127 



.and can declare his debtor bankrupt and sei/e bis be- 

 longings under the usual form of legal procecdiirj 



That this arrangement is altogether equitable is 

 fdoubtfuL 



174 PER CENT. PER ANNTAI. 



A strong light is thrown on this by an interesting 

 arbitration ease which was submitted to the Bolsa for 

 decision, some time back. 



A grower on a large scale, borrowed $50,000 mjn. 

 from one of the leading 1 grain-broking houses, under- 

 taking to pay 9 per cent, interest for the two months 

 and also to sell them 10,000 tons of cereals at 10 cents 

 per 100 kilos under the current price, on the day of de- 

 iivery. That is to say, a $10,000 mjn. bonus on $50,000, 

 plus interest for the two months, which is already at 

 the modest rate of 60 per cent, per annum; the total 

 tost of the advance working out at $174 per cent, per 

 annum. The unfortunate grower was unable to deliver 

 more than 2000 tons, and the claim was for the differ- 

 enee according to the contract. 



I am glad to say that the Bolsa decided in, favour 

 of the grower, as far as it possibly could within the 

 terms of the contract, especially as it was disclosed that 

 the settling price of the 2000 tons, with which the ori- 

 ginal was cancelled, had been fixed at considerably be- 

 low the actual market value. 



The facts are beyond question, and actually the 

 interest amounted to nearer 200 per cent, per annum 

 than the figure given above. 



It is claimed, on the side of the exporters, that they 

 'have no wish to do this sort of business, but it is forc- 

 ed on them, and they are obliged to demand a fabulous 

 interest to compensate for the risk they undoubtedly 

 run of making losses. On the other hand the grower is 

 obliged to obtain funds to harvest his crop, and it is 

 presumed 'that he cannot better the terms elsewhere, 

 otherwise he naturally would do so. 



Even recognising that each side has some reason in 

 its favour such cases are to be deplored, and it is a dis- 

 -grace to have such cases brought to light. Their perpe- 

 tuation is a standing menace to a sound economical con- 

 dition of agricultural pursuits. 



If this is any criterion as to the way all our far- 

 -mers are exploited over advances for harvesting, it is 

 fiigh time the law stepped in to fix some limitation of 

 aaterest. In other lands money lending is subject to 



