Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1889-02-01
IMPORrANT TO KANsANs.
To Every Kansan Who Regards
the Future Of His State Wor-
thy Of Protection
From the saIina Gazette

thy Of Protection
From the salina Gazette
The legislature is now proposing to
pass a redemption, and also a usury
law. Before doing so it would be
well to consider the effect Of the pres
ent laws, also the immediate and fu-
ture effects Of those proposed.
Sixteen years ago, little money was
loaned on real estate, and that at u
per cent, ana upward, and mostly on
but one years time. About that time
the negotiation Of loans, as a business,
was commenced, and not long after /
believe, the then existing redemption
law, similar to the AIohler law in eff
feet, was repealed. Rates Of interest
at first were 10 and u per cent, with
a commission of 10 per cent, and up
ward, deducted from the loan. Com
petition of lOaners amongst them
selves rapidly reduced those rates IN
til now farmer in eastern or central
Kansas can borrow at 8 per cent. in
terest without commission, or if his
security is choice, at Z or = per cent.
without commission, or possibly at 6
per cent, and a commission of 3 per
cent to 5 per cent.
These rates which the farmer pays
are twO-thirds or less of the legal
rate Of u per cent, and have been Sc
cured by the competition of.the loan
ers who were first induced to send
their money here by being able to OBJ
tain so high rates as ten per cent. and
u per cent. under the law. Millions
have been loaned in Kansas during
the past dozen years, which have
helped city men to erect business
blocks, opera houses, hotels and build
street railways, and the farmer to put
more,land under pillow, build better
houses, buy more stock and to live
IN greater comfort These millions
have added immensely to the wealth.
prosperity and productiveness of the
state. A fact which cannot be denied
is, and must continue borrower fc81
some years to come. Millions Of this
borrowed money remains unpaid and
renewals and an increased supply are
necessary, and it certainly is not for
the interest of this state to make any
laws which will either prevent renew
ais Of present loans, turn fresh CAPT
tai to other states increase foreclos-
ures or depreclate property.
Before considering the effect of
proposed legislation it is well to bear
in mind that during the past ten
years the supply of eastern funds
Ioanable on real estate has been con
centrated and poured into Kansas,
other states getting but comparative
~ little, and that Colorado, Wyom-
ing, Washington territory, and other
states and territories have been; dur
ing these past years, watching with
envy, this favored state. and are now
seeking to turn this stream of money
to themselves and with considerable
success, for many of them offer the
lender desirable security and favor
able rates and laws.
Let US now look at the effect of the
proposed Legislation. Among the
evils you will find:
First, It's passage will at once al
most entirely stop and turn to other
states the large volumn Of capital
heretofore seeking investment here at
low rates.
Second, It will cause the Withdraw
al, as fast as it can be collected, of
millions now invested here.
Third, 1t viii reduce the amount
that can beloaned on a given security.
Fourth, 1t viii increase forecIos-
ures and deprive thousands Of farm
ers Of their homes.
Fifth, It viii decrease the sale of
property and depreaiate its value.
First as to the reduction of the
supply OF money. 1t cannot be ex-
pected that an investor Will send
money to state where the law re-
quires him to wait three or four years
after default before he can either col
! lect his money or get possession Of the
! security, which almost to a certainty
/ has run down and greatly depreciat-
ed in value; but he viii send It to
other states where more favorable
laws as to rates and collections are III
! force. The investor VIII wish n