Who is cleverer?

A merchant and a farmer were walking along the road together. The merchant thought the farmer was a fool. He planned to play a trick on him.
"Let's play a game", he said. "I will tell you a story. If you do not believe my story, you must give me ten pieces of silver. Then you tell me a story. If I do not believe it, I will give you ten pieces of silver".
"Very well", the farmer said. "But it is rather a silly game."
"Do you remember that cow you sold me?" the merchant began.
"Yes", said the farmer. "A very fine animal".
"It died before I got home", the merchant said.
"But ... but that's n ...".
"Do you believe me?" the merchant asked.
The farmer remembered the ten pieces of silver. "Oh, yes" he said, "I believe you".
"Good. When I bought the cow you said: "If the cow dies, I will give you ten pieces of silver." I remember it clearly."
"What!" cried the farmer.
"Don't you believe me?" the merchant asked.
"Yes, yes, I believe you", the farmer said sadly.
"Good. You owe me ten pieces of silver".
"Very clever", the farmer said. "You have tricked me". He took the ten pieces of silver out of his pocket and gave them to the merchant. "And now," he said, "You must listen to my story". He thought carefully for a few minutes and then began.

"I knew your father when he was a young man", the farmer said,
This was impossible, but the merchant said: "Yes, I know"
"He was very poor then", the farmer went on. "He was very poor and he often did not have enough to eat."
This was not true but the merchant said: "I know. He had a hard life".
"Yes", the farmer went on. "He often came to my house. We were very close friends".
"I am sure you were" the merchant said.
"I lent him money and other things".
"Oh?" said the merchant. He did not like this. "Are you sure?"
"Don't you believe me?" the farmer asked.
"Oh, yes, I believe you".
"Good. The last time he came to my house," the farmer said "he borrowed ten sacks of rice."
The merchant was now very angry. "Let's stop this game," he said.
"No. Your father told me that you would repay the loan. He said I could trust you. You do believe me, don't you?"
For several minutes the merchant said nothing. Then he said, "Very well, what do you want?"
"You may decide. Ten pieces of silver or ten sacks of rice"
Slowly the merchant put his hand in his pocket and took out the ten pieces of silver. He gave them to the farmer.