The record-union., 1895-05-14
A REPUTATION SCHEME.

Mr.. Harvey, the putative author OF
.'Coin's Financial School," would scale
all farm debts down 30 cents on the dol
lar, because the price OF produce has
fallen in about that proportion. Now
that sounds liberal. but aside from the
immortality of the proposition, did 1t
never occur to its friends that the result
would be to advance by that much the
cost to the farm of what it must have?
Let US suppose that the farm debtor
owes the mower creditor and the debt Is
repudiated by one-half: when the farmer
needs another mover will he get it at
the price he could command when his
credit was at least reasonably assured at
one hundred cents on the dollar?
But Harvey fails completely SO explain
on what basis of honesty he would JUS
tify the farmer in cheating his creditor
out of one half his dues. Now, it is ex-
ceedingly popular to roar against ored-
itors, to denounce bondholders, to shout
in rage against those who lend their
money to others, and, indeed, to exclaim
against them as next door to criminality
in the act of lending. Since Shakespeare
put the sentiment into dramatic poetry,
and typifed it in the character OF Shy
lock, the money lender has been the butt
of abuse, and it has been deemed in many
q code entirely within the lines of hon
esty to defeat his claim.
But let US look at the matter from the
standpoint of common honesty and not
extraordinarily high moral ground. If
there were no borrowers there could be
no lender IF there were no accommoda-
ton there could be no debt, and con-
versely, if there were no debt there could
be no accommodation, save by way of
humiliating charity. One who saves and
lends his dollars is precisely on the level
of one who husbands his corn and lends
of it to prevent distress in his neighbor's
family, or to enable the neighbor to spec
ulate upon it and double the venture.
that four years ago could have been paid
back with 100 bushels of wheat, is not
surely to blame that under the voluntary
contract it now takes 200 bushels to dis
charge the obligation. Nor on any sort
of honest grounds can the reputation OF
100 bushels be justified; it will remain
theft no matter what it is called.
If, as the papers say, thousands of
honest farmers have Endorsed Mr.. Har-
vey's plan," then all we have to say is
that all such farmers have conceptions OF
21easna and tatuDl which do not accord
with the code of morals on which pure
religion and the golden rule stand.
But suppose we admit that the re-
pudiation could be accomplished and
men lawfully despoiled of their money
in that way. would it end the business OF
credit and money lending? And If it
would, is it desirable? Is there a farmer
in the land who is prepared to say that
he can go adjust his business to the sea-
sons and their possibilities that he will
not in any event need to call upon the
man with money to 'tide him over?'
Again, suppose Coins reputation idea
to be carried out, what will be the effect
on the moneylender; will he not the
next time so guard bis interests that be
will not be subject 10 such fuctuation
and risk, and as a result will not the
necessitous borrower suffer more IN the
latter than in the former stage? AS the
Portland Oregonian well says, these tink'
erers in finance might under such 8
scbeme catch out the man with loans al
ready afloat they might cheat the mar
once, but assuredly not the same mar
twice.