Show MERCHANT 1 CR cn CREDIT DIT IT TO FARM I OFTEN 1 UNSATISFACTORY I I II Farmers in m ma ly ty parts of the Uni Uni- United United ted States are u able to obtain from s banks all the sl term ort credit they need need They are arc often obliged in con con- consequence consequence con consequence sequence acc ace pt additional credit from merchants ind nd dealers But mer merchant merchant merchant chant credit acc ace to the United St States tes nt of of Agricultural l is often costly and unsatisfactory Both farmers nd d merchants would be benefited if farmers could obtain most if not all of their credit from specialized cret cree it institutions Merchant l it is most most extensIvely used in the So Soi tho thoIn th In In some regions a large percent e gc e of th the tenant farm farmers farmers farmers ers and often considerable number of owner farm rs 15 arc more or less dependent on i it There are areas in which credit is used more extensively ex tha r 1 bank credit I Farmers wh use merchant credit often do not k kw kV iw w V what hat it costs them because ordinal ordina ily ly the cost is not based bas ed cd on fixed t i ir terest rate but it coy coy- covered cov covered ered in a hig higl er sr price paid plies purchase on credit harmers rs in certain area in ii North forth Carolina in 19 of er e a o cent fo merchant nt li T In n nG i G Georgia a c corresponding average rate was 43 per er el cent cent cent- t While some credit is ad- ad advanced ad advanced on ope i accounts a great part pf of it is se by chattel mort mort- mortgages mortgages gages gages gag or crop ClOp 1 ens in parts of Tennessee Ten Ten- Tennessee Tennessee 31 per ent of the merchant credit advance tenant farmers in 1923 1923 was cd ed by crop liens In Georgia ia in OT the ante iame year 60 per cent of the mercha it t credit advanced to tenant farmers was secured in a similar sim- sim similar sim similar ilar manner manner- Under such conditions borrowers are ort orten n place d J in a position i in n which they ca car not freely freel market their crops Al A hough merchant cred cred- credit credit it has not doub doubt often often met mel imperative agricultural nee ds sas sa's says the depart depart- department department department ment it i is a poor substitute for adequate ade- ade adequate ade adequate quate ban bank cre it In parts of the South the credit credit ant system has retarded the d development of oper co cooperative cooperative cooperative marketing Similar objections objections are raised by bythe bythe bythe the department ito to certain features features of f the system wh eby credit is extend extend- extended extended extended ed by dealers i in agricultural produce Livestock eons Com commission firms that ex- ex extend extend ex extend tend credit to c ca the feeders often not only nl purchase t tic be e cattle for the farm farmers farmers ers rs but require that the cattle hall I hall hallbe be sold through them Like conditio s exist in the truck crop and fru growing t-growing rowing industry Growers in specialized crop and fruit fruit- producing fruit producing center are often unable to obtain credit locally They Ire are obliged in commission dealers and bro brokers ers in distant cities Often they can hot n obtain such help without relinquishing control over the marketing on their crops |