The Mena weekly star., 1907-11-07
WHY NOT LOAN TO FARMERS DIRECT?
Hal L. Norwood Thinks Cotton Good Security for State if Good tor Banks -Is the Panic a Plot to
 Defeat Farmers Unions

nassit1p an act authorizing the money in the state treasury to De loaned to the banks of the state in order to relieve the strained financial condition of the country and that Governor Pindall IS quoted as saying that there IS now probably S1, 800 900 in the vaults of the state.
 lam not familiar enough with the financial problem of the coun- try to know the cause of the pres ent stringency in money matters, hut it is strange that when the country is in an apparently pros perous condition that it should be in the midst of a financial panic, and that the crisis should come just at a time when money is needed most in the South to handle the cotton and enable the farmer 10 demand reasonable prices.
 IT. is a we'll known fact the farmers through their Unions are getting in position where they can fix the price of their products and the local banks of the coun try are willing to assist them to hold their cotton until they are offered the price fixed by the Unions. At this juncture the local banks are notified by the banks in the East in which they have money on deposit that they cannot draw any of that money, and thus 1t stands.
 What is the matter Is the whole thing scheme by eastern fnauciers, spectators and capi. talists to thwart the efforts of the farmers and force them now, as they have in the past, to take for their cotton what the specula. tors are willing to give.
 1 believe that the banks of the South will be able to handle the proposition and that any scheme of Eastern capitalists will be de feated. The banks throughou' this state are in good condition and cannot be crushed by any financial scheme. I refer with pride to the three banks of Mens which are doing business at the anne old stands and in the same old way, unaffected by the pa nick ) whirl wind which has caused tho banks in the larger cities to re strict the amounts that may bs drawn by depositors. l have in vestigated the situation here and find that our banks do not wan to borrow any money from the state and do not need to borrow any from any other source te transact their business just a: they have been doing. If the farmers and their local banks will cooperate they both can stand pat" without the aid or consen, of the East.
 However, if the state wants tc helpthe farmers and has money to loan, why not let the farmers have it direct ana take cotton as security. Time and space forbid the going into details as to the plans, but the state could have an agent at each county seat who would be authorized to advance so much money on each bale of cot. ton as shown by warehouse re- ceipts.
 Ii cotton is good security tc commission men and banks, why is 1t not good security to the srate? Why should the state loan the money to the banks al four or six per cent and let the banks in turn loan to the farmers at ten per cent? You say this is popullstic doctrine. Suppose il is, the Democratic party in the last ten years have appropriated many populistic doctrines. Nc political party has patent right on any theory of government The best laws of the Republican administrations were first advo cated by the Democratic party Democracy is oppos d to gov ernment of either paternalism or special privileges, but if we mus have either one or the other, i. not paternalism better for the whole people?
 l am for anything that is practicable and right, that will assist the farmers to fix the price ot their products. The lawyer fixes his fee, the doctor fixes the price of his services, the merchau, prices his own goods, the carpen. ter, the brick mason and the painter fix their wages, etc. The farmers of the country are about the only people who have lei others say what they shall re. ceive for their honest toll.