The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1898-01-15

emit Sections
Upon tracing the movement for l
larger volume Of circulation back for d
score of years it will 6e found unat
it h&s Invariably manifested greatest
strength N the agricultural sections of
the country. Obviously, then, we must
seek fcr the underlying causcs in these
communities.
When the subject is &EGiyzei It viii
be obscrred that the ground for discon-
lent at existing conditions lies III the
fact that Notwithstanding greatly i'm
proved means of production, notwith-
standing greater facilities and mate
rally reduced rates for the Transports
ton and distribution OF products. The
agricuiturist, upon whom so large n
part of u economic system is dcpe%d-
ent, finds himself, generally speaking.
after a tyelyemonth of hard work &c
farther ahead than at the beginning Of
the year, iS!G 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
agricultJErists entitled to equa4 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
s~crtations of self-sat;sfied theorists 10
the contrary notwithstanding.
Numerous explanations made by
painstaking Investigators warrant the
statement that the unequal distribution
OF capital and o: money and me conse-
quent gross inequality N interest rates
are the chief causc Of the inability to
carry on the importact business Of ag-
ricultUrc proftabIy.
The sections Of .he country polling
the largest silver -ote in 1896 have.
generally speaking. insufficient credit
facilities. The small farmer who. ad-
vancing from the condition of farm la
horer. seeks a larger measure of indie
PenGence and greater comforts for his
family. i not only compelled to mort
gage his realty. frequently at rates as
high as j. per cent. but IS under the
necessity OF borrowing upon His pros
pective crop. Having no banking Of
flee 70 call upon, ne 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 W.,
Of discounts or commissions upon IL
product of the farm turned ia as pa
mcnt. These items not in~frequonli"
aggregate 20 per cent. upon the act.@l
credit extended. and in Il very La
number of cases the total exceeds ""
per cent.
It is perhaps unnecessary to add that
business of any kind under such como
liens would he Improbable.
Is It. then. surprising when III" a@--
culturist. who knows little reIatiyc!.
the principles of sound finance. ina
ines that AZ increase in the volume g.
money would benefit him? Is il - T.
wondered at. when he hears or read T.
money going begging Al two re- Co..
in the metropolis. he fanci-s :iiat, =.
some hocus pocus. Wall street is CON
S~rantly striving to grind him down?
It is our business to leach him other
wise; to teach him that the prosperity
OF the commercial centers is closely ID
terwoven with hiS-is, in fact. largely
dependent upon his welfare-but t."
lessen can only be brought home to hin.
by the introduction Of means through
which his own prosperity shall be a
sured. For. even as it is impossible "a
interest a starving man in the plan OF
xalyation. so the debt-ridden farmer can
snIy acquire faith in u views of sound
finance when relieved of his present
onerods burdens. To him a system
which operates so unequally as the eN-
.sting one does Il appear not only
,unsound. but absolutely tyrannical.
ANY ch8nge. he feels, would be for the
better. Consequently the southern
farmer demanded the reinstatement Of
the state bank note system o u years
ago, and last year the free coinage of
silver appeared to him the best solution
of the difficulty.
The remedy is manifestly cot to be
found in any form of imitation 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 n better distribution of the
circulation which we have.
In this, as in many other matters, we
must refer for guidance to human ex-
p~erience 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 10 float his venture as the mer-
chant or the manufacturer.
Scotland has one banking firm for
zach 1000 of population and n ratio of
banking capital to total resources OF
hanks of one to twelve. BY this econ
omy in the use OF capital the banks are