CHAPTER XVI 



CREDIT 



The most pressing and continuous problem 

 confronting the farmer is that of credit. The 

 essence of his position is that he must exist on 

 credit three-fourths of the year, and except in 

 a few cases it is impossible that he should avoid 

 it. Take an average farmer whose assets are 

 greater than his liabilities. Practically all his 

 year's expenditure is made in about two months 

 of the spring, when his land is " sown up," and 

 he must live through the summer until his 

 harvest is realized before he can secure any money; 

 he must pay his labour and rent, and unless his 

 capital is unusually great, he cannot pay the 

 seed, manure or cake merchant until the autumn. 

 Banks in England will not advance much money 

 for farming operations, and consequently the 

 agricultural merchant allows each customer as 

 much credit as he thinks safe, the customer paying 

 for this accommodation indirectly through his 

 account. Thus the merchant becomes banker, 

 and his business is largely a matter of knowing 



129 K. 



