The Birmingham age-herald., 1909-09-13
FARMERS AND BANKS NOW IN CLOSE TOUCH Happy Condition Has Arisen In
 Alabama PROSPERITY ON THE FARMS Birmingham Institutions All Doing Their Part and Relations of Farm.
 CTS and Banks Becomes
 Closer All the Time.
PROSPERITY ON THE FARMS
BY WALTER HARPER.

BY WALTER HARPER.
 The part that the rural free delivery of mail, the rural telephone and good roads have played in the revolutionizing of farm life is well known, but there Is another strong factor that has not been given It's full share of the credit.
 The country bank backed by the strong CT banks of the city is working miracles in the new independence of the farmer in the south.
 For long time the farmer was skep- tlcal of the bank somehow conceiving a general idea that the bank was part of that great imaginative enemy of the work ing class and the farmer in particular
 And the banks, realizing this deep seated prejudice, and probably failing to recognize the wide field of possibilities, hesitated to cultivate the favor and con- fidence of the farmer
 The new relation between the farmer and the bank is the result of slow and unconscious progression on both sides. Neither seems to have been the aggressor in the new and happy order of things.
 An Old Story.
 The story of the farmers poverty and oppression for the quarter of a century or more following the Civil War needs no retelling here. It is familiar to every citizen of the southland. Some are in- clined to blame the farmer for his lack of foresight and his painful struggles un- der the load of debt that cumbered him after the war and that he seemed helpless to shake off. But he is not enti,ely to blame It is chargab1e to the system the credit system-that proved more curse to the southern planter than bless ing.
 The small planter was forced to buy his supplies from the advancing merchants, giving a mortgage on his lands personal property and the crop that might be pro- daced on the land the coming year. Then the merchant charged all the way from 25 per cent up to 100 per cent for the goods advanced. The cotton specuIator behind the merchant managed to fix the price Of cotton at the lowest possible figure. just at the time the staple was gathered and must be put on the market to pay off these crop mortgages. The farmer was helpless. He could not hold his cotton for higher price. His mort gage was due and must be paid. The speculator knew this and pressed down the price to the very lowest Millions of farmers in the south became hopeessly involved under the system and though they would gladly have diversified their crops with corn and other food products they were compelled to plant every avail able foot of ground in cotton to pacify the h der of the mortgage.
 Farmer Wakes In
 It within the last decade that the farmer began to realize the disastrous end toward which he was drifting and de- termined to change his methods The first rule adopted was a more rigid econ omy. By degrees he crowded onto his farm few more acres in corn potatoes, hay and other crops of value
 About this time the merchant realized that it would be to his interest to help the farmer to a more independent plane and he offered encouragement.
 About this time-ten years ago-the Farmers Alliance, perhaps the strongest farmers organization ever formed, went into politics and the popuist party was born
 While I have never been an adherent to this party we are compelled to admit that many of it's principles were good and that it was the greatest factor for the education of the rural citizen in the laws of government that the south has ever known. Populistic literature. though rad ical to degree, was sent into every rural home in the south. and the people read it gluttonously. This produced taste for reading and thirst for more knowl- edge of public affairs. This led to gen. eral reading and increased intelligence among the farmers. Just at this time the free delivery of mall in the rural dis tricts was extended and this helped to work the miracle. This was followed by the rural telephone, good roads and bet ter schools.
 Gain Confidence.
 Wider knowledge of business and the worlds affairs led to more confidence in public institutions and the farmer began to use the bank. The banker was quick to recognize this new sentiment among the people and began to study It's possibilities. The farm CT found that he could go to the bank in the spring and borrow the monAy neces- sary for the making of his crop at a req sonable rate of interest and save money. in the buying of his supplies at cash prices. This helped him to get out of debt-lift the mortgage that had op- pressed him ever since the war.
 The supply merchant yielded to the new system and put his business on the cash basis. This helped him. He was not able to get such large profits in tho sale of supplies, but ne was able to turn his goods over rapidly, discount his bills and do more business.
 The farmer, becoming more independ- ent and having surplus money, deposited it in the bank His confidence had been established and he was willing to CO., operate with the institution that had helped him shake off his bondage. Money at the bank became cheaper and the re- suit now is that the farmer of the south Is one of the important assets of the bank.
 In Alabama.
 In Alabama this new relation between the bank and the farmer Is becoming very intimate. Small banks have been estab- lished in almost every town of any size in the state and many small hamlets have their banking institutions. Many of these are supported almost exclusively by the farmers in the communities In deed an astonishing amount of bank stock is held by farmers in Alabama. I have not the exact amount, but will give 1t in a subsequent article.
 The large city banks have recognized the importance of the agricultural busi- ness and are catering more and more to this line of customers. Here in Birming- ham the big banks are cooperating to a large extent with the country banks in handling the business of the farmer. The big Birmingham banks this sum mer and fall have made special arrange ments to help take care or the present cotton crop. They have a large respon- sibility in taking care of tho industrial business of the Birmingham district. but l. 1A~N {v