Southern standard. (McMinnville, Tenn.) 1879-current, 1890-12-13
Eayt4 &#terests,
The Cash System. Its Effects.

CRY oOlu lhSAl SVOuo w iOASA6 hNAo
for less figures than they sold to
home buyers, led me, with several
friends, all having had some expert
ence in the manufacture or sale of ag-
rlcultural implements, to make a
thorough investigation Of the farm
implement trade. l have delayed
publishing any of the results OF our
investigation until after the elections,
as doing so before might be construed
as partisan action. Even now / will
not say whether or not our investiga-
ton disproved the charge. l would
call attention to onelfact that was re-
vealed to us with startling certainty:
The large majority of manufacturers
of farm machinery could sell to the
foreign trade for 20 per cent. less than
to the home trade and yet the foreign
trade would net them as much; and
this is altogether owing to the for
eign trade being spot cash.
l say the foreign trade is cash.
When a manufactures of hay presses,
for example, receives foreign order,
in a majority of cases the draft ac~
companies the order. The order
may, however, come through an eX-
porter or an agent. Then when the
presses are shipped, sight draft,
with the bill of Iading attached, is
made on the exporter or agent, and
this draft must be paid before the
presses can be lightered. This is not
the manner or the course Of foreign
trade in all lines of farm machinery,
but differences in methods are not of
such nature that not considering
them will lead us into error. The
majority of hay presses (to continue
our eXample) are sold in the home
trade on time-one-third down, one
third in one year, and one-third in
two years; this is about the average
of credit given. Threshing machines,
traction engines, etc., are sold on
longer time, Most farm machinery
is sold through agents. The manu-
facturer sells to a jobber; he sells to a
State agent; he to county agent; he
to local agent; and he to the farm
err. For example, large pillow man.
ufacturer of Moline, ILL.,, has jobbing
houses at st. Louis, Kansas City and
Minneapolis. The st. Louis house
sells to Mr.. t., agent for the State OF
Texas, for instance; and Mr.. T. sells
to county agents, who sell to local
agents. Flows are sold for cash in
many cases, but in a majority of cases
they are sold on time-the pillow
bought in the spring being paid fol
in August, when wheat and oats car
be marketed, and the plow bought il
the spring being paid for in January
after the hogs are marketed. The
farmer gets at least four months
time. All farmers do no not pay
promptly, and the local agent mus
have a little time in which to get hi!
collections in shape. Hence thu
county agent must sell to the loca
agent on six months time; the Stat,
agent must have little longer time
the jobber must have yet longe
time. At the best, the manufacture
does not get his money until min,
months after the farmer has bought
But the local agent must get hi
goods some time before he sells; 81
with the county agent, the Stat
agent and the jObber. This, with tn
time consumed in transporting ant
handling, will make at least thre
months. 1t is year from the tim
the manufacturer sends out his good
till he gets his money for them. L
the case of two-horse cultivatOrs, corr
planters, grain-drills, mowers, sell
binders, ETC., the credit given is long
er and collections are slower. AS
founding as it may appear to many
seventy per cent. of the home trad
in agricultural machinery is on tim
and the average credit is about on
year. Take the average of the cour
try, and the banks discount the man
ufacturers' paper seven per cen
Hence on account of credit the mani
facturers lose five per cent. of the
trade.
In spite of all the manufacture ca
do, he will get bad accounts. TIL
jobber fails, because the State ager
has failed perhaps. The manufactu
er is also put to much expense fC
bookkeeping and especially for co
letting. We can best understand tn
by an illustration. / will takea MAJ
ufacturer with whose affairs l al
puitp ia m ilior TIn collie ,,oorIx, off,