Tensas gazette. [volume] (St. Joseph, La.) 1886-current, 1914-11-20
CREDIT IS MOST IMPORTANT
NOT More Than II or Is Per Cent
OF Farmers Able to Pay Their
Bills Promptly.

One OF the most important factors
IN all business operations Is that
Intangible thing called credit. In the
city as business is conducted nova.
days we who have to struggle along
with the white mans burden are
forced to meet our payrolls every week
while our commercial or running ac-
counts must be paid every 30 days or
our credit Is broken and we go into
the scrap heap with the thousands of
other derelicts who go down in the
great maelstrom Of commercial fail.
ure. says Denver Field and Farm. The
farmers, on the other hand, depend
more on credit and If they did not sue.
coed In getting 1t the big business en-
terprises Of this country would not
proceed very far without COMING to a
great cataclysm that would involve
the stability Of everybody engaged in
transportation. banking and mercan-
tile activities.
We have been looking into this
question Of rural credit and find that
not more than IL or Is Der cent of
farmers are able to pay their bills
promptly, and but very few of them
ever take advantage of discounts in
their purchases. The country mer-
chant Is the fellow who Is doing the
most of the packing of the other fell
lows load. Their book accounts run
anywhere from three months to two
years. but the average account is car.
ried about one year. The farmer con-
templates making payment Immediate
ly after his prospective crop Is mar.
keted. In case of crop failure the re-
taller Is generally inclined to carry
the account over until the next har-
vest season. A crop failure in a
country where the farmer depends ON
a single crop forces the /retailers to
carry the book accounts one whole
year beyond the first harvest
1t Is quite common for the dealer
to obtain a note from, the farmer.
which generally bears q 10 per cent
interest rate from date It is issued.
Often, however. the note does not be-
gin to bear interest until the farm
er has failed to make the payment
at the expected time-that Is immedi-
ately following the harvesting season.
an interest rate is added to
the credit price depending on the DIN.
ration Of the account. There IA M
discount rate for cash pur.
chases although per cent is some
times allowed This brings the credit
price OF $3.50 binder down to s152
Tor cash. AS a matter of fact. all
dealers quote two prices, the cash and
he credit price. the difference between
he two depending upon the reputa,
ion Of the buyer, the shrewdness of
he seller and the degree Of competi-
ion
Everybody Ii agreed that cash nav.
nents would be preferable II rates on |
bank notes were reduced. The farm.
er. however, Is often afraid To an.
proach the banker for loan and pre-
'ers to rock along with his merchant
although he may have to pay the LAT.
er a sitter profit and a HIGHER rate
If interest The farmer does not al |
ways see that the book credit 4.
luite as excessive as bank credit n
lot more so. and the worst fault of
he whole system ~ we view 1t from
far 10 the abuse Of the privilege by
gnorfng the obligation entirely and
orgetting all about II. II we had =
'etter monetary system with a com.
non piece Of money for hand to hand
circulation 1t would help some.