The commonwealth. (Scotland Neck, N.C.) 1896-1929, 1909-06-03
A Common Economic Error.

t'lCi tiop upolI upOil CiiC e1oNollCC
system" and while this has been re-
garded as an economic error on the
side of the farmer, by many mer-
chants it has been thought that it
was a very profitable way of buying
cotton.
The farmer realized that as a mat
ter of safety it was better to make
the food consumed by his family and
his stock upon the farm rather than
to purchase it and especially when
he had to promise payment out of a
crop which had not as yet been
made. | have been watching the
phase Of country life in the South
for many years and have come to
the conclusion that the advance sys-
tenn is just as great a mistake on
the part of the merchant as it is on
the part of the farmer, for the fol-
lowing reasons:
First, the merchant takes great
risks, which, of course, he tries to
cover by increased charges. But
even though these charges are in
creased, the staples of life are not
such articles as high percentage of
profit will adhere to, and the mer-
chant is practically trading gold for
promise to pay. If the crop fails,
he is obliged to carry and carry and
carry and possibly may ultimately,
as in thousands Of cases. be obliged
to take the farm, for which he has
no use, and under boll-weevil condi-
tions, is difficult to handle profitably
upon a tenant system.
Under a cash system there will be
a great reduction in the sales of
some staple foods such as bacon, po-
tatoes, beans, lard, vegetables, can
ned goods, hay corn, etc., all articles
that carry low profits. The farmer
is rarely a hoarder of money and if
ne saves two hundred dollars or
more by producing all his food sup
plies at home he has that much more
to spend when his crop is made, and
it is cash.
Under cash system the farmer
will buy with his surplus more dry
goods, clothing, shoes, furniture, ETC.
~ which there is much greater
profit for the merchant than on
staple articles of food. The merch-
ant can turn his money in thirty
days, instead Of a year. Ten per cent.
clear profit returned monthly is bet
ter than 120 per cent. gain received
annually. Some of the farmers in
creased income goes into permanent
Improvement to enable the farmer
to produce more and spend more an
nually.
Again, there is something about
raising cotton, tobacco, ETC., to pay
debt that saps the vitality of the
farmer and affects the quality of his
tillage. 1t really lowers the grade
of farming. If upon ~ ther hand
the merchants will jou with US ir
urging farmers to raise all their food
supplies and try to produce by bet.
ter tillage double the crop per acre
they now produce the result as il
affects the merchant will be this:
All business will be on a cash basis
and the volume will be three or foul
times as large from the farmer:
alone. The advent of more money
will bring diversified industries
among the farmers and eventual,
will attract manufacturers to tn
market towns.
If there are idle farms in tn
country, instead of calling meeting
for the purpose of raising funds t
secure immigration, call meetings t.
encourage the farmers who know
the country and are loyal to it, t
universally adopt the following
plan:
First, provide their own food sup
plies from the farm. Second ,doubl
the average product on every acr
under cultivation and let each work
er on the farm by the use Of bette
teams and tools, till three times g
many acres as at present not in tn
one crop but in a variety of divers
fled and profitable crops. This woul
cause an immediate demand for NOR
land and would provide the none
to pay for it. This makes every ma
on the farm more than six times tn
industrial power he now is and give
him a love of the farm. This is be
ter than to leave him IN discourage
ments and secure immigrants
come and buy him out.
| should not speak so positively, OF
: " have observed for quarter Of
century that where the Southe1
merchants have changed from q
"advance system" to cash systel
thev have prospered very much mol
than in former years and the nun