Q. About that store system; how extensive is it, and how great an evil does it constitute? --A. It constitutes a very considerable evil, but you cannot blame the storekeeper for it, for this reason, or he can only be blamed partially: Capital in that country is very limited. When you consider the fact that New Orleans, which handles the cotton crop of that country, has a smaller banking capital than any one of your little towns in Massachusetts or New Hampshire, it shows at once that there is not enough capital to be advanced to the country people at reasonable enough rates of interest for those people to conduct a strictly legitimate business. I have known capital to cost in New Orleans, counting the commissions, 15 or 20 per cent, for money loaned. The storekeeper who borrows money to conduct his business with has to buy his goods from some merchant at some point who must make his profit. He cannot go directly to the producer, because he has got to have somebody to help him out if his capital falls short. Therefore, before the goods get down to him, they cost him perhaps 30, 40, or 50 percent more than the first price. Therefore he has to tack on an enormous profit to bring himself out whole and pay his expenses in order to meet his obligations with the factor in New Orleans. There is, however, among a certain class, as there would be in all sections of the country, as exists right here in New York, or anywhere else, a set of people who will always prey upon ignorance. The best protection that can be afforded to the laborer of that country is education; fit him for his condition of life, that he may protect himself. Q. Do you mean to be understood that these traders do business upon borrowed capital? --A. Almost entirely. Q. Their capital is hired in New Orleans? --A. Or any points they may go for it; I merely mention New Orleans as one point. A number of our people borrow money in Memphis, and some borrow money in Vicksburg. Q. Do you know whether those people to any extent borrow capital of Northern capitalists in New York and other portions of the North --A. That class of people do not. In the last few years--I might say almost within the last two years--Northern capital has begun to seek investment in our section of the country, but only upon mortgages on real estate. The class of storekeepers I allude to generally have no real estate at all; they only have their stores.