The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1897-05-05
MORE MONEY! CRY.
IT COMES FROM FARMERS, WHO HAVE
A REAL MONETARY GRIEVANCE.

| IT COMES FROM FARMERS, WHO HAVE
A REAL MONETARY GRIEVANCE.
They May He Mistaken as to the Cause
aud Remedy but Not AS to the Exist
ence OF Their Trouble Why Interest Is
High In tho West and South Statistics
of Banking Power In Different Sections.
Upon tracing the movement for u
larger volume of circulation back for II
score of years it will be found that it
has invariably manifested greatest
strength i'll tho agricultural sections Of
tho country. Obviously, then, we must
seek for the underlying causes in these
communities
When the subject is analysed, it will
be observed that tho ground for discon-
tent at existing conditions lies in the
fact that notwithstanding greatly i'm
proved means Of production, notwith
standing greater facilities and materi-
ally reduced rates for the transporta
ton and distribution Of products, the
agIiculturist, upon whom so large n
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 a proportionate income he has not
been able to reduce, but has, i'll fact.
increased ms money obligations
1t 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 communi-
ties where discomfort prevails the rea-
son here given is the true one the dis
sertatiens 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 conso-
qucnt gross inequality i'll interest rates
are the chief cause of the inability to
carry ON the important business of agri-
culture proiitahly
The sections ot the country polling
generally speaking, insufficient credit
facilities Tho small farmer who, adj
| Ynncing from the condition of farm la
| burer, seeks u larger measure of indie
pcudonce and greater comforts for his
family, il not emily compelled to mort
gage his realty, frequently at rates as
high rs IL pr cent, but is under the
necessity Of borrowing upon his pro-
| spectiNo clop, Having no banking Office
to call upon, he turns to the storelSeep-
Ell, 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
nishod aud finally i'll the way of dis
counts or commissions upon tho product
of the farm turned in as payment.
These items not iufrequently aggregate
30 per cent upon the actual credit oX-
tended, and III n very large number of
eases the total exceeds 90 per cent.
1t is perhaps unnecessary to add that
business Of amy kind under such cond-
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 benefit him? Is it to be wondered
at when he hears or reads Of money GO
ing begging ut , per cent iii the metrop-
oils. he fancies that by some hoeus
pocus, Wall street is constantly striving
to grind him DOWN
1t il our business to teach him other
/ 1 al -
of the commercial centers is closely in
terwuNcn with his--is, in fact, largely
dependent upon his welfnre-hut the
lesson can only he brought homo to him
by tho introduction of means through
which his own prosperity shall be as.
suIed. For, even rs 1t is impossible tc
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 ont
eruus burdens. ne him Il system which
operates so uneQually rs the existing
one does must appear not only unsound,
but absolutely tyrannical. Any change,
he feels. would he 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 initiation of oui
circulation, but i'll 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, rs in many other matters, We
must refer for guidance To human eNpe-
rienco elsewhere. In no country has the
system IF advancing short time credits
to agriculturisis reached the high state
of development which is found in Scot
land The Scotch banker has learned
that the farmer is, under well guard.
cd system, aS fairly entitled to credits
to float his venture us the merchant OF
the manufaciurer
Scotland has one banking firm for
each 1, 00Q az population and u ratio of
banking capital to total resources Of
banks Of ! 10 H. BY this economy i'll
the use of capital the banks arc able TO
utSi"IV WY h'sHNs aNSi1slub luAlS ~
per cent while giving credits ordinarily
at rates rarely exceeding 1 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 Ill banking
institutions, including private bankers,
with total capital of S17 200, 600; to
tai resources. $40, 900, 900, or ratio OF
capital TO resources about to l-S,
4 and one banking office to eS, coo of pop