ECONOMY AND CREDIT. 175 



in cash, when the remainder can mostly be raised on a 

 mortgage. The banks very rarely give the farmer 

 credit, excepting in the form of discounting bills bear- 

 ing two approved names. Credit may be obtained, too, 

 on a preferent bond ; but, as this is fatal to further 

 credit, it is only resorted to by a man on the verge of 

 bankruptcy, or where a young man is being started in 

 farming by a relative, or by other people's money, and the 

 bond is given to provide for the lender getting paid in 

 preference to others. In this latter way it is a perfectly 

 reasonable means of obtaining credit. The only other 

 means of credit available for the farmer is for goods sup- 

 plied by the merchant with whom he deals, and which are 

 usually supplied on a six months' credit, and this will 

 even be allowed to run to twelve months or more, bear- 

 ing interest at six or eight per cent, per annum ; but 

 when over six months is given, the amount is generally 

 covered by a promissory note payable on demand or at 

 a fixed date. 



This latter is extensively used, and Juvenis when he 

 first starts may be compelled to use it ; but the sooner 

 he can do without it, and adopt cash or monthly pay- 

 ments, the better. He will then get five per cent, dis- 

 count on his purchases ; whereas if he ran a half-yearly 

 account, the goods being purchased at all times in the 

 half-year, he would only average a three months' credit 



