Omaha daily bee., 1890-04-18
THE MONEY SHARKS.

OMAHA, Neb., April 16.-To the Editor Of
The BEE.-This is the heading of the leading
editorial in the last SUNDAY Bee in which
the following incidental passage appears:
But this superabundance OF money affords
no relief to the western farmer When ln
mortgages his farm he is made To pay double
interest. The broker who ncgotiatcs his on,
makes MIN sign mortgage at per cent and
then charges him "A commission Of per cent
which he cmbodies into a note and places ON
record as Il second mortgage.
This IS one species of pen pictures of the
western farmers distress, which are so read.
lily reflected by the eastern press and produces
alarm cries like the following recently re-
ceived by the writer of this communications
from European investor in Nebraska farm
mortgages:
Frankfort write me bad accounts OF western
farm mortgages They say they won't tOnch
them. A great deal of money is being lost in
them and stock exchanges in the east have re-
fused to quote them. Farming in Nebraska is
described as being in u terrible state. I wish
you had given us bonds on city and not farm
mortgages.
Now, it would seem to be questionable
service to the farming community, and qucs-
tlonable patriotism to create an impression
abroad that the chief industry of the state
was i'll languishing condition, even il thA
facts justified it; yet this tho pretending
friends of the farmer are zealously doing
Is it really true that farming in Nebraska
Is in Il terrible state. Is ii fact that the Ne
braska farmer is the victim of the "hgh-iu-
terest shark.' Show me Il farmer in Ne
braska who submits to such treatment as is
depicted in the above extract from TUE BEES
Sunday editorial and | will show YOU ono
with whom farming is an experiment or "A
makeshift, or whose farm is sand hill or "a
swamp, which he considers well sold Us soon
as he succeeds in procuring ii loan upon it at
any interest rate. Can such farmers be set
up as the representatives of the agricultural
class of the state: Fact is that the intelli-
gent and thrifty farncr-and the
majority of the Nebraska farmers
are of this class-can obtain cheap
money from the trust companies even more
readily than the intelligent and thrifty
merchant obtains it from the bank
Let me show you more cheerful picture
and one nearer the truth than those painted
by the pretended friends of the farmer, who
actually do more to weaken their capacity to
command cheap money than to enhance it,
The loan record Of the Equitable trust com
pany of Omaha, the oldest institution OF its
kind in the city, showed us Nebraska farm
loans, aggregating $l59,3 800, maturing April !,
1890. Interest on all these loans had always
been promptly paid, and the company offered
to renew these loans for new period of hvo =,
years at the rate of I per cent without addi->
tional charge of any kind whatever. If the
mortgagors had been in distress and the rul-
ing rates per cent interest and per cent
commisSon-this offer of per cent money
would certainly be considered boon to the
suffering. What are the facts. OF these l1S
loans l0l were paid off in full, six in part and
only seventy-one renewed indicating that tho
mortgagors were prosperous and are yet, OF
that other money sharks offer TO renew the
expiring loans at even lower rates than per
cent.
Granted, however, that even the best farm.
er is not laying up treasure at present any
faster than the generality of our merchant
the balance cannot with justice be attache"
to the agencies that supply him with wort'Inf
capital and interpose their guarantee betwrei
llsNr. NNKr.aF. .Ia,. I-
dence of the fact that our farms produce TOO
much of the food staples that are most easily
grown in this region more than can be con
sumed from year to yeari A greater variety
in crops will do much to make farming more
remunerative; our budding beet sugar indus.
try will prove the beginning of "A new era ol
prosperity and other industries will Develop
in good time C., b, ;.