424 REPORT OF THE COMMISSIONER OF AGRICULTURE. 



ing him to pay a heavy interest, perhaps without realizing the fact 

 that he is paying interest at all. 



It is the opinion of the agent that the real interest, part of which 

 is deducted in advance for cash and suj^plies furnished, is not less 

 than 25 per cent., and that one-fourth of the cotton crop is sacrificed 

 to meet the interest arising from this indebtedness. 



SOUTH CAROLINA. 



A similar investigation in South Carolina showed that the recorded 

 liens for supplies, fertilizers, and money advanced amounted in 1882 

 to $9,218,312, and in 1885 to $0,595,000. Other indebtedness is assumed 

 to amount to 30 per cent. more. The entire advances of 1882 are esti- 

 mated at $12,000,000, and those of 1885 at 88,500,000. It is gratifying 

 to know that planters were better supplied with home-grown jjrod- 

 ncts last year than ever before. It is thought that there was a mate- 

 rial reduction in the advances in 1886. The most exorbitant prices 

 are charged for goods advanced — 20 to 40 per cent. , and even higher 

 charges. The planters bind themselves to consign their crops for 

 sale to the factors making advances. The agent estimates that one- 

 fourth of the cotton crop is pledged in advance. 



GEORGIA. 



The Georgia investigator reports bacon, lard, flour, corn, hay, and 

 fertilizers as the principal supplies bought on credit. Corn worth 76 

 cents cash is charged 99 cents, payable November 1; bacon worth 8 

 cents is charged 10.5 cents; and 50 per cent is given as a reasonable 

 average of the i^rofits charged. Past-due indebtedness is carried over 

 at varying rates, but at least 10 per cent, per annum, though only 7 

 or 8, if so stated in writing, is all that can legally be collected. The 

 average rate of loans by banks to farmers is estima,ted at 15 per cent., 

 ranging from 10 to 25 per cent. The amount of indebtedness is 

 thought to be less than for any previous time in the last five years. 



FLORIDA. . 



In Florida the average rate of interest paid by farmers is estimated 

 at 16 per cent., varying from 10 to 24 per cent. The absence of re- 

 strictions upon usury "has brought into the State a class of unscru- 

 pulous money-lenders, who have pressed their loans upon the impru- 

 dent, and have secured themselves by bonds and mortgages upon real 

 estate far below the true valuations, and in many cases these will 

 be forfeited." Expectation of extraordinary gains has thus induced 

 many to engage in mercantile pursuits on borrowed capital, until the 

 business is overdone. Indebtedness is large in Florida, but no defi- 

 nite estimate is made. It is gratifying to know that the practice of 

 borrowing money on crops is declining as variety in production is 

 secured, and cotton becomes less prominent. 



ALABAMA. 



It is estimated in the Alabama investigation that 45 per cent, of 

 the farmers of the State, white and colored, were in debt at the begin- 

 ning of the year, without available means of liquidatioji; and that 

 not less than 65 per cent, find it necessary to seek assistance from com- 



