will be found on examination that these
exorbitant rates Of interest prevail only
where farmers are running TO one branch
Of farming-for instance, grain raising or
wheat growing. Where farming Is diversi-
fled and the farmer feeds his entire crop,
and sometimes more, 10 stock OF his own
raising, where he has hogs and cattle and
horses, and sells butter or cream and chick
ems and eggs, II is rare that good farmer
pays these exorbitnnt rates Of interest. This
points out the way TO permanent relief from
these hardships. Just so long as farmers
rely wholly upon crops that are sold from
September TO February there will be high
rates OF interest and scarcity Of money. II
Is this sharp and pressing and memorable
demand for money that forces crops on the
market and reduces the price TO the bar,
cost Of production. The permanent relief
therefore from these exorbitant rates OIL
interest is a return, as far rs possible, on the
part Of farmers, 10 n cash basis. This is
| possible only by so modifying their farm
methods as 10 have something 10 sell at any
time Of the year TO pay the current expenses
of the household, hired hands, taxes and in
torest. Many farmers keep down these ex
penses from poultry products, and other
| from butter and cream. Where these ar,
| kept down the farmer can take advantage u
markets aud sell after the rush Is over.
II must be borne In mind that no legiti
mate business In the West will Justify thl
| payment Of over 10 per cent. on any lafg,
sum OF money for any great length OF time
and that rates charged In excess of that meal
the gradual impOyerishmenta and bankruptcy
Of the community. When a farmer pays
| per cent n month for any considerable tim,
he may ~ we'll quit, aud the sooner the bet
ter. No legitimate business, whether com
mercial. agricultural or manufacturing, vii
| justify H. Whenever farmers as a rule adop
| the cash system and pay rs they go, Interest
| will be low enough. Lenders will then hun
up borrowers, aud the accommodation
will be altogether on the other side II thi
farmers Of the West, after two or three year
81 the most rigid economy, should succee,
| In putting themselves on cash basis an,
keep there, money would be abundant at
per cent ON large loans and nj per cent OF
short time paper. We have little faith ~
anything else reducing the rate Of interest
This will, and IN doing 30 will give steadl
markets and advance the price OF land
Money will not lie idle, and u Il canno
obtain 10 per cent Il will take O. yorl
large amount Of the money loaned In thu
West il the savings Of Eastern farmers anl
| operatives, and the only way the West cat
keep even Is By adopting the same methods
With cheap money come factories, and will
these increase Of population. As long agi
rs the days Of Solomon II was said "the Dor
rover is servant 20 the lender