The times. (Owosso, Mich.) 1882-1897, 1896-10-23
THE FARMERS REAL GRIEVANCE.

Not N Lack OF Money In the Country, but
of Banking FaciIitiesf In Country Dis
tricts-Mr. shearman's Proposed REM
edy.
Why has Canada no currency ques-
ton, no cry for cheap money and no
campaign against gold? These are ques-
tions which Mr.. Thomas G. Shearman
answers very effectively in the London
Times of Sept. IL.
Briefly summarized, Mr.. Shearman's
exclamation of the discomfort among
farmers, which has lead to the ridicu-
lous demand for free silver, is that most
farmers in the west and south are de-
priyed Of the benefits of banking facili-
ties. They seldom see or use check
and are unacquainted with the benefits
of banks and bank credits. For this
reason there is great scarcity Of cur
rency in most rural districts. The
"country store" supplies in part and in
q crude and costly way the credits
which tide many farmers over from one
season to another. Because Of the great
risk involved, the storekeeper, by charg-
ing high prices for his goods and by
paying low prices for farm products,
really gets from % to 40 per cent inter-
est on the credits given to the farmers.
OF course such interest eats up all Of
the profits of large class Of farmers.
The country storekeeper really does a
banking business in q clumsy and cost
" way. Local banks, such as exist in
Canada, would furnish the farmers
with credits at about one-fourth the
cost of store credits. With such banks
the farmers could sell their crops for
checks, deposit them in banks and take
up their discounted notes in this way.
The farmer knows nothing Of this
method of conducting transactions and
thinks that his needs can be supplied
only by making more money--cheaper
money if necessary.
The farmers, therefore, make no
efforts to obtain better banking facili-
ties. Instead they work and vote
against banks and bankers at every op-
portunity. They tax money and other
loanable capital at 2 or az per cent
while demanding that interest be re-
duced to 2 per cent They thus drive
away the very money they are so eager
to get. In some sections of the south it
is 30 or 70 miles to the nearest bank.
They prohibit branch banks, such as ex-
list in Canada and Scotland to the great
advantage of remote country districts.
The farmers themselves are the great
est enemies to what is most needed in
their communities-frst class banks Of
deposit and discount. Mr.. Sherman
makes this point clear. He says that
Canadian farmers shave suffered from
the fall of prices and from every other
alleged result of the single gold stand
ard to the same extent as the farmers
south of them. Yet there is no bimetal-
lie league in Canada, and the cry for
cheaper money is not heard. Canada
has not only enough money to supply
all of her own wants, but also lends
such great amounts in the United States
that jealous American bankers some
times try to shut Canadian money OUT"
Mr.. Shearman sees what too few
seem to see-that the farmers have q
real monetary or currency grievance.
He has indicated what is probably the
only way Of giving relief. He offers
something positive. That the farmers
are not willing to take the only remedy
for their ills and prefer the quaok free
silver and cheap money remedies only
prolongs their sufferings and makes
rational solution of the money question
more difficult and uncertain.