Middletown transcript., 1897-05-01
MORE MONEY" CRY.
1T COMES FROM FARMERS, WHO HAVE
a REAL MONETARY GRIEVANCE.

enco Of Their Tr0uble-Why Interest Is
High In the West and south-statistics
OF Banking Power In Dinerent Sections.
Upon tracing the movement for a
larger volume Of circulation back for q
score Of years 1t will be found that IL
has invariably manifested greatest
strength in theagrioultural sections Of
the country. Obviously, then, we must
seek for the underlying causes In these
communities.
When the subject is analysed, It will
be observed that the ground for discon-
tent at existing conditions lies In the
fact that notwithstanding greatly Inn
proved means Of production, notwith-
standing greater facilities and materi-
ally reduced rates for the transporta-
tion and distribution Of products, the
agriculturist, upon whom so large a
part of our economic system is depend
emit, finds himself. generally speaking,
after twelVemonth Of hard work. no
farther ahead than at the beginning Of
the year, and in many instances his
status Is worse. Through the failure to
make proportionate income he has not
been able to reduce, but has, In fact,
increased his money obligations.
Il Is not maintained that such Is the
case throughout the land, nor are all
agriculturists entitled to equal credit
for care and economy. Many cases there
are, doubtless, where sympathy is not
deserved, but in most Of the commune
ties where discomfort prevails the rea-
son here given is the true one, the dis
sertations of self satisfied theorists to
the contrary notwithstanding.
Numerous examinations made by
painstaking investigators warrant the
statement that the unequal distribution
Of capital and Of money and the conse-
quent gross inequality in interest rates
are the chief cause Of the inability to
carry on the important business Of agri-
culture proftably.
The sections Of the country polling
the largest silver vote in 1895 have,
generally speaking, insufficient credit
facilities. The small farmer who, adj
vancing from the condition Of farm Ia
borer, seeks a larger measure Of indie
pendence and greater comforts for his
family, is not only compelled to mort
gage his realty, frequently at rates as
high as 10 per cent, but is under the
necessity Of borrowing upon his pro-
spective crop. Having no banking Office
to call upon, he turns to the storekeep-
er, who extends credit for the needed
supplies and taxes the borrower first for
interest upon the loan, second in the
way Of increased prices for staples fur
nished and finally in the way of dis
counts on. commissions upon the product
of the farm turned in as payment
These items not infrequently aggregate
80 per cent upon the actual credit ex-
tended, and in very large number OF
cases the total exceeds 90 per cent.
1t is perhaps unnecessary to add that
business of any kind under such condi-
tions would be unpoftable.
Isit, 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 benefit him? Is it to be wondered
at, when he hears or reads of money go
ing begging at per cent in the metrop-
oils, he fancies that, by some hocus
pocus, Wall street Is constantly striving
to grind him down?
It Is our business to teach him other
wise; to teach him that the prosperity
.e A. .,,,o~o; nj ,o,,&orc 10 oloco1u in.
terwoven with his-is, in fact, largely
dependent upon his welfare-but the
lesson can only be brought home to him
by the introduction Of means through
which his own prosperity shall be as
sured. Fer, even as it is impossible to
interest a 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. To him a system which
operates SO unequal1y 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 facih-
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 well guard
ed system, as fairly entitled to credits
TO float his venture as the merchant or
the manufacturer.
Scotland has one banking firm for
each 1000 Of population and a ratio OF
banking capital to total resources Of
banks Of to IL. 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 4 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
viii be found that these have about
4, 600, 900 population and III banking
institutions, including private bankers,
with a total capital of $17 .000, 600; to-
tai resources, $4O, 1000, 900, or ratio Of
capital to resources about to . 1-S,.
and one banking Office to aS, 900 Of pop
ulation.
The reason for exorbitant interest
rates In the last mentioned section is
obvious. And It win continue to exist
unless sonae means Of economizing cap
ital, IS Is done In Scotland, is provided
and the storekeeper is compelled by
competition to reduce rates. The comp
troller of the currency, in his annual
report for 1895, presents a table show
ing the banking power Of the several
states and territories, from which the
following abstract Is compjled. to Illus