The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1897-05-21

the largest silver vote in 1896 have,
generally speaking, insufficient credit
facilities. The small farmer who, ad-
vancing from the condition Of farm la
borer, seeks q 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 or commissions upon the product
Of the farm turned in as payment.
These items not infrequently aggregate
30 per cent upon the actual credit ex-
tended, and in very large number Of
cases the total exceeds 20 per cent.
1t is perhaps unnecessary to add that
business Of any kind under such condi-
tions would be unpofitable.
Is 1t, 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 Q per cent in the metrop-
oils. he fancies 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
lesson can only be brought home to him
by the introduction Of means through
which his own prosperity shall be as
sured. For, even as it is impossible to
interest starving man in the plan Of
salvation, 30 the debt ridden farmer can
only acquire faith in our views of sound
finance when relieved Of his present on
erous burdens To 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 mani: estly not to be
found in any form of imitation of our
circulation, but in providing by legisla-
ton 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 we'll 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 l 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 per cent,
and every hamlet in the kingdom has q
banking Office within its limits or in ita
immediate vicinity.
Taking the states Of Alabama, Missis.
sippi and Arkansas a. an example, II
will be found that these have about
1000, 900 population and III banking
institutions, including private bankers,
with total capital Of $17. 000, 900; to-
tai resources, 90, 600. 900, or ratio d
capital to resources about to 3 Ia,
and one banking Office to 80. 600 Of pop.
ulation.
The reason for exorbitant interest
rates in the last mentioned section Il
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