Life on the Mississippi • Paragraph 1238
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The trouble heretofore has been--I am quoting remarks of planters and steamboatmen--that the planters, although owning the land, were without cash capital; had to hypothecate both land and crop to carry on the business. Consequently, the commission dealer who furnishes the money takes some risk and demands big interest--usually 10 per cent., and 2{half} per cent. for negotiating the loan. The planter has also to buy his supplies through the same dealer, paying commissions and profits. Then when he ships his crop, the dealer adds his commissions, insurance, etc. So, taking it by and large, and first and last, the dealer's share of that crop is about 25 per cent.'{footnote ['But what can the State do where the people are under subjection to rates of interest ranging from 18 to 30 per cent., and are also under the necessity of purchasing their crops in advance even of planting, at these rates, for the privilege of purchasing all their supplies at 100 per cent. profit?'--_Edward Atkinson_.]}