Alma record. (Alma, Mich.) 1878-1928, 1897-04-30

II has lnVdrla Dly manifested greatest
strength in the agricultural 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 i'm
proved means of production, notwith-
standing greater facilities and mate
rally reduced rates for the transporta-
ton and distribution of products, the
agriculturist, upon whom so large a
part of our economic system is depend
snt, 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, in fact,
increased his money obligations.
1t is not maintained that such is the
case throughout the land, nor are all
agricultwists entitled to equal credit
for care and economy. Many cases there
deserved, but in most of the communi-
ties where discomfort prevails the rea-
son here given is the true one, the dis
sertations of self-satistied theorists to
the contrary notwithstanding.
Numerous explanations made by
painstaking Investigators warrant the
statement that the unequal distribution
: ;.4,1 ,f . b.,
quent gross inequality in interest rates
are the chief cause Of the inability TO
carry on the important business of ag-
riculture proftably.
The sections of the country polling
the largest silver vote in 1896 have,
generally speaking, insufficient credit
facilities. The small farmer who, adj
vancing from the condition Of farm la
horer. seeks n larger measure of indie
pendence and greater comforts for his
family. is not only compelled 10 mort
gage his realty, frequently at rates as
high as Is per cent, but is under the
necessity of borrowing upon his pros
pective crop. Having no banking Of
flee TO call upon, he turns TO the store
keeper, 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 furnished and finally in the way
Of discounts or commissions upon the
product of the farm turned in as pay
ment. These items not infrequently
aggregate 30 per cent. upon the actual
credit extended, and in a 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 improbable.
Is il, then, surprising when the agri-
culturst, who knows little relatively of
the principles of sound finance, imsg-
ines that an increase in the volume OF
money would benefit him? Is it TO be
wondered at, when he hears or reads OF
money going begging at two per cent.
in the metropolis, he fancies that, by
some hocus pocus, Wall street is con-
stantly 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-s, 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, so the debt-ridden farmer can
only acquire faith in our views of sound
finance when relieved of his present
onerous burdens. To him system
which operates so unequally as the ex-
listing one does must appear not only
mnsound. but absolutely tyrannical.
Any change, he feels, would be for the
better. Consequently the southern
farmer demanded 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-
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 ex.
perienee elsewhere. In no country has
the system Of advancing short time
credits to agriculturists reached the
high state of development which is
found in Scotland. The Scotch banker
has learned that the farmer is, under a
well-guarded system, as fairly entitled
to credits TO float his venture as the mer-
chant or the manufacturer.
Scotland has one banking firm for
each 1000 Of population and ratio of
banking capital TO total resources of
banks of one 10 twelve. BY this econ
omy ir the use of capital the banks are
able TO declare dividends averaging fully
ten per cent while giving credits ordi-
nRrily.skHtesysZsIyex sssainG f0prWs
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