The Democrat. (Scotland Neck, Halifax Co., N.C.) 1884-1896, 1891-10-08

tYoHt;.'s CCmpaIOD.)
II might be supposed, by those
not familiar with the subject, that
the means used to pay the Western
farmers for the gram they raise
and sell were easy and simply. A
moments consideration will show,
on The contrary, that it is one OF
the most complex of financial
operations.
The farmer sells his gr lin to large
shippers in the nearest town. TIE
shipper usually sells it to grain
dealers in Chicago orNew York.
If these dealers have orders for
"nOme consumption" in which
most Of the crops are used, they
sell 1t to the mIlers or manulactur
eIs, who in turn, after making it
into flour or cOln-meal, or other
finish ed forms of foods, sell it to
the bakers or to the people who
bake it for themselves. If the
orders come from foreign countries,
the dealers send it across the ocean.
The people who make the final
payment for the farmers grain,
therefore, are scattered all over the
world, but chiefly in the Tricky
populated cities Of our Eastern
States.
Up to the time when the harvest
is gathered, there IS less need for
actual money IN the West, because
large pay nents are made in bank
checks, which in turn are deposited
IN other banks. But now the far
mer must be paid, and living as be
does in a county district, he wants
the actual money. Bank checks
- will not do.
The people of the East either owe
the money already.for their grain,
or else they soon will owe it. And
SO the bank employees of the Eas
tern cities, where most of the actual
money circulates, are busy week
after week, tying up bank, notes in
packages, and sending them by ex
press to the Western banks.
Two Or three million dollars of
cUTercy VIII sometimes leave New
York and Boston in a single week
for this purpose. There is for
several months acutally far less
money than usual in the Atlantic
States.
How does the East get it's money
back? To answer this question,
one must consider what the farmer
does with his new money. First,
be puts it IN his country bank; and
then he pays II out for wages OF
living expenses, for clothing, food
which be does not raise, railroad
fares, farm tools, and a burdred
other things.
But 1t is the great manufacturing
cites Of the East which receive
payment for such things. And so,
when the autumn and winter come,
the Western banks pack up the
paper money again, and sent it
back to the East.
lffoTeisD cOuEtIies have had to
buy vast quantities. of our g ain,
the county may get still more
money. SO long as we sell Europe
exactly as much in value as what
we buy, the two accounts are only
checked eff against each other. Put
il, for instance, the eXrOIt of grain
is SO large that we sell In one year
seven hundred mi. lion dollars,
worth OF goods, while We buy only
SIX hundred and fifty million dol
lars worth, then Europe mast send
over TO us on its steamers fifty
million dollars in good money.
That is to say, this would be the
case if the merchandise trade with
foreign countries were the only
thing to be considered. But as a
matter of fact there are many other
things to complicate the accounts.
For instance, we have to pay
large sums for freight, which is cal
ried chiefly in foreSgu vessels; and
England has large Investments in
this country, the interest on which
must be pad, thus diminishing the
amount of money which would
naturally come hither.
But whatever the balance may be,
after ell the accounts are settled,
it is paid in gold.