Wichita eagle., 1888-12-27
INTEREST AND REDEMPTION LAWS
SPIvEY, KAN, Dec. 81, 1888.

SPIvEY, KAN, Dec. 81, 1888.
To the Editor of the Daily Eagle
In your today's issue l see an article
on the interest question that l think
| should be answered. as possibly without
any intention on your part it may mis-
lead a great many.
You seem to think if the interest laws
are tempered with money win take
wings and fly away, etc.
"a man would be financial fool to
loan money! in Kansas at IS per cent when
he could get per cent in Missouri or
Arkansas
Now this is begging the question. The
legal rate now, if a man agrees TO pay
1t, Is IL per cent, while in Missouri
or Arkansas I believe, and In Hill
nois l know it Is per cent, and
as far as I know Kansas is the
only state in which this the legal rate IS
IL per cent. Now unless we confess
that loans are more unsafe here than IN
Missouri or Arkansas, would it work any
hardship to cut the rate that may be
changed from II to per cent. You
make the point that if the rate is reduc-
ed poor man can't borrow money.
Now, as a general thing, poor man
does not borrow much short time money
directly, but he must often buy piow.
cultivator, reaper, wagon, horse or
something of that sort, or per-
haps he must settle store bill with a
note, and right here the rate that may
be legally charged counts.
And dealers in all kinds of agricultur-
al implements and merchants will choose
and for a farmer just as hard to sell
their goods on per cent. notes as II per
cent notes. Right here thousands OF
dollars can be saved to the producer.
and who thinks for a moment that
Mccormick or John Deere would with
draw their agencies from this state or
that our merchants would go to Missouri
or Arkansas?
We went through the same experience
in Illinois in 1S73-when the communists
of Wall street thought that as we were
to resume specie payment shortly it
would be good thing to do SO in gold
alone. And the same hue and cry was
raised that if we reduced the rate of in
terest we would drive out capital and
manufactures. But the rate was re-
duced all the same from 10 to per cent.
and nobody said after it was done that
any one was injured. In fact, more
money came in, as passing the law
showed the world that Illinois had conf
dence in their securities.
Now here would be the greatest good,
but it would indirectly effect a good
many other things. There are a good
many men in this country who loan
money at annual interest, and of course
take the legal rate, whatever it is. Here
would be saving to the producers, and
these are the ones who should have every
protection thrown around them possible,
as this is what builds up state.
And now as it is akin | want to touch
another point. In Kansas, and l believe
it is about the only state so short-sighted,
if citizen mortgages his farm,
to stock and improve it, and has a year
of sickness, or has failure of crops or
both together, he can be sold out and go
forth into the world-to Missouri or Ar
kansas generally to farm there and curse
Kansas-and with a milestone tied
around his neck in the shape of a judg-
ment to keep him down as long as he
lives. To remedy this Kansas should
have a redemption law of at least two
years-Nlissouri has a three year one
and right here we hear the same old cry
that it will drive capital to Missouri and
Arkansas. 1t will do no such thing be-
cause their laws are more liberal to their
own citizens than we ask for But if we
must make changed say let the capital
0 rather than our brain and muscle; our
people who have endured all things to
make homes, as without people to use
capital it is worthless.
Now Mr.. EAGLE, l am no crank and
do not think the government should
make money to loan at 2 per cent. but
do think that the Legislature of Kansas
should conservatively look over the stu
alton and give its own citizens the same
consideration other states do. | should
like to see this question thoroughly dis
cussed. Yours,
E. r, SMAIIY.