The Londonderry sifter. (South Londonderry, Vt.) 1883-19??, 1897-05-28

way Vi ihNit0otN l4A'No ipt oAtpiNS uI-
nished and finally in the way of dis
counts or commits ions upon the product
of the farm turned in as payment.
These items not infrequently aggregate
80 per cent upon the actual credit cx-
tended, and in very largo number of
cases the total exceeds 20 per cent.
1t is perhaps unnecessary to add that
business Of any kind under such condi-
tons would be unpofitable.
Is it, then, surprising when the agri-
culturist, who knows little relatively of
the principles Of sound finance, imagines
that an increase in the volume of money
would benetit him? Is it to be wondered
at, when he hears or reads of money 60
ing begging at 2 per cent in the metrop-
oils, he faAei,s that, by some hocus
pocus, Wall street is constantly striving
to grind him down?
1t is our business to teach him other
wise; to teach him that the prosperity
of the commercial centers is closely in
terwoven with his-is, in fact, largely
dependent upon his welfare-but the
1 lesson can only be brought home to him
by the introduction of means through
which his own prosperity shall he as
sured. For. even as it is impossible to
interest starving man in the plan of
salvation, so the debt ridden farmer can
only acquire faith in our views of sound
finance when relieved of his present on
erous burdens. 10 him system which
operates so unequally as the existing
one does must appear not only unsound,
but absolutely tyrannical. Any change,
he feels, would be for the better Con-
sequently the southern farmer demand
ed the reinstatement of the state bank
note system four years ago, and last
year the free coinage of silver appeared
to him the best solution Of the difficulty.
| The remedy is manifestly not to be
found in any form of imitation of our
circulation, but in providing by legisla-
tion or otherwise increased credit facili.
ties, both for long term loans upon
mortgages and short term credits upon
crops, and better distribution of the
circulation which we have.
In this, as in many other matters, we
must refer for guidance to human expe-
rience elsewhere. In no country has the
system of advancing short time credits
to agriculturists reached the high state
of development which is found in Scot
land. The Scotch banker has learned
that the farmer is, under a well guard
ed system, as fairly entitled to credits
J v feat his venture as the merchant or
lac manufacturer.
Scotland has one banking firm for
each 1000 of population and ratio of
banking capital to total resources of
banks of to 10. By this economy in
the use of capital the banks are able to
declare dividends averaging fully 10
per cent while giving credits ordinarily
at rates rarely exceeding per cent,
and every hamlet in the kingdom has a
banking office within its limits or in its
immediate vicinity.
Taking the states of Alabama, Missis
sippi and Arkansas as an example, it
will be found that these have about
100000 population and III banking
institutions, including private bankers,
with total capital of SIT, 900, 1000; to-
tai resources, $40, 100000 or ratio of
capital to resources about to ID,
and one banking office to 90, 900 of pep
ulation.
The reason for exorbitant interest
rates in the last mentioned section is
obvious. And it will continue to exist
unless some means of economizirg cap
| ital, as is done III Scotland, is provided
and the storekeepcr is compelled by
competition to reduce rates. The comp
troller of the currency, in his annual
report for 1896, presents table show
ing the banking power of the several
states and territories, from which the
following abstract is compiled, to illus
trate this point more forcibly:
| AVERAGE BANKING POWER PER CAPITA, UNIT
| ED STATES, 1868.
| Nation Loan
| al, state and
| CT Gov.