There was much talk on the boat about the Calhoun Land Company, an
enterprise which is expected to work wholesome results.
Colonel Calhoun,
a grandson of the statesman, went to Boston and formed a syndicate which
purchased a large tract of land on the river, in Chicot County,
Arkansas - some ten thousand acres - for cotton-growing. The purpose is to
work on a cash basis: buy at first hands, and handle their own product;
supply their negro laborers with provisions and necessaries at a
trifling profit, say 8 or 10 per cent.; furnish them comfortable
quarters, etc., and encourage them to save money and remain on the
place. If this proves a financial success, as seems quite certain, they
propose to establish a banking-house in Greenville, and lend money at an
unburdensome rate of interest - 6 per cent. is spoken of.
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.
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