The log cabin Democrat. [volume] (Conway, Ark.) 1901-1982, 1907-11-28
HOW IT AFFECTS THE FARMER
Financial Situation Discussed by
P. A. Hyatt.
Correspondent Would Have State and Ma
tional Government Loan Money on
Warehouse Receipts.
editor Log Cabin Democrat:


of the east, and the cold rain mas
begun to descend in great torrents,
and behold the Union grows
stronger. Yet there is an aching
throb in the Union mans heart
that makes his reflections seem
beclouded with sorrow, shame and
faint heartedness as he beholds his
wife and children crouching around
the freside, half furnished with
raiment and food, shivering from
the effects of the cold east winds
that even the birds of the air and
the beasts of the field dare face.
How do conditions exist thus?
Brother editor, Farmers Unionists
have the patience of Job, and l
will offer what | call a short ex-
planation.
The foundation of the Farmers
Union is the warehouse, system.
Tt is storage for the produce of
the farmer, there kept in a market
able condition, acceptable to the
manufacturer which they the
manufacturers demonstrated they
would accept if preserved in a
marketable condition. We called
attention to the fact that about one
fourth of the cotton produced in
1907 has been stored in ware-hous
es throughout the cotton south,
looking foreward to the time when
the farmer will receive IS cents
per pound for his cotton on deposit.
We will say, however, one-half
of the depositors, having done bus
mess On credit system for the
support of his family and to pro-
duce his present cotton crop, ow-
ing the proceeds of his cotton OBJ
tainable from the street buyers.
Realizing this fact he deposited his
cotton in the warehouse expecting
to get IS cents per pound. By
so doing he could pay his debts
and have remainder to support
his family through the cold winter
months and hot summer days.
Brother, have we ever obtained
this price?
There is another class of farmers
that have deposited their cotton in
warehouses and are able to hold
their cotton for IL months to come.
They have good amount of mon
ey on deposit i'll our little local
banks over the country, which, if
the independent farmer had in his
possession, would tide him over the
great financial depression he is
is laboring under at present.
Notice the condition of the farm
er, if you please: One class with
out money, with his cotton on de
posit, his family shivering with
cold and hunger, patiently waiting
for Is cents; the other class with
his cotton in the warehouse and
money on deposit in some local
bank. From this standpoint we
find finance rushed from the hands
OF the farmer.
Who realizes this fact? My
brother, the grand and glorious
old speculator realizes the condi-
ton of the horny-handed sons of
toll. Let us notice what happened
uext. We find that our local bank
ing system had loaned their de-
posits to our eastern banks and
trust companies for the purpose of
speculating in the manufactured
articles and raw materials of our
country. Mr.. Speculator, what
did YOU do? You hovered around
Wall street with your influence,
pleading for depression in the
money markets of the world. It's
an evident fact that you accom-
plished you aims and purposes.
The great eastern banking system
and trust companies hurled the sad
news throughout the local banking
system that they were III depressed
financial condition and could not
return their proceeds on deposit
then our local banking system IN
formed their patrons that they
would cash no checks, advance nc
more money on cotton deposits
through the warehouse system
What could have been more en-
couraging to the speculative ele-
ment than our present condition
financially? One element with his
cotton and Indebtedness deposit
ed in the warehouse system, the
other element with his money tied
up in eastern banks and trust com
nanies in the form of deposits. Yes
but the speculator realizes this con
dition with a glad heart.
Why was this done' we IND
Mr.. Speculator had agreed to sup