The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-05-10
Warehouse Loans
On I obacco Great
Aid To F Farmers

More money has been paid out TO
the Southern farmer this year than
ever before. and the tobacco grower
has received an especially liberal
share, says r. r. Slate, OF South
Boston. writing to the Progressive
Farmer. Last years crop was a big
one Prices have been unusually good.
He should have money enough in the
hank to supply his needs while max
ing another crop. But is THIS the
case? After paying last years debts
will there be anything left? II the
man has been economical there
should still be a surplus,
The farmer. as a rule, makes his
money last until the warehouseman
makes advances in the early sum-
mer. He stays just one year behind
in his finances. About so per cent
of our farm expenses are paid with
borrowed money 1t is an easy mat
ter to borrow money nom = wnre
houseman, therefore is IT not reason
able 10 conclude that it is likewise
easy to spend this money. 70 increase
the expenses of running our farmsr
Many and unjust have been the ac-
cusations made against the wares
houseman for thus lending money.
when the truth IS known, however,
We can easily see how foolish = Ia
to suppose that he advances money
Willingly, The farmer himself Is the
person to accuse. The warehousena
wants 70 sell as much tobacco as pos
sible; the farmer has no capital. Then
IN order to make it possible for ~1e
farmer TO produce his crop. ne ad-
Yances the money.
Not one penny of profit does the
warehouseman get out of lending
money. He only stands MS security
for the payment of the note. The
bank lends the money and gets the
interest The warehouseman takes
the risk without getting profit except
in selling the crop. Is It a business
proposition for him to do this unless
he is forced TO tt?
The warehouseman could sell to-
bacco on much smaller commission II
he did not have to take this risk
Some allowances must he made for
losses and the community is forced TO
pay the bad debts. Furthermore this
method Of borrowing money tends to
| make the farmer waste his money,
accumulate heavy debts, and prevents
freedom in marketing II makes him
the slave of the wareheusenan ana
the banker
A deserving man Will always find
a welcome and credit at his hank.
Here business is done on a Sair ba-
sis. The rules are strict. The banker
knows or finds out each mans abilit-
: to pay and limits his loans in a.
cordance with the ssIraa,~'Fife= same 0r
lower rate Of interest applies. One
of the greatest advantages however.
arises from the fact that the farmer
! is free to sell his crop when he choose
/ The life NJ high prices is compett-
ton, not only among BUYERS but
among the warehousemen. The pres
ent system of financing tends to lessen
competition among the men whose
duty II is to push the sale Of the
farmers tobacco.
Cooperative selling will never he
practical until the farmer becomes
free, The crop that is hound by a
written contract can never he sold
according to the cooperative plan
Debts kill cooperation because they
force the farmer TO sell and tn sell
at specified warehouse.
AS stated above. the warehouseman
does not willingly lend money The
practice adds both labor and expense
to his business. Money 'ending is
the hardest prosition he strikes He
would gladly put an end TO the prac-
tAtN were II pHSSiDtes
The South is beginning TO take
pride in the thrift OF It's farmers. bit
this thrift cannot continue unless the
farmer frees himself of debts and
does business with his own capital
The appeal for the breaking up #
, warehouse loans must be made d.
rectly TO the farrner--to the better
class Of farmers When this class
takes stand against that system. the
warehouseman will not hesitate to
put an end To It.
II every warehouse In the country
were closed. the farmer would con-
tinue to make his crops. The FIRST
effects Of the change might bring
hardships. hnt he would rise TO the
occasion and gradually accumulate
his own capital
Here Is the only hope for real CO.
operation among the tobacco grow
ers: Get out of debt and place your
self IN position TO demand a price for
your product. The farmer is now one
year behind In his finances. He has
only to save his money for q few
wears in order TO get one year ahead.
This is what we are appealing TO him
70 do; to put an end to warehouse
loans. to buy no more goods on time
at time prices, and to place. himself
in position TO market his crop when
he sees fit and whore prices are the
highest