Arizona republican., 1913-04-19
When the South Put Itself in Pawn

(Clark Howell in the Century Magazine)
 It was in 1865 that the south began to put itself in pawn. Only within the last decades has it been able redeem the pledge. In 1860 the south arrested in full progress toward an that might have touched records for territories of similar size. Not only did it possess the wonderful asset of cotton, but, has been shown, it was giving indications of new and wonderful industrial expansion
 Measured statistics the south then possessed property assessed at s5,2oO,OoO,ooO. In 1870, five years after the wars close it's assessed values were reduced to s3O64OO00O0 These astounding enable only partially visualize the actual loss. For to the loss of money must be added the tremendous loss of population from war, it's pestilence. and the tremendous emigration that followed upon Appomattox, hundreds of thousands of the ablest in the section believing it was best to leave a land predestined' to ruin, and to take up life in some more hopeful locality.
 There very little gold left in the south after the war, some of that little being owned by blockade runners, and by who prudent than patriotic, and who had hoarded, There was also a modcum of unconfiscated cotton remaining and it's sale helped a trife It should be said here that, in the first desperate effort of getting the south on it's feet hundreds of those who had been sufficiently fortunate to get their hands currency extended helping hand to friends not so happily placed These instances exceptional, however The section, community, bankrupt.
 It cotton that furnished the primary step toward rehabilitation though it carried also curse and penalty. The crop of 1S65-1S66 2,269OO0 bales It brought about 500000000, since prices ranged around forty three cents a pound Until the panic of 1S73-74, prices were uniformly high The situation saved for the moment because the basis the reorganization of banking. Cotton did it, but let at what price, because that is important in connection with the final rehabilitation.
 Here there a few native bankers merchants who maintained such friendly ations with their northern connections that it difficult to obtain credit with which begin the work of restoration But even in such cases the south considered poor risk, financially speaking, that exorbtant interest charged for credit, and this tax was, Of course visited in turn upon the farmer Shortly after the war; and during the entire reconstruction period, of money lenders infested the south extending credit, wholly cotton. It must be many the lending agencies of legitimate southern origin. and that their dealings with the southern farmer liberal could be expected under such revolutionary conditions. Almost the invariable rule to mortgage the anticipated crop of cotton for money, implements and stock wherewith to start the farm going. And again, rule, the mortgage secured often by lien on the land itsef sometimes merely the crop The procedure varied in different states, and in different counties in the various states.
 will be that the south, from the moment it began the work of restoration, doing busi credit. It pledged it's main collateral. cotton in the markets of the world-but the rate it paid frequently usurious. This borrowing process extended from the banker through the wholesaler to the retailer and the smallest country merchant, down to the farmer Stocks of goods were repenshed sky high" credit, and these stocks again sold to large small on a staggering credit. Cotton (save where tobacco rice and sugar helped) bore the main burden