Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1889-02-21
THE OTHER SIDE.
A s'Poor Farmers" Idea of Keeping
Our Credit Good.
BUCKEYE TWP, Feb. 10.

many things to be taken into account
in discussing this matter and it seems
to me one of the most important Is
keeping good the credit of the State
Kansas does not wish to have the idea
90 forth that she is on the verge OF
bankruptcy. The following article
from the Kansas Farmer expresses my
views exactly.
Some time ago 1 saw in your paper
and l 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. l have al
ways noticed that when the politicians
want to get a fat place, they begin by
| pattiDg US on the back, telling us
E'what poor condition we are in, and
how they are going to lun for the Leg
islature, and make laws to jump on the
capitalists, and give US free rides and
free money"
Now am no "spring chicken" For
more than a quarter of century L
have studied economic questions.
When they wanted to initiate the cur
rency, wanted them to initiate my cap
ital if they knew how. Icould get cur
rency enough if L only had capital
enough; and so it is about this reduc-
ing rates of interest. Plenty OF loose
or loanable capital.-not fixed capital
and safe security is the only thing that
ever did or will make money loan cheap,
and putting too much of what capital
we have got into fixed capital, or pi S =
ing laws that hurt our credit, will
make interest high. In a new State
like this, we all come here about as
Door 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 4
per cent a 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 good it is plenty,
when our credit is low it is scarce; and
l have watched the papers, and never
yet learned where any law of any Leg
islature, 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 L read
right sometimes money of some kinds is
awful cheap and loans at 2 per cent
per year, and at other times, when it
is in great demand, it loans higher
than here, say per cent a month.
Now we have got law that lets us off
from paying over II per cent, yet lots
of fool farmers are paying "a per cent.
What l want to say is, don't want
my farmer friends to be deceived by
their would-be politician friends. Their
theory seems to be, if you make it diff
cult and expensive to collect debt.
the farmer will be helped, while l tell
him he will suffer for it, if in debt now,
or he waits to borrow hereafter. Take
those Eastern money lOanerS before
their day; "a per cent. was our low 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? Sup
pose 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-
trict 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 fOl
local money and heavy penalties. That
has been tried over and over and never
succeeded yet. If they fix a price OF
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 10 IN;
they will use it to boom real estate. |
and make a thousand with one hundred
as they did in 1886. Why not have a
law that no man shall make over 10 per
cent. year in real estate?
Now, Mr.. Editor, have some more
could say, but I'll wait for the other
side. My theory is: make all debts Sc
cure, and collection prompt, then We
get low rates; make them insecure, OF |
hamper collection, and you make rates |
high. l claim logic and experience |
agree on this. We all know Wien
store keeper loses one quarter of what |
he trusts out because of bad collection |
avs, We who buy of him and do pay |
ire charged enough to cover these
osSes, and it is just so with money:
he greater the risks, losses and delays
he more he will charge if he loans al
III. But if the politicians think they
AN fix limit to the rate of interest by |
aw, let them try 20 keep it down to
per cent. by law for two years, and
zee how it works, and hot try to fly in
he face of monetary laws that have
xisted since borrowing and lending
'egan-that any law that is blow at
redit, is twice as hard blow at the
borrowing or debtor class, as it is al
he creditor class; and upsettiDg laws
hat existed when debts were made, is
he worst blow that credit can get.
Now, Mr.. Editor, whether the
resent Legislature makes any laws
n this subject this winter or not, il
ught to. There are wrongs to be
ighted and the Legislature will find
hat it has made mistake if it does
OF pay attention to the cry for a re-
Modelling of the laws regarding mort
ages and interest. The rate of the |