REPORT OF THE STATISTICIAN. 425 



mission or country merchants for supplies of some kind necessary in 

 the progress of crop-making. The agent says: 



Tlie cost of this indebtedness, or the tax upon agi-iculture resulting from it, is 

 found in such a multitude of ramifications that it is difficult to conceive of any re- 

 spect in wliich agriculture is not crippled by it. It prevents the farmer from con- 

 ducting his business upon the only absolutely safe and profitable basis — cash. Unable 

 to purchase first-class stock and improved labor-saving implements, he does his work 

 in the most costly manner. Compelled to purchase on time his supplies, &c. , he pays 

 not less than 50 per cent, more than the same goods vrould cost for cash. His ener- 

 gies are crippled; his independence destroyed. The cost of this indebtedness to the 

 agi-iculture of the State in the f oi-m of diminished production and improvement and 

 increased wear of farms and improvements is not less than $5,000,000 annually. 



Where money is borrowed by mortgaging farms, either from those engaged espe- 

 cially in this business or by advances from commission merchants, the rate of inter- 

 est ranges from 18 to 24 per cent, per annum. 



The heaviest tax i^aid for advances is to local merchants who sell corn, bacon, &c., 

 " on time," to be paid out of the cotton November 1. These advances usually com- 

 mence March 1, and continue through September, some running seven months and 

 some only one or two. The goods are usually sold " on time," at from 25 to 50 per 

 cent, above the cash price, and, taking the average time at which the accounts run, 

 the rate per annum would be upon all classes of goods purchased at the credit prices 

 about 75 per cent, upon the cash price at wliich the same goods could be bought at 

 the same place. 



The tenants and croppers get about 35 per cent, of the cotton made in the State, 

 and, as a inile, all of this is pledged for supplies before it is gathered. Certainly, 

 taking the average, 90 per cent, of this is pledged. Out of the balance the planta- 

 tion must be kept up and advances secured, in a majority of cases amounting on the 

 whole crop of the State, according to the best information at command, to about 70 

 per cent. With the exception of the rates of interest, and rates on time purchases, 

 these are, of course, merely estimates based upon the best information at my com- ' 

 mand. 



MISSISSIPPI. 



In Mississippi, according to the investigation made by the State 

 agent, the interest rate, when supplies are furnished to farmers, is from 

 1 to 1^ per cent, per month, which is generally secured by mortgage. 

 The bulk of the cotton crop generally goes to pay for supplies. About 

 one-third of the farmers are out of debt; one-third are recoverably in- 

 debted; and one-third hopelessly ruined. The rate of interest on gen- 

 eral indebtedness is usually 10 per cent. Those who are out of debt 

 are common farmers, white laborers, who cultivate their own lands, 

 and are in a prosperous condition. Those who buy mules, rent land, 

 and have to be supplied with food generally come out minus at the 

 end of the year, and they constitute a very large percentage of the 

 labor force of the country. Unless farmers can get 10 cents per pound 

 for cotton they can never keep out of debt. The ruling price paid to 

 farmers in 1886 was 7 to 71 cents per pound, which will not more than 

 pay for the supplies in making the crop. 



LOUISIANA. 



It is estimated that 75 per cent, of the farmers of Louisiana are in 

 debt to the extent of a fourth part of the value of the cotton crop. 



The annual rate of interest upon advances of money and provisions 

 is nominally 8 per cent. , and 24- per cent, for purchas'ing, 24- per cent. 

 for selling, and 2 per cent, "freights. Total, about 15 "per cent. 

 Country merchants charge more, obtaining from 15 to 20 per cent, 

 for advancing, besides a heavy profit on goods sold. The smaller 

 farmers, who mostly live in the upland parishes, are more free from 

 debt as a rule than the larger or more pretentious planters on our 

 alluvial soils. The one-crop system and the purchase of supplies has 



