The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1879-08-15
Low Rate Of Interest.

known to civilized nations. Those laws
have been of the most stringent charac.
ter. Forfeiture, fines and Imprisonment
are among the penalties that have been
enforced, and enforced with the utmost
rigor when it was possible to do 80, for
the purpose Of compelling those who had
money to loan to accept q reasonable sum
as hire for the use of capital. All laws
under despotisms. or popular govern
ments have, alike, been equally power
less to cure the evil or effect the slightest
remedy. Every money-loaner, every
banking institution has always violated
these laws with the utmost immunity,
the latter seeming entirely Indifferent in
regard to the clause in their charters
which works forfeiture. !.
There is no remedy for the oppression
of usury or high interest but the guar.
antee of absolute safety to the lender.
and the independence to demand the use
of money at reasonable rates by the
borrower.
The United States government, when
sorely in need of funds to prosecute the
rebellion. was compelled to pay enormous
rates of interest. Many of the bonds Of
the government we're sold as low, we
believe, as As cents for dollar. or ct q
discount of S. per cent. estimated by
the money of the country and its pur-
chasing value when the war broke out.
This was not only positive interest of
over IL per cent. on the amount of mon.
ey actually received, but the government
entered into an obligation to refund, or
pay rather, IS cents on every dollar more
than it received.
The pernicious system is in active
operation to-day, and every day, through
out the whole country, and especially 50
in the west. The idle dollar, in this way,
is eating up millions of productive in
dustry every year, and the only remedy
by which there is prospect of mitigat-
ing the evil is by making the security
for future payment as near absolutely
safe az in the nature of human events it
is possible to do. How shall that be &C.
complished ? Is the question awaiting
solution. In answering we will consider
it in its bearing upon the farm. An asso-
citation of farmers could compass the
object, or q strong, we'll conducted
grange. If a member of the association
found it necessary to use borrowed mon
ey in HIS business, his case would be laid
before the association, which would take
it under advisement, and if the decision
of the committee was favorable, the
financial officer of the association would
negotiate the loan, and the property of
he whole association would stand as &C.
curity for the debt. which would leave
no doubt or uneasiness on the mind of
the lender, and in proportion as safety
and assured payment of principal and
interest be lowered. We have no doubt
if such system was permanently and
generally established. and when it came
to be we'll understood and had gained
the confidence of capitalists, that mil
| lions could be borrowed as low as four
per cent. interest. The association would
alone be known to the lender, and the
property of the ipdigidual who received
the use of the loan would be placed in
the control OF the association, to the ex.
tent that it Is now placed subject to the
control of the strange capitalist, who acts
through agents and attorneys. If the
borrower should be overtaken by sickness
or other misfortune, or prove incompe,
tent to manage his estate to the best
advantage, the association would take it
in charge and see that it was properly
done, at a minimum expense. By this
means the unfortunate family would moi
be ousted from house and home, but be
protected and assisted by fraternal aid
and sympathy in their homestead. The
operation of such system would, by it,
mutual benefits, draw the members more
closely together in the bonds of interest
and every year would strengthen the
confidence created by mutual protection
and aid. In place of battling against the
world single-handed, the farmer would
have the active support of strong com
bination exerting powerful influence in
the community.
> While necessary debts under such q
business system could be aoated at a low
rate of interest, unnecessary debts, which
are eventually ruinous to the borrower
would be prevented. Every year thous
} ands of farmers are overwhelmed by in
discreet and reckless borrowing.-Kansa'
Farmer.
The small boy is noted for asking
questions that are posers. There is ar
old story concerning an urchin who
being told by his Sunday School teacher
that God could do anything, expressed
serious doubts upon the subject, and
, wanted to know if "He could make two
, hills without valley I" The New Yorl
Tribune has brought to the front another
of these preturnatnrally inquisitivt
small boys, of whom it narrates the fol
I,-:. GA v,olI Enou,o 1ora1 proo Nho