155 



inversion by the banker is personal credit; foreign ca- 

 pital has annexed mortgages to a great extent, and in 

 industrial enterprises and transport, factories, rail- 

 ways, ships wherever large sums are iv<|iiired, prac 

 tically the whole capital is foreign. 



The favoured recourse of the home capitalist is 

 cattle raising, and agricultural undertakings and land 

 operations. By adding elevators with warrants and ad- 

 vances on warrants, an ample and untouched field 

 would be opened to the home capitalist for investment, 

 at a moment, too, when there is the least movement for 

 home capital. 



As to the second objection that warrants will not 

 free the farmers from debt, it is true, but that by light- 

 ening the incubus it will powerfully contribute to free 

 him finally there is no denying. He may momentarily 

 increase his indebtedness, but he will obtain this money 

 at a lower rate than previously, and by returning the 

 money advanced at a high rate he will profit consider- 

 ably. The rate of interest is that which rules for a spe- 

 culative business, such as are the advances nn crop be- 

 fore maturity. Those ruling for business with absolute 

 security, as in the case of cereals actually harvested and 

 safely deposited, are. very different. 



Advances on warrants enjoy the same right as 

 mortgages ; they have first lien on the ^goocls they cover ; 

 as such they are classed as first class security. 



That advances on warrants will not procure the far- 

 mer funds for seeds, or sowing, or reaping, is perfectly- 

 true, but as experience shows, it is rarely that he needs 

 funds advanced him for such operations. 



Loans and advances on seed are not normal, and 

 do not enter into the ordinary calculations of rural 

 credit. They are distress measures. The majority of 

 these cases are the result of special agreements between 

 landlord and tenant, accorded for the mutual benefit 

 of both parties . 



Loans for working expenses are r't common 

 either: if accorded they are commonly on the basis of 

 partnership. There is neither ground for interfering 

 with this, nor is there any method of according the far- 

 mer money for working expenses which is not equiva- 

 lent to capitalising him altogether. In the ''almacene- 

 ro" he has apparently an effective partner or party 

 disposed for his own interest to advance him a reason- 

 able credit to aid him in working his farm. 



Harvesting loans, as I have pointed out, are un- 

 avoidable under the present system of working the 



