Orange County observer. [volume] (Hillsborough, N.C.) 1880-1918, 1909-05-20
Credit System Bad.

Credit System Bad.
/ have been watching country life
In the South for many years and have
come to the conclusion that the "ad-
vance system" is just as great a mis-
take on the part Of the merchant as 1t
is on the part(of the farmer, for the
following reasons:
First, the merchant takes great
risks, which, Of course he tries to
cover by increased charges. But even
though these charges are increased.
the staples of life are not such arti-
cles as a high percentage Of profit will
adhere to, and the merchant is prac-
tically trading gold for a promise to
pay. If the crop fails. he is obliged
to carry and carry and carry, and
may ultimately, as in thousands Of
cases, be obliged to take a farm, for
which he has no use. a. .e~
Under a cash system there will be
a great reduction in the sales of some
staple foods, such as bacon, potatoes,
beans, lard, vegetables, canned goods,
hay, corn, etc., all articles that carry
low profits. The farmer, however,
will buy with his surplus more dry
goods, clothing, shoes, furniture, ETC.,
for his family, better teams, farm
implements, wagons, buggies, etc., on
which there is a much greater profit
for the merchant than on staple arti-
cles of food. The merchant can turn
his money in thirty days, instead OF
a year. Ten per cent. clear profit
turned monthly is better than 12O
per cent. gain received annually.
Again, there Is something about
raising cotton, tobacco or any other
crop, to pay a debt, that saps the vi
tally Of the farmer and affects the
qualify of his tillage. It really low
ers the grade Of farming.
II the merchants will join with us
In urging the farmers to raise all
their food supplies and try to produce
by better tillage double the crop per
acre they now produce, the result as
it affects the merchant will be that
all business will soon be on a cash
basis and the volume will be three or
four times as large from the farmers
ralone." The advent of more money,
will bring diversified industries
among the farmers, and eventually
will attract manufacturers to the
market towns.
If there are idle farms In the coun-
try, instead of calling meetings for
the purpose of raising funds to secure
Immigration, call meetings to encour-
age the farmers who know the coun-
try and are loyal to it, to universally
adopt the following plan: First, pro-
vide their W food supplies. from the
farm. Second. double the average,
product on every acre under cultiva-
ton and let each worker on the farm,
by the use of better teams and tools,
till three times as many acres as at
present, not in the crop but in a
variety of diversified and profitable
crops This would cause an imme-
date demand for more land and
would provide the money to pay for
1t. This makes every man on the
farm more than six times the indus
trial power he now is and gives him
a love OF the farm. This is better
than to leave him in disbursement
and secure immigrants to come and
buy him out.
1t appears to me, therefore, that
the farmer will immeasurab1y gain
when he produces what he has hith-
|. erto bought in the way of living. He
is not compelled to sell his crop i'm
mediately upon the harvest. When
he does sell he trades for cash. The
greater amount OF money he has is
very helpful to the family, but the
stimulus to his self respect is perhaps
the most important item to be consid-
cred. The merchant will be equally
benefited by the greater volume of
business and by the quick return of
his money.
These points should be urged upon
al1 the peoples. A. Knapp, Special
agent in charges Farmers Co-opera.
Agent in Charge Farmers Co-opera.