The sun., 1896-09-21
WHr WESTERN FARMERS SUFFER-.
No Banks and Scnut Supply OF Currency
Branch Banks the Remedy.

Branch Banks the Remedy.
Frour the London Times
American farmers and planters are scattered
thinly over an enormous territory. vast ma
jority not only have dealings with banks of
deposit and discount, but do not understand the
nature of such transactions. In the South and
West II 10 quite common to f1nd numerous pop
ulated districts, each larger than Wales, and
some nearly as large as England. in which there
is not single bank Of deposit. In most Of the
agricultural regions back OF the North Atlantic
States payment by check IL practically unknown.
All transactions are settled either by payment
In paper money or by book accounts.
A moments reflection will show that It 10
literally impossible that the enormous produc-
tions OF these farmers can ever be paid for In
either coin or paper money. There never was.
and never can be, enough money" In the
country TO pay for half crop; while two-thirds
Of all the coin and paper money is and must be
kept in bank vaults. the banks being compelled
by law to keep on hand from 8 to % per cent
OF all their liabilities In coin or 'Rreenbacks.'
s hS scsuS og @
use Of checks, in which moro than nine-tenths
of all transactions are settled. But the fa;mers
have no checks and no bank accounts. Nearly
all the money 7" is absorbed by the towns. How
shall bal their erops ,, be ,old and m, paid for a.,
country store" At each crossing of the high
roads Is sure 70 bo planted the 'oross-reads
btOTe. OI WnlCn INC publuoSb tThVelltT Will near
in every direction; Here. a ehrewd manager.
wh small csPs good bank ~ and e,
book account with ono of these stores. He 10
lucky II he has a choice between three Of them.
But they all charge the same prices, give the
same credit, require the same security, and deal
,n the same way; When tn the I farmer M has raised
the store. Credit, is given from one annual
and the risks involved, the storekeeper has to
charge prices which include interest and insur-
% asaaon to ss 81
n town store. When he buys the farmers crop.
as he usually does, ho pays tho lowest country
the prices at both ends.
In this manner by far the largest share Of the
and and sell IL the Cheapest. t. They 40. In fact,
clumsy and costly manner, paying these primi-
tive bankers interest and Commissions at tho
ns q 80 90 4e ,o
who pay rs. 80 barely barely live; those who pay 40 are
Millions Of farmers live in this manner. know
II. and are impatient, under 1t. Hundreds of
thousands grow lercely discontented. But tho
conception is to increase tho volume Of money
to such an extent that II shall flood the whole
for actual cash. paid across the counter.
They believe that city trade is done In
sn' dSHsd az d e esy yprH.s.. 9n1 hs 81 .a%s hSs
mysterious financial conspiracy, through which
New York and London bankers monopolEe all
the money and contract its volume. III order
that they may monopolize 1t. No politician and
no paper which they ever road contra iicts this
theory; and nobody ever explains to them the
their having or using deposit banks Their only
Idea of bank Is bank note factory. Issuing
paper to be Kept ahoat as long and redeemed a.
seldom as possible. And why that omnipotent
being, "the Government" should not issue all
this paper itself. sharing the gigantic profits"
among all the people. Is somethi Ing which they
very recently has attempted to explain.
Is 1t at all surprising, under such circum-
pressed pressed for raj a living. % Should clamorously demand
more money of every kind-gold. silver. paper.
rags? The marvel is that there has been
out instruction, to feel instinctvelr that the
only remedy of which they know anything 10,
after all. worse than the disease.
tho extension to tho farming classes of those
banking facilities which have made the use of
both coin and paper money obsolete in the ousi-
farmers obtain credit at local bank. at fair
rates OF interest, Instead of depending upon the
crose-road stores. at exorbitant rates Why
should they not sell their crops for checks. de-
posit them in banks. and take up their dis
counted notes In this way?
a i Il eo saas
stand. Our bankers are moro enterprisinR than
British bankers. more ready to enter into the
much more willing to accept small deposits. and
never charge commission. But they are pro-
hibited from furnishing this aid to farmers by
of the farmers themselves. No bank is per-
mitted to establish agencies and every bank 10
taxed two or three per cent. on It's capital which
Is the same as an income tax or shtllngs on the
pound. Thus rural banks are killed before they
are born. No farmers bank could live under
such taxes and no district which M is too , poor to
bank agency. THOMAS G. SHEARMAN.