The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1897-05-07

snce OF Their Tronble-Why Interest Il
High In the West and south-sta,isei,.
Of Banking Power In Dffereu. Sections.
Upon tracing tsls movement tca a
larger Volume of circulation back for a
score Of yeas IL viii b. found that II
has Invariably manifested greatest
strength in the agricultural sections Of
the country. Obviously, then yqe must
seek for the underlying causes in these
communities
When the subject Is analyzed, il will
be observed that the ground for discon-
tent at existing conditions lies in the
fact that notwithstanding greatly i'm
proved means Of production, not,yith-
standing greater facilities and ruateri
ally reduced rates for the transporta-
tlcn and distribution Of products. the
ag1iculturIst, upon whom 80 large a
part Of our economic Fygtem Is depend
ent, finds himself generally speaking,
after a twelvemouth Of hard work, no
farther ahead than at the beginning Of
the year, and III many instances his
status Is worse. Through the failure to
make proportionatc income ne has not
been able TO reduce, but has, in fact.
Increased bis money obligations
1t IL not maintained that such il the
Gaze 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 cornmuni-
ties where discomfort prevails the rea-
son here given ls the true one, the dis
eertations Of self satisfied theorists to
the contrary Notwithstanding.
Numerous examinations made ty
painstaking investigators warrant the
statement that the unequal stribution
OF capital and Of money and the conse-
quent gross inequality III interest rates
are the chief cause of the inability 10
carry On the important business Of agri-
culture proftably.
The sections Of the country polling
the largest silver vote in 1886 have.
generally speaking,' Insufficient credit
facilities The small farmer who, ad-
yanciug from the condition OF farm la
borer, seeks larger measure Of indie
pendence and greater comforts for his
family, Is not only compelled TO mort
gage his realty, frequently at rates az
high as 10 per cent, but is under the
necessity Of borrowing upon his pro-
spectiye crop. Having no banking Office
To cal! upon, he turns 10 the storekeep-
ct, 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 III the way Of dis
counts or commissions upon the product
OF the farm turned IN as payment.
These items not infrequently aggregate
~ per cent upon the actual credit ex-
tended, aud III 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-
tons would be unpoftable.
Is it, then, surprising when the agri-
culturist, who knows little relatively Of |
the principles Of sound finance, imagines !
that an increase III the volume Of money /
would benefit 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 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 III fact, largely
dependent upon his wclfare-but the
lesson can only be brought home to him
by the introduction Of means through /
which has own prosperity shall be as
suTed. For, even as it is impossible to !
interest starving man III 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 unequally as the existing
one docs j. ust 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 manifcstly not to be
found i'll any form of initiation 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 i'll many other matters, we
must refer for guidance to human expe-
rience elsewhere. In 40 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 q well guard
ed system, as fairly entitled to credits
to float his venture as the merchant or
tho manufacturer.
Scotland has ono banking firm for
each 1000 Of population and 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 per cent,
and every hamlet III the kingdom has
banking Office within It's limits or in its