244 THE HIGH COST OF LIVING 



the picking season till the year is up and it is again 

 February or March and he must borrow anew to 

 plant his crop. Had he put forth his best efforts 

 he could have paid the whole note in full during 

 the picking season, but the banker flattered him 

 upon his good credit and encouraged him not to 

 pay up in full. By March, then, he has paid $137.50 

 in interest on the original loan, but finds that he 

 still owes $100 on the sum first borrowed. 



The new note now must be $300 and interest. It 

 is made out for $347.50, due July 1, with promises 

 of extensions. When he renews in July he signs for 

 $397.50, payable October 1. Again he makes pay- 

 ments on the principal in the fall and pays $10 a 

 month for each renewal on the remainder. But his 

 family needs clothes and other things and he has 

 to keep most of the money he gets for his crop. 

 When the cotton is all gathered in the middle of 

 the winter he finds he owes $200. Of this sum 

 $147.50 is interest, of which $50 has been paid in 

 five monthly "extensions" besides the $97.50 on 

 the face of the note. 



In March this $200 must be added to the $200 

 he needs to make his crop. He now no longer finds 

 the banker gracious. In fact, he is threatened for 

 not having paid more on his old notes, and fore- 

 closure is broadly hinted at. The farmer is now 

 thoroughly frightened and glad if the banker will 

 let him have further credit on almost any terms. 



