This system is still characteristic of Southern agriculture.
Few of the landless whites and practically none of the negroes had sufficient money reserve to maintain themselves for a year and hence no capital to apply to the land on which they were tenants.

Yet the land was there ready to produce, the labor was there, more or less willing to work if it could but live while the crop was growing.

The country merchant had already assumed the office of banker to the tenant farmer, and this position he still holds in spite of all efforts to dislodge him.

His customers include not only tenants but some landowners, white or black.
They buy from him, during the months before the crop is gathered, the food, clothing, and other supplies necessary for existence, and as many simple luxuries as he will permit.

When the crops are gathered, he buys them, or at least the share of them belonging to the tenant, subtracts the store accounts, and turns over the surplus, if any, to the farmers.
Unlike other bankers, the merchant charges no interest upon the capital he advances, but he is paid nevertheless.