Wichita eagle. [volume] (Wichita, Kan.) 1886-1890, 1889-01-27
LET Us KEEP OUR CREDIT GOOD.

Editor Kansas Farmer@Some time ago
l saw In your paper-and have seen the
like In others some financial theories
advanced in the name of, and for the
benefit of the poor farmer, that to my
mind amt sound, and have the musty
smell of the politicians shop, rather than
the fresh perfume of the country. / have
always noticed that when the politicians
want to get a fat place they begin by
patting us on the back, telling us what
poor condition we are in, and how they
are going to run for the legislature and
make laws to jump on the capitalists and
give us free rides and free money"
Now am no ''spring chicken" For
more than quarter OF century have
studied economic questions. When
they wanted to initiate the currency, |
wanted them to initiate my capital IL
they knew how. l could get currency
enough if only had capital enough; and
80 til about this reducing rates OF In
terest. Plenty of loose or loanable CAPT.
tal,-not fixed capital-and safe security
is the only thing that ever did or will
make money Joan cheap, and putting
too much of what capital we have got
into fixed capital, or passing laws that
hurt our credit. will make interest high.
In new state like this, we all come
here about as poor as Jobs turkey, and
when we get anything we put it into
fixed capital to make us homes. and
hence ourselves as state. We have SO
little money to loan, that if it were not
for money from other states, money
would be worth per cent month all
around. The price Of money, SO to
speak, is regulated like corn or any
other commodity: when scarce, it. IS
high; when plenty it is low; when credit
is low it is scarce; and l have watched
the papers, and 1 never yet learned
where any law of any legislature, ever
fixed its price or value for use. If any
Of you younger men have, would like
to know when and where. In some
states in the east, they have got heavy
penalties on over per cent or Z per
cent for money; yet if read right some
times money of some kinds is
awful cheap and loans at 2 per
cent per year, and at othes times, when
1t Is Ill great demand, it loans higher
than here, say per cent month. Now
we have got a law that let's us off from
paying over 10 per cent. yet lots of fool
farmers are paying "a per cent.
What | want to say is, don't want
my farmer friends to be deceived by
their wouid-be politician friends. Their
theory seems to be, if you make it
difficult and expensive to collect debt
the farmer will be helped, while l tell
him he will suffer for it, if in debt now,
or if he wants TO borrow hereafter
Take those eastern money loaners be-
fore their day; "a per cent was our low
rate, 4S per cent was our high rate; they
induced capital out here from
money centers and now our low rate
is per cent, our high rate per cent
on mortgage loans. Isn't this SO?
Suppose you pass obstruction laws
to delay collection, won't they get their
money home soon as possible, and send
it where people don't try to beat the con-
tract by changing the law, and leave us
TO our limited home capital at higher
rates? But you tell me these lawyer
friends of yours will fix low rate for
local money ard heavy penalties. That
has been tried over and over and never
succeeded yet. If they fix a price on
corn and its too low, you will stop rails
ing it won't you? So if they fix rate
on money too low, and it can't be got
over, there will be no money to loan:
they will use it to boom real estate, ana
make a thousand and one hundred
as they did in 1885, Why not have
a law thai no man shall make over
10 per cert a year in real estate?
Now, Mr. Editor, have some more l
could say, but I'll wait for the other side.
My theory is: Make all debts secure and
collection prompt, then we get low rates:
make them insecure or hamper collec-
ton, and you make rates high. l claim
logic and experience agree on this. We
all know when storekeeper loses one
quarter of what he trusts out because of
bad collection laws, we who buy of him
and do pay are charged enough to cover
these losses, and it is just SO with money;
the greater the risks, losses and delays,
the more he will charge if he
loans at all. But if the politicians
think they can fix limit to the rate of
interest by law, let them try to keep it
down to - per cent by law for two
years, and see how it works, and not try
in the face of monetary laws that have
existed since borrowing and lending be-
gan-that any law that is a blow at
credit, is twice as hard blow at the
borrowing or debtor class, as it is at the
creditor class; and upsetting laws that
existed when debts were made, is the
worst blow that credit can get.
Poor FARMER.
Topeka, Kansas.