The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1896-10-08

farmers institute last Friday:
"THE CREDIT SYSTEM AND FARM
ACCOUNTS"
Mr.. President, Ladies and Gentlemen
While the subject assigned to me for
this occasion is certainly one of prime
Importance, it is, nevertheless, in many
respects, of an exceedingly delicate ma
ture. The discussion of the credit sys-
tenn and farm accounts involves ques-
tons and issues that address themselves
to the well-deliberated consideration of
every citizen, but among them all it
deals with no interest of a more signif-
cant and vital character as affecting
general as well as individual conditions
than those of the farmer. 1t is to this
particular interest that what / may have
to say today shall be more especially
directed.
*#
FARM ACCOUNTS.
There is no avocation in life that has
suffered as agriculture has from a neg
lect to keep accounts. The average
farmer has but little idea of the value
of his annual products or of the exact
cost of producing and marketing any ar
ticle, because no itemiZed account has
been kept, no record made of work done
or results accomplished. Each farmer
should be able to answer from well
bound book for each year the number of
acres he had in cotton, the number of
pounds of lint cotton produced per acre
and the price it brounght per pound.
The number of acres in corn, wheat and
oats and also of all other kinds of crops
The cost of preparation of soil, planting,
cultiyating, gathering, harvesting, mar
keting or housing, and the value of EACH
The number of hogs fattened for mar
Al l., al,
were sold; the number of pounds of pork
reserved for home use; the number and
value of each kind of stock raised and
sold each year and the price thereof; the
number and value of each kind of fowls
and of the increase sold and also of those
consumed at home; of eggs produced, as
we'll as the value of all other kinds of
products, whether sold or consumed at
home. He should keep an itemized ac
count of his entire income and also an
account of his entire expenses. Every
successful business man does this. You
will find him entering every item of pur-
chase in one column and every item of
expense in another. If he is a mer
chant, his purchases are entered on his
books on one side, his outlay for pur-
chase on the other side of his sale. If
charged to the proper amount. If cash
is received from A. it is entered as re-
ceived from A, and if cash is paid B, it is
so entered. The man who thus conducts
his business can at any time tell you by
turning to his books the precise condi-
tion of his business. Records properly
kept will always tell you whether your
business is prosperous or is being run at
a loss. If records have been found of
so much Importance to others, they GER
tainly are as necessary for the farmer.
l would not be understood as advising
that each farmer must become an eX
pert bookkeeper. This, though desira-
BILE, is not indespensably essential for
keeping correct accounts. Every farm
er can keep his accounts as indicated in
a sufficiently methodical manner, and the
denied 1t should be part of a child's
education. Parents should furnish each
child with an account book as soon as
they are able to make entries and teach
them to keep accounts of their business
transactions; to enter every nickle or
dime or dollar that they receive from
any source, the price paid by them for
everything they purchase and the cost
of all clothing bought for them, school
books, tuition and all other expenditures.
The reward of this work will be hun
dred fold and it's advantages daily ex-
perience.
The teaching of at least the primary
elements of bookkeeping should be a part
of the curriculum of our public schools
and impressed at least to the extent of
enabling the pupils, both boys and girls,
to keep accounts correctly:
THE CREDIT SYSTEM,
; The credit system creates a heavy tax
especially upon those who obtain it, but
few it seems justly realize the increased
burdens it entails upon them, or they
certainly would not use it to the extent
that many do. Many people seek to
borrow money and offer to pay almost
any rate of interest that the lender may
have the heart to ask, when often the
purpose for which he intends to use it
would not justify a lawful or even a low
er rate of interest. The credit system,
when applied to merchandise, is most
hurtful to the consumer and oftentimes
to the dealer. 1t is hurtful to the con-
sumner because if he pays for what. he
purchases he in that payment must face
an increased per cent to help to pay for
the goods that his neghbor has pur-
chased and never paid for. believe it
is admitted that the local merchant must
add 25 per cent to his sales to cover eX-
penditures incident to the credit system,
such as stationery, extra bookkeeping,
mistakes and bad debts. No doubt some
find it necessary to increase this per-
centage, and from the many failures in
business we may fairly conclude that
this percentage was too low or that they
were very bad financiers The credit
system has no doubt caused most of the
failures in the mercantile business. The
manufacturer sells on credit to the whole
sale dealer, the wholesale dealer sells on
credit to the retail dealer, the retail
dealer sells on like terms to the farmer
There the burden rests. But the sea-
sons are unpropitious, the crops are poor,
or prices low. This disables the farmer
to pay, which disables all that stand be-
tween him and the manufacturer. This
brings about pretty condition of things.
In a business sense it sets the pots to
boiling and bubbling with a liveliness
sufficient to excite the envy of Shakes
peares witches. Oftentimes the result
is the manufacturer, the wholesale man
and the retail dealer assign and take
life comfortably until the assignee, in
his own good time and in his own. good
way closes up matters and it not infre-
quently happens that the failing parties
resume the same old business at the
same old stand and in the same old way.
He there and then begins anew to weave
and spread his web to catch the farmer
fly, but it is not the same fly he caught
before. That has been devoured. The
sheriff participated in the devouring per-
Torrance and there is nothing left.
tN.NGsn